Barriers Experienced by the Private Sector Enterprises When Undertaking CSR Activities

Corporate social responsibility (CSR) refers to the way a company undertakes activities that positively affect the well-being of employees, local communities, the environment and society as whole. These actions are expected to earn the trust and respect from all the stakeholders. CSR is not a cost centre but an effective management tool with multi-dimensional benefits. CSR offers a new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero-sum game. Grounding CSR in the values, purpose and strategy of the business and treating it in entrepreneurial fashion is the way forward. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013 which encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. CSR is viewed as vital tool for improving their competitive edge over their opponents. This research paper moves around developing an understanding about the corporate social responsibility (CSR), delving into its concept and finding out the Barriers experienced by the private sector enterprises when undertaking CSR activities.