Role of Corporate Social Responsibility in Social and Economic Development in India.

Abstract

A management concept known as "Corporate Social Responsibility"(CSR) encourages corporate sector to incorporate social and environmental considerations into their  activities and relationships with stakeholders. Corporate social responsibility is typically considered as the means through which a business finds a balance between its social, environmental, and economic imperatives. Corporate social responsibility is emerged as a critical component of long-term commercial success. CSR   has great impact on the development of new economy. Following an amendment to the Companies Act, 2013 in April 2014, India became the first country in the world to make corporate social responsibility as mandatory. As part of any CSR compliance, companies can spend their profits in areas such as protection of environment, development of education, eradication of poverty and gender equality. The Ministry of Corporate Affairs has announced that company’s expenditures to combat the COVID-19 (Coronavirus) outbreak will be considered valid in CSR activities. Funds may be spent on COVID-19-related activities such as healthcare promotion, including preventive healthcare, sanitation, and disaster management. Amendments to the Companies (Amendment) Act, 2019 concerning CSR Previously, if a company was unable to spend its CSR funds fully each year, it could carry the amount forward and spend it in the following fiscal year, on top of the money allotted for that year. The CSR amendments to company Act, 2013 now require companies to deposit any unspent CSR funds into a fund specified in Schedule VII of the Act by the end of the fiscal year. This amount must be used within three years of the transfer date, or the fund must be deposited in one of the specified funds.