Polity
1.CSR Constitutional Obligation (CSR Mandate)
Times of IndiaCompanies Act 2013 · Section 135 · Article 51A(g)
What & Where
Corporate Social Responsibility (CSR): statutory corporate duty integrating social, environmental, ethical concerns into operations
Origin: Companies Act 2013, Schedule VII; Supreme Court now embeds ecology as inseparable CSR element
Scope: All India-registered companies crossing Section 135 financial thresholds
Quick Facts for MCQs
Legal & Policy
- Companies Act 2013 Section 135 mandates CSR committee at board level
- Schedule VII lists permissible CSR areas; environment explicitly included post-SC ruling
- Non-compliance needs disclosure and transfer of unspent amounts to designated funds within six months
Financial Thresholds
- Thresholds assessed on preceding financial-year standalone figures
- Average net profit per Section 198; excludes CSR spends, capital gains, extraordinary items
- Minimum 2 % spend can be pooled across group companies if reported separately
Constitutional Angle
- SC cites Article 51A(g) making ecological protection a fundamental duty for citizens and corporates
- Environmental CSR spending deemed constitutional obligation, not charity, promoting sustainable development
- Verdict elevates corporate accountability, aligning with Directive Principles and public trust doctrine
Key Data Points
| Feature | Data-Point |
|---|---|
| Governing law | Companies Act 2013 |
| Relevant section | Section 135 |
| Mandatory spend | ≥ 2 % average net profit (last 3 yrs) |
| Eligibility net worth | ₹ 500 crore + |
| Eligibility turnover | ₹ 1,000 crore + |
| Eligibility net profit | ₹ 5 crore + |
| Constitutional reference | Article 51A(g) |
Related UPSC Prelims PYQs
GS1 2024PYQ 1
भारत में निगमित सामाजिक उत्तरदायित्व (CSR) नियमों के संदर्भ में, निम्नलिखित कथनों पर विचार कीजिए:
GS1 2025PYQ 2
Consider the following statements:
