Q: What is Corporate Social Responsibility under Companies Act, 2013 ?

Ans: Companies contribute to society in corporate social responsibility.The public and businesses are subject to the many benefits of corporate social responsibility. Firstly, it benefits society, as companies contribute a part of their revenue. Secondly, the company gains by earning a reputation and thus, making profits.

The Companies Act, 2013 provides for CSR under section 135. Thus, it is mandatory for the companies covered under section 135 to comply with the CSR provisions in India. Companies are required to spend a minimum of 2% of their net profit over the preceding three years as CSR.


Firms make it a point to heavily publicize their CSR initiatives, as making customers aware of it is equally important as doing good to society.

The benefits of CSR extend to both society and the company. Thus it is necessary to carefully weigh the impacts of CSR initiatives and design them to maximize the positive effects.

Types of Corporate Social Responsibility:

Environmental CSR – Companies focus on environmental protection and conservation in this category. They launch initiatives to reduce pollution or emission, offset carbon footprint, recycle waste, and use renewable energy sources.

Ethical CSR – The ethical responsibility of a business has to do with the moral values and ethical beliefs of organizations. It usually covers all the stakeholders of the company – employees, suppliers, and investors. Issues like gender equality, reasonable working hours, high minimum wage, etc., fall under ethical CSR.

Philanthropic CSR – Philanthropic means helping the people especially by giving money.

Businesses’ donations and contributions made to charity are considered philanthropy. Helping malnourished children or rescuing people in war-torn regions come under this.

Economical CSR – The last type of social responsibility focuses on the financial aspects of environmental, ethical, philanthropic, and social initiatives. A company should not just make profits but also practice fair measures like paying taxes responsibly to support the economy.

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