For many decades the debate was going on about the responsibility towards a society that should be taken by the corporate companies but the topic got suppressed due to various reasons in recent years the CSR has attracted attention from all over the world and gained popularity in no time. CSR is abbreviated as corporate social responsibility. Now many corporate companies have changed their view towards CSR as they started believing that corporate generosity and social activities to be the heart and soul of business.
In the terms of business, the heart is referred to earning profits and soul is reoffered to value of serving society. Each and every growing company are keenly interested in CSR as this is working as a key marketing tool for developing and gain success in the competitive world. All companies have realized the fact that to survive in the fast-growing and competitive world they need to do good for their betterment and by doing so they even can improve their value in society.
The corporate social responsibility concept mainly focuses on improving social welfare by generating constant benefits for the stakeholders, stakeholders refer to customers, investors, employees, and society.
There is the difference between each and every corporate organization while implementing CSR as it depends on various factors of the respective company like the size of the organization, demands that are raised by stakeholders or culture of the particular company.
In simple terms CSR can be defined as the specific company is performing its business it should also consider the impact of the business operations on society, economy, and stakeholders. There is an act that is passed in 2013 in favor to CSR and this law is applicable to companies whose annual turnover is more than 1000 crore or more if the net worth of the company is more than or equal to 500 crores.
The law also insists the companies set up a committee that is related to CSR and it should have at least one board director. It also insists companies spend at least 2% of their net profits in CSR activities. Some of the activities specified under CSR by law are:
- Promoting education
- Gender equity
- Women empowerment
- Contributing some funds to prime minister relief fund
- Enhancing employee vocational skills
- Reduction of child death
- Environment sustainability
- Elimination of poverty and hunger
- Should help in nation building by developing society socially and economically.