{"id":5506,"date":"2020-03-27T18:36:49","date_gmt":"2020-03-27T13:06:49","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5506"},"modified":"2023-04-26T12:51:44","modified_gmt":"2023-04-26T07:21:44","slug":"corporate-social-responsibility","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/","title":{"rendered":"What is Corporate Social Responsibility? \u2013 An Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">With globalization\nCorporate Social Responsibility (CSR) has got much recognition during the past\nfew years. It has not only emerged and established in India, but globally it\nhas been adopted and accepted too. Organizations like the United Nations (UN), International Labor Organization (ILO), Organization\nfor Economic Co-operation and Development (OECD) have set various guidelines in\nthis context to set this up to international standards.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#What_is_the_meaning_of_Corporate_Social_Responsibility_CSR\" >What is the meaning of Corporate Social Responsibility (CSR)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#What_is_the_status_of_Corporate_Social_Responsibility_CSR_in_India\" >What is the status of Corporate Social Responsibility (CSR) in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#Corporate_Social_Responsibility_CSR_%E2%80%93_Amendment_under_Section_135_of_the_Companies_Amendment_Act_2019\" >Corporate Social Responsibility (CSR) &#8211; Amendment under Section 135 of the Companies Amendment Act, 2019:&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#Implementation_of_Corporate_Social_Responsibility_CSR_in_India\" >Implementation of Corporate Social Responsibility (CSR) in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#Approach_for_Corporate_Social_Responsibility_CSR\" >Approach for Corporate Social Responsibility (CSR)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#What_benefits_does_CSR_have_on_organization\" >What\nbenefits does CSR have on organization?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#Some_examples_of_Corporate_Social_Responsibility_CSR_in_India\" >Some\nexamples of Corporate Social Responsibility (CSR) in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/#Conclusion\" >Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_meaning_of_Corporate_Social_Responsibility_CSR\"><\/span>What is the meaning of Corporate Social Responsibility (CSR)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Corporate social\nresponsibility (CSR) can be defined as is a self-evolving business practice\nthat incorporates sustainable development to make organization as socially\naccountable. The accountability of organization is towards its shareholders,\nmembers and the public in large. The intention is to create social, economic\nand environmental consciousness towards society about its kind of impact. Due\nto this, it is also referred to as Corporate Citizenship.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_status_of_Corporate_Social_Responsibility_CSR_in_India\"><\/span>What is the status of Corporate Social Responsibility (CSR) in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Corporate social responsibility (CSR) has been made integral part of <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>after the 2014 amendment. As per the said amendment Dated 12th September 2014 inserted by the <strong><em>Companies (Corporate Social Responsibility Policy) Amendment Rules, 2014<\/em><\/strong>&nbsp; India has become the first country in entire word to model Corporate social responsibility (CSR) as a mandatory provision. &nbsp;<\/p>\n\n\n\n<p>As per the said amendment,\nall corporate or companies having <strong><em>net worth higher to Rs. 5 billion or net\nprofit of Rs. 50 million or having annual turnover of Rs. 10 billion need to\ninvest&nbsp; 2% of its last 3 years average\nnet profit on <\/em><\/strong><strong><em>Corporate social responsibility (CSR).<\/em><\/strong><\/p>\n\n\n\n<p>Before the said amendment it was a voluntary provision to invest a certain amount of net profit on CSR, but after this amendment, it has been made mandatory to invest mentioned percentage of the profit of the company on CSR after having valid <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a> only.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Corporate_Social_Responsibility_CSR_%E2%80%93_Amendment_under_Section_135_of_the_Companies_Amendment_Act_2019\"><\/span>Corporate Social Responsibility (CSR) &#8211; Amendment under Section 135 of the Companies Amendment Act, 2019:&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the latest amendment in 2019, Section\n135 of the companies act 2013 has been amended w.r.t. Spending of CSR funds by\ncorporate, to transfer the remaining amount not spent for next year, its penal\nprovisions and powers of authority in this respect. As per that:<\/p>\n\n\n\n<p><strong>\u201c<\/strong>Amendment: Section 135 of Clause (a) in sub-section (5) \u2014 (i) after the words \u201cthree immediately preceding financial years,\u201d, the words \u201cor where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years,\u201d shall be inserted;<strong>\u201d<\/strong><\/p>\n\n\n\n<p>Up until the amendment, if a corporation was\nnot able to payout entire CSR fund amount allotted for a particular financial\nyear, they had leverage to forward the same for the next financial year. But\nafter the said amendment, corporate are now required to submit or deposit the\nunspent fund amount within the fund as stipulated under&nbsp; 7<sup>th<\/sup> Schedule of the Act by the end\nof the particular financial year. And further, this deposited amount needs to\nbe spent or utilize by corporate within a period of 3 years from the date of\ntransfer of the funds. The corporate or companies which fail to comply with the\nprovisions as per said amendment, they shall be liable to bear monetary penalty\nalong with imprisonment in certain cases. The penalty amount of Rs. 50,000 up\nto Rs. 250000 can be imposed on corporate. Whereas default is from the side of\nany officer or management of company, he can be imprisoned for a period of 3\nyears or a penalty amount of Rs. 500000 can be imposed or both.