• Union Minister for Coal and Mines G. Kishan Reddy launched a portal ‘Noble Initiative for Rewarding Mains Aspirants of National Civil Services Examination (NIRMAN)’.

• In alignment with Mission Karmayogi, this is a CSR scheme by Coal India Limited for meritorious youth of its operating districts who have qualified the Preliminary round of UPSC examination (for Civil Services & Forest Service) in 2024. 

• The scheme is aimed towards providing support of Rs 1,00,000 to the Preliminary examination qualified candidates with annual family income less than 8 lakh and belonging to Scheduled Caste, Scheduled Tribe,  female or third gender, who are permanent residents of any of the 39 operational districts of Coal India Limited.

What is Corporate Social Responsibility (CSR)?

• The concept of Corporate Social Responsibility (CSR) is generally understood to mean that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications. 

• It is a continuing commitment by business to perform ethically and contribute to economic development while sustainable growth for the society at large. 

• CSR extends beyond philanthropic activity and entails the company to act beyond statutory requirements and to integrate social, environmental, and ethical concerns into the company’s vision and mission.

• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.

What is the CSR framework in India?

1) Legislation and governance:

• CSR in India is governed by Section 135 and Schedule VII of the Companies Act, 2013, along with the Companies (CSR Policy) Rules, 2014.

• These rules outline the criteria for CSR eligibility, implementation, and reporting.

2) Eligibility criteria:

Companies must undertake CSR activities if they meet any of the following criteria:

• Net worth of Rs 500 crore or more.

• Annual turnover of Rs 1000 crore or more.

• Net profit of Rs 5 crore or more.

3) CSR spending requirement:

• Eligible companies are required to spend 2 per cent of their average net profits from the previous three years on CSR activities.

• Before this mandate, CSR was voluntary but companies had to disclose their CSR spending to shareholders.

4) CSR committee:

• Companies meeting the CSR criteria must form a CSR Committee.

• The committee should consist of at least three directors, including at least one independent director.

5) CSR activities:

• The activities to be undertaken are prescribed by the government in Schedule VII of the Companies Act.

6) Penal provisions:

• Non-compliance with CSR spending, transferring, or utilising the unspent amount can result in penalties.

• Companies can be fined between Rs 50,000 and Rs 25 lakh.

• Responsible officers may face imprisonment for up to three years, a fine between Rs 50,000 and Rs 5 lakh, or both.

What are some CSR activities?

The indicative activities, which can be undertaken by a company under CSR, have been specified under Schedule VII of the Act. 

The activities include:

• Eradicating extreme hunger and poverty: Initiatives aimed at addressing and eliminating severe hunger and poverty.

• Promotion of Education, Gender Equality, and Empowering Women: Programmes that promote education for all, support gender equality, and empower women.

• Combating diseases: Efforts to combat Human Immunodeficiency Virus (HIV), Acquired Immune Deficiency Syndrome (AIDS), and other diseases.

• Ensuring environmental sustainability: Activities that ensure environmental sustainability, such as projects for environmental conservation and promotion of eco-friendly practices.

• Contributions to government funds: Contributions to the Prime Minister’s National Relief Fund or other funds set up by the central government for socio-economic development and relief.

• Donations to funds for the welfare of Scheduled Castes, Scheduled Tribes, other backward classes, minorities, and women.

(The author is a trainer for Civil Services aspirants.)