CORPORATE SOCIAL RESPONSIBILITY: An Analytical overview

Abstract

In India, Companies Act-2013 has called upon Corporate Houses having a net worth of Rs.500 crore or more, or a turnover of Rs.1000 crore or more, or a net profit of Rs.5 crore or more to have a CSR-spend of atleast 2 per cent of their average net profits of the preceding three years. The Act has identified 12 Activities relevant for CSR-spend. The CSR beneficiaries are those who live in villages and towns. The CSR is an obligation of the companies to discharge their social, economical, legal, ethical, and philanthropic responsibilities to benefit the common people. Business owners, employees and their families, stakeholders, share holders, suppliers, and dealers are excluded from the purview of CSR beneficiaries. Although the CSR-agenda started with effect from 1<sup>st</sup> April, 2014, the compliance of 2 per cent norm is hardly 13.50 per cent of 16000 and odd companies registered with the Ministry of Corporate Affairs. In order to see mandatory 2 per cent spend in CSR activities, some sort of regulatory authority is much sought after. Similarly, companies own subsidiary Foundations formed especially for implementing their CSR activities should be discouraged, rather dispensed with. Instead, Corporate Houses should come together and form a “National Consortium For CSR Interventions”. Besides, atleast 41 per cent of CSR budget should be allocated to NGOs for implementing their CSR activities.