Vol. 1, Issue 10, Part L (2015)

Abstract
The corporate social responsibility is assortment of the business interest as well as community interest for social ordering. The actions of business and industry impact the lives of citizens, both directly and indirectly hence the business and industry are expected to assure reasonable level of responsibilities towards the society in addition to their economic and legal obligations. Nowadays the Governments are also moving towards the welfare state concept. With this purpose in mind, our Constitution lays down desirable principle and guidelines in IV of the Indian constitution. These provisions are known as the Directive Principle of State Policy under Article 36-51 of Indian constitution. The Constitution of India aims to establish not only political democracy but also socio-economic justice to the people to establish a welfare state. Since the increasing of socio-economic imbalances the Governments are encouraging companies to take up social responsibility for changing the social structure by eradicating hunger, poverty and malnutrition, promoting preventive healthcare, promoting education and promoting gender equality etc. For this purpose the Indian companies Act, 2013, section 135 and schedule VII provides guidelines on implementation of CSR and mandates the corporate’s to spend 2% of their profit towards CSR activities for welfare state.