A STUDY ON THE ROLE OF DIRECTORS IN THE REALM OF CORPORATE SOCIAL RESPONSIBILITY TO ENSURE SOCIETY’S SUSTAINABILITY – AN ANALYSIS OF COMPANIES ACT, 2013 – AN INDIAN PERSPECTIVE

Abstract

The author in this paper discussed about the importance of corporate social responsibility which has been made mandatory in Companies Act 2013. She also throws light on Seventh Scheduled of the Act on corporate social responsibility to perform activities mentioned under the schedule which will lead to society’s sustainability. According to Companies Act in India, a company is a legal entity and it is represented by board of directors and it is the responsibility of the director to implement the provisions of the companies Act 2013. The amendments made to Companies Act in 2013 specifically directs the companies to constitute a CSR committee consisting of Directors and Independent directors of the Company which is responsible for implementation of the CSR and Sustainability Development initiatives. The amendments made to the Act in 2013 extended these provisions to all companies both public and private, listed and non-listed. Till September 2018,as per the law companies which are having a turnover of  1,000 crores or net profit of 5,000 crores consecutively for last three years are only covered under this legislation but on 19th September, 2018 the act is amended and this clause of turnover net profit has been taken out thus any company registered under company law irrespective of the turnover and average net profits come under the purview of this legislation  Hence, this paper becomes more important to understand the latest amendments of Companies Act with reference to Corporate Social Responsibility and Sustainability Development policy framing and its implementation.