Deepali Rani Sahoo, Sukanta Kumar Dwibedi
Deepali Rani Sahoo1, Sukanta Kumar Dwibedi2
1Research Scholar, North Orissa University, Baripada, Odisha.
2Principal, Mayurbhanj Law College, North Orissa University, Baripada, Mayurbhanj, Odisha
Volume - 7,
Issue - 1,
Year - 2019
The Companies Act, 2013 promulgated with an objective to make corporate regulation more contemporary, incorporates a provision pertaining to corporate social responsibility. Now companies are in large numbers are voluntarily redressing CSR issues in India. Large corporations have progressively realized the benefit of implementing CSR initiatives where their business operations are located. The industry has responded positively to the reform measure under taken by the government with a wide interest across the public and private sector, Indian and Multi-national companies. The Ministry of Corporate Affairs has adopted the role of an enabler, facilitor and regulator for effective functioning and growth of corporate sector. Government (Central and State) also decided to bring out a set of voluntary guidelines for responsible business which will add value to the operations and contribute towards the long term sustainability of the business. These legal frame work and guidelines prompted companies to run their business to produce an overall positive impact on society. The impact on society on a continuous basis by contributing for the economic development and betterment of quality of life of all stake holders. The newly enacted Companies Act, 2013 by which corporate are under binding to obligation to commit a certain percentage of income / profit to Corporate Social Responsibility. The will critique the relevant provisions, i.e. Section 135 of the Act, 2013, the language of which makes it difficult to enforce penalty since theme is a mere requirement of self assessment and disclosure. Companies with profits are required to spend 2 percent of their average not profit over the preceding three years on Corporate Social Responsibility and rule will apply from fiscal 2014-15 onwards. However, the provisions shall only apply to such companies with a turnover of Rs.1, 000 crore or more or net profit of Rs. 5 crore or more. On failure to spend the amount, the companies are only required to provide reasons in the annual statement and not liable for penalty. The objective of this study analysis the Section-135 under Companies Act, 2013, Implications of Article 135, findings some ambiguity towards CSR laws towards CSR expenditure. In this connection the author proposed some suggestion to ministry of Corporate Affairs and Conclusion.
Cite this article:
Deepali Rani Sahoo, Sukanta Kumar Dwibedi. Implications of Corporate Social Responsibility in India under the new Companies Act-2013-A Legal Analysis. Int. J. Rev. and Res. Social Sci. 2019; 7(1):107-115. doi: 10.5958/2454-2687.2019.00009.1