Do The Companies Owe Corporate Social Responsibility towards Institutions of Higher Education?

Abstract

With an emphasis on distribution of wealth among the stakeholders and considering environmental sustainability, the companies are required to manage business processes in such a way to provide a positive impact on the society. These companies through their business earn a major profit by operating in the society and various stakeholders are involved and affected from their process directly or indirectly, therefore the companies are expected to spend a part of their profit for the benefits of their stakeholders.  Corporate Social Responsibility (CSR) is a concept where big companies consciously combine their economic profit with social well-being and environmental sustainability. India has made legislation in the form of section 135 of Companies Act, 2013 for this purpose. According to this Act, education, gender equality, persons with disability (PwD) and environmental sustainability are some of the areas where the companies can use Corporate Social Responsibility funds through their policies.

In response to the law, a large number of companies are performing well and undertaking a large number of projects in areas mentioned under the Schedule VII of the Companies Act, 2013. But the data shows a lot still needs to be done as these large numbers of Companies are spending on education at school level and skill development but higher educational institutions (HEIs) are far away from reaping the benefits of CSR funds. Companies and corporate houses do not consider much about the infrastructural development in HEIs for environmental sustainability, and projects leading to women development.

Government is over burdened in looking and sponsoring even the small projects. CSR funding can share this responsibility thereby accelerating the process of development in the institutions.