CORPORATE SOCIAL RESPONSIBILITY IN INDIA: ISSUES AND CHALLENGES

Corporate Social Responsibility (CSR), as a concept, has been the focus of deliberations and research over the past many years. India has a long history of individual and corporate philanthropy and the concept has been integral to Indian culture and value system since ancient times albeit informally. With the enactment of Companies Act in the year 2013 and subsequent amendments there to, the concept of Corporate Social Responsibility (CSR) has entered a new phase of evolution i.e. from being a voluntary activity to a statutory responsibility. Section 135 of the said Act mandates CSR contribution from every company that meets the prescribed threshold limits of net worth, turnover or profits. However, there are some grey areas in this provision and related rules which need further clarification for more efficient implementation of the Act. This paper discusses the concept of CSR and its evolution, pros and cons of mandated vis-à-vis voluntary CSR and issues and challenges involved in implementing the provisions of the Act and related rules. The paper also makes suggestions as to how these challenges and inadequacies can be resolved so that the objectives of the Act can be fully achieved.