Open Access Research Article
A VIEW TO CORPORATE SOCIAL RESPONSIBILITY (CSR)
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Article Details
A VIEW TO CORPORATE SOCIAL RESPONSIBILITY (CSR)
AUTHORED
BY - PRERNA JAIN
B.A.LL.B.
- 9th SEM
SRMS
COLLEGE OF LAW
MJPRU
UNIVERSITY, BAREILLY
1. ABSTRACT
In
the era of globalization and industrialization the concept of Corporate Social
Responsibility have immense importance. It is a vital part of ethical business
i.e. it joins both ethics and business to make society better. Since the
corporation uses the resources of the society and exists in the society so the
companies have to pay back to the society by way of CSR. It forms a triangle of
benefits by providing advantages to companies, individuals and society. For a
corporate entity to survive and grow in the world full of competition it must
adhere to the concept of CSR. The individuals gets quality product at
reasonable prices. And the society gets benefited by contributing in its
upgradation by controlling pollution and renewing its resources. It also helps
in the overall development of the nation. Keeping in view the need of CSR in
today’s time it is not only a social obligation but it has become a legal obligation.
Now it is the legal duty of every corporation to engage in CSR related
activities otherwise it have to face legal implications. The proposed paper
contains the meaning, benefits, ways, categories and laws of Corporate Social
Responsibility.
Keywords: CSR, Reasonable, Implications,
control, Renew.
2. INTRODUCTION
Corporate
Social Responsibility is a self-regulating business model[1]
that inculcates a sense of
responsibility and social accountability in a corporation. Since the company or
the corporation exists in the society and uses the resources of the society so
it is the duty of the company to repay or return something to the society. CSR
can be done in various fields: educational, health, human resource,
environmental, etc. The three main focus of CSR are society, People and
environment. The company’s operations must be ethical and beneficial for
society.
3. BENEFITS OF CSR
3.1 To the Company:
·
builds
public image: the company which contribute in the
welfare of the society is able to build up a good public image.
·
retains
customers: CSR helps the company to attract loyal customers
which retains with the company for a long period of time.
·
builds
trust of investors: The company which fulfils its
corporate social responsibility is able to gain the trust and faith of the
investors which ultimately increases the investment of the company.
·
Increased
value of Goodwill: good public image, loyal and faithful
customers and investors helps in increasing the value of the goodwill of the
firm which is considered as a crucial asset of the company.
·
reduces
the chances of government interference: the company which is
engaged in CSR makes its image so good that even the government does not
interfere in its working.
·
helps
to survive and grow in long run: All the above
mentioned benefits ultimately leads to the long term survival and growth of the
company.
3.2 To the society:
·
Improvement
in health and education
·
Better
employment opportunities
·
Training
of personnel
·
Reduces
burden of government
·
Environmental
benefits
·
Helps
to reach to the goal of sustainable development
4. CAN DO SO IN TWO
WAYS: DIRECT AND INDIRECT
a)
Direct:
get involved in actions directly to contribute to society. Example: opening of
a school or training center.
b)
Indirect:
when firms do not get involved directly in any activity leading to CSR but does
an act which indirectly fulfils his duty of CSR. Example: Payment of a fixed
amt of money every year to some NGO or other similar organizations working for
the benefits of society and its people
5. CATEGORIES OF CSR
CSR is
often broken into four categories: environmental impacts, ethical
responsibility, philanthropic endeavors, and financial responsibilities.
5.1 Environmental Responsibility:
·
The principle of 3R must be followed- Reduce, Recycle
and Reuse
·
Reducing pollution, waste, natural resource
consumption, and emissions through its manufacturing process.
·
Recycling goods and materials throughout its processes,
including promoting re-use practices with its customers.
·
Offsetting negative impacts by replenishing natural
resources or supporting causes that can help neutralize the company's impact.
For example, a manufacturer that
deforests trees may commit to planting the same amount or more.
5.2 Ethical Responsibility
·
Acting in a fair, ethical manner:
·
Fair treatment,
·
Positive treatment of all employees including
favorable pay and benefits in excess of mandated minimums.
·
Honest disclosure of operating concerns to investors
in a timely and respectful manner.
5.3 Philanthropic Responsibility
·
How a company spends its resources to make the world a
better place.
·
charities
5.4 Financial Responsibility
Transparent and timely financial
reporting
Timely payment of tax
Proper auditing of accounts
6.
ORDERS OF
CSR
CSR is
frequently broken into four orders environmental impacts, ethical responsibility,
humanitarian trials, and fiscal liabilities.
6.1Environmental Responsibility
The
principle of 3R must be followed- Reduce, Reclaim and Exercise Reducing
pollution, waste, natural resource consumption, and emigrations through its
manufacturing process. Recycling goods and accoutrements throughout its
processes, including promoting play practices with its guests. negativing
negative impacts by replenishing natural coffers or supporting causes that can
help neutralize the company's impact. For illustration, a manufacturer that
deforests trees may commit to planting the same quantum or further.
6.2
Ethical Responsibility
Amusement
in a fair, ethical manner & Fair treatment.
Positive
toall workers including favorable pay and benefits in excess of commanded
minimums.
7.
CSR
EXPENDITURE OF FINANCIAL YEAR 2021-22
ü Total No.
of Companies: 19043
ü Total
Amount Spent on CSR (INR Cr.): 26278.71
ü States
& UTs Covered: 40
ü Total No.
of CSR Projects: 43388
ü Development
Sectors: 14
8. CONCLUSON
Enactment of
Companies Act, 2013 by the Ministry of Corporate Affairs, Government of India
was one of the world's largest experiments of introducing the CSR as a
obligatory provision by imposing statutory duty on Companies to take up CSR
projects towards social welfare activities. This has made India the only
country which has regulated and mandated CSR[3] for
some selected categories of companies registered under the Act. This CSR
Initiative will take the nation towards achievement of sustainable development
goals and public-private partnership in developing India.
Article Information
A VIEW TO CORPORATE SOCIAL RESPONSIBILITY (CSR)
Authors: PRERNA JAIN
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/03/02
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
- License CC 4.0
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