Academic journal article IUP Journal of Corporate Governance

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Academic journal article IUP Journal of Corporate Governance

Focus

Article excerpt

Over the years, the concept of Corporate Social Responsibility (CSR) has gained broader implications in India not only from a philanthropic perspective, but also from a real business standpoint. In this context, the first paper, "A Critical Analysis of the Provisions of Corporate Social Responsibility", by Shiv Nath Sinha, performs a thorough analysis of the Companies Act, 2013, Companies (CSR) Rules, 2014, Schedule VII of the Companies Act, 2013 and various other notifications issued by the Ministry of Corporate Affairs (MCA). Section 135 of the Companies Act, 2013 mandates that a company having net worth of^500 cr or more, or turnover of ^1,000 cr or more or a net profit of ^5 cr or more should spend 2% of its average net profit on CSR. This provision legislating social responsibility by companies in India started a debate regarding the logic behind such mandate because the meaning of the term CSR is itself not clear and different scholars and practitioners have defined the term in different ways. Undoubtedly, the mandatory CSR spending is a unique provision of law and has given rise to many concerns among the various stakeholders. These range from need assessment of stakeholders, formulation of CSR policies, issues of compliance and disclosures, capacity constraints, optimal utilization of CSR amount for the benefit of the target stakeholders, creation of effective mechanism for monitoring its implementation and impact assessment. Hence, this paper critically evaluates various provisions of CSR from the perspectives of business environment in India and also highlights the intent of the Government of India to incorporate provisions mandating CSR by firms in India.

A firm's performance in terms of environmental impact, i.e., its environmental footprint or influence, is a concern to many stakeholders within the society. …

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