Question

Which of the following statements accurately describe Corporate Social Responsibility (CSR) initiatives related to startups?

1. The Companies Act, 2013, allows companies to use CSR funds for approved Technology Business Incubators (TBIs).
2. CSR funds can be directed towards registered not-for-profit organizations that support startups.
3. The KSUM CSR Program facilitates the deployment of CSR funds to support innovative startup ideas.
4. CSR initiatives are exclusively for direct funding of established businesses.

• A. All
• B. 1, 2, 3
• C. 2, 3
• D. None of these

Answer 1

Answer:

B. 1, 2, 3

• Corporate Social Responsibility (CSR) is a business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

• By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

• The Companies Act, 2013, in India, has specific provisions mandating CSR expenditure for certain companies.

• These provisions allow for contributions to be made to various entities, including approved Technology Business Incubators (TBIs) and registered not-for-profit organizations that play a role in supporting the startup ecosystem.

• The Kerala Startup Mission (KSUM) CSR Program is an initiative designed to channel these corporate funds towards nurturing innovative ideas and supporting early-stage startups.