The government has initiated awards for CSR activities, as a major aspect of endeavors to boost companies to take up work towards social welfare, and invited applications for nomination.
The Corporate Affairs Ministry, which has implemented the Companies Act, has asked firms to send their nominations by June 18,2017. Under the Act, the profitable companies is required to utilize at least 2 per cent of their 3-year average annual net profit towards corporate social activities.
The government has instituted the first National Corporate Social Responsibility (CSR) Awards to recognise “companies that have made a positive impact on the society through their innovation and sustainable CSR initiatives”.
The key focus areas will be human development, economic development, social welfare, environment and sustainable development. The companies have been classified on the basis of annual profit – those having Rs 5 crore or more in 2015-16.
According to the Companies Act 2013 with effective from April 1,2014, each company having a net worth of at least Rs 500 crore, minimum turnover of Rs 1,000 crore or a net profit of Rs 5 crore or more are required to spend on CSR. In case of non-spending, the company concerned is required to provide reasons for the same to the ministry.