An Empirical Study on Issues and Challenges of Corporate Social Responsibility Activities in India

Abstract

Corporate social responsibility (CSR) is a management idea where companies incorporate their socio-environmental problems into their operations and maintain good relations with its stakeholders. Recently government of India has implemented new CSR regulation. The Companies Act of 1956 was repealed and the Companies Act of 2013 was enacted in its place. Section 135 of the companies Act of 2013, a new section of the new act, set certain provisions on corporate social responsibility for entities doing business in India, which resulted in a significant change in the creation, administration, and governance of companies. India has been the first country among all other nations to mandate the requirement to engage in CSR activities and to disclose it under the Companies Act of 2013. This signals the commencement of a new era in India's corporate social responsibility. All organizations that qualify for CSR requirements will be required to spend 2% of revenues on CSR within a specified time frame or turn this money over to government-run entities. In the present time of Covid-19 outbreak, the Indian government motivating Indian entities to give some assistance to the community. According to a circular of March 23, 2020 Ministry of Corporate Affairs, All Covid-19 related expenditure would be considered as CSR expenditure. In this study, researcher has made an effort to study the present scenario of CSR, including CSR practices followed by companies during a pandemic and the issues and challenges related to CSR, including making suggestions as to how these challenges can be resolved.