What is CSR?
CSR refers to Corporate Social Responsibility. It refers to the idea about the companies that must work and invest in socio-economic activities for the growth and development of the country.
CSR is defined as a Triple Bottom Line approach that enables the company to promote its commercial responsibility and interest towards society. CSR is different from charities and organizations.
Know about CSR
MSME has the responsibility to promote CSR by taking fiscal capacity and not over-stretching to the limited resource. CSR has the responsibility to support and help the countries in the developing bracket to accelerate their socio-economic growth.
Corporate Social Responsibility in India motivates the corporate and companies to be ethically right in contributing funds and services to the society in social, economic and environmental development. This will definitely help the countries to achieve sustainable development growth in the long run.
Need and necessity of Corporate Social Responsibility in India
CSR is responsible for the goodwill to the companies in a direct or indirect way. It helps the employees to live more royal, and retain in the same company for a long turn.
Corporate Social Responsibility in India helps to make companies more legitimate and accessing industry with great market share. As per the companies ethical act, CSR faces very few hurdles legally.
CSR greatly supports the companies in strengthening their brand value. It helps in the stabilization of the stock market in the long run. It also helps in limiting the involvement of state government in corporate affairs.
Role and Responsibility of CSR
Corporate Social Responsibility in India helps the corporate to take up social, industrial, economic, and environmental activities for the purpose of growth and development of the country.
Companies and Industries provide job opportunity for unemployed people. It helps the employee and his family to maintain the standard of living in a society with a balanced corporate organization.
It creates greater social respect and acceptance. It greatly helps the company to grow fiscally and more competitive. It helps the stakeholder to interact with each other and play a vital role in the development of the company and country.
CSR creates a healthier environment and highly economical system in India in order to help the general populace. It also helps the corporate to have a direct stake holding with the society and gradually change the role from exploiter of commerce to facilitators of development.
This attitude will make them create change in society drastically. They are forced to contribute at a wider level to help the society economically.
CSR LAWS IN INDIA
The Companies Act, 1956, made CSR as a compulsory act. Under this act, Corporate Social Responsibility in India becomes compulsory for all companies and government aided organizations.
There is a certain fiscal condition for this CSR act and they are
(i)the net worth of the company must be Rs. 500 crores,
(ii)Annual turnover must be 1000 crores
(iii) The annual net profit will be at least Rs.5 crore.
If any company meets any one of the above said fiscal condition, then they are required to form at least three director committee to enforce the CSR mandate.
Corporate Social Responsibility in India was legislated in India with a hope that it would bring a change in society and helps for the prosperous of the nation.
