Corporate Social Responsibility (CSR) in India has evolved from ancient philosophical ideals of societal well-being to becoming mandatory for large companies under the Companies Act of 2013. Key provisions require companies meeting certain thresholds to spend 2% of profits on CSR activities focused on issues like poverty, healthcare, education, and the environment. Recent amendments have strengthened CSR guidelines by making spending mandatory, introducing penalties for non-compliance, and allowing set-off of excess spending. Education and healthcare have received nearly half of CSR expenditures so far, which have grown significantly in recent years and are expected to further support achievement of national sustainable development goals through initiatives like the new Social Stock Exchange platform.
Corporate Social Responsibility, CSR amendments under the Companies (Amendment) Act, 2019, Benefits of CSR, Management of Socially Responsible Business, Pyramid of CSR, Economic Responsibility, Legal Responsibility
Ethical Responsibility, Philanthropic Responsibility, discretionary responsibility, Section 135 and Schedule VII of Companies Act, Entries in Schedule VII, Types of CSR activities under Schedule VII of the Companies Act 2013, Business Ethics, CSR of Business Towards Stake Holders, Social Responsibilities of Business Towards Different Stakeholders-SHAREHOLDERS, GOVERNMENT, CUSTOMERS, EMPLOYEES, SOCIETY, Reasons for Businesses to Engage in CSR, Social Responsibility ----
Arguments for/ in favour of Social Responsibility of Business, Social Responsibility ----
Arguments Against Social Responsibility of Business, CSR Activities of Companies
Corporate social responsibility an opportunity to improve the status of soc...CA. (Dr.) Rajkumar Adukia
This article will provide us the overall idea about corporate social responsibility from root level to top level. The main motive behind the formation of this concept is the economic contribution of companies to society
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
1. Corporate social responsibility in India is evolving from a focus on business philanthropy to broader activities integrated into core business strategy, in response to legal/regulatory pressures and public opinion.
2. CSR frameworks include the triple bottom line of economic, social and environmental responsibilities. Carroll's pyramid also outlines CSR as including economic, legal, ethical, and philanthropic responsibilities.
3. For developing countries like India, CSR focuses more on philanthropic responsibilities due to cultural and economic factors. The government regulates CSR through laws requiring companies to spend on social projects.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to be more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
The document provides an overview of a handbook on corporate social responsibility (CSR) in India developed by PwC India for the Confederation of Indian Industry (CII). It discusses the context and need for the handbook. The chairman of CII's Development Initiative Council emphasizes that the Companies Act, 2013 formally introduced the mandate for CSR for Indian companies and that the handbook can help equip companies to strategically implement CSR. The chairman emeritus of Fortis Healthcare Limited notes that while philanthropy is not new to Indian companies, some may struggle with CSR and that the handbook will help streamline dialogue within the industry. The handbook aims to assist companies in effectively pursuing CSR activities aligned with the Companies Act by
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to become more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core business operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
Corporate Social Responsibility, CSR amendments under the Companies (Amendment) Act, 2019, Benefits of CSR, Management of Socially Responsible Business, Pyramid of CSR, Economic Responsibility, Legal Responsibility
Ethical Responsibility, Philanthropic Responsibility, discretionary responsibility, Section 135 and Schedule VII of Companies Act, Entries in Schedule VII, Types of CSR activities under Schedule VII of the Companies Act 2013, Business Ethics, CSR of Business Towards Stake Holders, Social Responsibilities of Business Towards Different Stakeholders-SHAREHOLDERS, GOVERNMENT, CUSTOMERS, EMPLOYEES, SOCIETY, Reasons for Businesses to Engage in CSR, Social Responsibility ----
Arguments for/ in favour of Social Responsibility of Business, Social Responsibility ----
Arguments Against Social Responsibility of Business, CSR Activities of Companies
Corporate social responsibility an opportunity to improve the status of soc...CA. (Dr.) Rajkumar Adukia
This article will provide us the overall idea about corporate social responsibility from root level to top level. The main motive behind the formation of this concept is the economic contribution of companies to society
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
1. Corporate social responsibility in India is evolving from a focus on business philanthropy to broader activities integrated into core business strategy, in response to legal/regulatory pressures and public opinion.
2. CSR frameworks include the triple bottom line of economic, social and environmental responsibilities. Carroll's pyramid also outlines CSR as including economic, legal, ethical, and philanthropic responsibilities.
