CSR Form-1 Certificate
CSR Form 1 has gradually transformed from a voluntarily adopted concept to a legal aspect of doing business, especially in India. They also provide guidance on the principle that business organizations should work towards not only focusing on profit but also towards the creation of value.
These two approaches lead to improvement of both the economic bottom line and social value, thus improving sustainability and organizational reputation. Laws prevailing in India such as the Companies Act of 2013 have outlined certain CSR spends, which mean that more corporations are engaged in the sustainable development of society.
This article written by Blacktie Legal Services India LLP provides more information on CSR development, categories, importance, eligibility and more. Our aim is to highlight how CSR can not only respond to the needs of businesses but also make a positive contribution to society that promotes stable world.
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What is Corporate Social Responsibility (CSR) ?
CSR Form 1 stands for Corporate Social Responsibility. It’s a concept that encourages businesses to operate in a way that benefits society and the environment, alongside their pursuit of profit.Businesses have a responsibility to the society they operate within. This goes beyond just legal compliance and involves considering the social and environmental impacts of their actions.
NGOs (Non-Governmental Organizations) play a vital role in holding corporations accountable and advocating for social and environmental progress. While CSR (Corporate Social Responsibility) policies are a positive development, NGOs often view them with a critical lens.
Categories of Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) activities can be broadly categorized into several key areas, each addressing different aspects of societal and environmental well-being:
Environmental Responsibility: Sustainable initiatives which involve the reduction of the environmental impact of a firm:
- – Waste management and recycling
- – Conservation of natural resources
- – Pollution reduction initiatives
- – Renewable energy projects
- – Sustainable business practices
Ethical Responsibility: Implementing policies that make the company operations ethical, which is as follows:
- – Fair labor practices
- – Ensuring diversity and inclusion
- – Transparent business operations
- – Ethical sourcing of materials
Philanthropic Responsibility: Philanthropic activities that include direct contribution to the society through the giving of donations as well as participating in charity:
- – The contribution of money or any material resource to non-profit organizations and charities
- – Supporting community projects
- – Supporting educational projects and students
- – Disaster relief efforts
The Importance of Corporate Social Responsibility (CSR)
There are many reasons why CSR can be considered very important, which we have explained below.
Enhancing Corporate Reputation: Many organizations that adopt CSR Form 1 practices usually get a better standing among the consumers, the employees and the investors. A good reputation enhances the chances of customers’ loyalty, attracts talented employees as well as enjoying favorable funding terms from the financial markets.
Risk Management: CSR can allow companies to unveil and manage many risks. Thus, practical actions towards the solution of social and environmental activities also help to prevent possible legal issues, boycotts, or negative images.
Attracting and Retaining Talent: Employees have their own preferences as to what type of company they would like to work for, and most of them would like to be associated with a company that is socially responsible. CSR activities can create a positive image and goodwill of the organization among employees and this improves employee morale and productivity, thereby reducing employee turnover rates.
Customer Loyalty: People are willingly choosing a product being aware of a firm’s corporate social and environmental responsibility. Consumers have a preference for those businesses that operate sustainably and ethically hence any firm that embraces CSR Form 1enjoys the loyalty of consumers.
Innovation and Competitive Advantage: CSR can be especially effective when it comes to promoting innovation because firms start creating new goods, new services or new methods of production that will solve social and environmental issues. It can generate new market segments and it can open up possibilities for firms when compared with rivals.
CSR Applicability in India
In India, CSR is regulated by the Companies Act, 2013 wherein the provision of CSR became mandatory. Under Section 135 of the Act, CSR provisions apply to companies that meet any of the following criteria:
Net Worth: Rupees five hundred crore and above.
Turnover: INR 1,000 crore and above in terms of gross written premium.
Net Profit: Rupees five crores or more in any financial year.
Eligible companies must spend at least 2% of their average net profits of the preceding three years on CSR activities. They are also required to establish a CSR Committee to oversee the implementation and compliance of their CSR policy.
Form 1 CSR
CSR-1 is a registration form created in an online format where the entities can register with the Ministry of Corporate Affairs (MCA) for CSR funding and activities. The form is compulsory for all the entities that are involved in the CSR activities in India, for the corporations newly incorporated under section 8 of the act as well as the public trusts or societies registered under sections 12A & 80G of the income tax Act.
