As per Companies Act, 2013, a Company covered under Section 135(1) of the Companies Act, 2013 is required to spend 2% of Average net profits of the company made during the three immediately preceding financial years towards Corporate Social Responsibility (CSR).
Corporate Social Responsibility (CSR) implies a concept, whereby companies decide voluntarily to contribute to a better society and a cleaner environment – a concept, whereby the companies integrate social and other useful concerns in their business operations for the betterment of their stakeholders and society in general in a voluntary way.
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