Corporate Social Responsibility (CSR) is a fast-developing area with frequent new developments. During the Covid-19 pandemic and thereafter, regular notifications have been issued by the Ministry of Corporate Affairs, advising corporates on what expenditures are eligible CSR spend.
The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 has been notified by the Ministry of Corporate Affairs, Government of India on 22nd of January, 2021.
One of the latest such announcements advised that CSR funds could be utilized for creation of awareness and for public outreach on Covid-19 vaccination programme.
By doing so, the Government has tried to build a private-public partnership so as to streamline the CSR funds into tackling the pandemic and to bring the society out from the aftereffects of the pandemic and to bring the economy in the growth trajectory.
Corporate Social Responsibility (CSR) means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act in accordance with the provisions contained in these rules, but shall not include the following, namely: activities undertaken in pursuance of normal course of business of the company: Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject to the conditions that such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act; and details of such activity shall be disclosed separately in the Annual report on CSR included in the Board’s Report.
With the announcement of the Amendment Policy, the Government has sought to bring in more monitoring and reporting of CSR Funds spend. Organisations engaging in implementation of CSR projects will now be required to get themselves registered.
