Corporate Social Responsibility (CSR) turns the idea of “doing good” from pure charity into a semi-formal obligation for larger companies. The basic thought is simple: big businesses use public resources and social infrastructure, so they should consciously contribute back to society.

CSR laws and rules often focus on:

• Which companies must spend (based on profit, turnover, or net worth),
  
• Minimum percentage of profits to be spent on approved CSR activities,
  
• Areas of focus – education, health, environment, rural development, etc.,
  
• Requirements to form a CSR committee and policy,
  
• Disclosure of spending in annual reports.
  

It’s not just about writing cheques. Regulators increasingly expect clear project selection, monitoring, and impact assessment. Spending company money on activities that mainly promote the brand, or benefit insiders, can get flagged.

Non-compliance may attract warnings, penalties, and reputational damage. Shareholders and analysts also look at CSR quality as a signal of long-term thinking and risk management.

Good CSR is not a random photo-op; it’s about picking a few meaningful areas and supporting them consistently, with transparency and accountability.