Aniket
In this Corona epidemic, Corporate Social Responsibility words were used a lot, many times we heard and read about CSR in TV and newspaper headlines. Under CSR, Tata donated so many crores to PM Cares Fund, Ambani donated so many crores. Gave, Adani and Birla donated so much, many must have heard this word CSR many times but see its meaning today in this report. CSR proved to be a big weapon for the government and society in the fight against Corona. If there is any financial help to the government in the fight against Corona, it is Corporate Social Responsibility. There are many challenges in the social and economic fields in our country.
We need to make collective efforts to solve these problems. Be it the general public, the government, social organizations and industrial organizations, everyone will have to make joint efforts. Inspired by this feeling, CSR law has been brought in India. In this law, companies are required to spend their profits on service and welfare activities in the society. CSR law is only for the welfare of the citizens of India.
Was there any expenditure on CSR even before the CSR Act?
CSR law was implemented in the Companies Act on 1 April 2014, after which CSR became mandatory in India, but even before the CSR law, companies used to do social work. This social work was voluntary on the part of the companies but after the coming of the law it is mandatory. As per Section 135 of the Companies Act, the company gives preference to the local area around where it operates to spend the stipulated amount for CSR activities.
What does CSR come under?
In our country, corporate social responsibility comes under the central government. CSR matters are monitored by the Ministry of Corporate Affairs of the Government of India. Therefore, the responsibility and work of implementing this CSR law, making it effective and making improvements, amendments etc. comes under this ministry.
Why are only companies included in CSR?
CSR law is concerned with companies. All companies derive some benefit from society. Such a provision has been implemented to legally bind companies to share economic profits. This law has the support of the Indian Parliament and this law has been passed by the Parliament.
How did CSR start in India?
CSR has been an integral part of Indian culture since ancient times. The concept of CSR was also seen in the history of Maurya period. Along with this, philosophers like Kautilya emphasized on ethical practices and principles while doing business. Even in ancient times, CSR was practiced informally in the form of charity for the poor and the underprivileged. It is also mentioned in Indian scriptures that the earning class used to share its earnings with the deprived section of the society.
How did CSR start in India?
CSR has been an integral part of Indian culture since ancient times. The concept of CSR was also seen in the history of Maurya period. Along with this, philosophers like Kautilya emphasized on ethical practices and principles while doing business. Even in ancient times, CSR was practiced informally in the form of charity for the poor and the underprivileged. It is also mentioned in Indian scriptures that the earning class used to share its earnings with the deprived section of the society.
With the advent of the Industrial Revolution, industrialist families like Tata, Birla, Modi, Godrej, Bajaj and Singhania spent huge amounts for public welfare as part of their CSR. Spending by establishing educational institutions and healthcare organizations. The concept of trusteeship propounded by Mahatma Gandhi imprinted CSR in the DNA of Indian business leaders of that time. According to this concept, capitalists should act as trustees (not owners) of their property.
Mahatma Gandhi use to say that “Suppose I am very rich; this wealth may have come either through inheritance or through trade and industry. But I know that this wealth is not just min. What I have is a respectable livelihood, no one else can be better than this. The rest of my property belongs to the community and should be used for the welfare of the community.” The development of CSR is very intrinsic to the cultural growth and development of the Indian society.
Two companies can also run activities together
According to the new rules of CSR, a company can also carry out CSR activities in collaboration with another company. That is, more than one company can jointly run a program, project or event. But they will have to submit reports separately. That is, they will submit separate CSR reports, in which their share of expenditure will also be mentioned. In case of non-receipt of information, wrong, misleading, late or incomplete information, you can also file a first appeal before the first appellate authority. If correct and complete information is not received from there also, a second appeal can be filed in the State Information Commission. As for private companies. Such companies do not directly come under the purview of the Right to Information Act.
