Corporate social responsibility (CSR) is regulated by Section 135 of the Companies Act, 2013, Companies (Corporate Social Responsibility) Rules, 2014 and Schedule VII which prescribes mandatory provisions for Companies to fulfil their CSR.
Corporate Social Responsibility is way for the company to demonstrates social responsibility. CSR demonstrates that you’re a business that takes an interest in wider social issues, rather than just those that impact your profit margins, which will attract customers who share the same values. Therefore, it makes good business sense to operate sustainably.
The importance of CSR Activities is increasing day by day and what are the benefits from CSR Activities are as follows:
- Brand Value
- Increased Sales – Customer Matters
- Employee Retention and Engagement
- Cost Savings
- Poverty Alleviation
- Risk Management
As a result, more and more businesses are realising the importance of CSR and incorporating it into their overall business plan.
Having a dedicated CSR team and structured programme can enable people from all levels of the organisation to get involved. A CSR plan detailing key CSR objectives and various actions to meet these is a useful way to organise activities and help maintain a successful CSR programme.
Here, comes the importance of Corporate Social Responsibility (CSR), which plays a crucial role in the age of this pandemic covid-19, where people are trying their level best to get through this tremendous challenging time. CSR is a “self-regulating business model” that implies the procedures of interaction by a company with its stakeholders and the general public at large, creating a scenario of being socially responsible.
The Government of India is also inspiring the companies to provide social support in this age of covid-19. As per report of the Ministry of Corporate Affairs dated March 23, 2020, all expenditures incurred on activities related to covid-19, will be added as the permissible avenues for CSR expenditure.