CSR in context of Companies Act 2013 and SMEs

India is a country of myriad contradictions. On the one hand, it has grown to be one of the largest economies in the world, and an increasingly important player in the emerging global order, on the other hand, it is still home to the largest number of people living in absolute poverty (even if the proportion of poor people has decreased) and the largest number of undernourished growth which many believe, is the root cause of social unrest. Companies too have been the target of those perturbed by this uneven development and as a result, their contributions to society are under severe scrutiny. With increasing awareness of this gap between the haves and the have-nots, this scrutiny will only increase over time and societal expectations will be on the rise. Many companies have been quick to sense this development, and have responded proactively while others have done so only when pushed. Responsibility Reports mandated by the SEBI for the top 100 companies and the CSR clause within the Companies Act, 2013 are two such instances of the steps taken. The paper attempts to build a common understanding of the concept of CSR and the provisions of the Companies Act, 2013.