Corporate social responsibility under Companies act 2013: A study
Corporate Social Responsibility has gained much attention in the recent past. CSR or citizenship aims at invoking the corporate conscience whereby companies incur short-term costs that do not provide an immediate financial benefit to them, but instead promote positive social and environmental change. The New Companies Act 2013 has come up with the concept of mandatory CSR and this Act will replace the archaic, almost 60yrs old Companies Act, 1956. This paper is focused on Companies Act, 2013 & its provision on mandatory spending and disclosure of Corporate Social Reasonability activities. The paper also discusses the major loopholes in the provision that can prove as a hindrance in its practical applicability.