Corporate Social Responsibility : Environment Protection relating to Sustainable Development
CORPORATE SOCIAL RESPONSIBILITY :
Firstly I would like to put a light on CSR i.e. Corporate Social Responsibility, also known as Corporate conscience; Corporate Citizenship or Responsible Business. It is not a static concept rather moving, dynamic , effective. It is a form of corporate self regulation integrated into a business model. Corporate Social responsibility is an orientation to business enterprise that claims a company has more than just a economic duty towards shareholders and owners of the company; it is also a social entity that entails moral obligations and imperatives that go beyond legal requirements and compliances. It involves an allocation of firm’s wealth towards some view of public good like maintenance of public gardens; donations for school; hospitals; sports club and facilities for handicapped.
SCOPE OF CORPORATE SOCIAL RESPONSIBILITY :
The Scope of Corporate Social Responsibility is very wider consisting of environmental; Social; health; ethical; governance etc. Varying from country to country; region to region; interest group to interest group. It came into existence for the following purpose as mentioned below :
- To eradicate hunger; poverty; malnutrition and promoting preventive healthcare;sanitation; making availability of safe drinking water
- Promotion of education
- Promoting Gender equality and empowering women
- Reducing child mortality
- Combating the human immunodeficiency virus; AIDS; Malaria; Tuberculosis etc.
- Ensuring environmental sustainability
- Employment enhancing and vocational Scheme
- Social business projects like rural development projects.
LEGAL COMPLIANCES RELATED TO CORPORATE SOCIAL RESPONSIBILITY :
To facilitate effective implementation of Corporate Social Responsibility, different legislatures, ministers has adopted different methods ; rules and regulations for regulating corporate social responsibility. The instruments provide guidance for both Government and Corporations regarding their responsibilities in the investment area.
On the government side, the instruments express core investment value of express core investment value of transparency, non-discrimination between foreign and domestic investors and investment protection whereas on the corporate responsibility, it is comprehensive code of conduct that covers such areas as environmental management, human rights, anti-corruption and supply chain management.
Law in India: As per Ministry of corporate affairsCcircular, corporate social responsibility is required for all companies vi. Private Limited company , Limited company. The following companies are required to constitute Corporate Social responsibility committee:
1.Companies with net worth of Rs.500 crore or greater, Or
2.Companies with turnover of Rs.1000 crore or greater, Or
3.Companies with net profit of Rs.5 crore or greater.
Any companies met with the above mentioned financial strength criteria has to form CSR committee consisting of its directors. This committee oversees entries activities of company. These companies also requires to spend at least 2% of its average net profit for the directly preceding three financial years on CSR activities.
SUSTAINABLE DEVELOPMENT :
Sustainable Development is a development that meets the needs of the present generation without comprising for the future generations.
ENVIRONMENT PROTECTION WITH RESPECT TO SUSTAINABLE DEVELOPMENT :
Environment sustainability comes into existence conservation of natural resources and for the development of alternate sources of power while reducing pollution, waste and harm to the environment. Corporations must undertake some projects like replanting forests , preserving wetlands and protecting natural areas from resource harvesting .
Sustainable Development in relation to environment has mainly three goals :
- To promote development without causing harm to environment.
To make use of environment friendly practices
To minimise the depletion of natural resources.
The environmental factors influence the development design to create the best of the world. Environmental protection is one of the main pillar and integral part of the business strategy. Environment guidelines aims to protect the environment and conserve the natural resources worldwide. Corporations must emphasise on the sustainable use of resources and should look after the maintainable of public gardens , gives charity for schools; hospitals; sports club; making availability of safe drinking water and sanitation services for the public. For protection of environment corporation should use environment friendly technology and practices in research and production of communities and the environment. So that it will automatically lead to reduction in waste and use of recycled and environment friendly disposal system
Corporations are dominant institutions on planet today therefore they have to help address social environmental issues that affect humankind.
- Many government in the world have basic capacity for addressing the complex societal changes, Global problems such as climatic change; ozone layer depletion; bio-diversity loss ; depletion of fisheries and forests; hazardous waste; transportation disposal; migrating microbes and invasive species as well as local air and water pollution.
Companies or partnership may come into agreement with the non-profitable organisations to promote corporate social responsibility in some of specific issues and might create a progressive and creative solution to these problems. Government does not have ability to fully address environmental issues and social problems on their own , so corporations must help government with the help of regular researches and survey for providing the solutions to public for their respective or aggregate problems.
- Strengthening of corporate and institutional framework promotes corporate responsibility and creates the awareness among society and public through different means of communication for creating the accountability on them and on corporations and governments regarding corporate social responsibilties.