A Case for Mandatory Corporate Social Responsibility (CSR) in India
Lee, Woong | April 2017
Abstract
Corporate Social Responsibility (CSR) in India is particularly interesting because there is a long tradition of firms' contribution to society even before the terminology of CSR was introduced, although India is a developing country. More interestingly, it is the first country to enact mandatory CSR in the globe. According to Section 135 of Chapter IX under the Companies Act, which was revised in 2013, a company becomes eligible for CSR with a net worth of more than 5 billion Rupees (approximately USD 75 million), turnover of more than 10 billion Rupees, or net profit of more than 50 million Rupees. All eligible companies under the Act must constitute a CSR committee of the board consisting of at least three directors. The committee must ensure that the company spends at least 2 percent of the average net profit of the company earned during the three immediately preceding financial years, in pursuance of its CSR policy. Since this is the first case in the world of a mandatory CSR provision being introduced, the consequences of the revised Act are of much importance.
Citation
Lee, Woong. 2017. A Case for Mandatory Corporate Social Responsibility (CSR) in India. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/10565.Keywords
Commerce and Industry
Intra-Industry Trade
Large Scale Industry
Labor
Textile Industry
Rayon Industry
Cotton Industry
Clothing Industry
Alleviating Poverty
Anti-Poverty
Extreme Poverty
Fight Against Poverty
Global Poverty
Health Aspects Of Poverty
Indicators Of Poverty
Participatory Poverty Assessment
Poverty Eradication
Poverty Analysis
Poverty In Developing Countries
Poverty Reduction Efforts
Urban Poverty
Industrialization
Industrial Economics
Industrial Development
Industrial Policy
Weaving
Textiles
Textile Workers
Wool Industry
Silk Industry
Small Scale Industry
Medium Scale Industry
Local Industry
Export Oriented Industries
Shoe Industry
Clothing
Hosiery Industry
Fur Industry
Leather Industry
Income Distribution
Demographic Indicators
Social Justice
Capital market
Developing countries
Market share
Labor
Work clothes industry
Women's clothing industry
Children's clothing industry
Uniforms industry
Garment industry
Apparel industry
Belt industry
Glove industry
Footwear industry
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Green Revolution
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