Why in news?
NTPC Ltd, a central PSU under Ministry of Power and India’s largest power generation company, has won the prestigious CII-ITC Sustainability Award 2019, under Outstanding Accomplishment in Corporate Excellence Category.
- NTPC always strives for sustainable development of its communities around the power stations.
- Its flagship CSR program GEM (Girl Empowerment Mission), a 4 weeks residential program has been institutionalized in the vicinity of its power stations for benefit of school going girls from underprivileged background to support in their overall development.
What is Corporate Social Responsibility?
- The term “Corporate Social Responsibility” is a corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare.
- In India, the concept of CSR is governed by the Companies Act, 2013.
- India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities.
- The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more
- The Act requires companies to set up a CSR committee which shall recommend a Corporate Social Responsibility Policy to the Board of Directors.
- The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities