Corporate social responsibility
Sunil Bagade
(Querist) 06 May 2010
This query is : Resolved
Hello Sir
Myself Sunil from karnataka. i am presently working Corporate social responsibility concept. i have some doubts relating to it. Kindly help me o solve it
My questions are
whether company has to establish trust or collaborate with NGO to do Corporate social Responsibility work or can it directly do such acts?
whether company law allows the direct involvement of company in such activity or it mandates the formation of trust or collaboration with NGOs?
What all provisions of Companies Act deal with CSR initiatives?
kindly let me know the answer
Akhilesh Kumar
(Expert) 06 May 2010
CSR means Companies have some responsiblities towards the society.They are not only for profit making. They can take initiatives without help of any NGO.They can uplift the society any manner they can.
Sunil Bagade
(Querist) 06 May 2010
Thank you sir for your valuable reply. another thing which i would like to know from you is whether the company has to mention in its object clause of memorandum of association that it is going to take up CSR activities? or without mentioning also can it carry out such task? will that not amount to ultra vires act?
Raj Kumar Makkad
(Expert) 06 May 2010
There is no need to mention specifically in the memorandum of association of company rather it can be started merely by passing a simple resolution. Otherwise also, each and every company is expected to divert some portion of its profits towards social activities.