The form has two parts:
Entity information: The details concerning the entity planning on carrying out CSR activities
Professional certification: Certification from a working professional or from a CA, CS or CMA and such other professionals as deemed fit.
Procedure for filing CSR Form 1
CSR-1 is a basic registration for entities desiring to be funded for CSR activities and one has to complete this registration form. Here’s a step-by-step guide to filing it:Here’s a step-by-step guide to filing it:
Step One: Requirements of Document that will be Submitted
* Photocopy of registration certificate of the NGO
* PAN number of the NGO
* The DIN/PAN of the authorized signatory
* Resolution approving the person to file for Form CSR-1.
* DSC of the authorized signatory conforming to the information given on the form.
* Other self declarations (i. e., Form 12A, certificates received under section 80G, NGO Darpan ID).
The second step is to download form CSR-1
* Go to the web-site of Ministry of Corporate Affairs (MCA).
* Click the ‘Forms & Downloads’ sub-tab.
* Go to the official website of NSE and download the Form CSR-1 in zip format.
* Save the file and extract the PDF and open and click on ‘Form_CSR-1’.
The third step is fill Form CSR-1
* Furnish the right details about the NGO you represent/you are involved with.
* The list of other documents to be provided includes identification documents of the authorized signatories for the company and their respective PAN numbers.
* The following documents in the respective formats are to be submitted, All the documents should be attached here.
Step 4: Digital Signature
* Obtain an electronic signature of the mentioned form by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CA) in practice.
Step 5: Submit the Form
* Arrow Submit the digitally signed Form CSR-1 to the MCA portal.
* Pay the necessary fees.
* Submit the form.
Step 6: Acknowledgement
* More to that, after you submit all these documents, you are issued with a CSR Registration Number.
Important Points:
* Make sure the content of attributes is factual.
* Retain the copies of all the documents that have been submitted in the future too.
* Meet the necessary requirements of the deadlines that relate to the filing of Form CSR-1
Corporate Social Responsibility (CSR) Policy
CSR policy is a policy on the guidelines of the actions that should be carried out by a corporation like the one enumerated in schedule VII of the Companies Act, 2013. It is important that these activities should not be in the regular operation of the company’s business. The Act mandates the following in relation to the CSR policy:
- Website Disclosure: The CSR policy must contain the guidelines and the documents related to the policy must be posted on the company’s website by the Board of Directors.
- Implementation of Activities: All the activities enumerated in the CSR policy need to be carried out by the company.
- Collaborative Efforts: The company can have partnership with another firm for purposes of executing projects, programs, or initiating CSR activities. These collaborative programs and projects have to be reported separately by each company.
- Monitoring: CSR policy should have provisions, which provide for monitoring of the projects or programs to check whether they are implemented as planned, and have the desired effect.
Conclusion
Corporate Social Responsibility is a significant factor in the management and operation of companies in today’s society as it focuses on the legal and moral obligations. CSR is more than a compliance activity for organizations as it opens up a chance for them to be socially responsible in respect of their effect on the community and the environment. Blacktie Legal Services India LLP is committed to helping all businesses navigate the complexities of CSR and ensure that they meet all legal obligations while contributing to sustainable development.
What we can offer ?
Blacktie Legal Services India LLP specialize in consulting or facilitating CSR initiatives for other businesses. Here’s how company can contribute to CSR through services:
Consulting: Blacktie expertise in sustainability, social impact, or philanthropy can offer consulting services to help other businesses develop and implement effective CSR strategies.
Impact Measurement: We can offer services to help other businesses measure the social and environmental impact of their CSR initiatives. This data helps assess effectiveness and identify areas for improvement.
Partnership & Platform Creation: Blacktie can create platforms or programs that connect businesses with social causes or volunteer opportunities. This streamlines engagement and maximizes impact.
Supply Chain Management: Blacktie can offer services to help other businesses implement ethical sourcing practices throughout their supply chain.
Cause Marketing: Marketing agencies can help design campaigns that combine promoting a product or service with supporting a social cause. This raises awareness for both the NGO and the cause.
By offering these services, Blacktie can empower others to make a positive social and environmental impact.