Studies on the comparison of Corporate Social Responsibility Practices followed in Industrial Sectors

Abstract

Corporate Social Responsibility came as a responsibility towards society in business in the Eighteenth Century. There are many countries which have adopted CSR approach for the purpose of their business management for centuries. The Ministry of Corporate Affairs, India has issued a notification defining CSR in Companies (Corporate Social Responsibility Policy) Rules, 2014 on Feb.27, 2014. This notification was examined by Ministry of Environment and Forests and an Office Memorandum was issued on Aug.11, 2014 making some amendments in the conditions while imposing on grant of Environmental Clearance. The observations of various studies regarding the CSR practices followed across the various industrial sectors have been analyzed and observed that CSR practices which are actually carried out post environmental clearance needs more attention. The questionnaire relating to CSR activities performed by the industrial sectors was prepared and survey has been carried out in different industrial sectors in Punjab to know the actual status of CSR activities performed by the industries. It has been observed that only 5-6 activities are performed by various industries as a part of their CSR and rest of the main activities are being ignored. There was no emphasis on social business projects and promoting gender equality mentioned in Schedule VII of Companies Act, 2013. The industrial sectors are spending some amount on the activities such as education, health, employment generation, sports activities and funding to NGO’s/ social organization. However, these sectors are not complying with the CSR Rule as they are not spending 2% of their net profit on CSR activities. Hence, it is concluded that 2% of the total profit earned by the industry must be religiously spent on CSR activities for the betterment of the society in general and neighborhood in particular. Moreover, the monitoring of CSR activities performed by industrial sectors must be accessed in order to implement the CSR in better way.