Corporate Social Responsibility (CSR) is a concept that has gained immense popularity in recent years. It is a way for businesses to take responsibility for their actions, both socially and environmentally, and to give back to their communities in meaningful ways.

In India, the Companies Act 2013 incorporated new provisions mandating CSR activities by companies. According to the Act, companies with an annual turnover of Rs 1000 crore or more, or a net worth of Rs 500 crore or more, or a net profit of Rs 5 crore or more, during the last three financial years, are required to spend at least 2% of their average net profits on CSR activities.

CSR activities are wide-ranging, based on the company’s values and interests. Examples of CSR activities include providing scholarships to students from underprivileged backgrounds; working with non-profit organizations to provide economic and social development; promoting environmental sustainability; and engaging in corporate philanthropy.

CSR activities are not only beneficial to the company’s reputation and bottom line, but also to their employees and the communities they serve. For example, companies that invest in CSR programs can benefit from improved morale among employees, increased customer loyalty, and better relationships with local governments and stakeholders. Furthermore, when companies engage in CSR activities, they can provide a powerful example to other companies of how to be socially responsible.

In India, CSR activities are the responsibility of the Board of Directors, who are responsible for deciding on the CSR activities and for ensuring that the company meets its obligations. The companies are also required to disclose their CSR activities in the director’s report and in the annual report.

In today’s corporate world, CSR is no longer a choice but a necessity. Companies must take responsibility for their actions and give back to their communities in meaningful ways. By doing so, companies can benefit from improved public perception, increased customer loyalty, and a better relationship with local governments and stakeholders.