Every Company whether private or public, holding or subsidiary or a foreign company or a section-8 company having a net worth of Rs. 500 crore or more or turnover of Rs. 1000 crore or more or net profit of Rs. 5 crore or more need to spend at least 2% of its average net profit for last 3 financial years on corporate social responsibility activities in India. CSR activities includes eradicating hunger, poverty  and hunger, promoting preventive health care, promoting education and gender equlity etc.

CSR committee needs to be constituted by every company in order to carry on CSR activities. The company needs to mention the CSR activities undertaken in the board’s report and the reasons for the same, if not undertaken.