Indian Industrial Organizations and Corporate Social Responsibility Reality or Myths: A Review Study
International Journal of Entrepreneurship Business Environment Perspectives, Apr 15, 2014
In this study, we propose the Corporate Social Responsibility (CSR) activities perceived by the I... more In this study, we propose the Corporate Social Responsibility (CSR) activities perceived by the Indian Industrial organizations and their impacts on Indian society. Specifically, we argue that the major types of the CSR activities and the importance of such activities in Indian concern. This paper is also emphasizing with major affecting factors to actualization of CSR activities. Previous literature is also used to suggest a route through which paper will become stronger (Latest knowledge, Government policies etc.) KEYWORDS Corporate Social Responsibility, Indian Industrial Organization, Organizational Effectiveness etc. PURPOSE OF STUDY CSR is industry's response to growing public concern about the accountability and the social, economic, and environmental impact of global corporations. This paper is providing information about currently perceived Corporate Social Responsibility (CSR) related activities by the Indian Pharmaceutical Industry. In addition, what should be done. IMPORTANCE OF STUDY The benefits of an effective CSR approach to an organization can include: stronger performance and profitability, improved relations with the investment community and access to capital, Enhanced employee relations and company culture, Risk management and access to social opportunities, stronger relationships with communities and legal regulators. According to the new Companies Act, 2013, requires certain class of profitable entities to shell out at least three per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities. This would apply to the companies with a turnover of Rs 1,000 crore and more or net worth of Rs 500 crore and more or net profit of Rs 5 crore and more. The new rules, which would be applicable from 2014-15 fiscal, also require the companies to set up a CSR committee of their board members, including at least one independent director. According to the order of Hon'ble Lok Sabha Indian pharmaceutical companies have to invest anywhere between Rs.300-325 crore in the coming years under Corporate Social Responsibility (CSR) scheme. Few pharmaceutical companies have already implemented CSR activities and published their contribution towards social activities. As per the current reviews, nearly 79 pharmaceutical companies will have to spend two per cent of their average net profits on social activities, which come to around Rs.325 crore. The Minister of Steel, Shri Beni Prasad Verma has said that the public sector undertakings under the Ministry of Steel are allocating and generally utilizing funds for taking up projects under the Corporate Social Responsibility (CSR) scheme issued by the Department of Public Enterprises. The details of the funds allocated by the public sector undertakings under the Ministry of Steel for CSR during the requisite period are as under:
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