Which of the following factors motivates companies to undertake CSR activities?

Enhancement of brand reputation is a key motive: socially responsible conduct builds goodwill with customers, employees, investors and regulators. CSR is not a tax-avoidance device (in India, CSR spending required by section 135 of the Companies Act, 2013 is not allowed as a business deduction), it does not aim at cutting salaries, and it uses current profits for social purposes rather than maximising short-term profit.