Paying It Forward by the Corporate Social Responsibility (CSR)

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“No success or achievement in material terms is considered worthwhile unless it serves the needs or interests of the country and its people” – J.R.D. Tata
Corporate Social Responsibility (CSR) is a concept pertaining to the corporate bodies taking responsibility for their actions and looking out for all the stakeholders who include consumers, employees, shareholders, the community and the environment. Thus it seeks to look beyond the goal of profit maximization and aims to empower the resourceless. Although this phraseology might be a new concept, certain companies have been quietly carrying out these social responsibilities out of a sense of obligation.
Nowadays no talk of development is complete without the mention of “inclusive growth”. Traditionally, the Government has been responsible for the upkeep of the rural areas of the country and to ensure that their growth is somewhat at par with the rest of the nation. But government support is inadequate and limited. So, if the corporates contribute to nation building, with the government acting as an enabler and facilitator, we will obviously develop faster. The rural areas will have a better infrastructure and the people will be brought into the mainstream of the economy. On a larger scale, as India develops it will become a better investment destination due to an increased growth rate and more importantly a better HDI.
65% of Indians live in rural areas and 25.7% of them live below the BPL. Rural India is still grappling with very basic issues. This is not just due to the lack of resources but also due to problems in our planning and investment patterns. The gap of inequality between the rich and the poor increases day by day.
Why would the companies want to engage in CSR - tha...

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...tor them in terms of physical achievements. This alone will lead to self-reliance in the long run.
Profitable to both the corporates and the rural areas, CSR in yet in a nascent stage in India. Only 38 companies at present are CSR compliant. According to the new Companies Bill 2012, all companies having a net worth of Rs. 500 crore or more or a turnover of Rs. 1000 crore or more during any financial year must at least spend 2% of the average net profits of the past 3 years on CSR. Rs. 5611 crore will flow to social causes from the top 100 Indian companies alone. This is really good because the diversity of the rural sector shows immense potential just waiting to be tapped. Thus, we see that CSR focused on rural areas in essential for economic growth, balanced regional development, reduced human rights abuses, equitable society and ecological sustainability.
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