Physics Wallah is an Indian edtech platform that provides accessible & comprehensive learning experiences to students from Class 6th to postgraduate level. We also provide extensive NCERT solutions, sample paper, NEET, JEE Mains, BITSAT previous year papers & more such resources to students. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.
We Stand Out because
We provide students with intensive courses with India’s qualified & experienced faculties & mentors. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.
Our Key Focus Areas
Physics Wallah's main focus is to make the learning experience as economical as possible for all students. With our affordable courses like Lakshya, Udaan and Arjuna and many others, we have been able to provide a platform for lakhs of aspirants. From providing Chemistry, Maths, Physics formula to giving e-books of eminent authors like RD Sharma, RS Aggarwal and Lakhmir Singh, PW focuses on every single student's need for preparation.
What Makes Us Different
Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others
Corporate Social Responsibility and Its Legal Framework FAQs
What is Corporate Social Responsibility and Its Legal Framework in India?
Corporate Social Responsibility and Its Legal Framework in India refers to the mandatory obligation under the Companies Act, 2013, requiring eligible companies to contribute to social development through defined activities.
Which companies fall under the purview of Corporate Social Responsibility and Its Legal Framework?
Corporate Social Responsibility and Its Legal Framework applies to companies with a net worth of ₹500 crore or more, turnover of ₹1000 crore or more, or net profit of ₹5 crore or more in any financial year.
What are the main legal provisions under Corporate Social Responsibility and Its Legal Framework?
Corporate Social Responsibility and Its Legal Framework is governed by Section 135 of the Companies Act, CSR Policy Rules 2014, and Schedule VII, which outlines the permissible CSR activities.
Corporate Social Responsibility and Its Legal Framework
Check the essentials of Corporate Social Responsibility and Its Legal Framework, covering its evolution, compliance rules, and impact on businesses committed to ethical growth.
Muskan Verma2 May, 2025
Share
Corporate Social Responsibility and Its Legal Framework is a concept that has gained immense relevance in recent years. It reflects the commitment of businesses to conduct their operations in a socially responsible and ethical manner. This includes taking into account the interests of all stakeholders, including employees, customers, communities, and the environment while striving for economic growth. In India, Corporate Social Responsibility and Its Legal Framework has evolved into a crucial aspect of corporate governance, especially with the enactment of specific statutory requirements under the Companies Act, 2013.
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR) refers to the ethical duty of companies to contribute positively to society while conducting their business. Historically, Indian corporations like the Tatas and Birlas have voluntarily engaged in community initiatives. However, the formalization of Corporate Social Responsibility and its legal framework under the Companies Act, 2013, marked a significant shift. With this move, CSR activities became a mandatory requirement for certain classes of companies.
Evolution of CSR in India
The journey of Corporate Social Responsibility and its legal framework in India formally began in 2014 with the introduction of Section 135 under the Companies Act, 2013. This made India the first country to mandate CSR by law. Companies meeting certain financial thresholds are required to spend a part of their profits on CSR activities. This was further strengthened by the Companies (CSR Policy) Rules, 2014, and subsequent amendments, especially those effective from January 22, 2021.
Applicability Criteria Under CSR Law
Corporate Social Responsibility and its legal framework apply to companies that, during any financial year, meet any one of the following criteria:
Net worth of Rs. 500 crore or more
Turnover of Rs. 1000 crore or more
Net profit of Rs. 5 crore or more
These companies are required to constitute a CSR committee and ensure a minimum spending of 2% of the average net profits of the previous three financial years on CSR activities.
Legal Framework Governing CSR in India
Corporate Social Responsibility and its legal framework is primarily governed by the following components:
Section 135 of the Companies Act, 2013: This is the core legal provision detailing the obligations of eligible companies.
CSR Policy Rules, 2014: These rules guide the formulation, implementation, and monitoring of CSR activities.
Schedule VII: This lists the activities that are permissible under CSR, such as promoting education, gender equality, environmental sustainability, and rural development projects.
MCA Clarifications and Amendments: The Ministry of Corporate Affairs periodically releases clarifications and FAQs to address practical challenges and ensure effective implementation.
CSR Committee and Its Responsibilities
A key feature of Corporate Social Responsibility and its legal framework is the requirement to constitute a CSR Committee. This committee, comprising at least three directors (including one independent director), plays a crucial role in:
Formulating and recommending a CSR policy
Recommending the amount to be spent
Monitoring the implementation of CSR projects
Companies with a CSR obligation of less than Rs. 50 lakh are exempt from constituting this committee, and its functions can be undertaken by the Board itself.
Implementation and Monitoring
As part of Corporate Social Responsibility and its legal framework, companies can implement CSR projects either directly, through their foundations, or by partnering with external implementing agencies. Implementing agencies must be registered and have a proven track record in conducting similar activities. Regular monitoring, impact assessment for large projects, and submission of utilization certificates ensure transparency and accountability.
Ongoing Projects and Fund Transfers
Corporate Social Responsibility and its legal framework also provide clarity on fund utilization. If CSR funds remain unspent at the end of a financial year, companies must:
Transfer the unspent amount related to ongoing projects to a special Unspent CSR Account within 30 days.
Ensure utilization of these funds within three financial years.
If not utilized, the funds must be transferred to a fund specified in Schedule VII.
Non-Compliance and Penalties
Non-compliance with Corporate Social Responsibility and its legal framework results in penalties. Companies failing to spend the CSR amount face monetary penalties, including twice the unspent amount or up to Rs. 1 crore, whichever is less. Directors responsible may also be penalized.
Exclusions from CSR Activities
Not all activities qualify under Corporate Social Responsibility and its legal framework. Excluded activities include:
Spending on activities for the exclusive benefit of employees
Political donations
Activities undertaken in the normal course of business (with limited exceptions)
Benefits of CSR for Companies
Corporate Social Responsibility and Its Legal Framework encourages companies to actively pursue CSR not only for compliance but for long-term strategic advantage. Key benefits include:
Reputation and Goodwill: A proactive CSR approach enhances a company's public image and builds trust.
Stakeholder Engagement: Well-planned CSR initiatives foster stronger relationships with employees, communities, customers, and regulators.
Sustainable Business Practices: CSR aligns business goals with broader societal interests, promoting long-term growth.
Corporate Social Responsibility and its legal framework reflect a significant transformation in the corporate mindset. The objective is not just regulatory compliance but a genuine effort to contribute to nation-building. With companies aligning their business strategies with CSR mandates, there is a growing commitment to inclusive development and sustainable growth. As the legal structure evolves, businesses are expected to adopt innovative approaches that not only fulfill legal mandates but also create a lasting positive impact on society.
Join PW CS Online Courses and build a strong foundation in corporate laws and governance with structured learning and dedicated support.
