Need for Effective CSR Mechanism: Study


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HYDERABAD: A national level exploratory study conducted by the Centre for Corporate Social Responsibility (CSR) at the Institute of Public Enterprise (IPE) has stressed the need for an effective mechanism to infuse life into CSR programmes.

As corporates today have realized the importance of CSR and are coming up with various initiatives, the IPE conducted the study to understand the scope of CSR as a tool for social inclusiveness. The research was aimed at studying existing CSR practices and also reflect on the role of various stakeholders in its effective implementation.  An impact assessment study was also conducted to understand the effectiveness of CSR.

“According to the Companies Act 2013, a company shall spend, in every financial year, at least two per cent of the average net profits made during the three immediately preceding financial years in pursuance of its Corporate Social Responsibility Policy.

The government has taken initiatives in the past and is also actively involved in implementation of initiatives to meet the above objective” said RK Mishra, Director of IPE. The study was conducted in the backward districts of four states, Telangana, Odisha, Rajasthan and Madhya Pradesh, and covered 1846 households.

(report first appeared with The New Indian Express)

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