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What is corporate social responsibility?

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Question

What is corporate social responsibility?

Long Answer
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Solution

Corporate Social Responsibility (CSR) is a self-regulating business model, aims to contribute to societal goals or support volunteering or ethically-oriented practices. It makes a company socially responsible and accountable. This accountability is towards itself, its stakeholders, the public in general, etc. By practicing social responsibility, companies can be conscious of the economic, social, and environmental aspects of society.

Applicability of CSR:

  1. The companies having a Net worth of 1500 Cr. or more or Turnover of 1000 Cr. or more; or Net
    Profit of 15 Cr. or more during any financial year shall be required to constitute a Corporate
    Social Responsibility Committee of the Board with effect from 1st April 2014.
  2. The Board's report shall disclose the compositions of the CSR Committee.
  3. All companies shall spend, in every financial year, at least 2% of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its
    Corporate Social Responsibility Policy.
  4. The companies shall be required to incorporate in its Board's report, an annual report on CSR.
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Chapter 6: Social Responsibilities of Business - Exercise [Page 131]

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Balbharati Organisation of Commerce and Management (OCM) [English] Standard 12 Maharashtra State Board
Chapter 6 Social Responsibilities of Business
Exercise | Q 6. 5) | Page 131

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