CSR in India an Overview

The European and American model of CSR may not match up with the quality and efficiency of Indian CSR policies; this is the confidence of the makers of Indian CSR policies. CSR has been well defined under section 135 of Companies Act which was passed in 2013. This act is all about bringing up corporate governance and strengthening corporate regulations.

The purpose of the CSR bill is to create a supportive environment, which allows corporates to strengthen their efficiency and to develop business policies, in order to connect between business and the communities with the focus in erasing our socio, economic and political issues and thus strengthening the society with the partnership of government and NGO s.

Section 135 says companies with net worth of Rs. 500 Cr or turnover of Rs. 1000 Cr or net profit of Rs. 5 Cr should have a mandatory CSR spend of 2 % of PBT. The various activities promoted should be focused on eradication of poverty, promoting education, promoting gender equality, women empowerment, reducing infant mortality and improving maternal health, prevention of diseases, protecting environment, and increasing employment opportunities etc.

In the US, CSR policies are rooted in 1920 s Community Chest Movement which was a part of Progressive Era from 1870s to 1920s. In this period number of millionaires in the US grew and started contributing to social purposes. CSR got its modern outlook in 1980. Current CSR model have a vivid structure and management.

•In the 2/3 of the companies identify corporate philanthropy and CSR within the corporate structure
•Corporate philanthropy and CSR is divided into corporate communications, Marketing and HR
•HR department channels the employ involvement programs

The Corporate Foundation Board includes the senior management including the CEO and the process can be centralized, decentralized or hybrid. The coordination will be through committee and supervision will be through the senior management.


The CSR initiatives in India are almost identified as a philanthropic, but it has moved from there to various levels of community building and institutional advancement. Schedule 7 of the Companies Acts details about the CSR initiatives and directs companies to focus on community development and CSR policies should go beyond mere community development and philanthropy. The focus should be on the work done with the profit after the profit is made.