A comparative study of corporate social responsibility in public and private sector organizations in India

Abstract

The Indian Parliament passed the new Companies Act in August 2013. Section 135 of the Act mandates the Indian corporate sector Companies, whose net worth is Rupees Five Hundred Crore or more or which have earned a net profit of Rupees Five Hundred Crore or more, to spend every year at least two percent of their average net profit made during the immediately preceding three years on Corporate Social Responsibility (CSR)-related activities. It is envisaged that through Corporate Social Responsibility (CSR), Companies can contribute to equitable growth and sustainable development of the society. Each Company, which is legally mandated to follow the Act, is bound to formulate a CSR policy which will indicate the CSR activities to be undertaken by it. The activities that could be undertaken by the companies under CSR are given in the Schedule VII of the Act. newline