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<strong><u>CSR: For sustainable & Equitable India</u></strong>

CSR: For sustainable & Equitable India

Corporate Social Responsibility (CSR) is a concept that has been gaining traction in India in recent years. With a booming economy and growing awareness about environmental and social issues, companies are beginning to realize the importance of giving back to society. In this blog, we will take a closer look at the state of CSR in India.

Firstly, it is important to understand what CSR is. CSR refers to a company’s voluntary activities that go beyond its core business operations to create a positive impact on society and the environment. CSR activities can range from philanthropic initiatives like donating to charities to more sustainable initiatives like reducing carbon emissions.

In India, the concept of CSR was first introduced in 2014 through the Companies Act. Under this law, companies with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more, are required

to spend 2% of their average net profits in the previous three years on CSR activities.

Since the introduction of this law, CSR spending in India has increased significantly. In the financial year 2019-2020, 1,319 companies spent a total of Rs 16,034 crore on CSR activities. This is a significant increase from the previous year, where 1,193 companies spent a total of Rs 10,030 crore.

CSR activities in India are diverse and cover a range of issues. Some common areas of focus include education, healthcare, environmental sustainability, and community development. Companies are also increasingly focusing on gender equality and empowerment, with many initiatives aimed at promoting women’s entrepreneurship and employment.

However, despite the increase in CSR spending, there are still challenges that need to be addressed. One issue is the lack of transparency and accountability in CSR activities. Many companies do not disclose their CSR activities

and there is no independent verification of the impact of these activities.

Another issue is the uneven distribution of CSR funds. While some companies are doing exemplary work in CSR, others are not meeting their obligations or are not spending their funds effectively. This has led to calls for greater regulation and monitoring of CSR activities in India.

In conclusion, CSR is an important concept that is gaining traction in India. While there have been significant increases in CSR spending, there are still challenges that need to be addressed. Companies need to be more transparent and accountable in their CSR activities, and there needs to be greater regulation and monitoring of these activities. If these issues are addressed, CSR can play an important role in creating a more sustainable and equitable future for India.

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