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_of_Corporate_Social_Responsibility_CSR_in_India\"><\/span>Implementation of Corporate Social Responsibility (CSR) in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the 2014 amendment, CSR spending was\nmade as mandatory provisions which have a positive effect in India. Since then,\nCSR spending by Corporates in India has been increased by more than 47% if\ncompared with previous years. As per the latest study in India, various Listed\ncompanies have spent more than USD 1.5 billion and have contributed in various\nsustainable activities like Social welfare, Educational institutions, Health\ncare facilities, Skill development, and much more. Even Government has taken\nseveral initiatives by increasing its contribution towards CSR through PM\nRelief Fund and other similar programs. A major contribution has been witnessed\nin educational activities, followed by health, food, poverty, environment and\nalso rural sector development. As per studies, after amendment, there has been\nincreased of more than 98% funds in CSR, which is a factor of appreciation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Approach_for_Corporate_Social_Responsibility_CSR\"><\/span>Approach for Corporate Social Responsibility (CSR)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In order to asses and calculate company\u2019s\nimpact on society in general, CSR needs to make a following assessment of the\nbusiness in order to ensure that through contribution in CSR development of a\nmarginal section of society is also taking place along with other aspects.\nFactors like Customers, environment, suppliers, employees and communities need\nto consider while allocation in order to secure sustainable development. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_benefits_does_CSR_have_on_organization\"><\/span>What\nbenefits does CSR have on organization?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nature of benefits may vary and distinguish as per nature of a different organization, but there are certain general positive points of CSR for every corporate.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-58.png\" alt=\"Advantage of CSR\" class=\"wp-image-5507\" width=\"539\" height=\"328\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-58.png 611w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-58-300x183.png 300w\" sizes=\"(max-width: 539px) 100vw, 539px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_examples_of_Corporate_Social_Responsibility_CSR_in_India\"><\/span>Some\nexamples of Corporate Social Responsibility (CSR) in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nfirst corporate sector in IT industry in India to incorporate good governance\nin India was Infosys. This company has set an example not only in India but in\nthe entire world by handling and incorporation corporate governance and social\nresponsibility effectively. Focus area is Poverty, Malnutrition, gender\nequality, environmental sustainability etc<\/li><li>Another\nlive example is Tata Group of companies which has set an example by securing a\nposition in Top 10 in CSR in a survey published by Economic Times. Focus area\nare health, Skill training, livelihood, women education etc.<\/li><li>Reliance\nindustry is another corporate sector which has taken various philanthropist\nsteps by investing in sectors like education, promote art and culture, urban\nrenewal work etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although CSR is not a new concept in India as many Indian MNCs, have acquired this concept from many decades but it has taken a new face after the latest amendments only. CSR is the best strategic path that can take many corporates to a new level as well can help the country to obtain the goal of sustainable development too. As it is not only responsibility of Government to focus on social and economic development of country but also big corporate too.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/shareholders-meeting-is-crucial-to-your-business\/\">\nShareholders Meeting is Crucial to Your Business. Learn Why!\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With globalization Corporate Social Responsibility (CSR) has got much recognition during the past few years. It has not only emerged and established in India, but globally it has been adopted and accepted too. Organizations like the United Nations (UN), International Labor Organization (ILO), Organization for Economic Co-operation and Development (OECD) have set various guidelines in [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":5509,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[415,120],"tags":[430],"acf":{"service_id":"321"},"authorName":"Navdeep Kaur","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG_20190122_114933.jpg","authorDescription":"Navdeep is working as legal counsel in Enterslice group companies having more than 4 years of experience. She has expertise in legal, corporate and regulatory matters.","postViews":5658,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5506"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5506"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5506\/revisions"}],"predecessor-version":[{"id":55781,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5506\/revisions\/55781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5509"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}