Nupur GoelAIR 11 · CSE 2019 · 175 wordsTheir whole copy
Opening · a constitutional or legal provision
The Indian Companies Act, 2013 gave mandatory status to corporate social responsibility (CSR) in India.
Feature - All the companies having turnover greater than 500 crore will have to divert 2% of net profits towards CSR.
Philosophy of CSR :-
Body · points
- Company belongs not to individuals, but to society.
- Moral duty to share resources with society.
- A mode to say thanks to society & shouldering some responsibility of govt.
But, mandatory nature attacks on the voluntary nature of philanthropy:-
- Imposed decision instead of realisation from within.
- companies manipulating their profits to escape this provision.
- Lack of responsibility in its usage - majority fund going to PM Relief Fund instead of education/health.
- Companies also don't have expertise in social sector spending.
Close · a way forward
However this mandatory provision has led to an increase in philanthropic activities in India.
Govt must rope in NGOs, civil society as intermediaries between these companies and the society at large. Only by the optimal utilisation of such resources can we have the foundation of inclusive & sustainable India.
6 more toppers’ answers to this question, part by part, and how they all approached it: open the question.