{"id":2086,"date":"2019-08-17T17:41:26","date_gmt":"2019-08-17T12:11:26","guid":{"rendered":"https:\/\/www.classiciasacademy.com\/blog\/?p=2086"},"modified":"2019-08-17T17:43:46","modified_gmt":"2019-08-17T12:13:46","slug":"the-hindu-editorial-analysis-making-csr-work","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/the-hindu-editorial-analysis-making-csr-work\/","title":{"rendered":"The Hindu Editorial Analysis : Making CSR work"},"content":{"rendered":"\n<p>With an amendment to The Companies Act 2013, CSR has been made a jailable offence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is Corporate Social\nResponsibility?<\/strong><\/h3>\n\n\n\n<ul><li>Corporate Social Responsibility (CSR) &#8211; is a management\nconcept which deals with a company\u2019s accountability towards its stakeholders,\nemployees, and society. To maintain its social responsibility company must\nfunction in a manner which is not detrimental to the environment and the\ngeneral public.<\/li><li>In the dispensation of its CSR duties, a company can invest\nin various sectors like gender equality, education or poverty.<\/li><li>CSR has been undertaken as a voluntary duty towards the\nsociety around the world. In 2014, by an amendment to The Companies Act 2013,\nCSR was introduced in India.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The vital role of CSR:<\/strong><\/h3>\n\n\n\n<ul><li>The underlying idea behind the concept of CSR is a company\ndoes not function in isolation with society. The policies made by a company\nhave far-reaching ramification on its employees, environment, and society. Thus\na company must consider its social accountability and invest a part of its\nprofits in philanthropic initiatives.<\/li><li>CSR also acts as a morale booster for the workers of the company\nand develops a good spirit between employees and the company. The initiatives\ntaken under CSR, act as a tool to enhance the reputation of the company in the\nlarger society.<\/li><li>CSR has been undertaken as a voluntary duty towards the\nsociety around the world. In 2014, by an amendment to The Companies Act 2013,\nCSR was made a mandatory duty in India.<\/li><li>Under this amendment, a minimum of 2 percent of the average\nnet profit of three years is to be invested in CSR in a financial year.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"473\" height=\"455\" src=\"https:\/\/www.classiciasacademy.com\/blog\/wp-content\/uploads\/2019\/08\/csr.jpg\" alt=\"\" class=\"wp-image-2087\" srcset=\"https:\/\/www.classiciasacademy.com\/blog\/wp-content\/uploads\/2019\/08\/csr.jpg 473w, https:\/\/www.classiciasacademy.com\/blog\/wp-content\/uploads\/2019\/08\/csr-300x289.jpg 300w\" sizes=\"(max-width: 473px) 100vw, 473px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Amendment:<\/strong><\/h3>\n\n\n\n<ul><li>On August 13, the Lok Sabha passed the Company (Amendment)\nAct 2019, it penalizes the important officers of the company if the company\nfails to comply with the CRS norms. <\/li><li>The company which are worth more than Rs.500 crore, having\nannual turnover more than Rs.100 crore and annual profit of at least rs.5\ncrore, will mandatorily have to pay a minimum two percent of their three-year\naverage profit into CSR activities.<\/li><li>If the company fails to comply with the duties, it can be\nfined with up to Rs. 25 lakh and the defaulting officers can be fined up to\nrs.5 lakh and liable to 3 years jail imprisonment.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What do the experts say?<\/strong><\/h3>\n\n\n\n<ul><li>The expert panel committee constituted by the government on\nthis subject has recommended to \u2013<\/li><li>Make noncompliance with the\nCSR norms only a civil offence <\/li><li>Make the company spending\ntaxable. <\/li><li>The committee recommended the unspent CSR fund for a\nparticular financial year to be transferred to an escrow account.&nbsp; Further, the suggestion to provide tax break\non CSR can play a motivational role in the expansion of the company. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion:<\/strong><\/h3>\n\n\n\n<ul><li>The motive of Corporate Social Responsibility is to create a\npositive dynamic between business industries and general society by adopting a\npositive outlook in the strengthening of the social fabric. The recent changes\nin The Companies Act violate the basic spirit of the CSR by converting a\nvoluntary duty into a jailable offence.<\/li><li>In must be noted that CSR is not the primary business of the company.\nIn the present challenging times, when the company should concentrate on their\nbusiness the imposition of CSR can act as a discouragement for the company.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>With an amendment to The Companies Act 2013, CSR has been made a jailable offence. What is Corporate Social Responsibility? Corporate Social Responsibility (CSR) &#8211; <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/the-hindu-editorial-analysis-making-csr-work\/\" title=\"The Hindu Editorial Analysis : Making CSR work\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[170],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Hindu Editorial Analysis : Making CSR work - UPSC Current Affairs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/the-hindu-editorial-analysis-making-csr-work\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Hindu Editorial Analysis : Making CSR work - UPSC Current Affairs\" \/>\n<meta property=\"og:description\" content=\"With an amendment to The Companies Act 2013, CSR has been made a jailable offence. 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