{"id":2838,"date":"2017-07-20T17:57:44","date_gmt":"2017-07-20T12:27:44","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=2838"},"modified":"2020-11-06T12:34:20","modified_gmt":"2020-11-06T07:04:20","slug":"applicability-corporate-social-responsibility","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/applicability-corporate-social-responsibility\/","title":{"rendered":"Applicability of CSR under Companies Act 2013"},"content":{"rendered":"

CSR (Corporate Social Responsibility) has been made compulsory for certain class of the companies in India. The CSR applicability may be described under the Companies Act of 2013. In this article, we will discuss Applicability of CSR.<\/p>\n\n\n\n

What is CSR?<\/h2>\n\n\n\n

Corporate social responsibility is a self-regulatory mechanism. It is a process where business monitors and ensures its compliance with the spirit of the law. It is something beyond the compliance as it engages action that appear for some social good and which is beyond the interest of the firm.<\/p>\n\n\n\n

Corporate social responsibility<\/strong>[1]<\/a><\/sup> can be referred to the ethical principle that an organization is responsible for, and will get to know that how the behavior of the organization may affect the society and the environment in which it is operating.<\/p>\n\n\n\n

Corporate social responsibility is considered as a Company’s responsibility toward the community and environment in which it is operated. This can be achieved through:<\/p>\n\n\n\n

  1. Reducing their waste and pollution process.<\/li>
  2. By contributing to social and educational programs.<\/li>
  3. Earning adequate returns on employed resources.<\/li><\/ol>\n\n\n\n

    CSR is also known as:<\/strong><\/p>\n\n\n\n

    1. Corporate conscience.<\/li>
    2. Corporate Citizenship.<\/li>
    3. Responsible business.<\/li><\/ol>\n\n\n\n

      Corporate Social Responsibility strategies encourage the company to make a positive impact on the environment and stakeholders.<\/p>\n\n\n\n

      Consumers are of the view that:<\/strong><\/p>\n\n\n\n

      1. While achieving business target simultaneously companies should do CSR activities.<\/li>
      2. If a Company does charity work it will definitely receive a positive response.<\/li>
      3. Consumers are more loyal to those companies who support charity.<\/li><\/ol>\n\n\n\n

        Corporate Social Initiatives<\/h2>\n\n\n\n

        Corporate social responsibility includes six types of corporate social initiatives:<\/p>\n\n\n\n

        1. Corporate philanthropy:<\/strong> Company donations to charity, including cash, goods, and services, sometimes via a corporate foundation<\/li>
        2. Community volunteering:<\/strong> Company-organized volunteer activities, sometimes while an employee receives pay for pro-bono work on behalf of a non-profit organization<\/li>
        3. Socially-responsible business practices:<\/strong> Ethically produced products which appeal to a customer segment<\/li>
        4. Cause promotions:<\/strong> Company-funded advocacy campaigns<\/li>
        5. Cause-related marketing:<\/strong> Donations to charity based on product sales<\/li>
        6. Corporate social marketing:<\/strong> Company-funded behavior-change campaigns<\/li><\/ol>\n\n\n\n

          Common CSR Actions<\/h2>\n\n\n\n

          Some of the common CSR actions include:<\/p>\n\n\n\n

          \"Common<\/figure><\/div>\n\n\n\n
          1. Environment Sustainability:<\/strong><\/li><\/ol>\n\n\n\n