CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a budding and significant part of an organization’s inclusive policy. The voluntary adherence to social and ecological responsibilities of companies is called Corporate Social Responsibility. It is fundamentally a concept whereby corporations decide willingly to pay back to society for the resources used by it by providing a cleaner environment and undertaking social causes. It is an idea whereby organizations incorporate social and ecological concerns into their business activities and their interaction with their stakeholders on a willful premise. It is represented by commitments embraced by organizations to society through its business exercises and social investments. CSR is also attached to the idea of sustainability, which argues that enterprises should make decisions based not only on obvious factors such as profits or dividends but also based on the instant and long term social and ecological consequences of their actions. It is generally defined as an idea whereby the enterprise voluntarily decides to contribute to the betterment of society and a cleaner environment. It suggests that companies amalgamate social and other useful concerns in their business operations for the betterment of various stakeholders and society in general in a voluntary way. Highlights of the 2019 Amendment are:

New Provisions: until now the scope of CSR spending by the companies did not acknowledge the research & development aspect as CSR activity nevertheless, it included funding to technology incubators within centre-approved academic institutions.

Unspent CSR Amount: In case the company is unable to spend its CSR fund in a given particular year in accordance with its policy then the company must transfer such free amount into a different account within a period of 30 days from the end of the financial year.

Penal Liability- Following the 2019 Amendment, If an enterprise violates the provisions of sub-section (5) or sub-section (6), the company shall be made liable with a fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees Amendment of section 132. Amendment of section 135.

CSR in Case New Companies: It has now been made clear in the Amendment that if the enterprise has not finished 3 (three) years from incorporation, the money to be spent on a CSR fund will be equal to 2 percent of the net profits made by the company in the previous financial year (as against average net profits made by the enterprise in 3 (three) immediately preceding financial years)
Central Government to possess law framing Power: As per the Amendment, the central government has been given the power to make rules and issue directions to make sure there is compliance.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.