Corporate Social Responsibility ( CSR) Initiatives by Companies in India.

A short description of Corporate Social Responsibility.

Corporate social responsibility is an activity of any company's vision towards the welfare of society. It is a concept that suggests that it is the responsibility of the corporations operating within society to contribute towards economic, social, and environmental development that creates a positive impact on society at large.

Corporate Social Responsibility in India

Companies Act 2013 is landmark legislation that made India the first country to mandate and quantity CSR expenditure. The implementation of CSR is an initiative by the government to make business accounts or engage it into the national development agenda.
According to the amendment in section 135 of the companies act 2013, and was made effective from 1st April 2014. The key feature of this amendment was that all the companies, Private or Public Limited companies having a net worth of Rs.5 crore or turnover of Rs 1000 crore, or a net profit of 5 crores will have to spend at least 2 % of its average net profit the immediately preceding 3 financial years on its Corporate Social Responsibility (CSR) initiatives.

Current Scenario

In the last two years, Indian Companies have invested mostly in Education, skill development, health care & sanitation, rural development projects, and the environment after being assigned to allocate a position of their profits towards social development.
In a reply from the Ministry of Corporate Affairs, 460 listed firms have disclosed their spending of Rs.6337.36 crore in 2014-15. Out of which, 51 PSUs that spent Rs 2,386.60 crore,266 firms spent less than 2 percent of the average profit.
The above-given data shows that since the last few years companies have concentrated on CSR initiatives which result in social and community development.

Post a Comment