Where should companies invest to fulfill the requirements of Corporate Social Responsibilities?
The Companies act require companies to spend certain amount of profit to invest in CSR. Where can companies spend to fulfill its CSR requirements?
The activities that can be undertaken by a company to fulfil its CSR obligations includes
• eradicating hunger, poverty and malnutrition,
• promoting preventive healthcare,
• promoting education and promoting gender equality,
• setting up homes for women, orphans and the senior citizens,
• measures for reducing inequalities faced by socially and economically backward groups,
• ensuring environmental sustainability and ecological balance,
• animal welfare,
• protection of national heritage and art and culture,
• measures for the benefit of armed forces veterans, war widows and their dependents,
• training to promote rural, nationally recognized, Paralympic or Olympic sports,
• contribution to the prime minister's national relief fund or any other fund set up by the Central Government for socio economic development and relief and welfare of SC, ST, OBCs, minorities and women,
• Contributions or funds provided to technology incubators located within academic institutions approved by the Central Government and rural development projects.
However, in determining CSR activities to be undertaken, preference would need to be given to local areas and the areas around where the company operates.
Greatest thing is that contribution to political parties is not considered as CSR activity.