Integrating Society & Business Through Corporate Social Responsibility (CSR)
Religious Charity and Philanthropy were the watch words of social responsibility in India for many years.

The government realised the great potential that Corporates could offer in developing the country in many areas that suffer from deficits. The key areas being education, healthcare, water, energy, food, land, housing, sanitation, waste management, transport system and many more. The leaders of the country, in the government and the corporate world, realised the urgent need to overcome all these deficits, as they were limiting our economic growth and prosperity. 

However, perhaps none of these is as critical as the deficit in Education. Education was seen as the best platform to enable the youth to be self reliant and truly free to compete in the world markets.

This thought process gave birth to the concept of Regulated CSR by the Passing of Companies Act, 2013. The Companies Act, 2013, was cleared by Parliament after almost a decade of deliberation. This new law ushers in the element of corporate social responsibility. The key stipulations relating to CSR are as follows:
  • Every company having a net worth of INR 50 crore or more, or a turnover of INR 1,000 crore or more, or a net profit of INR 5 crore or more, during any financial year, shall constitute a Corporate Social Responsibility Committee of the Board, consisting of three or more directors, of which at least one director shall be an independent director. 
  • The Company shall spend, in every financial year, at least two per cent of the average net profit of the company during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

The list of activities which may be included by companies in their Corporate Social Responsibility Policies include Promoting of education apart from many other activities.

The Companies Act, 2013, signals the start of a new chapter in the history of CSR in India. It is hoped that the effective implementation of this Act will enable a number of companies to work towards CSR, with focus on long-term goals.

There are marked benefits for Corporate Bodies undertaking CSR as a long-term commitment…….. These benefits are:
  • Improved Reputation
  • Improved Engagement with the Community
  • Improved Enabling Conditions by creating better conditions for conducting their own business.
  • CSR can become inputs for innovation and competitive strategy in understanding the society the company does business with.
  • CSR as an Engine for Growth on many verticals for the company.