CSR contribution towards the normalcy and upliftment of the society during COVID-19 pandemic

Abstract

Corporate Social Responsibility to raise up to the need of the society in present COVID-19 pandemic is the main focus of the study undertaken. Corporations like Apple, Facebook, General Motors, G.E, large organisations with huge capital and lots of employees, will have power to contribute a part of their profit which will make a huge difference for the upliftment of society. Corporate Social Responsibility directly benefits not only the society even corporate too, as it can channel a great energy towards common cause of social upliftment. It enjoys other benefits like uniting employees, loyal customers and sustainability. The impact of COVID-19 pandemic on India has been largely disruptive in terms of loss of human lives and economic activity. Almost all the sectors have been adversely affected as exports and domestic demand sharply plummeted. Post pandemic period of COVID-19 can be a good time to resume, revamp the entire approach towards CSR, that govern all CSR activities with the real needs of people. Therefore, mandatory contribution of 2 percent by the companies would also likely to be shrinking significantly due to the impact of pandemic on their revenues and profitability. Businesses, with a differentiated approach to rural and urban projects, need to choose the cause of the CSR projects more judiciously. The Ministry of Corporate Affairs (MCA) issued two circulars, The first circular stated that companies‘ spending in response to the Covid-19 crisis could be classified as CSR. However, the second circular, in answering whether companies‘ payment of salaries and wages of employees and workers could be considered as CSR under the law, not only states that it cannot be considered as CSR, but it also states that ―payment of salary/ wages to employees and workers even during the lockdown period is a moral obligation of the employers…‖. The study brings in a discussion about the various viewpoints in support of the CSR contribution to bring in normalcy and upliftment in the society.