CORPORATE SOCIAL RESPONSIBILITY

Author: Ryan Francis Atkinson, II B.com CA ‘B’ ,
Co- Author: P.J. Jeeson, II B.com CA ‘B’ ,
Sri Krishna Arts and Science College,
Kuniamuthur ,
Coimbatore -641008

INTRODUCTION

Even though the main motive of business is to earn profit. thus helping better communication to customers and staff showing that your business is involved in and committed to the local community. We contend that resource-based perspectives (RBP) are useful to understand why firms engage in CSR activities and disclosure. The external benefits of CSR are related to its effect on corporate reputation. That can be a great boost for business. Firms engage in corporate social responsibility (CSR) because they consider that some kind of competitive advantage accrues to them. Firms with good social responsibility reputation may improve relations with external actors. Staff who volunteer. and helping keep the area looking nice can encourage customers to stay and shop in their local high streets.for example. Building a sense of community involvement. working with young people to develop their skills could help you find some star employees of the future. investing in social responsibility activities and disclosure has important consequences on the creation or depletion of fundamental intangible resources. Corporate reputation can be understood as a fundamental intangible resource which can be created or depleted as a consequence of the decisions to engage or not in social responsibility activities and disclosure. Its benefits to Business are. Previously it was voluntary for all the corporates to take steps for betterment of the society except government rules and regulation related to protection of environment. . or both. They may also attract better employees or increase current employees’ motivation. Community projects can also have long-term direct benefits to your business . meet new people and represent your business in a positive. commitment and loyalty to the firm. namely those associated with employees. From a resource-based perspective CSR is seen as providing internal or external benefits. morale.Corporate Social Responsibility (CSR) is a duty of every corporate body to protect the interest of the society at large. corporates should take initiative for welfare of the society and should perform its activities within the framework of environmental norms. get the opportunity to develop new skills. In effect. Investments in socially responsible activities may have internal benefits by helping a firm to develop new resources and capabilities which are related namely to know-how and corporate culture.

Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. have been involved in serving the community. many other organizations have been doing their part for the society.companies setting clear objectives. CSR policies. If this goal has to be realised then the CSR approach of corporates has to be in line with their attitudes towards mainstream business. and Indian Oil Corporation. strategies and goals for their CSR programs and set aside budgets to fund them. Among other countries India has one of the richest traditions of CSR. corporates like the Tata Group. with CSR referring to way that businesses are managed to bring about an overall positive impact on the communities. undertaking potential investments. measuring and reporting performance publicly. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainstream business. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. Companies have specialised CSR teams that formulate policies. to name a few. cultures. The fundamentals of CSR rest on the fact that not only public policy but even corporates should be responsible enough to address social issues. A growing number of corporates feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation.EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY IN INDIA The evolution of corporate social responsibility in India refers to changes over time in India of the cultural norms of corporations' engagement of corporate social responsibility (CSR). defending attacks and increasing business competitiveness. practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. societies and environments in which they operate. Ever since their inception. Through donations and charity events. the Group. The programs are put into practice by the employees who are crucial to . The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR is not a new concept in India.

NGOs and the government should be facilitated so that a combination of their skills such as expertise. For example. This is exclusively undertaken by SAP India in partnership with Hope Foundation. a more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited. CSR has gone through many phases in India. Not one but all corporates should try and bring about a change in the current social situation in India in order to have an effective and lasting solution to the social woes. shelter and medical care of street children. a lot of work is being undertaken to rebuild the lives of the tsunami affected victims. Also Corporates increasingly join hands with Non-governmental organizations (NGOs) and use their expertise in devising programs which address wider social problems. clothing. manpower and money to initiate extensive social change will put the socio-economic development of India on a fast track. and Hindustan Unilever Limited. building schools and houses. Partnerships between companies. CSR programs ranges from community development to development in education. Some of the non-profit organizations which carry out health and education programs in backward areas are to a certain extent funded by such corporations. strategic thinking. . The SAP Labs Center of HOPE in Bangalore was started by this venture which looks after the food. and empowering the villagers and in process making them more self-reliant by providing vocational training and a knowledge of business operations are the facilities that these corporations focus on. Many of the companies are helping other peoples by providing them good standard of living.this process. They set up health camps in tribal villages which offer medical check-ups and treatment and undertake health awareness programs. the CSR programs of corporations like GlaxoSmithKline Pharmaceuticals’ focus on the health aspect of the community. On the other hand. an NGO that focuses mainly on bringing about improvement in the lives of the poor and needy. For example. environment and healthcare etc. The ability to make a significant difference in the society and improve the overall quality of life has clearly been proven by the corporates. Maruti Suzuki India Limited. Provision of improved medical and sanitation facilities.

