As a part of society, every entity should act for the benefit of society. That is how both get symbiotic growth. The same holds for all the business entities as well.
In today’s business, organizations are not measuring their effectiveness based only on its regular operations but also focuses on how effectively they are integrating their daily operations while keeping in mind about the social and the environmental demands.
A few praiseworthy companies are operating in India, who have successfully integrated a triple bottom line framework in evaluating their business performance. In fact, India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to the Companies Act, 2013 in April 2014.
As per Section 135 of Companies Act of 2013, companies which cross any of the following thresholds:
will have to spend at least 2 % of its average net profit for the immediately preceding 3 years for social development purposes as a part of their Corporate Social Responsibility (CSR). The schedule VII of the said act also specifies the following activities which may be included by companies in their Corporate Social Responsibility Policies.
Activities relating to:-