Corporate Social Responsibility In India

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Corporate Social Responsibility has been an important corporate phenomenon in India since a long time. Most of the big organizations of India are engaged in various CSR activities. In India the private sector organizations are generally more considerate and active in performing CSR activities than the Government or public sector organizations. The CSR initiatives have been taken in India since mid 1990s.Among all the initiatives, the first one was voluntary code of corporate governance – “Desirable Corporate Governance: A Code” ,which was established in April 1998.This initiative was taken by one of the India’s largest business association called Confederation of Indian Industry (CII),which was later partnered with National Foundation for Corporate…show more content…
Environment is another issue covered under Environment Protection Act (1986), which gives authority to the Central Government for safeguarding and improving the quality of environment by controlling and reducing pollution from all sources. Many organizations have emerged with voluntary guidelines about environmental friendly practices. Evolution of CSR CSR has become important practice as helps in strengthening the relationship between the company and the stakeholders. The outcome of this activity is innovations with continuous improvement helping the managers to manage according to stakeholder expectations (Werther & Chandler, 2006). The term CSR may be new but the concept dates back to over a hundred years. India is a land of diverse culture and religion. The idea of helping the poor and underprivileged can be found in ancient literature and religions. Kautilya and CSR: Kautilya emphasized ethical practices and principles while conducting business. CSR & HINDUISM: Merchants belonging to the Hindu religion gave alms, got temples and night shelters made for poor. Hindus followed Dharmada where the manufacturer or seller charged a specific amount from the purchaser which was used for…show more content…
Bowen (1953) marks the beginning of Corporate Social Responsibilities .According to Bowen ,Companies are power centers and decision making by the companies have an impact on the life of citizens. CSR Evolution in India According to a survey conducted by Tata Energy Research Institute (TERI) in 2001, the evolution of CSR in India may be divided into four chronological model: S.No Model Year Focus Champions 1 Ethical Model 1930-1950 • The businessman contributed towards community development through trusts. • The contribution was in the form of donations and philantrophy. M.K. Gandhi 2 Statist Model 1950-1970 • The era was marked by mixed and social economy. • The community development issue was taken care by the State ownership and legal requirement. Jawahar Lal Nehru 3 Liberal Model 1970-1990 • The business have to obey the law of business to generate wealth and taxes. • The taxes and private donations were directed towards social welfare. Milton Friedman 4 Stakeholder Model 1990-Present • Other than paying taxes,businessmen have accountability to all stakeholders in business. • The model is based on Triple Bottom Line Aprroach with Planet ,People and Profit as bottom lines. • It is about doing well by doing good. R. Edward
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