This is a result of the support from our consumers who participated in the Shiksha movement by buying P&G brands for one quarter of the year. specificity. Now in its 8th year. voluntarism and visibility. Shiksha was launched in 2005 to enable consumers to contribute towards the cause of education of under-privileged children through simple brand choices. Learn & Thrive.P&G’s flagship Corporate Social Responsibility Program Shiksha is an integral part of our global philanthropy program . With this insight and founded on P&G’s purpose. PHASES OF CSR DEVELOPMENT IN INDIA The Four Phases of CSR Development in India The history of CSR in India has its four phases which run parallel to India's historical development and has resulted in different approaches towards . Since its inception. Shiksha has till date helped 280. 22 crores towards helping children on the path to better education. amongst others. Save the Children (STC). Army Wives Welfare Association (AWWA) and Navy Wives Welfare Association (NWWA). proactivity.000 underprivileged children access their right to education. thus enabling P&G to contribute a part of the sales towards the cause. Proponents of corporate social responsibility (CSR) are convinced that it ‘pays off’ for the firm as well as for the organization's stakeholders and society. The program has built & supported over 140 schools across India. in partnership with NGOs like Round Table India (RTI). Five strategy dimensions are identified which help to assess the value created for the firm by CSR programmes: centrality.Live. Guidelines for managers to incorporate these dimensions into a strategic analysis of their social responsibility are presented to encourage more support for these mutually beneficial programmes. Shiksha began with P&G India’s research which revealed education as the one cause that consumers are most concerned about and are looking for a simple way to contribute to. Shiksha has made a cumulative donation of over Rs.

Under his influence businesses established trusts for schools and colleges and also helped in setting up . wealthy merchants shared a part of their wealth with the wider society by way of setting up temples for a religious cause . However it has been observed that their efforts towards social as well as industrial development were not only but also the driven by selfless and religious motives but also influenced by caste groups and political objectives. these merchants helped the society in getting over phases of famine and epidemics by providing food from their godowns and money and thus securing an integral position in the society. This was when Mahatma Gandhi introduced the notion of "trusteeship". [4] According to Gandhi. during the independence movement. Moreover. which lasted till 1850. Godrej. religion. "I desire to end capitalism almost. as much as the most advanced socialist. Birla. if not quite. In the pre-industrialization period.Modi. But our methods differ. However the phases are not static and the features of each phase may overlap other phases. The First Phase In the first phase charity and philanthropy were the main drivers of CSR. Indian companies were supposed to be the "temples of modern India". The industrial families of the 19th century such as Tata. certainly no camouflage. according to which the industry leaders had to manage their wealth so as to benefit the common man. Gandhi's influence put pressure on various Industrialists to act towards building the nation and its socio-economic development. My theory of trusteeship is no make-shift. Culture. Singhania were strongly inclined towards economic as well as social considerations. I am confident that it will survive all other theories.CSR. The Second Phase In the second phase. there was increased stress on Indian Industrialists to demonstrate their dedication towards the progress of the society. Bajaj. the approach towards CSR changed. With the arrival of colonial rule in India from 1850s onwards." This was Gandhi's words which highlights his argument towards his concept of "trusteeship". family values and tradition and industrialization had an influential effect on CSR.

Increased growth momentum of the economy helped Indian companies grow rapidly and this made them more willing and able to contribute towards social cause. The operations of the trusts were largely in line with Gandhi's reforms which sought to abolish untouchability. food etc. encourage empowerment of women and rural development. In 1990s the first initiation towards globalization and economic liberalization were undertaken. As Western markets are becoming more and more concerned about labour and environmental standards in the developing countries. In spite of such attempts the CSR failed to catch steam. This led to shift of expectation from the public to the private sector and their active involvement in the socio-economic development of the country became absolutely necessary. Globalization has transformed India into an important destination in terms of production and manufacturing bases of TNCs are concerned. the period was described as an "era of command and control". politicians and businessmen set up a national workshop on CSR aimed at reconciliation. However the public sector was effective only to a certain limited extent. Indian companies who export and produce goods for . The policy of industrial licensing. high taxes and restrictions on the private sector led to corporate malpractices. social accountability and regular stakeholder dialogues. During this period the private sector was forced to take a backseat. The Fourth Phase In the fourth phase (1980 until the present) Indian companies started abandoning their traditional engagement with CSR and integrated it into a sustainable business strategy.) to the needy. labour and environmental issues. This led to enactment of legislation regarding corporate governance. In 1965 Indian academicians. emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental standards. Controls and licensing system were partly done away with which gave a boost to the economy the signs of which are very evident today. PSUs were set up by the state to ensure suitable distribution of resources (wealth. Because of the stringent legal rules and regulations surrounding the activities of the private sector. They emphasized upon transparency. The public sector was seen as the prime mover of development.training and scientific institutions. The Third Phase The third phase of CSR (1960–80) had its relation to the element of "mixed economy".

4. Dorothea Kolb. Iris Kubina. Dr. Gordon Repinski. Corporate Social and Environmental Responsibility in India . 2. Understanding and Encouraging Corporate Responsibility in South Asia. Tatjana. Tatjana. Johannes Emmerling. 3. Chahoud. It is an important asset to every corporate body and a vital factor in developing the market share of the corporate body concerned. Catarina Schläger (2007). Corporate Social and Environmental Responsibility in India .Assessing the UN Global Compact's Role. its impact on the consumers and the mutual benefit they receive .the developed world need to pay a close attention to compliance with the international standards. Gordon Repinski. 2001. . Catarina Schläger (2007). CONCLUSION Thus this paper distinctly suggests the importance of the Corporate Social Responsibility in the corporate world.Assessing the UN Global Compact's Role. Iris Kubina. Dorothea Kolb. Making Sense of Corporate Social Responsibility. Dr. Johannes Emmerling. Chahoud. REFERENCES 1.

Corporate Social and Environmental Responsibility in India . Dr. Gordon Repinski. Iris Kubina. Johannes Emmerling. Catarina Schläger (2007). Dorothea Kolb. Tatjana. Chahoud.Assessing the UN Global Compact's Role.5. .