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CSR Article For Toi Feb 06 2
CSR Article For Toi Feb 06 2
C S Venkata Ratnam
Director, International Management Institute, New Delhi
Corporates in India, as anywhere else in the world are striving to improve the public
image of business. It is not ‘dirty business’ any more. Most companies believe in being
and becoming good corporate citizen. They see the value of giving back to the
longer mere philanthropy. Though still largely voluntary, it is seen as imperative for
sustainable business. And, there is growing evidence that socially responsible investment
Large public sector companies are investing up to 5 per cent of their profits towards
social uplift and community development. Companies in the Energy sector – especially
Abdul Kalam’s idea of PURA (Provision of Urban Amenities in Rural Areas. National
Thermal Power Corporation has established a trust to work for the cause of the physically
challenged people. In the private sector the Tata Steel has been a pioneer. Their
legendary that at one time the company used to say that ‘we also make steel.’ They were
Most successful private companies believe in giving back something to the community
that contributed to their prosperity. Most large companies – Infosys, Dabur, Dr Reddy’s,
Satyam. Wipro – have established trusts to address important social issues like literacy,
In 1999 Kofi Annan of the United Nations invited corporate leaders for Global Compact
to promote nine principles covering three areas: human rights, labour rights and
sustainable development. Today, India can be legitimately proud to have had the second
largest number of companies from any country subscribing to Global Company. Several
public sector companies have joined together to form Global Compact Society of India.
In 2001, European Union-India Network for CSR was launched to bring together
European and Indian Companies and Stakeholders to look at selected issues of CSR. The
Indian partner in this venture is the Business and Community Foundation (BCF), a non-
profit body set up in New Delhi for Indian and international companies, in association
with the International Business Leaders Forum. In 2004-5 UNDP and the Confederation
of Indian Industry (CII) have networked with academics and brought out 18 case studies
on CSR covering as many companies – BILT, Excel, Hindustan Lever, IFFCO, NTPC,
Times of India and Titan among others -- in a book edited by CV Baxi of MDI and Ajit
Prasad of IMI.
Rajshree Birla, Chairperson, Centre for Community Initiatives and Rural Development
Initiatives and Rural Development at Birla Group makes a business care for corporates in
India to shoulder CSR, “for us in corporate world to expect that the government alone
should address welfare issues is both unfair and unrealistic…India’s needs are huge and
the resources of the state are limited.’ Chairman Y C Deveshwar asserted in ITC’s
Sustainable Development Report, 2005, the contributions of companies should be
measured by the triple bottom line: economic, environmental and social. The message is
loud and clear: Societal wellbeing is a prerequisite for business prosperity. Companies
which put people before profits and which care for sustainable development are the ones