Corporate social responsibility
Corporate social responsibility is a business philosophy that stresses the importance of keeping the best interests of the wider society in mind.
The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition.
‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.’
CSR focuses on achieving economic success through responsible corporate governance in a company’s core area of business. CSR pushes organisations to do better because their actions affect customers, suppliers, employees, shareholders and the community at large. Around the world, companies are motivated to make their business decisions more sustainable by applying the principles of CSR within their organisations. Examples include the protection of human rights, drawing up and implementing employment and environmental standards, and minimising corruption.
In late February 2014, the Ministry of Corporate Affairs, Government of India notified rules under the Section 135 of Companies Act 2013 for CSR spending which will be effective from 1st April 2014. Under the legislation, certain class of companies has to shell out at least 2 per cent of their three year annual average net profit towards social welfare activities. As defined by the Act “CSR Policy” relates to the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.
CSR Activities as prescribed under Schedule VII of CA, 2013
1. Objective to efface the daily life segments including poverty, malnutrition and hunger while enhancing the standard of living and promoting the facets of better health care
The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition.
‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.’
CSR focuses on achieving economic success through responsible corporate governance in a company’s core area of business. CSR pushes organisations to do better because their actions affect customers, suppliers, employees, shareholders and the community at large. Around the world, companies are motivated to make their business decisions more sustainable by applying the principles of CSR within their organisations. Examples include the protection of human rights, drawing up and implementing employment and environmental standards, and minimising corruption.
In late February 2014, the Ministry of Corporate Affairs, Government of India notified rules under the Section 135 of Companies Act 2013 for CSR spending which will be effective from 1st April 2014. Under the legislation, certain class of companies has to shell out at least 2 per cent of their three year annual average net profit towards social welfare activities. As defined by the Act “CSR Policy” relates to the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.
CSR Activities as prescribed under Schedule VII of CA, 2013
1. Objective to efface the daily life segments including poverty, malnutrition and hunger while enhancing the standard of living and promoting the facets of better health care