Permissible Activities under CSR Policies Schedule VII

Permissible activities under CSR Policies, as outlined in Schedule VII of the Companies Act, 2013, focus on social, environmental, and economic development. These include eradicating hunger, promoting education, ensuring gender equality, supporting environmental sustainability, preserving national heritage, and improving health and sanitation. Companies can also contribute to rural development, disaster management, and support national relief funds. These activities aim to foster inclusive growth, enhance the quality of life, and contribute to societal well-being, aligning business objectives with broader social goals.

Permissible Activities under CSR Policies Schedule VII:

• Eradicating Hunger, Poverty, and Malnutrition

One of the key areas under Schedule VII of the Companies Act, 2013 is the elimination of hunger, poverty, and malnutrition. Companies are encouraged to contribute to feeding programs, food banks, or initiatives aimed at improving access to nutritious food for underprivileged communities. Such projects can include providing meals to disadvantaged children, setting up nutrition programs for malnourished populations, and supporting efforts to reduce food insecurity. The focus is on promoting better nutrition and sustainable living conditions, particularly in rural and economically backward areas, to uplift communities out of poverty.

• Promoting Education, Including Special Education

Education is a critical area under CSR activities as listed in Schedule VII. Companies can allocate funds to support both primary and higher education, including scholarships for deserving students. Special education initiatives, particularly for differently-abled individuals, also fall under this category. Supporting the infrastructure of schools, providing digital learning resources, building libraries, and setting up educational programs are essential components of CSR in education. The objective is to create equal access to education, reduce dropout rates, and foster a knowledge-based economy that enhances social development and inclusivity.

• Promoting Gender Equality and Women’s Empowerment

Gender equality is a significant focus of CSR activities. Companies are encouraged to support initiatives that promote women’s empowerment, including vocational training programs, entrepreneurship initiatives, and support for women in leadership roles. CSR funding can also go toward fighting gender-based violence, providing safe spaces for women, and facilitating legal aid for female victims of abuse. This goal aligns with both national and global movements for gender equity, with the aim of creating opportunities for women in areas such as education, employment, health, and entrepreneurship.

• Ensuring Environmental Sustainability

Sustainability is one of the fundamental pillars of CSR, and activities focused on environmental conservation are essential. Under Schedule VII, companies are expected to contribute to activities that ensure the protection of the environment. This could involve waste management, energy conservation, biodiversity conservation, and water management programs. CSR can support initiatives such as planting trees, reducing carbon footprints, and implementing renewable energy projects. The objective is to create a balance between industrial development and environmental protection to ensure the well-being of future generations.

• Protection of National Heritage, Art, and Culture

Under CSR policies, companies are encouraged to contribute to the preservation of cultural heritage and promotion of arts. Activities can include supporting museums, art galleries, heritage conservation projects, and cultural festivals. CSR funding can help preserve traditional arts, crafts, and heritage sites while also supporting local artists and performers. Through these initiatives, companies play a role in sustaining and enriching the cultural identity of a nation. It also includes initiatives aimed at promoting indigenous languages and practices to maintain cultural diversity in the face of globalization.

• Rural Development Projects

Rural development is a key area under CSR activities, as it directly impacts the economic and social well-being of rural communities. Companies can invest in infrastructure projects, such as building roads, bridges, and sanitation facilities, or support skill development programs for rural populations. Other initiatives could include access to clean water, affordable housing, and sustainable agricultural practices. By investing in rural development, businesses contribute to reducing the rural-urban divide and provide opportunities for growth and development in underserved areas, contributing to national economic progress.

• Ensuring Health Care and Sanitation

Health care and sanitation form another major CSR focus area. Companies can contribute to healthcare facilities, particularly in rural or underserved urban areas, by supporting medical camps, providing medical equipment, or funding hospital infrastructure. They can also invest in sanitation projects, such as building toilets in rural areas or promoting clean water initiatives. This area aligns with global health initiatives, particularly Universal Health Coverage (UHC), and contributes to reducing public health risks by improving living conditions, reducing disease, and enhancing access to basic healthcare services.

• Contributions to Prime Minister’s National Relief Fund (PMNRF)

Contributions to national relief efforts, such as the Prime Minister’s National Relief Fund (PMNRF), are also permissible under CSR policies. These funds are used to provide immediate relief to victims of natural disasters, accidents, or other emergencies. Companies contribute to this fund to support the government’s disaster response efforts and help communities recover from calamities like floods, earthquakes, and pandemics. This type of contribution is seen as part of the company’s social responsibility toward national disaster management, ensuring swift relief and rehabilitation of affected populations.

• Slum Area Development

Slum area development is another priority under CSR activities. Companies can fund programs that improve the living conditions in slum areas, focusing on infrastructure development, housing, and public health services. This could include building community centers, improving drainage and sanitation systems, or providing access to clean water and electricity. Additionally, companies may engage in vocational training to empower individuals in slums with skills that increase employability. This not only enhances living conditions but also fosters social integration and provides opportunities for upward mobility for marginalized communities.

• Disaster Management, Prevention, and Relief

Lastly, CSR activities under Schedule VII also cover disaster management, prevention, and relief efforts. Companies can contribute to disaster preparedness initiatives, including setting up emergency response teams, providing training for communities to deal with natural disasters, and funding relief operations. CSR funds can support evacuation plans, rehabilitation centers, and relief materials during disasters. By contributing to disaster management, companies help reduce the impact of unforeseen events on vulnerable populations and support long-term recovery efforts, which is crucial for building resilient communities.