File Copyright Online - File mutual Divorce in Delhi - Online Legal Advice - Lawyers in India

A View To Corporate Social Responsibility (CSR)

In the era of globalization and industrialization the concept of Corporate Social Responsibility have immense importance. It is a vital part of ethical business i.e. it joins both ethics and business to make society better. Since the corporation uses the resources of the society and exists in the society so the companies have to pay back to the society by way of CSR. It forms a triangle of benefits by providing advantages to companies, individuals and society. For a corporate entity to survive and grow in the world full of competition it must adhere to the concept of CSR.

The individuals gets quality product at reasonable prices. And the society gets benefited by contributing in its upgradation by controlling pollution and renewing its resources. It also helps in the overall development of the nation.

Keeping in view the need of CSR in today's time it is not only a social obligation but it has become a legal obligation. Now it is the legal duty of every corporation to engage in CSR related activities otherwise it have to face legal implications. The proposed paper contains the meaning, benefits, ways, categories and laws of Corporate Social Responsibility.

Corporate Social Responsibility is a self-regulating business model1 that inculcates a sense of responsibility and social accountability in a corporation. Since the company or the corporation exists in the society and uses the resources of the society so it is the duty of the .as company to repay or return something to the society. CSR can be done in various fields: educational, health, human resource, environmental, etc. The three main focus of CSR are society, People and environment. The company's operations must be ethical and beneficial for society.

Benefits Of CSR:

To the Company:

  • builds public image: the company which contributes to the welfare of society is able to build up a good public image.
  • retains customers: CSR helps the company to attract loyal customers which retains with the company for a long period of time.
  • builds trust of investors: The company which fulfills its corporate social responsibility is able to gain the trust and faith of the investors which ultimately increases the investment of the company.
  • Increased value of Goodwill: good public image, loyal and faithful customers and investors help in increasing the value of the goodwill of the firm which is considered as a crucial asset of the company.
  • reduces the chances of government interference: the company which is engaged in CSR makes its image so good that even the government does not interfere in its working.
  • helps to survive and grow in the long run: All the above-mentioned benefits ultimately lead to the long-term survival and growth of the company.

To the society:

  • Improvement in health and education
  • Better employment opportunities
  • Training of personnel
  • Reduces burden of government
  • Environmental benefits
  • Helps to reach the goal of sustainable development

Can Do So In Two Ways: Direct And Indirect:

  1. Direct: get involved in actions directly to contribute to society. Example: opening of a school or training center.
  2. Indirect: when firms do not get involved directly in any activity leading to CSR but does an act which indirectly fulfills his duty of CSR. Example: Payment of a fixed amount of money every year to some NGO or other similar organizations working for the benefits of society and its people

Categories Of CSR:

Environmental Responsibility:

  • The principle of 3R must be followed - Reduce, Recycle, and Reuse
  • Reducing pollution, waste, natural resource consumption, and emissions through its manufacturing process.
  • Recycling goods and materials throughout its processes, including promoting re-use practices with its customers.
  • Offsetting negative impacts by replenishing natural resources or supporting causes that can help neutralize the company's impact. For example, a manufacturer that deforests trees may commit to planting the same amount or more.

Ethical Responsibility:

  • Acting in a fair, ethical manner:
  • Fair treatment,
  • Positive treatment of all employees including favorable pay and benefits in excess of mandated minimums.
  • Honest disclosure of operating concerns to investors in a timely and respectful manner.

Philanthropic Responsibility:

  • How a company spends its resources to make the world a better place.
  • charities

Financial Responsibility:

  • Transparent and timely financial reporting
  • Timely payment of tax
  • Proper auditing of accounts

Orders OF CSR:

Environmental Responsibility:

The principle of 3R must be followed- Reduce, Reclaim, and Exercise Reducing pollution, waste, natural resource consumption, and emigrations through its manufacturing process. Recycling goods and accoutrements throughout its processes, including promoting play practices with its guests. negativing negative impacts by replenishing natural coffers or supporting causes that can help neutralize the company's impact. For illustration, a manufacturer that deforests trees. may commit to planting the same quantum or further.

Ethical Responsibility:

Amusement in a fair, ethical manner & Fair treatment. Positive to all workers including favorable pay and benefits in excess of commanded minimums. Honest exposure of operating enterprises to investors in a timely and regardful manner.

CSR Expenditure Of Financial Year 2021-22:

  • Total No. of Companies: 19043
  • Total Amount Spent on CSR (INR Cr.): 26278.71
  • States & UTs Covered: 40
Total No. of CSR Projects: 43388
  • Development Sectors: 14
Enactment of Companies Act, 2013 by the Ministry of Corporate Affairs, Government of India was one of the world's largest experiments of introducing the CSR as a obligatory provision by imposing statutory duty on Companies to take up CSR projects towards social welfare activities.

This has made India the only country which has regulated and mandated CSR 3 for some selected categories of companies registered under the Act. This CSR Initiative will take the nation towards achievement of sustainable development goals and public-private partnership in developing India.

Written By: Prerna Jain, B.A.Ll.B. - 9th sem, SRMS College Of Law - MJPRU University, Bareilly

Law Article in India

Ask A Lawyers

You May Like

Legal Question & Answers

Lawyers in India - Search By City

Copyright Filing
Online Copyright Registration


How To File For Mutual Divorce In Delhi


How To File For Mutual Divorce In Delhi Mutual Consent Divorce is the Simplest Way to Obtain a D...

Increased Age For Girls Marriage


It is hoped that the Prohibition of Child Marriage (Amendment) Bill, 2021, which intends to inc...

Facade of Social Media


One may very easily get absorbed in the lives of others as one scrolls through a Facebook news ...

Section 482 CrPc - Quashing Of FIR: Guid...


The Inherent power under Section 482 in The Code Of Criminal Procedure, 1973 (37th Chapter of t...

The Uniform Civil Code (UCC) in India: A...


The Uniform Civil Code (UCC) is a concept that proposes the unification of personal laws across...

Role Of Artificial Intelligence In Legal...


Artificial intelligence (AI) is revolutionizing various sectors of the economy, and the legal i...

Lawyers Registration
Lawyers Membership - Get Clients Online

File caveat In Supreme Court Instantly