Corporate Social Responsibility (CSR)

Meaning & Definition

Corporate Social Responsibility (CSR) pertains to “how corporations assume to fulfil their responsibility as good corporate citizens.” CSR encompasses many activities that support education, health care, the environment, community development, and employee welfare, etc. Through engagement in CSR activities, corporations are able to balance their profit motive with the ethical, social and environmental responsibilities of conducting business.

Significance of Corporate Social Responsibility

• The company will enhance its employer brand and its reputation through social initiatives.
• Improve employee engagement; engage in and help to create sustainability.
• Build trust with communities, customers and contributors. 
• Align the organisational values with the social and environmental goals of the company.

Compliance & Policy Considerations

Section 135 of the Companies Act, 2013, establishes CSR requirements for companies meeting one of three financial thresholds, along with forming a CSR committee and reporting annually on CSR activities that comply with Schedule VII of the Act, which companies have to comply with based on their company size and revenue criteria.