Corporate Social Responsibility-2018 (HLC-2018) – Explained
- GS Mains Paper-2
Why in news?
- The government has recently constituted a High Level Committee on Corporate Social Responsibility-2018 (HLC-2018) under the Chairmanship of Injeti Srinivas, Secretary, Ministry of Corporate Affairs (MCA).
- It is aimed to review the existing framework, guide and formulate the roadmap for a coherent policy on CSR.
Reviewing the CSR Framework
- According to MCA, the Committee will review the existing CSR framework as per Act, rules and circulars issued from time to time and recommend guidelines for better enforcement of CSR provisions.
- It will also analyse outcomes of CSR activities/programmes/projects and suggest measures for effective monitoring and evaluation of CSR by companies.
- Suggestions are also expected on innovative solutions, use of technology, platform to connect stakeholders, and social audit.
CSR Framework in India
- The provisions of section 135 of Companies Act, 2013 pertaining to CSR w.e.f 2014 with a view to promoting responsible and sustainable business through inclusive growth.
- As per the said section, the companies having Net worth of INR 500 crore or more; or Turnover of INR 1000 crore or more; or Net Profit of INR 5 crore or more during any financial year shall be required to constitute a Corporate Social Responsibility Committee of the Board.
- The four years of implementation have enabled compilation of data on the number of companies complying with CSR provisions, funds allocated and spent across various sectors, geographical spread of CSR spending, etc.
- The existing provisions of in Companies Act, 2013 with respect to CSR fully empower the Board of a Company to decide on their CSR Policy, approve projects and oversee implementation.