Corporate Social Responsibility - nothing but Corporates just succumbing to the law of the land

Is social responsibility something to be forced? Why then companies make so much of clamor for the CSR activities that are being carried out as per the law of the country and looking out for all possible publicity? Why do they need publicity to follow certain law in order to do business in this country?

The first country in the world to enforce Corporate Social Responsibility (CSR)  is India, following an amendment to the Companies Act, 2013 in April 2014. As per the law envisaged, the Corporates can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.

Corporate Social Responsibility (CSR) is a concept that suggests that it is the responsibility of the corporations operating within society to contribute towards economic, social and environmental development that creates positive impact on society at large.

As per the Section 135 of the Companies Act, 2013 that came into force from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. 

So the CSR activities are not the magnanimity of the company, that the beneficiaries need to stand in front of the company officials with folding hands for the benefits received. As per the law it is their right for Corporate Social Responsibility.

There are lots of things that companies get benefited from, which are not paid for. Like good connectivity, geographical advantages, climate, good water and air, good citizens living around not causing any kind of functional difficulties in terms of strike. All these factors automatically contribute towards the growth of the company. Of course, company brings development in its adjourning areas as well as create employment.

Otherwise, how socially responsible are the Corporates?

Image Courtesy: Google Image