Corporate Social responsibility refers to the ideal action of holding back part of the company’s profit i.e. 2 % for investments beyond the business premises, the larger good of society. CSR is the management that seeks to amalgamate the financial, environmental and social responsibilities of the company towards the society while simultaneously working in favor of the shareholders and stakeholders. CSR weighs much more than charity and other philanthropic related activities. It aims at working for the subdued sections of the society by investing in their future. It aims at providing a sustainable growth to the society.

The Companies Act 2013 is a milestone legislation which has set India apart from all the Developed countries of the world. Directing the mandatory CSR spending in India has been a welcome move and a game changer that is aimed to infuse new investments and strategic efforts resulting in nation building.

The key concerns with CSR activities in India include environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labour standards and working conditions, employee and community relations, social equity, gender balance, human rights, good governance, and anti-corruption measures.

The 2% norm of the 2013 legislation takes 500 top companies into the account. But, if there is increase in the number of companies with an added increase in the wherewithal, there is no reason India will lag in the race to be a developed nation.

According to reports, an analysis of CSR spending of the top 500 listed companies in India shows most do not spend even 1% of their profits on CSR activities. Many stakeholders accuse companies of treating CSR as a kind of public relations exercise. They say companies do not let go of the smallest opportunity to get mileage from CSR. As of now, not even 50% of the top 100 report their CSR budgets in their annual report. And whatever is reported could well be inaccurate, because there are no norms yet, on what should be included.

Companies demand accountability of their brand building from the NGOs and other philanthropic organisations. They fail to analyze the 360 degree perspective of CSR. CSR activities not only helps in improving the public image of the organization but also helps in brand building. Seldom, companies have CSR teams and if there are headed by HR professionals who get tiny budgets to fulfill the responsibility.

Companies rely on their CSR teams and the NGOs for external legatees. Here, they fail to utilize the worth of their own employees and volunteers for spreading the word of mouth and engaging people’s interest within the organistaion.

Corporate Social Responsibility in India is perceived as one major step towards society and nation building. It is one activity that beholds with it multitude of advantages.