CSR a Double Edged Sword

CSR is the procedure by which an association ponders and develops its associations with

stakeholders for the benefit of everyone, and exhibits its dedication in this respect by

appropriation of proper business methodologies and methods.

CSR is connecting the gap between the sales and society of a company, which gives more stress

for culture, ethics, and values. The policies and actions of a company is reflected in the

environment in which it enclose. “CSR, if it is implemented with sustainability as a focus,

enhances business sustainability, provides new opportunities, develops customers’ loyalty

and improves stakeholder relationship,” said the former President APJ Abdul Kalam at an

award function organized by the industry body, Associated Chamber of Commerce

(ASSOCHAM).

CSR is not a new concept in India from its independence, but has been now discussed and talked

upon with more gravity due to Companies Act, 2013 which provides for all prescribed

companies to ear mark 2% of net profit for CSR activities. The Companies Act, 2013 covers

every company having either net worth in excess of Rs. 500 crore, or turnover of Rs.1000 crore

or more, or net profit of Rs 5 crore or more should have to comply with section 135 of

Companies Act, 2013. The new legislation could make India perhaps the first country to have

mandated CSR spending through a statutory provision

In a nation, for example, India, where 33% of the populace is unskilled, 66% need access to

legitimate sanitation, and 400 million individuals still live on not exactly US$2 a day, the section

of the Companies Act ought to be hailed as a positive venture forward in guaranteeing that

business adds to fair and feasible financial advancement.

Notwithstanding, this procurement now will clear route for mushrooming of torpid NGOs which

bit the dust to suck up the enormous cash pooled to be siphoned off and lead to gigantic theft of

trusts which can generally be better streamlined and used. The procurements will likewise

prompt dishonest exercises and since there are no observing instruments it would to a great

extent go unnoticed.

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