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CS Professional · CSR and Social Governance · Social Governance

Kaveri Pharma Ltd. is liable under Section 135 of the Companies Act, 2013. Its board approves a CSR project to be executed through Jan Seva Society, an unrelated registered society. Which statement correctly describes the respective roles?

The board approves the annual action plan and monitors implementation, while the society executes the project as the implementing agency. The company stays accountable for the spend and outcomes; the agency is only the delivery partner, and no government pre-approval of each project is needed.

  1. AThe board is only a donor and has no duty to monitor the project
  2. BThe board approves the annual action plan and monitors implementation, while the society executes the project as implementing agencyCorrect
  3. CThe government department must approve each CSR project before the board
  4. DThe society decides the company's CSR policy and spending limit

Explanation

Under the CSR framework the board approves the CSR policy and annual action plan on the CSR Committee's recommendation and ensures funds are spent as approved. An eligible implementing agency, such as a registered society with CSR registration, carries out the project. No prior government approval of each project is required.

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