What is the full form of CSR?
The full form of CSR is Corporate Social Responsibility. It is defined as a business structure that allows a business accountable to the public towards its public & stakeholders makes it aware of its effect on various facets of society, like social, economic & environmental facets.
CSR is aimed at incorporating economically valuable services and activities into the business model & culture of an organization. It strictly implies that community-based companies must lead to social, economic & environmental growth, which has a positive effect on society. To support the weaker segment of society and protect the environment, the government keeps a close watch on the CSR component of firms as it requires private sector participation.
Demands of CSR
To create an overall positive effect on society, CSR allows businesses to control their business operations. It states that a firm should also carry out its social obligations along with doing corporation, which may involve,
- Monetary gifts to different non-profit organizations
- Helping individuals with natural disasters such as hurricanes, earthquakes, & drought
- Talent promotion in the fields of sports, entrepreneurship, cultural events.
- Take steps to decrease air & water pollution and so on.
- Corporations are expected to set up a CSR committee that approves the board’s CSR planning and policy practices.
- These tasks should be aligned with the activities referred to in the act of Schedule VII.
- The act also includes penal provisions for companies that do not comply with CSR requirements.