As pointed out by fellow student Vivian Jung, corporate social responsibility (CSR) has become an important factor in the success of a business.
In fact, India has recognized how crucial CSR is by instigating a law mandating its implementation in a company. The 2013 Companies Act requires all companies to direct two percent of average net profits in the three preceding financial years for CSR activities. Firms will have the freedom to select the causes they would like to contribute, and are required to appoint an internal CSR committee within the company. Should they not comply with this law, businesses will have to disclose reasons in books as to why they were unable to fulfill this requirement or face disciplinary actions.
Critics of this law say that pressuring firms to incorporate CSR into their business models will not produce the positive outcomes the Indian government is hoping for. I disagree with this, however, as companies will still be giving positively in some form to fulfill this social commitment, perhaps simply not as effectively or efficiently. A benefit of this law are the openings in employment opportunities for fields like social work and environmental development, as some see CSR equivalent to industrial social work.