Corporate Social Responsibility Essay

1731 WordsMar 7, 20147 Pages
Corporate Social Responsibility ---Under New Companies Act, 2013 The Companies Bill 2009 After long years of debate, the country passed its first update of the corporate laws in more than 50 years. The New Companies bill was passed by the Rajya Sabha on 8th August 2013, which has been seen as a step towards modernizing the corporate governance rules. The Act requires that one third of the board comprises of independent directors, and at least one board member be a woman. It also requires the corporates to disclose the executive’s salaries as a ratio of average employee’s salary and allows shareholders to file class-action law suits. But the provision that has got most attention is the “2 % requirement to spend on CSR activities” by a particular category of companies. This report is an attempt to analyse the provision of Corporate Social spending by the companies, its impact on corporates, impact on the society and the possible fallacies, if any. We shall also discuss the conflicting issues that would arise due to this provision and certain recommendations about What is Corporate Social responsibility? The World Business Council for Sustainable Development defines CSR as, "Corporate Social Responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large." The term Corporate Social Responsibility is not defined in the Company Bill , however, the schedule VII of the companies bill requires that the company should spend the required amount on at least one of the following areas * Eradicating extreme hunger and poverty; • Promotion of education; • Promoting gender equality and empowering women; • Reducing child mortality and improving maternal health; • Combating HIV, AIDS, malaria and other diseases; •

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