Zeba Umar, Amity University, Uttar Pradesh
Aakansha Verma, Asst. Professor, Amity University, Uttar Pradesh
INTRODUCTION
The significance of CSR emerged considerably in the last decade and is becoming an increasingly important activity to businesses nationally and internationally. Over the time, CSR stretched to both social and economic interests and also broadened to cover social as well as economic interests. Companies now become more transparent in accounting and other activities due to pressure from the various interest groups of the society. It is mandatory for companies to behave in ethical and responsible manner towards the various interest groups of the society and environment. Companies started incorporating their CSR projects in their annual reports also.
Corporatization of global economy gained momentum after the emergence of Industrial Revolution in 18th Century. The concept of joint stock form of enterprises received tremendous popularity all over the world along with taking off of Industrial Revolution. The corporate form of business organizations enjoys the benefits of perpetual existence1. Almost every country all over the globe regulates and monitors the functions of corporate form of organizations by dint of an Act of Parliament which is known as the Companies Act or Corporate Act. In the 14th Century, the term ' Company' was adopted by certain merchants for trading overseas in England. This was a merchants' guild in foreign trade. The merchant guild was an extension of mechanism for doing foreign trade. By the end of the 16th Century, Royal Charter2 granted monopoly for trading to the members of the company over a certain territory and such companies are then called regulated companies. The East India Company was one of such regulated companies floated by the Royal Charter in 1600 which was in essence a multinational company.
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