- GS-3: Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context: In developing economies like India, Corporate Social Responsibility (CSR) is seen as part of corporate philanthropy in which corporations augment the social development to support the initiatives of the government.
- India became the first country to legislate the need to undertake CSR activities and mandatorily report CSR initiatives under Section 135 of the Companies Act, 2013.
- However, the current CSR frameworks have some flaws, such as transparency, lack of community participation in CSR activities, and lack of timely audits.
- In order to achieve sustainable development, India should streamline its CSR framework and focus on collective betterment through shared responsibility.
Main Practice Question: How far do you think that enacting a legislation for Corporate social resposibility has yielded results?
Note: Write answer his question in the comment section.