CORPORATE SOCIAL RESPONSIBILITY

Business is a part of the society.In fact it owes its existence to the society.Therefore it is the responsibility of the business to work for the benefit of the society and avoid causing harm to them.This is the main idea behind corporate social responsibility. In the real sense,the assumption of social responsibilities implies recognition and understanding the needs of the society and contribute to its achievement.Corporate social responsibility is the commitment and activities of an organisation to meet the society’s economic,environmental and social expectations.

DIMENSIONS OF CORPORATE SOCIAL RESPONSIBILITY

1. Traditional corporate philanthropy,i.e,  charity for social and religious purposes.
2. Focus on sustainable development and attending stakeholders priorities ,i.e, meeting the present needs without disturbing the needs of future generations.
3. Ethical business based on social values and the stakeholder’s long term interest,i.e,it should conduct business which is morally correct.

CORPORATE SOCIAL RESPONSIBILITY MANDATE UNDER COMPANIES ACT,2013

Section 135  of the act lays down that every company having net worth of rupees 500 crore or more,or turnover of rupees 1000 crore or more, or a net profit of rupees 5 crore or more during any financial year shall constitute a Corporate social responsibility Committee of the Board and spend 2% of their profits of preceding three financial year towards social activities.

CSR COMMITTEE: It shall consist of three or more directors out of which at least one director shall be an independent director.The major functions of this committee is to formulate CSR policies and monitor it time to time.

CSR POLICY: The list of CSR activities which a company could pick are;

• eradication of hunger and poverty
• promotion of education
• promoting gender equality and empowering women
• reducing child mortality and improving maternal health
• ensuring environmental sustainability
• social business project
• reducing pollution
• afforestation and decreasing deforestation
• creating awareness about social issues
• contribution to the Prime Minister’s National Relief Fund or any other fund set up by the government
• any other activity as prescribed by the government.

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