3. For developing countries like India, CSR focuses more on philanthropic responsibilities due to cultural and economic factors. The government regulates CSR through laws requiring companies to spend on social projects.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to be more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
The document provides an overview of a handbook on corporate social responsibility (CSR) in India developed by PwC India for the Confederation of Indian Industry (CII). It discusses the context and need for the handbook. The chairman of CII's Development Initiative Council emphasizes that the Companies Act, 2013 formally introduced the mandate for CSR for Indian companies and that the handbook can help equip companies to strategically implement CSR. The chairman emeritus of Fortis Healthcare Limited notes that while philanthropy is not new to Indian companies, some may struggle with CSR and that the handbook will help streamline dialogue within the industry. The handbook aims to assist companies in effectively pursuing CSR activities aligned with the Companies Act by
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to become more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core business operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
The document is a message from the Chairman of CII's Development Initiative Council introducing a handbook on corporate social responsibility (CSR) in India developed by PwC for CII. It notes that the Companies Act, 2013 formally introduced a CSR mandate for Indian companies and many companies will undertake CSR initiatives for the first time. It states that the handbook can play an important role in equipping companies for structured CSR engagement by providing guidance on developing CSR strategies and programs. The Chairman hopes the handbook will be a significant step towards building an equitable society and meeting the challenge presented by the new CSR requirements in the Companies Act.
This document discusses various models and frameworks related to corporate social responsibility (CSR). It outlines the trusteeship and stakeholder models of CSR, as well as the ethical model. It also discusses the international framework for CSR and how businesses' activities can span globally. Finally, it introduces the 17 United Nations Sustainable Development Goals, which provide a framework for countries and companies to work towards social and environmental sustainability goals by 2030.
Concept of Corporate social responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion
Corporate social responsibility (CSR) in India involves businesses integrating social and environmental concerns into their operations. The Companies Act of 2013 requires listed Indian companies to spend on CSR activities such as eradicating hunger and poverty, promoting education, and ensuring environmental sustainability. During the COVID-19 pandemic, CSR played an important role as companies supported government initiatives and undertook additional social responsibility projects. Leading Indian companies like Infosys and TATA Group have set benchmarks for CSR and are seen as good corporate citizens due to their socially responsible strategies and stakeholder relations. While CSR benefits companies' reputations, it also helps address social and environmental problems through partnerships between businesses and government.
This document discusses the evolution of corporate social responsibility (CSR) in India through four phases from pre-industrialization to the modern era. It describes the meaning of CSR and the types of social responsibilities companies have, including legal, ethical, philanthropic, and economic responsibilities. The key aspects of CSR discussed are corporate responsibility, social accounting, corporate sustainability, and social contract. The need for CSR and issues around implementing CSR initiatives like lack of community participation and transparency are also summarized.
Provisions for Corporate Social Responsibility in Companies Act, 2013RHIMRJ Journal
CSR as a concept has attracted worldwide attention and acquired a new resonance in the global economy Heightened
interest in CSR in recent years has stemmed from the advent of globalisation and international trade, which has reflected in
increased business complexity and new demands for enhanced transparency and corporate citizenship. Moreover, while
Governments have traditionally assumed the sole responsibility for the improvement of the living conditions of the population,
society’s needs have exceeded the capabilities of Governments to fulfill them. In this context, the spotlight is increasingly
turning to focus on the role of business in society and progressive companies are seeking to differentiate themselves through
engagement in what is referred to as CSR. The Companies Act, 2013 has taken one step ahead and introduced mandatory
provisions in the field of CSR. Though many believe that concerns on the new company law are manifold and it is a bold yet
not beautiful step. For instance, India Inc is concerned that the cost of board performance evaluation may outweigh the
benefits for many small companies in this regard. Also, it has concerns about the prospect of an over regulated regime and the
attendant scourge of corruption. Given the advantages and concerns on the new regulations introduced by the new Companies
Act, we all need to wait and watch once the companies start implementing the new provisions and therefore, the practical
aspects and implications will be evaluated thereafter.
CORPORATE SOCIAL IRRESPONSIBILITY IN INDIAAnkit Dabral
This document discusses corporate social responsibility (CSR) in India, including its origins, meaning, and current practices. It provides an overview of CSR provisions in the Companies Act of 2013, which mandates that companies meeting certain criteria must spend 2% of their net profits on CSR activities listed in Schedule VII, such as poverty alleviation, education, and environmental protection. Non-compliance requires companies to provide reasons. The draft rules clarify that CSR activities must benefit India and cannot include activities for employees. An estimated 6,000 companies will need to undertake CSR projects to comply with the new law, potentially amounting to 20,000 crore INR in commitments. For small and medium enterprises just meeting the profit criteria, engaging in CSR may
This document discusses corporate social responsibility (CSR) in India. It provides background on CSR, defining it as companies managing business processes to have an overall positive social impact. CSR was first discussed academically in the 1950s and is now mandatory for large companies in India under the Companies Act of 2013. The document outlines drivers and significance of CSR, as well as challenges in implementation, such as building local capacity and lack of transparency. It provides a checklist for evaluating CSR programs and concludes that while the Companies Act is a step forward, clear guidelines and transparency are still needed for CSR to be fully realized in India.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The document defines corporate social responsibility (CSR) as a company integrating social and environmental concerns into its business operations and interactions with stakeholders. It discusses the history and evolving definitions of CSR. CSR refers to businesses operating in a manner that meets ethical, legal, and public expectations by establishing values, transparency, and accountability. It involves businesses balancing economic, social, and environmental interests of shareholders and stakeholders.
