What is the state of Corporate Social Responsibility (CSR) in India?

State of Corporate Social Responsibility in India State of Corporate Social Responsibility – Since the framework for corporate spending on community came into force in 2014-15, Indian business companies have spent over Rs 1 trillion on social development projects under corporate social responsibility, according to a top official in the ministry of corporate affairs. Corporate social... Read More

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State of Corporate Social Responsibility in India

State of Corporate Social Responsibility – Since the framework for corporate spending on community came into force in 2014-15, Indian business companies have spent over Rs 1 trillion on social development projects under corporate social responsibility, according to a top official in the ministry of corporate affairs.

Corporate social responsibility (CSR) is a self-regulatory business model that corporations can use to be socially responsible in India. A firm can be aware of its impact on economic, environmental, and social concerns by practicing corporate social responsibility.

CSR is a broad concept, according to the Companies Act of 2013. Depending on the organization and sector, it can take many different shapes. CSR initiatives can assist strengthen the link between firms and their employees, in addition to having a positive impact on society. Both employers and employees may feel better connected as a result of it.

To be socially responsible, the company must first and foremost be accountable to both itself and its shareholders. Companies typically implement CSR programmes once their businesses have matured to the point where they can contribute back to society.

State of Corporate Social Responsibility

As a result, major firms are more likely to develop CSR programmes.

It is also legally binding. A certain class of profitable firms is required by the Companies Act of 2013 to spend at least 2% of their three-year annual average net profit on CSR activities in a given financial year.

Companies must spend on CSR activities if they have a net worth of at least 500 crore rupees, a minimum turnover of Rs 1,000 crore, or a net profit of Rs 5 crore or more in the previous financial year.

Corporate social projects come in a variety of shapes and sizes. There is corporate philanthropy, which involves a firm making charitable donations through a corporate foundation. There may be voluntary activities organised by the firm. Companies can engage in socially responsible business practises such as ethical product development. There may also be advocacy campaigns funded by the firm.