According to the new Business Act, all companies must donate 2% to their net profits to CSR. This has encouraged Indian companies to deliberately tackle .CSR as they need a defined class of companies to issue a portion of the profits of CSR activities. According to this model, the role of businesses is to create value for shareholders and society and reflect a win win situation. Many organizations have raised awareness of the importance of CSR among businesses, civil society and public institution. Many organizations have raised awareness of the importance of CSR among businesses, civil society and public institutions. CSR has become a fundamental business practice and is very focused on the management of large international companies. The organization expects businesses to participate in solving social problems, even if they create problems. A recent report by Business Magazine states that "many business leaders now believe that doing good for others also means doing good for shareholders." Corporate social responsibility is the process of all companies coming together in society. Corporate responsibility is often referred to as the actions of organizations on environmental, ethical, social and economic-issues. As we know, today's Indian companies go beyond the concept of charity (charity) and focus more on all stakeholders. Economist and philosopher Adam Smith believed that society’s needs and wants are best met through free interaction between individuals and institutions in the marketplace. But in India, this is still in its Infancy. In this context, Indian business must go beyond the commercial and legal framework to build trust and play a role in the welfare of society. The article also highlights the major challenges/issues faced by Indian companies and suggests solutions to improve CSR Practices.