This document discusses corporate social responsibility (CSR) in India, including its dimensions and challenges. It begins by providing background on CSR and defining it as companies integrating social and environmental concerns voluntarily into their business operations and interactions with stakeholders. The document then examines drivers of CSR like demands for disclosure, customer and investor pressure. It outlines dimensions of CSR like economic, legal, ethical and discretionary responsibilities. Challenges of CSR in India are also summarized, such as lack of community participation, need to build local capacities, issues of transparency and non-availability of clear guidelines. Examples are provided of CSR practices by Indian companies Reliance and Tata.
From Philanthropy to Mandatory CSR: A Journey towards Mandatory Corporate So...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document discusses the evolution of corporate social responsibility (CSR) in India from philanthropy to mandatory CSR. It notes that traditionally, CSR in India was seen as philanthropic activity performed voluntarily by companies. However, global influences and demands from communities have made CSR more strategic and linked to business. The Companies Act of 2013 introduced CSR to the forefront in India and mandates disclosure of CSR activities. The objective of the study is to analyze the rationale for making CSR spending mandatory in India given its development needs and uneven distribution of growth benefits.
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a day’s organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
Keywords: Corporate Social Responsibility, Organisations, Companies Act, Charity.
Corporate social responsibility status in indiaTapasya123
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a day’s organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
The document discusses India's new amendment making CSR activities mandatory for large companies. It will require companies with over Rs. 500 crore net worth or Rs. 1,000 crore turnover to spend 2% of their average net profits over three years on CSR initiatives. This is expected to contribute around Rs. 20,000 crore to help address issues like illiteracy, lack of sanitation, and poverty in India. While initially compulsory, the policy aims to benefit communities and incentivize companies to invest in sustainable development practices that consider social and environmental impacts. It may also help companies attract employees and gain trust and goodwill from local stakeholders impacted by their operations.
Fiinovation Dnote Xpress, Issue #10, Jan 2015Fiinovation
#DNoteXpress : Culture of CSR
Dear Reader,
We are pleased to share with you that the 10th issue of “DNote Xpress” is out.
To find out what's new in this edition, please click - http://bit.ly/1LjtG2A
Importance of Annual Information Statement while filing Income Tax Return.pptxtaxguruedu
The Central Board of Direct Taxes (CBDT) has introduced a new functionality in the Annual Information Statement (AIS) for taxpayers, enhancing transparency and accuracy in tax reporting. This new feature allows taxpayers to view the status of their feedback in real-time, ensuring that their financial transactions are correctly reported. In this article, fictional characters Arjuna and Krishna discuss the implications and impact of AIS on filing Income Tax Returns, highlighting the benefits of the new functionality.
Income Tax Regime Dilemma – New VS. Old pdftaxguruedu
The evolution of tax regulations witnessed a significant milestone with the amendments to Section 115BAC of the Income Tax Act, 1961, brought forth by the Finance Act of 2023.
The document is a message from the Chairman of CII's Development Initiative Council introducing a handbook on corporate social responsibility (CSR) in India developed by PwC for CII. It notes that the Companies Act, 2013 formally introduced a CSR mandate for Indian companies and many companies will undertake CSR initiatives for the first time. It states that the handbook can play an important role in equipping companies for structured CSR engagement by providing guidance on developing CSR strategies and programs. The Chairman hopes the handbook will be a significant step towards building an equitable society and meeting the challenge presented by the new CSR requirements in the Companies Act.
This document discusses various models and frameworks related to corporate social responsibility (CSR). It outlines the trusteeship and stakeholder models of CSR, as well as the ethical model. It also discusses the international framework for CSR and how businesses' activities can span globally. Finally, it introduces the 17 United Nations Sustainable Development Goals, which provide a framework for countries and companies to work towards social and environmental sustainability goals by 2030.
Concept of Corporate social responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion
Corporate social responsibility (CSR) in India involves businesses integrating social and environmental concerns into their operations. The Companies Act of 2013 requires listed Indian companies to spend on CSR activities such as eradicating hunger and poverty, promoting education, and ensuring environmental sustainability. During the COVID-19 pandemic, CSR played an important role as companies supported government initiatives and undertook additional social responsibility projects. Leading Indian companies like Infosys and TATA Group have set benchmarks for CSR and are seen as good corporate citizens due to their socially responsible strategies and stakeholder relations. While CSR benefits companies' reputations, it also helps address social and environmental problems through partnerships between businesses and government.
This document discusses the evolution of corporate social responsibility (CSR) in India through four phases from pre-industrialization to the modern era. It describes the meaning of CSR and the types of social responsibilities companies have, including legal, ethical, philanthropic, and economic responsibilities. The key aspects of CSR discussed are corporate responsibility, social accounting, corporate sustainability, and social contract. The need for CSR and issues around implementing CSR initiatives like lack of community participation and transparency are also summarized.
