Understanding Corporate Social Responsibility beyond Corporate Responsibility

Abstract

A responsibility of the companies to do something for the society and the stakeholders along with the shareholders is a corporate social responsibility. Wealth maximisation does not remain the sole goal of the companies for their shareholders. The corporate world comprises of the various people out of which shareholders, management and the board of directors are the main one, the other stakeholders are employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large. The paper attempts to understand corporate social responsibility beyond corporate responsibility which has been made mandatory under the Companies Act, 2013. The amendments under the Indian Companies Act 2013 with mandatory laws has created a balance between what the companies are earning in terms of profit and what it is distributing for the benefit of the society. The study aims at understanding The Companies Act 2013 with respect to Mandatory CSR, knowing about the companies responsible for CSR and allocation of companies fund for CSR, the activities permitted under the Act for performing CSR and various CSR initiatives taken in India. The study uses the methodology based on internet based research, case studies, previous publications or review of literature. The paper concludes that development of the country is priority and basic necessity for which every organization has to come forward; which is now possible as compulsion under the Companies Act, 2013 that will help nourish and meeting the organizational as well as societal goals along with the satisfaction on the part of companies meeting such goals for a cause in the society, making healthy society and healthy business organizations. So, therefore awareness of the corporate social responsibility and its compulsion under the Act is must to know for corporate sector for the better society.