The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore and more, or a net worth of 500 crore and more or a net profit of 5 crore and more.
As per the rules,
Companies to set up a CSR committee consisting of their board members, including at least one independent director.
The act encourages companies to spend at 2% of their average net profit in the previous three years on CSR activities.
The indicative activities, which can be undertaken by a company under CSR have been specified under Schedule VII of the Act.
Only CSR activities undertaken in India will be taken into consideration.
i)Commitment by Management
iii) Developing Policies: Business firms should make policies for purchasing good quality raw materials using superior technology and scientific techniques of disposal and treatment of wastes. Efforts should be made to develop employee skills for the purpose of pollution control.
iv) Complying with Laws: The business organisations must comply with the laws, acts and regulations enacted by the government for prevention of pollution. It should be the duty of all business firms to participate in government programmes relating to management of hazardous substances, clearing up of polluted rivers etc.
v) Periodical Assessment: Regular assessment of pollution control programmes in terms of cost benefit analysis should be done to ensure that they progress in the right direction.
vi) Arranging Workshops: To involve all stakeholders such as suppliers, consumers, employees etc., workshops or seminars should be organised. Through these workshops or seminars, education and training related to environment protection can be provided easily.
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