Essay On Corporate Social Responsibility

1080 Words5 Pages

Introduction:
Business is basically a socio-economic entity. Although business is fundamentally an economic activity, it cannot be carried out in isolation of society. It is a group endeavour and therefore has a number of responsibilities towards different stakeholders – management, workers, customers, shareholders, government and the society. Realisation and fulfilment of responsibilities towards these stakeholders is termed as corporate social responsibilities. Further, business cannot function independently and depends on the society for supply of raw materials, capital, labour and other requirements. Business is a part of the society and has to follow and operate within the limits of the rules and regulations prescribed by the society. …show more content…

Corporate Social Responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance is a form of corporate self-regulation integrated into a business model. CSR policy basically works as a standard of built-in, self-regulating mechanism and ensure their harmony with law, ethical standards and international norms. The three keys to an effective CSR policy are commitment, clarity and congruence with corporate …show more content…

The Department of Public Enterprises (DPE) has prepared guidelines for central public sector enterprises to take up important corporate social responsibility projects to be funded by 2-5 per cent of the company's net profits. As per the guidelines, companies with net profit of less than US$ 22.5 million will earmark 3-5 per cent of profit for CSR, companies with net profit of between US$ 22.5 million - US$ 112.5 million, will utilise 2-3 per cent for CSR activities and companies with net profit of over US$ 112.5 million will spend 0.5-2 per cent of net profits for

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