An Analysis of the Role of Corporates in the time of Pandemic with Reference to Corporate Social Responsibility

Shruti Poddar

Assistant Professor (Law), Amity University Kolkata

Best Citation – Shruti Poddar, An Analysis of the Role of Corporates in the time of Pandemic with Reference to Corporate Social Responsibility, 2 ILE IPCLR 27, 2022

ABSTRACT

CSR (Corporate Social Responsibility) began with philanthropic approach by the industrialists to focus on the challenge of integrating and reconciling economic and social values in the context of changing expectation of the people. It has been observed from the Ministry of Corporate Affairs report, 2020 that out of 2014969 total registered companies only 12,15,973 companies are active, not even 2% of the active companies comes within the ambit of CSR in India. In a report by NGOBOX and CSRBOX “India CSR Outlook Report 2020”, it is mentioned that out of top 5 companies that actually spend on CSR, 3 companies belong to private sector. In this time of pandemic out of total 269 companies, only 38 Public sector undertaking contribute towards CSR. Public sector undertaking account for 14% of India’s total CSR spend. The author tries to examine the expenditures made on CSR activities by the private sector companies and public sector companies. Whether the expenditure made by private sector companies is more than the public sector undertakings? It has been further seen that the private companies are spending more than the prescribed amounts. The author further aims to understand the reasons that makes the private sector companies contribute more towards the CSR activities than Public companies in this time of crisis. The Companies (CSR Policy) Amendment Rules 2021 provides for the treatment of unspent CSR amount. The author tries to figure out whether the making of Rules 2021 would be sufficient to solve the issues involved in the spending of CSR amount? As per the latest Rules, Impact assessment of CSR activities has been made mandatory. Lastly the author analysis whether it is required for the companies to undertake an assessment survey prior to the selection of any CSR activity and whether such impact assessment done by external agencies would improve the companies contribution towards the CSR activities in the present scenario. To conclude the CSR is an old concept as now it is a time of Individual Social Responsibility (ISR). Individuals such as big business tycoons must also contribute towards CSR. Azim Premji, a philanthropist who donated Rs. 7904 crores in donation last year in the time of COVID 19 crisis to improve public system like health. He said that companies should not be legally mandated to engage in CSR rather it must come from within.

Keywords: Private Sector, CSR spend, COVID 19, Unspent CSR amount, ISR etc