THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN THE NEW COMPETITIVE ERA

CSR relates to the companies manning their business in such a way as produces overall positive impact on the society. This article contains provision regarding Corporate Social Responsibility. Every company with a net worth of Rs. 500 crores or more, turnover of Rs. 1000 crores or a net profit of Rs. 5 crores or more during any financial year shall spent minimum of 2% of ‘average net profit on CSR’. The Company falling in any of the categories referred to earlier shall have to constitute a Corporate Social Responsibility Committee (CSRC), which shall formulate and recommend to the Board, a Corporate Social Responsibility Policy, which shall indicate the activities to be undertaken by the company as specified in Schedule VII. But the CSR concept in the Act has not been universally welcomed. There has been criticism of the proposals by those who believe that welfare of the people is the responsibility of the Government for which it collects taxes and hence this extra burden on the companies is unjustified.