CSR@ 2%: A New Model of Corporate Social Responsibility in India

International Journal of Academic Research in Business and Social Sciences, October 2014, Vol. 4, No. 10, ISSN: 2222-6990

10 Pages Posted: 2 Dec 2014

See all articles by Anupam Singh

Anupam Singh

Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore

Priyanka Verma

Motilal Nehru National Institute of Technology (MNNIT)

Date Written: December 2, 2014

Abstract

Corporate Social Responsibility (CSR) earlier applied as corporate philanthropy and has been in practice in India since ages. However, philanthropy in globalised and modern India does not solve the purpose in quantity and quality. Clause 135 of Company Act 2013 created huge hue and cry among the business community in India. As per clause 135 of the Companies Act, 2013, every company with an annual turnover of 1,000 crore INR ($161 million) and more, or a net worth of 500 crore INR ($80 million) and more, or a net profit as low as five crore INR ($800,000) and more have to spend at least 2% of their average net profit over the previous three years on CSR activities. With the introduction of new Company Act 2013, India became the first country in the world to have legislation for compulsory CSR spending. The paper aims at analyzing the motive of making CSR spending mandatory. It also attempts to explain the concept of CSR in the present Indian scenario, the social issues addressed by the Indian corporations, and methodologies adopted by them to address those issues.

Keywords: CSR, Company Act 2013, India, Philanthropy, CSR Disclosure, Mandatory CSR

Suggested Citation

Singh, Anupam and Verma, Priyanka, CSR@ 2%: A New Model of Corporate Social Responsibility in India (December 2, 2014). International Journal of Academic Research in Business and Social Sciences, October 2014, Vol. 4, No. 10, ISSN: 2222-6990. Available at SSRN: https://ssrn.com/abstract=2532869 or http://dx.doi.org/10.2139/ssrn.2532869

Anupam Singh (Contact Author)

Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore ( email )

Gram Barolo
Indore, Madhya Pradesh 452009
India

Priyanka Verma

Motilal Nehru National Institute of Technology (MNNIT) ( email )

Link Road Number 3
Near Kali Mata Mandir
Bhopal, IN Madhya Pradesh 452010
India

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