Corporate social responsibility: Gaining popularity in India
Ashutosh Kumar Jha
In the recent years corporate social responsibility (CSR) becomes very popular in developing countries such as India. CSR provides a platform where corporate can spend for the upliftment of the society. Since India is extremely large country in terms of population and on an average two-third of the population lives below the poverty line, therefore there is huge scope for corporate social responsibility. Before 2013, the CSR was totally voluntary that is it depends upon the choice of the corporate, whether they opt CSR or not, but in 2013 the government of India made CSR compulsory by implementing The Companies Act, 2013. The Companies which fulfil the criteria mention under section 135 of the companies Act, 2013 needs to spend at least 2% of its last three years’ average net profit in CSR fund. These companies can spend several areas such as education, rural livelihood woman empowerment, healthcare, environment etc. It has been observed that companies’ interest towards CSR activity increases day by day. Indian companies participated in CSR activity very aggressively and cross prescribed limit, mentioned in section 135 of The companies Act, 2013. Although the Indian companies put their effort to bring poor people into main streamline, but it is not enough. These companies need to intensify their approach to cover all the deprived people. This paper is all about the how CSR is becoming popular day by day in India.