Review of Corporate Social Responsibilities in India

Abstract

Corporate Social Responsibility (CSR) refers to the responsibility of companies to contribute to the economic, social and environmental well-being of society. In India, CSR has evolved from voluntary philanthropic activities into a structured corporate responsibility framework. The introduction of Section 135 of the Companies Act, 2013 made India one of the first countries to provide a statutory framework for CSR spending by qualifying companies. Critics argue that Corporate Social Responsibility (CSR) is a North-led agenda with a narrow focus. We had applied a development-oriented framework to contextualize CSR to structural adjustments-related macro socio-economic issues relevant to the developing countries, with a focus on CSR in India. They review contemporary CSR trends in India concluding that although its transition from philanthropic mindsets to CSR has been lagging behind its impressive financial growth, CSR has become an important part of corporate governance and sustainable development. Indian companies are expected to contribute to social welfare through activities relating to education, healthcare, environmental protection, rural development, skill development and other areas. India is one of the first countries to make CSR expenditure a statutory corporate requirement. The provisions relating to CSR were introduced through the Companies Act, 2013.