Corporate Social Responsibility in India – Transition from Moral Imperative to Mandatory Expenditure



Mandatory spending on Corporate Social Responsibility is the new reality for Corporate India. The enforcement of this provision from April1, 2014, has shifted focus from the debate on whether CSR is a moral imperative or not to how companies can put the mandatory CSR expenditure to effective use.

The provision of the Companies Act 2013, mandates that any company with a net worth of at least Rs 500 crore or a turnover of Rs 1,000 crore or a net profit of at least Rs 5 crore would have to spend at least 2 per cent of its average net profit of the immediately preceding three years. According to the norms, the CSR activities will have to be within India wherein companies can choose from a range of activities such as promoting preventive health care and sanitation, setting up homes and hostels for women and orphans and livelihood enhancement projects. If a company is unable to spend the amount, an explanation will be required in the director’s report.


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As a result of this provision, many corporate enterprises are stepping up their CSR efforts. However, as a matter of fact, many companies still lack the processes to channelize the allocation of these funds. Read more

Building a ‘Responsible India’


By Somali K Chakrabarti

India has, for long, been an emerging economy. While most of the developed economies including the US, consider India as a strong prospect, the large and widening performance-potential gap in India leaves a lot to be desired.

A question that frequently pops up in a number of forums is ‘What can bring about the transition of India from a emerging to a developed nation?

The importance of an environment that supports development, enforces law and order, promotes entrepreneurship and steers the country towards higher productivity cannot be stressed enough in this context. Most people would agree upon the need to do away with red tape, corruption and have policies in place to prop up the economic development and growth. Yet, in addition to the changes in the business environment, certain behavioral, cultural and value related changes are also needed in our society, to aid India’s transition to a developed nation. Unfortunately many of these softer aspects have been severely under rated by our society in the recent past.

As the saying goes No nation can rise above the quality of its thoughts.

Progressive thinking is needed, if we have to evolve as a developed nation. To build a nation that makes the world sit up and notice, we need imaginative, inventive, responsible and determined people. We need motivated and responsible citizens who can bring about the changes in an inclusive and sustainable manner. Read more

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