National Corporate Social Responsibility Awards | 30 Oct 2019

Recently, the President of India has presented the first National Corporate Social Responsibility (CSR) Awards to selected companies.

  • The awards have been instituted by the Ministry of Corporate Affairs to recognize corporate initiatives in the area of CSR to achieve inclusive and sustainable growth and development.
    • The Indian Institute of Corporate Affairs (IICA), a think-tank of the Ministry, has rendered technical and logistics support in the conduct of the rigorous award process.
  • The awards and honourable mentions were announced across three categories:
    • Corporate Award for Excellence in CSR based on spending of companies on CSR.
    • Contribution of CSR in Challenging Circumstances includes different region like north, east, west, south and north-east.
    • Contribution to the National Priority Areas like Education, Skill Development and Livelihoods, Agriculture & Rural Development, etc.
  • National CSR Awards will be given away on 2 October every year.
  • CSR is a manifestation of the trusteeship philosophy of Mahatma Gandhi.

Corporate Social Responsibility (CSR)

  • The term "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
  • In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
    • Under the Act, a certain class of profitable companies are required to contribute at least two per cent of their three-year average annual net profit towards CSR activities in a particular financial year.
  • India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities.

Trusteeship Philosophy

  • It is a socio-economic philosophy that was propounded by Mahatma Gandhi. The concept of trusteeship urges capitalists to act as trustees (not owners) of their property and conduct themselves in a socially responsible way.
  • Gandhi Ji’s idea of trusteeship arose from his faith in the law of non-possession.
  • This principle reflects Gandhi Ji’s spiritual development, which he owed partly to his deep involvement with and the study of theosophical literature and the Bhagavad Gita.

Source: PIB