• UGI USER
  • Jul 26, 2024
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TOP 500 FIRMS TO IMPLEMENT CSR-BASED INTERN QUOTA SYSTEM

Why in the news?

  • Government to negotiate with the top 500 companies to establish a voluntary quota system for internships.
  • Quota to be determined based on each company’s Corporate Social Responsibility (CSR) expenditure.
source:slideshare

About Corporate Social Responsibility (CSR) in India:

  • Defined as corporate responsibility for environmental and social impacts.
  • Improves societal aspects and boosts brand image.
  • Mandatory for:
    • Companies with a net worth of ₹500 crores or more.
    • Companies with a turnover of ₹1,000 crores or more.
    • Companies with a net profit of ₹5 crores or more.
  • Governed by Clause 135 of the Companies Act, 2013.
  • Requires a CSR committee to oversee policy and spending.
  • Mandates 2% of average net profit spent on CSR.
  • Activities include poverty eradication, education, gender equality, disease combat, environmental sustainability, and contributions to national relief funds.
Key Highlights of Indian Companies Act 2013:

  • Private Limited Company can now have up to 200 members (formerly 50).
  • Introduction of One-Person Company (OPC).
  • Section 135 mandates Corporate Social Responsibility (CSR) activities.
  • Establishment of Company Law Tribunal and Appellate Tribunal.