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Corporate Social Responsibility
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UPSC Prelims 2024 Paper-I 📅 16 Jun, 2024

With reference to Corporate Social Responsibility CSR rules in India, consider the following statements:
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?

A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
Result Summary
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UPSC Prelims
2024 • 16 Jun, 2024 • Paper-I
With reference to Corporate Social Responsibility CSR rules in India, consider the following statements:
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?
Correct Answer
1 only
Economy: Corporate Social Responsibility.Context: CSR Spending.Details: Statement 1 is correct; CSR funds cannot be used for activities that exclusively benefit......
Ref/Book : UPSC Prelims 2024
Ref. Subject Economy
Chapter -
Ref. Topic Corporate Social Responsibility
Pg. No -
💡 Analysis & Explanation
Economy ▼
Corporate Social Responsibility.
Context ▼
CSR Spending.
Details ▼
Statement 1 is correct; CSR funds cannot be used for activities that exclusively benefit the employees of the company or their families. Statement 2 is incorrect; Section 135 of the Companies Act legally mandates qualifying companies to spend at least 2 percent of their average net profit of the preceding three years on CSR activities.
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