CSR simply means corporate social responsibility. It provides a framework within which a corporation or firm is required to conduct its business that must be friendly socially and be beneficial for the overall development of the community. Under CSR, the organizations voluntarily take up such activities that ensure the wellbeing of the society at large. To give effect to such activities, the corporations can work in partnerships and develop relations with various stakeholders like customers, employees and local community.
Corporate Social Responsibility: Registration of Entities
CSR as given under “The Companies (Corporate Social Responsibility Policy) Rules, 2014”, means to include those activities that are specified under the garb of Schedule VII of The companies Act, 2013 which are deployed through the board of directors of the company by virtue of recommendations in accordance with the policy related to CSR of the company.
To exemplify, the following activities can be incorporated in a company's CSR Policy:
- To indulge in activities that aids in rural development.
- To promote education, skill and livelihood enhancement, especially to empower children, elderly and differently abled.
- Measures to be undertaken for benefit and upliftment of war widows and dependents of armed forces veterans.
- To be able to maintain ecological balance, ensure sustainability of environment and protect flora and fauna.
- To help in setting up homes for destitute and underprivileged.
Why Corporate Social Responsibility is important?
- CSR enables a corporation to attract potential customers since it adds value to its status and reflects a positive attitude of the company.
- It effectuates harmony and establishes closer ties with the community. As a result, it does away with the perception that the corporation is just a place for employment.
- Through commitment to CSR, various companies have contributed significantly towards protection of environment.
- CSR ensures sustainable development, keeping in mind that the environment is not hampered in any way.
- It facilitates alleviation of poverty.
- It facilitates propagation of education especially for children.
- It creates a win-win situation for government, civil society and business.
Implementation of CSR
The CSR must be implemented in a way that must be instrumental in ensuring a balance between business and social responsibility. The CSR strategy in this regard must be inclusive of identifying activities and projects to be carried out within a timeframe tagged along with monitoring process. Impact assessment and evaluation in a specific area can be incorporated by the organizations. Also the corporations can engage in building a network with other corporations and NGO’s who are already working in this field which shall render improvement in their strategies and status.