What Is Corporate Social Responsibility?

Corporate Social Responsibility (CSR) is a means through which a company incorporates environmental, social and human development concerns into its planning and actions to ensure that its operations are ethical and beneficial for society. CSR in India has traditionally been seen as a philanthropic activity. However, with the introduction of Section 135 in the Companies Act 2013, India became the first country to have statutorily mandated CSR for specified companies. Every company that fulfils the conditions set out under Section 135 of the Companies Act, 2013 has to spend at least 2% of their average net profits made during the three previous financial years towards the CSR in the current financial year.