Corporate Social Responsibility Awareness of Employees of Small Scale Industries: An Empirical Study

Corporate Social Responsibility (CSR) has become an inevitable priority for business leaders across the globe in recent times. More and more Indian business organizations embrace the practice of CSR under different names such as corporate sustainability, social responsibility, and corporate citizenship. CSR is concerned with treating the internal and external stakeholders of the firm ethically or in a socially responsible manner and the wider aim of corporate social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporation, for its stakeholders (Hopkins 2003). The Amended Companies Act, 2013 and has obtained legal sanctity. Clauses 134 and 135 of the Act specifies that companies with net worth more than Rs. 500 crores, or turnover more than Rs. 1000 crores, or net profit more than Rs. 5crores are required to constitute a CSR committee to formulate CSR policy for the company. Companies are now obliged to spend a minimum of 2 percent of average net profit earned during preceding three years before formulation of the policy (Singh and Agarwal, 2013). In this article researcher would like to examine the CSR practices and the extent of awareness among employees of small scale industries in Krishna District of A.P.