Corporate Social Responsiblity

Corporate Social Responsiblity

Corporate Social Responsibility (CSR) is not new to India, in the recent years it has acquired new dimensions. Today, companies are proactively taking up this good hearted investment and giving a social value to all their business endeavors. Now-a-days, employees are actively participating in the social activities even on holidays. This is mainly because employees feel a sense of pride when they are involved in such activities. Moreover, companies are having dedicated departments for CSR.

Charitable philanthropy gave way to mandatory allocation for a cause when the Companies Act was amended to include a clause on compulsory Corporate Social Responsibility.  Under this, companies earning profits of Rs. 5 crore or more or those having an overall turnover of over Rs. 1000 crores, must allocate at least 2% of their net profits to fund projects aimed at social development.

Given below is a list of activities that is recognized by this law as CSR.

List of activities under Schedule VII

  • Promotion of Education
  • Eradication on extreme hunger and poverty
  • Reducing child mortality and improving maternal health
  • Environmental sustainability
  • Social business projects
  • Combating HIV-AIDS, malaria and other diseases
  • Gender equity and women empowerment
  • Contribution to Prime Minister’s relief fund and other such state and central funds
  • Employment enhancing vocational skills


Indian Institute of Corporate Affairs has estimated that around 6000 companies will be taking up CSR work as mandated by the law. Many of these have no prior experience in working with social sector initiatives. Around 20,000 crore rupees is expected to be available for social sector spending as part of the mandatory ‘2% law’.