Provisions for Corporate Social Responsibility in Companies Act, 2013RHIMRJ Journal
CSR as a concept has attracted worldwide attention and acquired a new resonance in the global economy Heightened
interest in CSR in recent years has stemmed from the advent of globalisation and international trade, which has reflected in
increased business complexity and new demands for enhanced transparency and corporate citizenship. Moreover, while
Governments have traditionally assumed the sole responsibility for the improvement of the living conditions of the population,
society’s needs have exceeded the capabilities of Governments to fulfill them. In this context, the spotlight is increasingly
turning to focus on the role of business in society and progressive companies are seeking to differentiate themselves through
engagement in what is referred to as CSR. The Companies Act, 2013 has taken one step ahead and introduced mandatory
provisions in the field of CSR. Though many believe that concerns on the new company law are manifold and it is a bold yet
not beautiful step. For instance, India Inc is concerned that the cost of board performance evaluation may outweigh the
benefits for many small companies in this regard. Also, it has concerns about the prospect of an over regulated regime and the
attendant scourge of corruption. Given the advantages and concerns on the new regulations introduced by the new Companies
Act, we all need to wait and watch once the companies start implementing the new provisions and therefore, the practical
aspects and implications will be evaluated thereafter.
CORPORATE SOCIAL IRRESPONSIBILITY IN INDIAAnkit Dabral
This document discusses corporate social responsibility (CSR) in India, including its origins, meaning, and current practices. It provides an overview of CSR provisions in the Companies Act of 2013, which mandates that companies meeting certain criteria must spend 2% of their net profits on CSR activities listed in Schedule VII, such as poverty alleviation, education, and environmental protection. Non-compliance requires companies to provide reasons. The draft rules clarify that CSR activities must benefit India and cannot include activities for employees. An estimated 6,000 companies will need to undertake CSR projects to comply with the new law, potentially amounting to 20,000 crore INR in commitments. For small and medium enterprises just meeting the profit criteria, engaging in CSR may
This document discusses corporate social responsibility (CSR) in India. It provides background on CSR, defining it as companies managing business processes to have an overall positive social impact. CSR was first discussed academically in the 1950s and is now mandatory for large companies in India under the Companies Act of 2013. The document outlines drivers and significance of CSR, as well as challenges in implementation, such as building local capacity and lack of transparency. It provides a checklist for evaluating CSR programs and concludes that while the Companies Act is a step forward, clear guidelines and transparency are still needed for CSR to be fully realized in India.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The document defines corporate social responsibility (CSR) as a company integrating social and environmental concerns into its business operations and interactions with stakeholders. It discusses the history and evolving definitions of CSR. CSR refers to businesses operating in a manner that meets ethical, legal, and public expectations by establishing values, transparency, and accountability. It involves businesses balancing economic, social, and environmental interests of shareholders and stakeholders.
This document discusses corporate social responsibility (CSR) in India, including its dimensions and challenges. It begins by providing background on CSR and defining it as companies integrating social and environmental concerns voluntarily into their business operations and interactions with stakeholders. The document then examines drivers of CSR like demands for disclosure, customer and investor pressure. It outlines dimensions of CSR like economic, legal, ethical and discretionary responsibilities. Challenges of CSR in India are also summarized, such as lack of community participation, need to build local capacities, issues of transparency and non-availability of clear guidelines. Examples are provided of CSR practices by Indian companies Reliance and Tata.
From Philanthropy to Mandatory CSR: A Journey towards Mandatory Corporate So...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document discusses the evolution of corporate social responsibility (CSR) in India from philanthropy to mandatory CSR. It notes that traditionally, CSR in India was seen as philanthropic activity performed voluntarily by companies. However, global influences and demands from communities have made CSR more strategic and linked to business. The Companies Act of 2013 introduced CSR to the forefront in India and mandates disclosure of CSR activities. The objective of the study is to analyze the rationale for making CSR spending mandatory in India given its development needs and uneven distribution of growth benefits.
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a day’s organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
Keywords: Corporate Social Responsibility, Organisations, Companies Act, Charity.
Corporate social responsibility status in indiaTapasya123
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a day’s organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
The document discusses India's new amendment making CSR activities mandatory for large companies. It will require companies with over Rs. 500 crore net worth or Rs. 1,000 crore turnover to spend 2% of their average net profits over three years on CSR initiatives. This is expected to contribute around Rs. 20,000 crore to help address issues like illiteracy, lack of sanitation, and poverty in India. While initially compulsory, the policy aims to benefit communities and incentivize companies to invest in sustainable development practices that consider social and environmental impacts. It may also help companies attract employees and gain trust and goodwill from local stakeholders impacted by their operations.
Fiinovation Dnote Xpress, Issue #10, Jan 2015Fiinovation
#DNoteXpress : Culture of CSR
Dear Reader,
We are pleased to share with you that the 10th issue of “DNote Xpress” is out.
