Govt notifies much-awaited rules for corporate social responsibility

The government has notified much-awaited rules for corporate social responsibility (CSR) that has in its ambit a wide range of activities including livelihood enhancement projects and steps for the benefit of armed forces veterans.

 The Ministry of Corporate Affairs has notified the CSR rules and they would come into effect from 1st April.

Under the new laws that govern companies, spending on CSR or social welfare activities is mandatory for certain class of firms.  They are required to shell out at least 2 per cent of their three-year average annual profit towards such works.  In an official release on Thursday, Corporate Affairs Minister Sachin Pilot said the rules have been finalised after extensive consultations with all stakeholders.

Under the new laws that govern companies, spending on CSR or social welfare activities is mandatory for certain class of firms.  They are required to shell out at least 2 per cent of their three-year average annual profit towards such works.