Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practising corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment instead of contributing negatively to them.
Successful people have a social responsibility to make the world a better place and not just take from it.
Why is CSR Important?
In modern times, the average employee demands more from their place of work. They are also much more aware of the world, with a statistically greater concern that products they are buying are socially conscious of all kinds of issues, from the environment to social movement.
It's also proven that millennials are more likely to choose a career (and a place of work) based on their own morals and principles. The same goes for the consumer. So what does that mean for companies?
It means a new era for social responsibility (although some companies have been setting themselves apart for many years). These days, corporate social responsibility reflects the global mindset. No longer is corporate social responsibility used only to please stakeholders, it is now an important factor for everyone from the shareholders to the consumer, the supplier, and each individual employee.
Does the CSR have a Legal-backing in India?
● In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
○ India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities.
● The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more.
○ The Act requires companies to set up a CSR committee which shall recommend a Corporate Social Responsibility Policy to the Board Directors and also monitor the same from time to time.
How can the CSR be made more Effective?
1 .Role of Companies: Beyond just allocating funds, the companies shall conduct regular reviews on progress of CSR compliance and put in place some measures for a more professional approach towards the same. Also, they should set clear objectives and align all the stakeholders with them.
(A).It is equally important to let their NGO partners know of their business needs .
(B).The latter should know that companies which award money from their CSR budgets are sincere about the causes they pick.
2 .Role of Government: The government must ensure that the activities included in the CSR Policy of a company are implemented by it. (A)It is also the responsibility of the government to address the issues of non availability of the NGOs and create awareness in the society about the significance of the CSR and its activities.
(B).The government plans to use technology tools such as Artificial Intelligence and Machine Learning to do data mining
(c ).Leveraging technology to improve the oversight of India Inc is welcome, but this should be applied to the financial and governance aspects of companies before moving on to their social obligations
Writtetn By - Namrata Sharma
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#CorporateSocialResponsibility
#CSR#Sustainability#EthicalBusiness#SustainableBusiness
#CorporateCitizenship#SocialImpact#ResponsibleBusiness#EcoFriendly
#CSRIndia#SocialGood#BusinessEthics#EnvironmentalSustainability
#CommunityEngagement#CorporateGovernance
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