Key Points about Corporate Social Responsibility

Corporate Social Responsibility is a vital initiative that aids in evaluating a company and suggesting better growth factors.

The Injeti Srinivas Committee was formed to formulate laws for the CSR framework, based on clause 135 of the Companies Act, 2013 .

Here are some crucial points on CSR for a detailed study.

• India is one of the first countries to allow CSR spending and create a framework to identify the potential for related activities.
• The CSR provision applies to companies with an annual turnover of Rs.1,000 crores and above or companies with an annual net worth of Rs.500 crore and above.
• This Act mandates companies to establish a CSR committee to recommend a CSR Policy to the Board of Directors.
• Companies are recommended to invest approximately 2% of their net profit in CSR activities over a span of three years.

Candidates preparing for UPSC prelims should be aware that activities conducted under CSR are specified by Schedule VII of the Act. These activities include-

• Promoting gender equality, education and empowering women.
• Working towards the eradication of social issues like poverty and hunger.
• Combating diseases like AIDS, HIV and other life-threatening illnesses.
• Ensuring environmental sustainability.
• Contributing to relief funds like Prime Minister’s National Relief Fund set up by Central or State Government for the welfare of Scheduled Tribes, Scheduled Castes, minorities, other backward classes and women.

In addition to CSR, the Injeti Committee is also responsible for overseeing the IFSCA requirements in India. According to various reports, the second interim report was submitted by the Injeti Srinivas Committee to the chairperson of the International Financial Services Centres Authority on 22nd October 2020.

This report detailed the study on international retail development in IFSC and made several recommendations for sustainable growth.

Recommendations Made in the IFSCA Report

• The report recommended that Indians and NRI should be allowed to buy life insurance policies from companies set up in IFSC. This provision enables Indians to pay premiums in the currency of their choice.
• The IFSCA will have its headquarters at GIFT city , Gandhinagar.
• Non-Resident Indians can purchase portable life insurance policies. This policy will provide NRI’s flexibility to pay premiums in Indian currency.
• Insurance companies can offer insurance products to family members of NRI’s and Indians.
• These insurance products cover accidents, baggage losses, travel and lost documents.
• Indians can buy Overseas Health Insurance facilitated through intermediaries in IFSC.
• Asian and African insurance companies will offer services in India.
• IFSC will become an aviation insurance hub globally.
• Indian investors will set up insurance companies for sustainable growth.

It's also worth noting that Injeti Srinivas has proposed to include home buyers as financial creditors under IBC housing projects. This ensures power to hold construction-based companies accountable.

Students preparing for the competitive exam can follow this article on the Injeti Srinivas Committee for detailed study. They can also check educational portals and news reports to find recent updates on the Injeti Srinivas Committee for UPSC exam preparation.