Professional Documents
Culture Documents
Corporate Social Responsibility
Corporate Social Responsibility
The term Corporate Social Responsibility consists of three words, each one
carrying a significant importance.
But soon this objective was started to be criticized and focus shifted to wealth-maximization.
It was argued that business is not only about shareholders rather stakeholders.
Stakeholders are diverse and many but companies being the privileged section owe a
responsibility towards the society.
Understanding the Meaning of Corporate Social Responsibility
Thus, CSR is very broad term concerning economic, social and environmental
concerns of stakeholders. Various stakeholders are customers, suppliers,
employees, shareholders, government, tax agencies, debtors, creditors and
society in general.
Arguments Extended in Favour of Corporate Social Responsibility
2) The businesses argue if they focus on society they will have no time
to focus on their primary objective.
3) The businesses further argued that society is very large and it’s
difficult to look after concern of all.
Corporate Social Responsibility and Corporate Philanthropy
• Business Ethics refers to morally and socially acceptable business practices being
undertaken by the business. Business ethics is a again a subset of corporate
social responsibility. A business cannot be socially responsible in the true sense
unless and until its is ethical. Only a company with strong business ethics will be
genuinely concerned about its societal role.
Corporate Sustainability and Corporate Social Responsibility
Beginning Financial Year 2014-15, CSR spending has been mandatory for all
companies incorporated in India and having either of the following:
• Net worth of INR 500 crores or more
• Turnover of INR 1000 crores or more or
• Net Profit of INR 5 crores or more
The companies have to mandatorily spend 2% of the average net profits
made by the company every block of three years. If any company fails to do
so, it has to report it along with the reasons.
References