Corporate Social Responsibility (CSR), as mandated by the Companies Act, 2013 has emerged as an important avenue to form effective partnerships between the government and corporates to contribute towards the development sector. The Act encourages companies to spend at least 2% of the average net profits of the immediately preceding three financial years on specified CSR activities.
Even with mandatory requirements by the law and huge potential of CSR as indicated by market numbers, the CSR ecosystem in India is still nascent and evolving. For CSR to be a success it is essential that all the stakeholders synergize their efforts, optimally utilize resources and thereby contribute to the well-being of the society. Sustainability is one of the core elements of effective CSR practices and is focused upon by most of the corporates.
Through SAHABHAG, the government of Maharashtra is aiming to focus on collaborative efforts in the fields of water conservation, health, sanitation, education, skill development and many other sectors related to social development.
With the need for an inclusive environment for effective CSR, the inclusion of many Small and Medium Enterprises (SMEs) into the CSR fold is essential as it is a sector with a fresh set of challenges to comply with environmental and social standards, while remaining competitive in terms of price and quality. Our state has a growing number of SMEs and hence their inclusion is of prime importance.