Corporate Social Responsibility (CSR), a management concept that integrates social and environmental concerns, is a widely used and practised term. From philanthropy to environmental sustainability, CSR covers a gamut of verticals. ICR looks at the ongoing CSR initiatives of companies to understand how a unified platform works to maximise their impact.

Corporate Social Responsibility (CSR), according to the United Nations Industrial Development Organisation, is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (‘Triple-Bottom-Line-Approach’), while at the same time addressing the expectations of shareholders and stakeholders In this sense it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy.  

India is the second largest producer of cement in the world with more than seven per cent installed capacity globally. The industry plays a binding and pivotal role in building the socio-economic environment of the nation, development of infrastructure and education sector by spending millions in their CSR activities. 

Increasing accountability

According to the CSR Journal, India, as of financial year 2020, the top five cement companies that have taken CSR seriously and have given back to the society are Ultratech Cement with a spend of over Rs 125 crore and betterment of 16 lakh lives, followed by Ambuja Cement with a spend of Rs 53.97 crore reaching to people in 44 locations through 11 states, followed by Shree Cement with a spend of Rs 40.47 crore working for the betterment of around 255 villages, followed by ACC Cement with a spend of 32 crores and Ramco Cements with a spend of Rs 14.99 crores.  

Governing policies 

In August 2013, the Companies Act 2013 replaced the Companies Act of 1956. The new act introduced changes in businesses that affect company formation, administration, and governance, and incorporates an additional section, Section 135, a clause on Corporate Social Responsibility obligations for companies listed in India. This clause covered essential prerequisites pertaining to the execution of CSR activities of a business, like fund allotment, reporting, and successful project implementation. 

Post the replacement of the Companies Act 1956, India in April 2014 became the first country to legislate the need to undertake CSR activities and mandatorily report CSR initiatives under the new Companies Act 2013. 

-Kanika Mathur

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