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Is CSR initiative integrated @2% of Company's average net profits??Yes, it is in tandem with Companies Act, 2013 but it stretches beyond statutory boundaries and is crafted through various colors when perceived from stakeholders view. It is broadly versioned from two aspects, which are:-

Stakeholders perception of CSR initiative

Based on type of stakeholder
Based on type of CSR initiative

So, let us pursue their praiseful perception mashed with captious corner.

1) Based on type of stakeholder

Stakeholders list is endless but primarily includes investors, employees, customers, suppliers, Govt., community and society.

Investors: Are generally interested in returns but insights to CSR can draw their attention only in cases when returns are constrained due to such initiatives. However, if I am the sole believer of "The value of man resides in what he gives and not what he is capable of receiving", then it's perceived peacefully.

Employees: Being part of CSR initiatives by the organization where they are working gives immense pleasure to fill own social appetite. If feeling of socialism is sight at star, while I(as an employee) am on earth, then it's too far to pursue anything!!

Customers & Suppliers: Their think tank depends upon their level of standing in the market. If I (as a Company) owe to the extent of writing off in their books of account and continue to carry CSR activities, its obviously crematory carving in their hearts, same will be our perspective visa-a-vie for debtors. "CSR initiative catalyses towards topping up credibility in terms of compliance conformity"

Government: Already taken meticulous plan to address granule risks of, "Reason or mere disclosure in financial statement for unspent amount via Companies Amendment Bill, 2019.It also suggests to spend unspent amount of past financial year, thereby trying to tie the knot tight :-) !!!

Society: Consists of various communities, organization, public and many other concerned, who gets affected directly or indirectly.


Here the concept may go amorphous. Most companies have their own trusts where they donate, so it is just about changing pockets; still compulsory changing can do wonders...From organizations (NGO's, trust, Self Health Groups) view, it is akin to business given to them out of compulsion so that genuine need gets fulfilled. Pocketing is practical, but perception is conceived.

2) Based on type of stakeholder


Stakeholder's perception depends upon numerous factors out of which one s type of CSR initiatives and their level of attachment with those activities. Let’s understand this through one example…

Example:- Suppose I(As individual) has someone's death in family due to heart attack, then I will donate towards that particular initiative taking organization like heart related awareness, hospitals and so on..., as it soothes me and will be placed as pre-conceived notion in my mind. The same line of reference is drawn in mind of stakeholder based on incidents and events they witnessed. These things goes in head and heart of the people, which is paramount factor affecting the vision to see CSR initiatives.

Types of initiatives further gets grilled based on management thought process of respective companies towards CSR. It includes thematic concepts which are deepen to grass-root level like environment, health and safety measures, women empowerment, dedicated efforts for differently abled people, education, agriculture, boosting blue economy, addressing economic issues like poverty, unemployment, infrastructure, health and hygiene, clean drinking water, reducing red tape and last looked default option is Prime Minister's National Relief Fund.


Zillion factors contributes to empathies the acumen of stakeholder with one motto of lending a helping hand. Charity begins at home and so is the CSR.I would like to end with the doorstep initiative which can be taken by all of us in all capacity like personal, professional, employer or employee ultimately being human....

When we witness incidents like death of any person there is grief to graveyard. Government employees do have benefit for crematorium expense, which will be given at the earliest by the person concerned; however other sectors generally pay lumpsum amount, claims etc at later point of time. I would suggest each one of us that be there with some amount to give( Not to donate) to family members and be there on your tiptoes,help their dependents to educate about death certificate in vernacular and English language instead of praying for peace of soul, provide peace by deeds. Not everyone is inherited by just property but also by responsibility, which grows them up overnight.We being grown up should never forget these PSR(professional/personal social responsibility).

At the end, CSR initiative surely stirs the societal satisfaction of stakeholder's soul.

Thank You

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Category Corporate Law, Other Articles by - CA Mili Shah