The evolving phase of Corporate Social Responsibility in India
What is CSR?
In simple words, Corporate Social Responsibility is termed as ‘the ethical behavior of a company towards the society'. It also acts as a means to achieve sustainable development of an organization. In fact, Corporate Social Responsibility is about integrating economic, environmental and social objectives with a company's operations and growth. An organization can achieve sustainable development only if its Corporate Social Responsibility (CSR) activities are an integral part of its business process.
CSR in India
As far Corporate Social Responsibility in India is concerned, it has been slowly developing over the last 4 decades, but has taken a giant leap forward in the last five years. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013. The CSR provisions within the act are applicable to companies with an annual turnover of 1,000 crore INR and more, or a net worth of 500 crore INR and more, or a net profit of five crore INR and more. The act encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities.
Being observed as a philanthropic activity, Corporate Social Responsibility (CSR) in India is very much in line with the Indian tradition. Due to which there is limited documentation available of particular activities related to CSR. However, it is very much evident that much of this has a national character encapsulated within it.
Recent studies suggest that the practice of Corporate Social Responsibility in India still remains within the philanthropic space but shifted from institutional building (educational, research and cultural) to society development through myriad projects. With the changing dynamics of society and augmented global influences, there appears to be a discernible trend, while CSR remains largely restricted to community development.
Today, a large number of companies have started paying close attention to their CSR activities that became an integral part of their business processes. Even companies allocate specific budgets for their CSR activities. These CSR activities are often determined by social philosophy with clear objectives aligned with the mainstream business. Not only social organizations but employees also remain an important contributor to these activities that range from community development to education, environment and healthcare etc. In addition, corporates join hands with Non-governmental organizations (NGOs) and use their expertise in formulating programs aimed at addressing various social issues. These corporates work together to make a significant difference to the society.
In simple words, Corporate Social Responsibility is termed as ‘the ethical behavior of a company towards the society'. It also acts as a means to achieve sustainable development of an organization. In fact, Corporate Social Responsibility is about integrating economic, environmental and social objectives with a company's operations and growth. An organization can achieve sustainable development only if its Corporate Social Responsibility (CSR) activities are an integral part of its business process.
CSR in India
As far Corporate Social Responsibility in India is concerned, it has been slowly developing over the last 4 decades, but has taken a giant leap forward in the last five years. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013. The CSR provisions within the act are applicable to companies with an annual turnover of 1,000 crore INR and more, or a net worth of 500 crore INR and more, or a net profit of five crore INR and more. The act encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities.
Being observed as a philanthropic activity, Corporate Social Responsibility (CSR) in India is very much in line with the Indian tradition. Due to which there is limited documentation available of particular activities related to CSR. However, it is very much evident that much of this has a national character encapsulated within it.
Recent studies suggest that the practice of Corporate Social Responsibility in India still remains within the philanthropic space but shifted from institutional building (educational, research and cultural) to society development through myriad projects. With the changing dynamics of society and augmented global influences, there appears to be a discernible trend, while CSR remains largely restricted to community development.
Today, a large number of companies have started paying close attention to their CSR activities that became an integral part of their business processes. Even companies allocate specific budgets for their CSR activities. These CSR activities are often determined by social philosophy with clear objectives aligned with the mainstream business. Not only social organizations but employees also remain an important contributor to these activities that range from community development to education, environment and healthcare etc. In addition, corporates join hands with Non-governmental organizations (NGOs) and use their expertise in formulating programs aimed at addressing various social issues. These corporates work together to make a significant difference to the society.