CSR a Double Edged Sword

CSR is the procedure by which an association ponders and develops its associations with
stakeholders for the benefit of everyone, and exhibits its dedication in this respect by
appropriation of proper business methodologies and methods.
CSR is connecting the gap between the sales and society of a company, which gives more stress
for culture, ethics, and values. The policies and actions of a company is reflected in the
environment in which it enclose. CSR, if it is implemented with sustainability as a focus,
enhances business sustainability, provides new opportunities, develops customers loyalty
and improves stakeholder relationship, said the former President APJ Abdul Kalam at an
award function organized by the industry body, Associated Chamber of Commerce
(ASSOCHAM).
CSR is not a new concept in India from its independence, but has been now discussed and talked
upon with more gravity due to Companies Act, 2013 which provides for all prescribed
companies to ear mark 2% of net profit for CSR activities. The Companies Act, 2013 covers
every company having either net worth in excess of Rs. 500 crore, or turnover of Rs.1000 crore
or more, or net profit of Rs 5 crore or more should have to comply with section 135 of
Companies Act, 2013. The new legislation could make India perhaps the first country to have
mandated CSR spending through a statutory provision
In a nation, for example, India, where 33% of the populace is unskilled, 66% need access to
legitimate sanitation, and 400 million individuals still live on not exactly US$2 a day, the section
of the Companies Act ought to be hailed as a positive venture forward in guaranteeing that
business adds to fair and feasible financial advancement.
Notwithstanding, this procurement now will clear route for mushrooming of torpid NGOs which
bit the dust to suck up the enormous cash pooled to be siphoned off and lead to gigantic theft of
trusts which can generally be better streamlined and used. The procurements will likewise
prompt dishonest exercises and since there are no observing instruments it would to a great
extent go unnoticed.