Importance Of Corporate Social Responsibility

As we are all aware of the CSR companies act 2013 laid by the government of India and the mandates, the companies earning profits more than the decided limit has to contribute some percentage of it towards corporate social responsibility. CSR can involve a number of activities, basically focusing on the needs of the people where there are limited or no resources. CSR is focused on the rural parts of India mainly. These areas are affected with many problems and the means to resolve them are next to zero.

Top corporate companies have been lending a helping hand to many rural areas through csr implementation agency. These agencies identify the affected areas and assess the needs so that they evaluate the need of each area and suggest the corporate companies to invest in the right way. These companies engage in actions that builds a lot of PR for the company. The government has strictly formed this rule wherein a company is mandated to spend for CSR. If the company by any chance fails to do so, they will have to submit a written explanation mentioning the reason for the same. Every company has to mention the accounts of all those expenditure made for CSR and present in the AGM too. Many CSR programs have to realign their activities with the newly amended Schedule VII. The Government should have permitted the companies to have their choice of CSR activities. The contribution of any State setup funds, social business projects has been removed. Further, it seems that the concept of shared value proposition has been ruled out, for instance, a company cannot choose a project which also support their business object. If a water purifier company do CSR in the area of providing safe drinking water and run a campaign to create awareness regarding safe drinking water, this will have a shared value proposition.

CSR projects in India varies from women empowerment, skill development, sanitation and hygiene, quality healthcare, promoting education, livelihood development, environment sustainability, social infrastructure, Swacch Bharat Abhiyaan, etc. There are rural areas which require strong attention and there is a need. These places survive somehow with the limited resources available. The activities which CSR agencies involve the corporates in, really puts a strong pressure on the areas and hence things improve. Changes are seen in the areas and the situations are improved through necessary need supplies.

CSR agencies are present with strong grass-root participation, wide geographical presence, transparent institutional framework, information systems and documentation, veritable technical knowledge, they work towards meeting India’s inclusive growth challenges by forming a 3-tier partnership with:

  • Corporations to meet their community development goals / endeavours.
  • Communities to improve their quality of life and overall well-being.

CSR as per Companies Act, every company indulges in activities which builds a strong focus on the betterment of the rural areas. It is clear that companies enjoy the benefits of CSR in many ways. Corporate companies build an immense amount of trust among its target audience, they receive a tremendous amount of media coverage which creates a very strong brand recall value for them. Hence, the business of the company goes high and thus they earn more profits. Employees become their lasting asset. Employees respect the company for the fact they have contributed something better for the affected areas and this makes them trust the company more.

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