Examining Efficiency and Sufficiency of CSR in Fulfilling Social Roles and Responsibilities in India

Corporate Social Responsibility (CSR) refers to a company's voluntary actions aimed at integrating social and environmental concerns into its business operations and interactions with stakeholders. The Companies Act, 2013 of India made CSR mandatory for certain companies, reflecting the government's intention to promote responsible corporate behavior.

Positive Impact:

·         CSR initiatives have brought about positive changes in sectors such as education, healthcare, environmental sustainability, and poverty alleviation.

·         Examples: Tata Group's initiatives in education, Wipro's efforts in healthcare, and ITC's focus on rural development.

·         CSR activities can help bridge development gaps and promote inclusive growth, particularly in marginalized communities.

·         Example: Hindustan Unilever's Project Shakti empowered rural women by providing livelihood opportunities and improving their economic status.

Limitations and Challenges:

·         Critics argue that making CSR mandatory undermines the voluntary nature of such initiatives, reducing their impact.

·         Compliance issues: Some companies focus more on meeting regulatory requirements rather than genuinely addressing societal needs.

·         Monitoring and evaluating CSR initiatives can be challenging, and ensuring transparency in fund utilization is essential.

·         Continuous evaluation and periodic review of the CSR provisions are necessary to ensure relevance and effectiveness.

Striking a balance between regulatory requirements and voluntary commitment will help maximize the social impact of CSR activities.