Question

Attempt the following.

Explain corporate social responsibility.

Answer 1

Corporate Social Responsibility (CSR) is not a new concept in India. However, the Ministry of Corporate Affairs has recently notified Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 and other notifications, which makes it mandatory from 15th April, 2014 for certain companies (who fulfil the criteria as mentioned under Section 135), to comply with the provisions relevant to CSR.

Meaning:

Corporate Social Responsibility (CSR) is self-regulating business model that aims to contribute to societal goals or support volunteering or ethically-oriented practices. It makes a company socially responsible and accountable. This accountability is towards itself, its stakeholders, and public in general. By practicing social responsibility, companies can be conscious about economic, social and environmental aspects of the society.

Definitions:

1. United Nations Industrial Development Organisation (UNIDO): “Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders"
2. International Organisation for Standardization (ISO): " The responsibility of an organisation for the impacts of its decisions and activities on society and the environment, resulting in ethical behaviour and transparency which contributes to sustainable development, including the health and well-being of society, takes into account the expectations of stakeholders, complies with current laws and is consistent with international standards of behaviour, and is integrated throughout the organisation and implemented in its relations."