Corporate Social Responsibility (CSR)
What is the Corporate Social Responsibility (CSR)?
Corporate Social Responsibility (CSR) is a self regulating business model that allows companies to be socially accountable to themselves, their stakeholders, and the public. It involves integrating social and environmental concerns into business operations and decision-making processes, contributing positively to society and the environment. It plays a crucial role in how brands are perceived by customers and can enhance a company’s reputation and sustainability efforts
Care India a Non-Profit Organisation, who are undertaking CSR activities on behalf of the companies. The objective of this registration is to ensure the CSR activities conducted and CSR Funds acquired by the NGOs in the country are monitored effectively. The Government of India made CSR registration mandatory for NGOs with effect from April, 2021.
It is registered under Section 12AB and Section 80G of the Income Tax and has at least 3 years of undertaking charitable activities.
Important Note: CSR spending through an unregistered Non Profit Organisation is not eligible for counting towards CSR activities.
Conclusion
Hence, an NGO shall be allowed to receive CSR funds from a company only if it is registered under CSR by filing form CSR 1. It is mandatory for these companies / entities to file e-Form CSR 1 with the Registrar of the Companies to register themselves with the Central Government for undertaking any kind of CSR activity. It also means that the companies cannot spend CSR funding through an unregistered NGO. It is also important to note that entities registered u/s 10(23(c) of the Income Tax Act are not eligible to file Form CSR-1.
Definition of CSR
Corporate Social Responsibility (CSR) refers to a company’s voluntary actions to create a positive impact on society, the environment, and all stakeholders, beyond what laws or regulations require. It encompasses a wide range of practices aimed at promoting ethical behavior, sustainability, and community engagement.