To find out what's new in this edition, please click - http://bit.ly/1LjtG2A
Importance of Annual Information Statement while filing Income Tax Return.pptxtaxguruedu
The Central Board of Direct Taxes (CBDT) has introduced a new functionality in the Annual Information Statement (AIS) for taxpayers, enhancing transparency and accuracy in tax reporting. This new feature allows taxpayers to view the status of their feedback in real-time, ensuring that their financial transactions are correctly reported. In this article, fictional characters Arjuna and Krishna discuss the implications and impact of AIS on filing Income Tax Returns, highlighting the benefits of the new functionality.
Income Tax Regime Dilemma – New VS. Old pdftaxguruedu
The evolution of tax regulations witnessed a significant milestone with the amendments to Section 115BAC of the Income Tax Act, 1961, brought forth by the Finance Act of 2023.
Pre Budget Memorandum 2024-25-Tax Base, Avoidance, Litigations.pptxtaxguruedu
The Pre Budget Memorandum for Union Budget 2024-25 lays out a strategic roadmap for enhancing India’s taxation framework. Addressing critical areas such as tax base expansion, avoidance mitigation, litigation reduction, and Direct Tax Laws rationalization, the memorandum seeks to shape a tax ecosystem that is responsive, fair, and conducive to economic growth.
Trial Courts Cannot Impose Life Imprisonment till Last Breath- Karnataka HC.pptxtaxguruedu
The legal landscape in India witnessed a significant development on July 18, 2023, as the Karnataka High Court delivered a landmark judgment in the case of Harish vs. State of Karnataka. This judgment, rendered by a learned Division Bench comprising Hon’ble Mr. Justice K Somashekar and Hon’ble Mr. Justice Rajesh Rai K, addressed a critical issue concerning the authority of Trial Courts to impose “special category sentences” or life imprisonment without the possibility of remission, commonly referred to as imprisonment till the last breath of the convict.
Environmental, Social, and Governance (ESG) issues have become increasingly important in the global business landscape, with Indian companies no exception to this trend. In recent years, ESG materiality assessment has emerged as a crucial tool for Indian companies to identify and prioritize ESG factors that are most relevant to their business operations.
Significant Beneficial Ownership (SBO) rules are a crucial aspect of corporate governance, ensuring transparency in the ownership structure of companies. Under Section 90 of the Companies Act, 2013, individuals holding a significant stake in a company must declare their beneficial ownership. Companies Act, Companies Act 2013, Significant Beneficial Owner
Common Traits Among Tax Advocates, CAs and Financial Professional.pptxtaxguruedu
. Tax advocates, CAs, economists, and their counterparts play pivotal roles in shaping financial policies, ensuring compliance with regulations, and driving economic growth. Their deep analysis and speculative skills are the compass guiding nations through the intricate labyrinth of finance.
Income Tax for New Tax Return Filers- FAQs.pptxtaxguruedu
This article provides a detailed overview of income tax, including its definition, the administrative framework, return filing period, who is liable to pay tax, how to pay tax, precautions in tax payment, advance tax calculation, income tax challans, Form 26AS, exempt income, taxable income, maintaining books of account, professions, and the period for which records should be kept. It also covers topics such as revenue receipts, capital receipts, agricultural income, and relief from double taxation.
Understanding the Different Stages of a Criminal Trial in Warrant Cases.pptxtaxguruedu
In the Indian legal system, warrant cases are serious offenses that carry punishments such as death, life imprisonment, or imprisonment exceeding two years. The trial for warrant cases begins either through the filing of a First Information Report (FIR) or a complaint to a magistrate.
Taxability of Receipts under section 68 of Income Tax Act, 1961.pptxtaxguruedu
Income Tax Act 1961, provides statutory powers to the parliament to levy and collect tax on the income of the persons. The act provides 5 different natures of income called as 5 heads of income under which an income is taxed. Apart from these 5 heads of income there is another category of income which is treated separately and tax accordingly and that is undisclosed income or the black money.
Problem of Invisible Labor In India.pptxtaxguruedu
The current article focuses on the absence of documentation and registration of employees, mostly made up of the informal class of workers, who are known as the invisible labour workforce since they cannot be discovered to be recognised as being legally employed.
Commonly Used International Valuation Standards.pptxtaxguruedu
Some say valuation is an art. If this is true then so is the concept that art without rules can never reach its true potential and cannot flourish. Hence it is important that valuers follow certain guiding principles when doing valuations. Luckily for us we have in hand International Valuation Standards (IVS) issued by the The International Valuation Standards Council (IVSC). In this article we shall look at the few of the earliest issued and most commonly used IVS.
Audit documentation means records of audit procedure performed by an auditor during an audit procedure. sometimes it is also commonly known as ‘working papers of an auditor’. So question comes what is purpose of audit documentation in audit ?? There are several purpose of audit documentation such as :
Understanding IND AS 12 – Accounting for Income Taxes.pptxtaxguruedu
Introduction to IND AS 12 IND AS 12, also known as Accounting for Income Taxes, is a standard issued by the Institute of Chartered Accountants of India (ICAI) that prescribes the principles and methods for accounting for income taxes. This standard applies to all entities that are required to prepare financial statements in accordance with Indian Accounting Standards (IND AS).
