Corporate Social Responsibility under the Companies Act, 2013: Compliance Challenges and Strategic Management Approaches

When the Companies Act, 2013, came into force, one of its most talked-about provisions was Section 135, which made Corporate Social Responsibility (CSR) mandatory for certain companies in India. [ The Companies Act, 2013, Sec-135, No. 18, Acts of Parliament, 2013 (India).]Before this law, CSR was mostly a voluntary effort by businesses – something they did out of goodwill or to improve their image. But after 2013, it became a legal requirement. Companies that meet specific financial criteria now have to spend at least 2% of their average net profits from the last three years on social and environmental activities listed in Schedule VII of the Act.