CORPORATE SOCIAL RSPONSIBILITY (CSR): IMPACT, ISSUES AND CHALLANGES IN INDIA

Abstract

We live a dynamic life in a world which is growing more and more complex. Every corporation in the present era has obligation towards the society. Corporate Social Responsibility is basically making positive impact on the society through economic environmental and social action. The establishment of a Corporate Social Responsibility strategy (sometimes referred to as a sustainability strategy) is a crucial component of a company’s competitiveness and something that should be led by the firm itself. Corporate Social Responsibility has been enacted in the Companies Act, 2013 which came into effect from 1 April 2014 which mandates companies with a net worth of INR 500 crore or more, turnover of INR 1000 crore or more, or a net profit of INR5 crore or more in a given financial year must spent of their net profits on Corporate Social Responsibility programmes (to be calculated as per Section 198 of the Act). After the enforcement of Section 135 of Companies Act, 2013 many Indian companies has taken initiatives towards many Corporate Social Responsibility projects such as TATA, Mahindra, ITC group etc. which has made substantial expenditure towards better education, eradication of poverty, towards women empowerment and youth empowerment. With above all still Corporate Social Responsibility has failed to make a substantial effect on the society at large because in lack of proper mechanism, wider range and adequate knowledge of existing public problems and policy measures. Corporate Social Responsibility creates a long term consumer and employee value by not only creating a ‘green strategy’ on natural environment but also considering every dimension of how a business operates in social, cultural and environment. Corporate Social Responsibility is all about corporate giving back to society.