Promising Future of Green Hydrogen- How it is Poised to Revolutionize Energy ...taxguruedu
Green hydrogen is a clean and renewable energy source that is produced by using renewable electricity to split water molecules into hydrogen and oxygen. This process is called electrolysis, and when it is powered by renewable energy sources such as solar or wind power, it produces green hydrogen. Green hydrogen has a wide range of potential uses, including
Audit trail :- It is an detailed chronological record where accounting ,financial data and other details are tracked and traced .It tracks all kinds of transactions work processes, accounting details and changes made there within and especially MCA has now made it mandatory
PMLA Act and Maintenance of records become more stringent.pdftaxguruedu
The Ministry of Finance has notified an amendment in Prevention of Money-Laundering Act, 2002. The amendment aims to expand the scope of the Act to cover a wide range of cryptocurrency or virtual digital assets (VDA) transactions under the purview of PMLA, 2002
A User-Friendly Guide on Convertible Debt.pptxtaxguruedu
Convertible debt is a type of financial instrument that combines the features of debt and equity. It is a debt instrument that can be converted into equity at a later stage. In this article, we will provide a user-friendly guide on convertible debt, including its features, advantages, and disadvantages.
Youngest c m in India- Pema Khandu BiographyVoterMood
Pema Khandu, born on August 21, 1979, is an Indian politician and the Chief Minister of Arunachal Pradesh. He is the son of former Chief Minister of Arunachal Pradesh, Dorjee Khandu. Pema Khandu assumed office as the Chief Minister in July 2016, making him one of the youngest Chief Ministers in India at that time.
13062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
केरल उच्च न्यायालय ने 11 जून, 2024 को मंडला पूजा में भाग लेने की अनुमति मांगने वाली 10 वर्षीय लड़की की रिट याचिका को खारिज कर दिया, जिसमें सर्वोच्च न्यायालय की एक बड़ी पीठ के समक्ष इस मुद्दे की लंबित प्रकृति पर जोर दिया गया। यह आदेश न्यायमूर्ति अनिल के. नरेंद्रन और न्यायमूर्ति हरिशंकर वी. मेनन की खंडपीठ द्वारा पारित किया गया
2. CSR or Corporate Social Responsibility is a well-known concept and a globally recognized practice today. Though the term was
coined first in 1953, it has gained momentum in the last one or two decades. India is leading the way if we analyze the
current scenario. While CSR is a voluntary activity or is fragmented across multiple statutory requirements worldwide, India
is the first nation to mandate it through the provisions of Companies Act 2013 and Companies (CSR Policy) Rules, 2014. India
is also among the first few nations to establish a Social Stock Exchange which is expected to facilitate utilization of CSR funds
in a more effective and disciplined manner.
Evolution of the concept of CSR
The concept of Corporate Social Responsibility (CSR) has evolved over time, drawing from various historical and philosophical
influences. Here is a revised version: Throughout history, the importance of considering the well-being of all stakeholders in
economic structures has been emphasized. Ancient texts like the Vedas in India advocated for “Sarva loka hitam,” which
means the well-being of all. In Rome, ancient laws prescribed measures such as asylums and homes for the poor and elderly,
reflecting the recognition of social responsibility. The term “CSR” was first introduced by American economist Howard
Bowen in his publication “Social Responsibilities of the Businessman,” earning him the title of the “Father of CSR.” In the
Middle Ages, English Law adopted the concept of corporate social responsibility. In 1971, the Committee for Economic
Development in the United States declared the concept of the “social contract” between business and society. This concept
was based on the understanding that businesses function with public consent and, therefore, have an obligation to serve the
needs of society constructively. This idea is often referred to today as the “license to operate,” which entails contributingto
society beyond the mere sale of products.
3. According to the United Nations Industrial Development Organization (UNIDO), CSR is a business management concept that
involves integrating social and environmental concerns into business operations and interactions with stakeholders. It is seen
as a means for companies to achieve a balance between economic, environmental, and social objectives, while also
addressing the expectations of shareholders and stakeholders. Overall, the evolution of CSR highlights the growing
recognition of the importance of businesses taking responsibility for their impact on society and the environment. It involves
actively engaging in sustainable and socially responsible practices, while considering the well-being of all stakeholders
involved.
