Corporate Social Responsibility (CSR) in present scenario

Traditionally, CSR in India has been seen as a charitable activity, it was an activity that was performed but not deliberated. Corporate Social Responsibility means “the responsibility of enterprises for their impacts on society”. To completely meet their social responsibility, enterprises “should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders.” This policy sets out the company's commitment and approach towards Social responsibility based on our legacy of “Giving Back to Society.” The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its disclose-or-explain mandate, is promoting greater transparency and disclosure. This Act has introduced several provisions which would change the way Indian corporate to do business and one such provision is spending on Corporate Social Responsibility (CSR) activities. Section 135 of this Act prescribes a mandatory CSR spend of 2% of PBT for companies with net worth of Rs. 500 Crore or turnover of Rs. 1000 Crore or net profit of Rs. 5 Crore. CSR, which has largely been voluntary contribution, by corporate has now been included in law. CSR provisions, as laid down under the 2013 Act provide benefit to children, women, uneducated, and unemployed as CSR activities may be focused on them. Schedule VII of the Act, which lists out the CSR activities, suggests communities to be the focal point.