As the companies take the inputs from the society for running
their business operations, it becomes their moral responsibility to
give something in return to the society. Such a responsibility is
known as Corporate Social Responsibility. But some companies do
not take up this responsibility voluntarily. Thus, the Government of India has come up with Section 135 of the Companies Act, 2013 which
mandates the companies operating & have set ups in India with
annual turnover greater than or equal to Rs 1000 Crores or net
worth greater than or equal to Rs 500Crores or net profit greater
than or equal to Rs 5Crores need to spend at least 2% of their
average PAT of three previous financial years.
Companies need to not only plan & allocate sufficient budget for
CSR, but also ensure the effectiveness of CSR implementation &
the social impact measurement through social audits. If the
companies implement the CSR policies and report with true spirit,
it will be a huge help for inclusive growth of people, planet &
profit- the triple bottom line of the sustainability. If the CSR of the
companies is effective in environment protection & management
initiatives with a collaborative & integrative approach with other
companies, NGOs and the MSMEs etc, India will become one of
the leading countries with sustained sustainability initiatives
setting new benchmarks for the rest of the world.
Please go through my article published in Powerhrforum's 'Power-People' journal pg.32-34
1 comment:
nice article. CSR is the way through which companies can reach the people.
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