CSR in India - Importance

India has always been a humanitarian and socially driven country. Many NGO’s and governmental organizations have joined hands in social development. Community development, cultural impact, society and environmental norms have been at the forefront of all development projects. In many countries worldwide, CSR is a huge phenomenon and it is catching up in India as well. CSR is wherein companies undertake initiatives to contribute towards a community up gradation. The fundamentals of CSR in India rest on the fact that even corporates should be responsible enough to address social issues.

Companies need to actively donate to the social and economic development of the communities in which we function. Building a better, sustainable way of life for the weaker sections of society is the foremost agenda of CSR activities in India. Raising the country's human development index with expansion projects is in the hindsight of development. With the passage of the Companies Act, 2013 the industry has responded positively to the reform measure undertaken by the government with a wide interest across the public and private sector, Indian and multinational companies.

Growth of CSR activities in India: 

Under the new Companies Act, certain class of profitable entities is required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility. New Act has made far-reaching changes influencing company formation, administration and governance, and it has amplified shareholder control over board verdicts. CSR activities in India have definitely seen a massive increase since the implementation of this rule. The CSR approach is holistic and integrated with the core business strategy

Initiatives for CSR in India: 

As many people have pointed out, the practice of CSR still remains within the philanthropic space in India, but it has moved from institutional building to community development through an assortment of projects. With global influences and communities becoming more active, CSR in India has seen an upwards trend in terms of more strategy than philanthropy. Community development is the focal point of CSR on a hefty scale. A large number of companies are reporting the activities they are undertaking in this space in their official websites, annual reports, sustainability reports and even publishing CSR reports.

Benefits of CSR in India: 

Since corporate social responsibility and sustainability are so closely entwined, it can be said that corporate social responsibility and sustainability is a company’s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical. CSR in India will converge with sustainability as is evident from the various definitions of CSR put forth by global organizations. As the business environment gets increasingly complex and stakeholders become vocal about their expectations, good CSR practices can only bring in greater benefits.

Source: http://goo.gl/VkmgnZ