CSR in India
The concept of CSR is deep rooted in Indian philosophy. ‘Ramrajya’ is considered as a benchmark for governance which signifies
the importance of social responsibilities since ancient times in India. The great philosopher Chanakya had emphasized on
ethical practices and principles while conducting business. In modern times, philanthropy by Indian corporates is more than
a century old tradition, practiced voluntarily by all frontline corporate houses. Shri Jamsetjee Nusserwanjee Tata, the
founder of Tata group, had established “The J. N. Tata Endowment” in 1892 to award loan scholarships to Indians for
overseas higher studies, based only on individual merit, irrespective of caste, creed, religion or any other factor. Since then,
numbers of philanthropic initiatives are developed by Tata and many other groups in various thematic areas of social
activities. During the independence movement, Mahatma Gandhi introduced the notion of trusteeship, according to which
the industry leaders had to manage their wealth to benefit the common man. With changing times, philanthropy has turned
into Business Responsibility. Every business now needs to be responsible towards protection of environment and upliftment
of society. Sustainability of a business depends heavily on the fact how it handles environmental and social needs. No
responsible business can afford to ignore this aspect anymore. In India, the governmental initiatives started in the year 2007,
with adoption of ‘Inclusive Growth’ in 11th 5-year plan. Later, Ministry of Corporate Affairs (MCA) issued ‘Voluntary
Guidelines on Corporate Social Responsibility, 2009’ as a first step towards mainstreaming the concept of Business
Responsibilities. In July 2011, MCA issued ‘National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business, 2011’ which were further revised in 2015 to align with International Standards and Sustainable
Development Goals (SDGs) and in March 2019, the guidelines were updated and released as ‘National Guidelines on
Responsible Business Conduct’ (NGRBC). NGRBC provides a framework for the companies to grow in an inclusive and
sustainable manner while addressing the concerns of stakeholders.
4. Corporate Social Responsibility (CSR) has been recognized as a tool to incorporate social, environmental, and
human development concerns into the entire value chain of corporate business. The provisions for CSR
were initially introduced in the newly enacted ‘Companies Act, 2013’ under Section 135. These provisions
are supported by the ‘Companies (CSR Policy) Rules, 2014’ and ‘Schedule-VII’. According to these
regulations, every company meeting certain financial thresholds is required to constitute a CSR committee
of the Board. The thresholds include a net worth of ₹ 500 crore or more, a turnover of ₹ 1000 crore or
more, or a net profit of ₹ 5 crore or more during any financial year. The company is then obligated to
ensure that it spends, in every financial year, at least 2% of the average net profits made during the three
immediately preceding financial years, in alignment with its Corporate Social Responsibility Policy. This
emphasizes the importance of companies engaging in responsible practices and making a positive impact
on society through their CSR initiatives. Companies were allowed to undertake CSR activities on their own
or through a registered trust/society or a company established by the company or its holding or subsidiary
or associate company u/s 8 of the Act or otherwise. If such trust/society/company was not established by
the company or its holding or subsidiary or associate company, it was required to have an established
track record of 3 years in undertaking similar programs/projects. Activities includible for CSR were as
follows: (i) eradicating extreme hunger and poverty; (ii) promotion of education;
5. (iii) promoting gender equality and empowering women; (iv) reducing child mortality and improving maternal
health; (v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and
other diseases; (vi) ensuring environmental sustainability; (vii) employment enhancing vocational skills;
(viii) social business projects; (ix) contribution to the Prime Minister’s National Relief Fund or any other
fund set up by the Central Government or the State Governments for socio-economic development and
relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes,
minorities and women; and (x) such other matters as may be prescribed. Initially, the CSR Rules allowed
companies to make corpus contributions for projects or programs related to CSR activities. This means
that companies could contribute a fixed amount of funds towards specific CSR initiatives. Additionally, a
brief report on CSR activities was required to be included as part of the Annual Board Report. This report
provided an overview of the CSR initiatives undertaken by the company during the financial year.
At that time, there were no penal provisions in place for companies that failed to spend the prescribed
amount for CSR expenditure. Instead, companies were required to provide a mention of the reasons for
not meeting the CSR expenditure requirement in the Board Report. This ensured transparency and
accountability by encouraging companies to provide explanations for any deviations from the prescribed
CSR spending. It is important to note that the specific provisions and requirements regarding CSR may
have been subject to amendments or changes since the initial implementation, so it is advisable to refer to
the latest regulations and guidelines for up-to-date information.
6. Major Shift in CSR Policies since 22nd January 2021
Since the inclusion of CSR provisions in the Companies Act 2013, there have been several amendments
aimed at expanding the scope of activities covered under CSR and making minor clarifications or
corrections to the provisions. However, a major shift in CSR policies and provisions occurred on
January 22, 2021, with the enforcement of relevant provisions from the following statutes:
Companies (Amendment) Act, 2019 Companies (Amendment) Act, 2020 Companies (Corporate
Social Responsibility Policy) Amendment Rules, 2021 These amendments brought significant
changes to the CSR framework. One of the key changes was the transformation of recommendatory
or voluntary CSR activities into mandatory obligations for companies. This means that companies
are now required to engage in CSR initiatives as specified under the law. Furthermore, there have
been notable alterations in the spending and reporting requirements related to CSR. The
amendments have introduced stricter guidelines and reporting obligations for companies to ensure
better accountability and transparency in their CSR activities. Additionally, penal provisions have
been introduced to enforce compliance with the CSR obligations. These provisions aim to hold
companies accountable for any non-compliance or failure to meet the prescribed CSR
requirements. It is important for companies to stay updated with the latest CSR regulations and
comply with the revised provisions to fulfill their CSR obligations effectively and avoid any potential
penalties.
