Corporate Social Responsibility (CSR)


    In News

    • Coal companies carry out various programmes and activities through their Corporate Social Responsibility (CSR) funds benefit the peripheral areas around coal mines. 

    Corporate Social Responsibility (CSR)

    • The CSR concept in India is governed by Section 135 of the Companies Act, 2013, Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. 
    • The Companies Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities.
    • It is a management concept whereby companies integrate social and environmental concerns in their business  operations and interactions with their stakeholders. 
    • Key CSR Areas: 
      • 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.
    • Significance of CSR:
      • Helps companies to achieve a balance of economic, environmental and social imperatives (“Triple-Bottom-Line-Approach”);
      • Companies can make a valuable contribution to poverty reduction
      • Enhanced access to capital and markets, increased sales and profits
      • Directly enhances the reputation of a company and strengthens its brand image leading to enhanced customer loyalty.

    Scientific Social Responsibility (SSR)

    • Government has launched guidelines on Scientific Social Responsibility (SSR), on the lines of Corporate Social Responsibility (CSR).
    • The SSR guidelines seek to:
      • Harness the latent potential of the scientific community on voluntary basis, 
      • Strengthening science and society linkages and 
      • Making the S & T ecosystem responsive to societal needs. 
    • The guidelines have provisions to give due weightage to individual SSR activities in performance evaluation of scientists / knowledge workers. 
    • The guidelines also include provision of incentivising individual and institutional SSR activities.

    Source: PIB