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Before 2013, Indian companies largely spent on social causes voluntarily under government guidelines. Which development marked the shift to a statutory CSR framework for qualifying companies?

The shift came with the Companies Act, 2013, which introduced a statutory CSR provision and Schedule VII activities, effective from FY 2014-15. Earlier 2009 guidelines were only voluntary, and BRSR is a disclosure format rather than the source of the spending obligation.

  1. AIntroduction of the Voluntary Guidelines on CSR in 2009 only
  2. BEnactment of the Companies Act, 2013 with a CSR provision and Schedule VII activitiesCorrect
  3. CAdoption of the UN Global Compact by India
  4. DIntroduction of SEBI's BRSR format for all companies

Explanation

The Companies Act, 2013 introduced the statutory CSR provision (Section 135) with Schedule VII, effective from FY 2014-15, requiring qualifying companies to constitute a committee and spend as prescribed. The 2009 guidelines were voluntary, and BRSR is a reporting format, not the source of the mandate.

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