7. Major changes effected from 22.01.2021 are as follows:
The amendments made to the CSR provisions highlight the government’s intention to promote greater
responsibility among corporate entities towards social objectives and their involvement in
achieving sustainable development goals (SDGs). The key changes introduced through these
amendments include:
Mandatory spending of prescribed CSR expenditure: Companies are now required to spend the
prescribed amount for CSR activities. Any unspent amount (except for ongoing projects) must be
transferred to specified funds within a specific timeframe.
Handling of unspent CSR funds: Unspent CSR funds related to ongoing projects are required to be
transferred to a special ‘Unspent CSR Account’ within 30 days from the end of the financial year.
These funds must be utilized within three financial years. If not utilized, they should be transferred
to specified funds.
Set-off of excess CSR expenditure: Companies are allowed to set off excess CSR expenditure in
succeeding financial years, following the prescribed manner.
Removal of corpus contributions: Contributions towards corpus for projects or programs related to CSR
activities are no longer considered eligible CSR activities. Introduction of penal provisions: Penalties
have been introduced for non-compliance with CSR expenditure requirements. Defaulting
companies and officers in default may face penalties based on the prescribed amounts.
8. Exceptions for small companies: Companies with an annual CSR liability below ₹50 lakh are exempted
from constituting a CSR Committee. The board of directors themselves can discharge the necessary
functions in such cases.
Impact assessment and registration requirements: Companies with a minimum average CSR obligation
of ₹10 crore or more in the preceding three financial years are required to undertake impact
assessments for CSR projects. Additionally, implementing agencies need to be registered with the
respective Registrar of Companies.
Engagement with international organizations: Companies are allowed to engage international
organizations for designing, monitoring, and evaluating CSR projects or programs, as well as for
capacity building purposes.
Collaboration with other companies: Companies are permitted to collaborate with other entities for
undertaking CSR projects or activities. The CSR committees of respective companies should report
separately on such collaborations.
Allowance for capital asset expenditure: CSR expenditure for the creation or acquisition of capital assets
is allowed, provided they are held by Section 8 companies, registered charitable trusts/societies
with CSR registration, beneficiaries such as self-help groups (SHGs), or public authorities.
Comprehensive reporting requirements: Reporting requirements for CSR activities have been made
more comprehensive, ensuring transparent disclosure of CSR initiatives undertaken by companies.
9. These amendments reflect the government’s emphasis on encouraging corporate entities to actively
contribute to social objectives and align their actions with sustainable development goals. By
making CSR provisions more robust, the aim is to foster greater corporate responsibility and
engagement in social and environmental initiatives.
Trends in CSR Expenditure
The education and healthcare sectors have emerged as the biggest beneficiaries of CSR initiatives over
the years, accounting for approximately 49% of the total CSR expenditure. These sectors have
received substantial funding to support various initiatives and projects aimed at improving
education accessibility, healthcare infrastructure, and addressing healthcare challenges. Following
education and healthcare, other significant beneficiaries of CSR include rural development projects,
environmental sustainability efforts, and initiatives focused on poverty eradication, hunger, and
malnutrition. These areas have received considerable attention and funding to address critical
social and environmental challenges. It is worth noting that CSR expenditure has witnessed a
significant increase since its introduction. In the fiscal year 2014-15, the total CSR spend amounted
to ₹10,066 crore, which grew to ₹26,211 crore in FY 2020-21. These figures represent the period
before CSR became mandatory under the provisions of the Companies Act, 2013. With CSR
becoming mandatory and the increasing awareness and commitment towards corporate social
responsibility, it can be reasonably assumed that CSR expenditure will continue to grow significantly
in the coming years. This trend indicates a positive trajectory for corporate contributions towards
social and environmental causes, leading to a greater impact on sustainable development goals and
societal well-being.
10. Social Stock Exchange & CSR The emergence of the Social Stock Exchange (SSE) in India is
expected to have a transformative impact on the utilization of CSR funds. The SSE will serve
as a crucial facilitator of social financing, providing a dedicated platform for social enterprises
(implementing agencies) and CSR contributors (corporates) to connect and collaborate. With
the introduction of the SSE, the “Pay for Success” model is anticipated to gain popularity for
CSR funding. This model aligns the funding with specific social outcomes, ensuring that the
CSR funds are effectively utilized and generate measurable impact. Implementing agencies
will be required to demonstrate discipline, transparency, and efficiency to attract CSR funds
through the SSE, thereby fostering a culture of accountability and results-driven initiatives.
One of the significant beneficiaries of the SSE and increased CSR funding is expected to be
the achievement of the Social Development Goals (SDGs). The SDGs provide a
comprehensive framework for addressing various social and environmental challenges, and
the availability of dedicated CSR funds through the SSE will further support and accelerate
progress towards these goals. Overall, the emergence of the SSE in India is likely to reshape
the utilization of CSR funds by promoting greater efficiency, transparency, and impact-
oriented initiatives. It holds the potential to channelize CSR contributions towards projects
and programs that align with the SDGs, ultimately benefiting society at large.