There has been lots of talks about CSR in India
First of all I would like to brief you about what is CSR. CSR which stands for Corporate Social Responsibilty is a role by which Corporates contributes to the society.All those companies in india which adhere to Company Act. should contribute back to the society . The Company Bill 2011 which is yet to be approved calls for corporate entities to engage in CSR activity which will help the society to grow. CSR may include helping poor people by bringing awareness, giving them free education,rural development, community development and social welfare, family initiatives, tribal development and water management. It also include helping the society to understand technology .
The company Bill has prescribed that every company having a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more during any financial year shall set up a CSR committee, which would guide and monitor the company’s CSR agenda and expenditure.Companies meeting this criterion were required to spend at least 2% of their average net profits made during the three previous financial years towards CSR activities. Proper disclosure of the CSR policy including reasons for not meeting the required expenditure was called for. Schedule VII prescribed the various activities that would fit into the CSR policy agenda.
It is the society only which helped them to grow and be successful. Society has given a lot to them ,it has given labour, land,water..It is by only these resources they have grown . So it is a good opportunity for them to help the society . A small initiative also can give boost to the hopes of common man. It is in the benifit of the companies only as by performing there CSR duties they get all the trust of the common man which is the utmost requirement for any business to flourish. They will get respect from the society which can help build a clean image of a company. “We do not do it for propaganda. We do not do it for publicity. We do it for the satisfaction of having really achieved something worthwhile.” says chairman of the Tata Group, Ratan N. Tata.
All those companies willing to involve in CSR should be provided with Tax benifits to encourage them.
Above all I feel that companies involving in CSR will be a great boost for the society,corporates has the human resource,skill,money,technology which really can help the society of India. What do you think?