Globally, India is the first country to make the corporate social responsibility (CSR) a binding for all companies. It was done in April 2014 following an amendment to the Companies Act 2013 and further it was notified in the Companies Act, 2013 that companies with a net worth of INR 500 crore and more, or an annual turnover of INR 1000 crore and more, or net profit of INR 5 crore and more, to spend 2 percent of their average net profits of three years on CSR. The companies CSR spending is not eligible for computation of taxable income.
The concept of CSR has off late become an effective instrument to work in the line of Sustainable Development Goals (SDGs) with a strong focus on social recital indicated in the CSR projects of the organizations. The SDGs, are also known as the Global Goals, and are a general call to action to end poverty, care for the planet and ensure that all people enjoy harmony and prosperity.
Just contributing money is not the only criteria that the government expects through the CSR framework and companies should make more active participations in this field.
Initiatives have been taken on part of the government so that the mandatory corporate social responsibility (CSR) spending could be transformed to corporate innovation responsibility (CIR). This would help the companies to spend up to 2% of their profits on supporting research and innovation.
Today, CSR actions are on the agenda of a lot of CEOs. It is also being considered seriously by the Governments (National and local), as well as NGOs, consumer groups, investors and other actors in civil society. CSR funds help NGOs to have better edge over social development schemes. The CSR funds are utilised for the economically poor and disadvantaged people of the society. Thus CSR funds hold a very strong concern among the NGOs and Government bodies whether national and local.
The future of CSR seems to include increased transparency for CSR activities rather than a publicity stunt. So in future there will be more investment in green technologies and more engagement among local communities and organisation employees. It is also expected that there will be reduction of economic inequalities through more social development activities from the corporate sector.
ICC regularly organises CSR Awards for organizations doing outstanding work in Social Development. Some of the past winners are TRL Krosaki Refractories Limited (Belpahar, Odisha), ITC Limited, Munger Plant (India Tobacco Division), Dalmia Cement (OCL Bengal Cement Works, A Unit of OCL India Ltd) under Manufacturing & Processing, Bharat Aluminium Co. Ltd. (Korba, Chhatisgarh) under Mining Operation & Processes, Tata Consultancy Services, Kochi and WIPRO LTD., Saltlake Sector-V , Kolkata under Services sector.