Corporate social responsibility is one of the modern movements like environmental or tribal movements that have become the buzz word in both business and academic circles. The term ‘Corporate Social Responsibility’ in general can be referred to as a corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare. While this concept developed in the western world, in India the concept of CSR is very old in India as Mahatma Gandhi’s logic of trusteeship is very much like the CSR of modern day world. Over the years CSR has gained importance in India as companies are realizing the importance of investing in CSR for achieving benefits of creating shareholder value, increased revenue base, strategic marking, operational efficiency, better access to capital, human and intellectual capital and lower business chance. CSR has emerged as an effective device that synergizes the efforts of Corporate and the social sector towards sustainable development and development of societal objectives also.
As of today, here in India CSR is governed by a provision in the Companies Act, 2013.The significance appended to this concept can be well gauged from the fact that India is the first nation in the world that mandated CSR spending along with a proper framework to identify potential CSR activities. It is pertinent to mention here that the CSR provisions within the Act are applicable to companies with high annual turnover or net worth or net profit as laid down in the provision that encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. The activities on which the expenditure in this regard can be incurred include eradicating extreme hunger and poverty; Promotion of education, gender equality and empowering women; Combating Human Immunodeficiency Virus, Acquired Immune Deficiency Syndrome and other diseases; Ensuring environmental sustainability; Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women besides others. It deserves a special mention here that companies in India undertook activities on a massive scale under CSR in fight against COVID-19, be it research on fatal virus or preparing the vaccine or helping the needy lot who got indirectly effected by losing jobs and other means of livelihood, thus marvelously fulfilling their due responsibility. While substantial number of companies is already involved in multifarious activities for the welfare of the people of this nation at large, it is unfortunate to find certain business houses hesitating from spending on the public welfare initiatives. It is hoped that all stakeholders will proactively participate in this significant movement which is aimed at bringing wondrous transformation of the greed-driven capitalist economy of which the corporate system is a byproduct. To achieve this objective businessmen and academics will have to cash upon the divine benefits of CSR which can create the scope for further expansion with creation of jobs for their departments besides making more money for their companies. They need to realize the virtues of CSR with other buzz words like people friendly, eco friendly and sustainable development and pave the way for carrying out egalitarian CSR initiatives devoid of any selfish motive.
