Q28.With a consideration towards the strategy of inclusive growth, the New Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also, discuss other provisions in the bill and their implications.

The Companies Bill, 2013, with an inclusive growth strategy, indirectly mandated Corporate Social Responsibility (CSR) for eligible companies, requiring 2% of average net profits for social activities.

• Defining eligible activities and ensuring genuine impact.
• Monitoring and evaluating CSR projects effectively.
• Building capacity for implementing agencies, especially smaller NGOs.
• Addressing regional disparities in CSR spending.
• Preventing 'greenwashing' or tokenistic compliance.

Beyond CSR, the Bill introduced enhanced corporate governance norms like independent and women directors, investor protection mechanisms such as class action suits and the NCLT, and increased auditor accountability. These provisions foster greater transparency, improve investor confidence, streamline dispute resolution, and establish a robust regulatory framework for ethical corporate functioning.

Overall, the Bill aimed to foster a responsible corporate environment, contributing to broader socio-economic development and inclusive growth through both direct CSR and improved governance.