An Analysis Of Corporate Social Responsibility Practices Adopted By The Companies In Chhatrapati Sambhajinagar (Formerly Aurangabad) City In Maharashtra
- IJLLR Journal
- Jun 28
- 2 min read
Mr. Abhay Diliprao Jadhav, Assistant Professor,M. P. Law College, Chhatrapati Sambhajinagar, Maharashtra, andResearch Scholar, Maharashtra National Law University, Chhatrapati Sambhajinagar, Maharashtra
INTRODUCTION:
Corporations have their core function or main target of earning profit. A company is considered to be an entity distinct from its members, therefore it is an artificial person in eyes of Law and like a distinct person, a corporate or company is also expected to fulfil its social obligations. Corporations take a lot from society in the form of resources for carrying out its functions and earning profits, hence it should also be able to return to society some of the benefits reaped. This liability of the company to return to society has been termed as Corporate Social Responsibility (hereinafter referred as CSR). The introduction of the Liberalisation Privatisation and Globalisation ("LPG") policy in 1991 in India by the then government of P V Narsimha Rao has given a new direction to Indian companies, industries, factories and revival of the Indian economy. Compared From 1991 to the present the Indian private companies' growth is tremendous. The adoption of LPG policy has also made policy makers to think of Social Responsibility of the Companies. The Concept of CSR is not new to India. Earlier in 2009 the Government of India has issued voluntary guidelines to companies in respect of CSR whereas companies were under no legal obligation but it was voluntary to adopt CSR practices. India is the first country in the world to make CSR mandatory, following an amendment to The Companies Act, 2013 in April 2014. The Act requires that companies should set up a CSR board committee. The committee is responsible for enforcing the requirement of spending 2 % of the company’s income on CSR Activities.
