Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 signifies a shift from voluntary philanthropy to a mandatory legal obligation for qualifying companies to contribute towards social and environmental development. It applies to companies with a net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more in a financial year.

Such companies must constitute a CSR Committee and spend at least 2% of their average net profits from the past three years on CSR activities listed in Schedule VII—which includes areas like education, healthcare, gender equality, and environmental sustainability. The provision ensures corporate accountability and encourages businesses to integrate social development into their operational ethos. Non-compliance now attracts penalties, further emphasizing the seriousness of CSR obligations. Thus, Section 135 reflects a legal and ethical commitment of corporates to participate in nation-building and inclusive growth.

Section 135 of the Companies Act mandates that certain companies allocate a portion of their profits towards Corporate Social Responsibility (CSR) activities. This provision aims to integrate social and environmental considerations into business operations, promoting sustainable development and societal well-being.