An Insight Into Corporate Social Responsibility in India
An Insight Into Corporate Social Responsibility in India
Corporate Social Responsibility (CSR) is a set of initiatives undertaken by a company to address social and environmental concerns in the way it operates and interacts with its stakeholders. Every business has a certain impact on its stakeholders - which include its workforce, its location, residents of that location, consumers of its products or services, surrounding environment, etc. Performing CSR activities is a way for it to minimise this impact and thereby sustain in the long run. Corporate Social Responsibility in India has been made obligatory by law under Section 135 of the Companies Act of 2013. In fact, ours is the first nation in the world to have made CSR compulsory.
The difference between CSR and Charity
An organisations CSR policy is a part of its business strategy which affects its human resources, operations, and supply chain, but charity or philanthropy is not associated with these factors. VASTRA is a credible NGO in Mumbai that provides a platform for individuals as well as companies seeking to make contributions towards various social causes as their CSR activities.
Activities that do not qualify as CSR in India
- Monetary contributions made to political parties do not qualify as CSR activity by law.
- Programs designed to benefit solely the companys employees or their families are not considered as CSR.
- If the activity is not in the form of a project then it cant qualify as CSR. Also, a CSR project cannot qualify as a CSR initiative without being approved by the board of the organisation.
The eligibility criteria for doing CSR
According to the CSR law which came into effect in April 2014, companies fulfilling the below criteria are obligated to do CSR -
- Have a net worth of rupees 500 crores or more.
- Have a turnover of rupees 1,000 crores or more.
- Garner a net profit of 5 crore rupees or more in a financial year.
As per the law, these companies need to spend at least 2% of the average net profit that they made in the previous three consecutive financial years on CSR activities
Importance of CSR in India
India being a densely populated country having the largest number of people living under the poverty line, suffers from a major lack of resources. There are also other issues plaguing the country in terms of low literacy rates, poor infrastructure, pollution, overburdened healthcare facilities, etc. At the organisational level, CSR initiatives help to enhance an organisation’s brand image and reputation, boost its employee productivity, and also improve its financial performance. But on a broader level, they play a significant role in national development by bringing about social and financial inclusion for all.
Recognition of CSR activities in India
The Government of India officially recognises CSR activities done by Indian business corporates through the National CSR Awards. These awards acknowledge organisations who have positively impacted the society through their sustainable and innovative CSR initiatives.
Whether you are a company looking to fulfil its CSR initiatives or an individual wishing to contribute towards social causes such as education, infrastructure development, healthcare, etc. - if you are searching online for NGO nearby me,” then VASTRA is a name that you can completely trust.
