UPSC 2024: With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct?

Rule 2(1)(d)(iv) of the Companies (CSR Policy) Rules, 2014 clearly states that any activity ‘benefiting employees of the company… or their families’ is NOT eligible CSR expenditure, hence Statement 1 is correct. Section 135(5) of the Companies Act, 2013 mandates that every qualifying company must spend at least 2 % of the average net profits of the preceding three financial years on CSR, so a minimum spend is indeed specified—making Statement 2 incorrect. Therefore only Statement 1 is right. ([studycafe.in](https://studycafe.in/corporate-social-responsibility-csr-a-complete-analysis-98334.html?utm_source=openai))