India is one of the world’s biggest instances that made a legal structure for companies to undertake CSR in India. For social welfare in 2014, That was made under the Enactment of Companies Act of 2013.
CSR Practice in India
India is the first country in the world to make corporate social responsibility (CSR) mandatory following an amendment to the Companies Act, 2013 in April 2014.
Under this act, India framed an obligatory structure of CSR funding for particular companies that made India a pioneer of such.
They aimed CSR as a public-private tie-up to achieve SDG (sustainable development goals) and nation-building.
In 2019, the Indian gov’t. decided to open up their regulatory window for the companies doing CSR. With that decision, govt. enabled investment in research and development programs of public universities alike private.
This decision created options for the companies to contribute to the development of research in science, technology, medicine, and engineering at major institutions.
How CSR funds used in India
CSR Expenses in India
|Total No. of Companies||Total Amount Spent on CSR[ INR Cr.||State & Area Covered||Total Number of CSR Projects||Development Sectors Entered by Companies|
Source: CSR India
CSR Spent Top Companies [FY 2019-20 & Amount INR cr.]
- Reliance Industries Limited – 908.71
- Tata Consultancy Service Limited – 602.00
- Oil and Natural Gas Corporation Ltd- 582.38
- HDFC Bank Limited- 535.31
- Indian Oil Corporation Limited- 518.49
- Infosys Limited – 359.94
- Bharat Petroleum Corporation Ltd – 346.46
- Power Grid Corporation of India Limited- 346.21
- ITC Limited – 342.24
- NTPC Limited – 304.92
Source: CSR India
Top 10 CSR Ranking Companies in India 2020
- Infosys Limited
- Mahindra & Mahindra Ltd
- Tata Chemical Ltd
- ITC Ltd
- Vedanta Ltd
- Wipro Ltd
- Hindustan Unilever Ltd
- Godrej Consumer Products Ltd
- Grasim Industries Ltd
- Bharat Petroleum Corporation Ltd
CSR Practice in Malaysia
Malaysian companies practice versatile shorts of CSR programs to engage them in social development. I feel it’s important to make you explain how they’re doing that.
Sime Darby, the first-ever company working in a quite different form of CSR like, in-house Child Protection, where they are working for the well-being of kids, their protection, and safety.
Allianz Malaysia Berhad, a Malay leading insurance company, executing their CSR as voluntary to spread education on road safety, community, and environmental concerns, and financial literacy.
DiGi.Com Berhad is a telecommunication company; they do their CSR educating unprivileged students, kids, and teachers about safety in the digital platform.
These are some shorts of CSR programs practicing in Malaysia. They’re also doing many common forms of CSR, but they have hundreds of unique styles that really people want.
Another example that can make you surprised. RHB Capital Berhad, one of Malaysia’s biggest financial org, helping families of missing kids to get them back from 2007.
CSR Practice in Bangladesh
CSR practices in Bangladesh still executing in scattered and heterogeneous ways. Bangladeshi legal system is in a decision-making dilemma, either it will be optional or obligatory from academicians and corporations.
Nevertheless, CSR is practicing in some common forms like poverty alleviation, women empowerment, healthcare, education, charity activates, cultural enrichment, youth development, patronizing sports, and music, etc.
CSR Laws in Bangladesh
Despite, CSR being a popular practice in this time of free trade, Bangladesh doesn’t have distinct law for it. But previously formed The Company Act of 1994 and Bangladesh Labor Law of 2006 can be the foundation for this.
Government has the urgency to take proper steps to make a different legal structure for it.
CSR Funds in Bangladesh
There is no specific or central database in Bangladesh due to lack of legal structure, the indecision of govt. and companies. However, Bangladesh Bank issued a minimum guideline for monetary organizations.
In Banking Sector, Bangladesh Bank made a guideline for the financial organizations, where these organizations can spend their total CSR funds allocating 30% on education, 20% on health services, and 10% on mitigating the challenge of climate change.
They also proclaimed a 10% tax release for keeping CSR commitment properly. In Industrial Sector like pharmaceuticals, garments, and many more it’s difficult to get a total picture.
Hundreds of corporations doing actively their CSR activities, in many crucial fields like we described before, the Indian gov’t allowed financing in the research development sector.
Bangladesh has a high potential of developing in public-private cooperation, but the information and legal body is an inevitable truth for it.
On the verge of the 4th industrial revolution. Actually, we can’t keep off ourselves from both the end of the regulatory and corporate end.
We can follow a good instance like India; the first-ever country that constructed a legal framework for CSR.
They fixed some conditions and gave the decision to spend a minimum of 2% of company profit on CSR.
Also opened up an opportunity for corporations to invest in the research development sector, in any central or provincial research-oriented institution.
Their implementation of CSR policy can uplift total development. So, it won’t be wise to neglect potential like this.
Lack of finance and other research equipment, every year hundreds of Bangladeshi talents lagging.
As, CSR became a universal picture for responsible corporations, like other multinational companies Bangladeshi companies should come forward. Not only for their business uplifting but also to reimburse their duty toward mankind.[Written by G K M Meskat Chowdhury, Student of Journalism, at University of Rajshahi]