About - CSR

Corporate Social Responsibilities

CSR

CSR in India

Around the world, for-profit businesses use Corporate Social Responsibility as a way to integrate social and environmental concerns in their business operations. India has had a long tradition of social philanthropy, which was altered by the implementation of the Companies Act of 2013.

The Act states that all businesses:

  • a net profit of Rs 5 crores, or

  • a turnover of at least Rs 1000 crores, or

  • a net worth of Rs 500 crore

need to spend at least 2% of their average net profit (for the three preceding financial years) on corporate social responsibility activities, which have been prescribed by Schedule VII of the Act.

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While mandating social responsibility to all businesses may seem like a good idea, it produces its own set of problems. CSR can disincentivize firms toward socially responsible activities, which leads to a token involvement in the social sector. This often results in a duplication of social initiatives; due to a lack of interest, many companies end up spending on very few agencies out of the host of sectors that require corporate intervention. This also causes unhealthy competition between local agencies for corporate funding, and scope for collaboration and cohesion is lost.

SOLVE's objective is not only to avoid this situation, but also to foster a deep interest and mutual trust in corporations toward social philanthropy and local agencies.