Corporate Social responsibility and its compliance mechanism with reference to environment protection in India: A case study of National Fertilizers Limited, Bathinda
The concept of Social Responsibility can be traced back into the ancient times. It was discovered by various scholars that while doing any business transactions and for the smooth progress of trade and commerce the wider goals of public interest are taken into consideration. Jesus stated that wealth encourages greed and selfishness and it does not lead to the true happiness. Today's world is facing dramatic economic, social and environmental challenges. Business ethics are gaining more importance in business sector but their goals are an integral from the societies and environment with in which they operate. The environmentalists have always been trying to protect the environment from various human actions which are uncertain in nature. This approach of the environmentalists is in favour of development of society by adopting industrialization but in a sustainable way. Industries affected environment more than any other activities, therefore, sociolegal reforms are being adopted and efforts have been made to enact and amend various laws. These laws and policies have been made, keeping in view the problems of the increasing environmental pollution and lessen its effects. Some of the specific provisions in the laws have fixed the liabilities of Industries and like organisations to compensate or re-establish the actual or natural situation in the environment. To deal with those companies section 135 of the Companies Act, 2013 plays a very important role as it states Every company that would have net worth of Rs 500 crore or more, or turnover of Rs 1000 crore or more or a net v profit of Rs 500 crore or more during any financial year shall have to constitute a corporate social responsibility committee with a board consisting 3 or more directors, out of which one has to be an independent director. The CSR Committee shall formulate and recommend to the board activities to be undertaken by the company as specified in schedule VII. The amount of expenditure should also be recommended. The board should also monitor the CSR policy of every company. The policy and the activities are to be disclosed on the company's website. The board have to make sure that the company must spend at least 2% of the average net profits of company made during three immediately preceding financial years for its CSR policy. Company must give preference to its local areas for the spending of CSR amount. If the company fails to do so, then it must justify its reasons for not doing so. To conclude this all an interview was conducted though which it came to conclusion that National Fertilizers Limited Bathinda is working honestly to fulfil their responsibility towards society and the work done by them is appreciable. It is a direct advantage towards society.