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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Corporate Social Responsibility (CSR)

Veda Textiles Ltd, which meets the section 135 thresholds, has an approved CSR Policy. Its Board asks the CSR Committee what the Policy must indicate about the activities the company will undertake. Which statement correctly reflects the statutory requirement?

The CSR Policy must indicate the activities the company will undertake in the areas or subjects specified in Schedule VII. The Act does not restrict it to employees, one State or named beneficiaries; local area is only a preference when spending.

  1. AThe Policy must indicate activities to be undertaken in areas or subjects specified in Schedule VIICorrect
  2. BThe Policy must list only activities that benefit the company's own employees and their families
  3. CThe Policy must be limited to activities in the State where the registered office is situated
  4. DThe Policy must name each beneficiary individually before the Board can approve it

Explanation

Section 135(3)(a) requires the CSR Committee to formulate and recommend a policy indicating the activities to be undertaken in areas or subjects specified in Schedule VII. The other options add restrictions that the Act does not contain; local area is only a matter of preference, not a limit.

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