India has become the first country to mandate CSR; the ministry of corporate affairs has notified Section 135 and schedule VII of the Companies Act 2013, which includes the provisions of the Corporate Social Responsibility Policy to come into effect from April 2014. By the effect of which every company which either has a net worth of Rs 500 crore or a turnover of Rs 100 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit of preceding three years on social responsibility activities.
This law can encourage realistic and operational models of engagement between stakeholders that can work towards empowerment of the society- the government, the NGO’s and the private sector.