Corporate Social Responsibility is a concept whereby companies integrate social and environmental concerns into their business operations.
CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives.
In India, The Companies Act 2013 has mandated that corporates make their contribution to the betterment of society and the environment. They have to spend their part of their income as their responsibility towards society.
Section 135 of the act asserts that companies with a net worth of INR 500 crores or more or a turnover of INR 1000 crores or more, or a net profit of INR five crores or more, during any financial year, should form a CSR committee and fulfill other CSR-related requirements. Corporates have to spend 2% of their net profit on social activities in pursuance of CSR policy.
Firstly, Corporates get the satisfaction of helping people in need and creating a positive impact on society. This also fulfills their responsibility towards society. Along with this, they get a positive business reputation as we promote the supporters by displaying their logo, information and activities in the premises, website, social media and print and digital media.