Corporate Social Responsibility: Should It Be A Law?
Friday, April 18, 2014
India is the first country to have corporate social responsibility (CSR ) legislation, mandating that companies give 2 percent of their net profits to charitable causes.
Innovative? Perhaps on a policy level. But some small-medium size enterprises within India have already embedded social impact into their company ethos.
The new CSR law is a massive 294-page act that requires companies to set up a CSR board committee, allocate 2 percent of net profits in the last three years to CSR, and be reviewed at the end of each financial year by the board’s director to ensure compliance. Beyond that, enforcement is a bit vague.