What do you understand by Corporate Social Responsibility? Being the company secretary of ABC Ltd. how will you implement the framework for the recent trends of corporate social responsibility?

Corporate Social Responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders. The main function of an enterprise is to create value through producing goods and services that society demands, thereby generating profit for its owners and shareholders as well as welfare for society, particularly through an ongoing process of job creation. However, new social and market pressures are gradually leading to a change in the values and in the horizon of business activity. Essentially, Corporate Social Responsibility is an inter-disciplinary subject in nature and encompasses in its fold: Social, economic, ethical and moral responsibility of companies and managers, Compliance with legal and voluntary requirements for business and professional practice, Challenges posed by needs of the economy and socially disadvantaged groups, and Management of corporate responsibility activities. CSR is an important business strategy because, wherever possible, consumers want to buy products from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and NGOs, increasingly, want to work together with companies seeking feasible solutions and innovations in areas of common concern. CSR is a tool in the hands of corporates to enhance the market penetration of their products, enhance its relation with stakeholders. CSR activities carried out by the enterprises affects all the stakeholders, thus making good business sense, the reason being contribution to the bottom line. A properly implemented CSR Concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increase sales and profits, operational cost savings, improved productivity and quality, efficient human resource base, improved brand image and reputation, enhanced customer loyalty, better decision making and risk management processes. Section 135 of the Companies Act, 2013 mandates specified companies to undertake CSR activities. The CSR framework needs to be developed keeping in mind the legal provisions wherever applicable.