The corporate sector is encouraged to collaborate with the Government in achieving a balance of economic, social and environmental imperatives. The corporate sector has been voluntarily conducting a lot of activities for the same since long time. However, the Government of India has made it mandatory for all corporate sectors, having net worth of INR 500 crore or more or having turnover of INR 1000 crore or more or having net profit of INR 5 crore or more to form a CSR Committee, which will prepare a CSR policy, recommend the expenditure to be incurred towards the CSR activities and shall monitor the same.

The Corporate Social Responsibility concept in India is governed by Section 135 of the Companies Act, 2013 and Rules made thereunder wherein the criteria has been provided for assessing the CSR eligibility of a company, Implementation and Reporting of their CSR Policies. India having the most elaborated CSR mechanism and implementation strategy has started its journey to set a benchmark in attaining sustainability goals and stakeholder activism in nation building.

Section 135 of the Companies Act, 2013 (page 87)