Conscious Capitalism In India

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A Brief Context: With the amendment to the Company Law that makes it mandatory to spend 2% of profits on Corporate Social Responsibility (CSR) by Government of India, the law first of its kind and not followed elsewhere, one can see CSR becoming part of every company’s agenda falling under the rule. But if we look closely we will realize that even before the law came into existence, many big and small companies have done CSR in small or big way. In India, Tata Group has always been recognized for their social responsibility. The purpose behind existence of the Tata group was to provide an employment to the local people and they have always ingrained it in their growth. The Tata Group CSR activities highlight[1], how businesses have a duty to…show more content…
Compassionate capitalism is an approach towards business which helps us understand the dynamics of various stakeholders in the business and the need to create value for each of them. As defined by Conscious Capitalism, Inc.[3], Conscious Capitalism is a way of thinking about capitalism and business that better reflects where we are in the human journey, the state of our world today, and the innate potential of business to make a positive impact on the world. The four core principles guiding the business that practices Conscious Capitalism are: Higher Purpose, Stakeholder Orientation, Conscious Leadership and Conscious…show more content…
The company founder and CEO, Marc Benioff (Co author of book) established the foundation at the same time as the company. The 1/1/1 Model of the foundation focuses on 1% of founding equity of, 1% of revenues and 1% of employee time. He says[4], “Colin Powell showed me that you can be a leader with great values and change the world, I never knew business could be used for good. Our compassionate capitalism model was from his inspiration.” The business leaders like Tata’s and Benioff’s are leaving an impression on other business leaders. One can see the approach to CSR and business practices changing with stakeholders thoughts being taken into consideration. CSR is evolving from being a mere philanthropy or charity to deriving a larger purpose for businesses and

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