Student & Instructor’s Introduction

Student Name Ali Hassan

Student enrollment No. BPO247696
course presessional English
Bpp university
 31st March 2021
India: A Case Study for the legal obligation
for CSR
CONTENT OUTLINE

 INTRODUCTION
 HISTORY BACKGROUND
 STRETEGIC MODELS OF CSR IN INDIA
 INDIAN COMPANY’S ACT 2013 HIGHLIGHTS
 INDIAN COMPANIES ANALYSIS REPORT
 SUGGESTIONS RELATED TO DEVELOPING CSR CULTURE
 RISK ASSOCIATED WITH OBLIGATORY LEGALIZATION OF CSR
 CONCLUSION
 REFERENCES
 QUESTIONS
INTRODUCTION
 First Idea of CSR by Horward R. Bowen in 1953 (Davis, 1975)
 CSR is defined as "the ongoing business to conduct ethically and
contribute towards economic development while improving the
quality of lives of working people, their families as well as of the
community and society at large." World Business Council
Sustainable Development (Merill, n.d.)
 Concept of socialism used by Indian government
HISTRORICAL BACKGROUND
 Industrialization Era 1850 to 1914
 CSR during freedom movement
 In the era of mixed economy (1960-1990), organizations were
made responsible for proprietors, managers and other
environmental factors.
 From 1990’s onwards organizations are responsible for
proprietors, managers, environment and public in general.
STRETEGIC MODELS OF CSR IN INDIA

Following are the four identified models of CSR in India (Mohanty,

2015)
 Ethical Model (1930-1950s)
Formed during the time of Mahatma, under which businesses were
motivated to work keeping in focus the interest of the community
 Statist Model (1950-1970s)
This model came into existence during the time of Jawaharlal Nehru
and this era was based on socialist and secular environment. State
ownership and legal requirements were deciding the business
responsibilities
STRETEGIC MODELS OF CSR IN INDIA
 Liberal Model (1970-1990s)
The model gave the notion that social responsibility is never the
initial responsibility of the businesses rather they should remain
to keep focus on economic activities
 Stakeholders Model (1990s- Present)
Societal roles of the businesses has been identified in this model
and accountability and transparency is given prime significance.
INDIAN COMPANY’S ACT 2013
HIGHLIGHTS
 Link between CSR provisions and financial requirement
analysis
 Monitering of CSR activities by managers and directors
 Recommendations regarding future policies
 Improving diverse roles of CSR
INDIAN COMPANIES ANALYSIS
REPORT
 Analysis of 35 companies regarding CSR activities (Mohanty,
2015)
 Most and minimum spending discussion
 Top priority of companies regarding CSR
 Only 6 out of 35 were investing in social responsibility programs
according to the regulations made by companies act 2013
SUGGESTIONS RELATED TO
DEVELOPING CSR CULTURE
 Need to choose diverse social roles (Olthuis & Oever, 2020)
 Focus on unhighlighted societal issues
 Legislation to check diversity and inclusion approach of CSR
activities
 Prioritizing hunger and poverty eradication
 Promotion of gender equality practices
RISK ASSOCIATED WITH OBLIGATORY
LEGALIZING OF CSR (Husted, 2005)
 Insincere or shallow CSR issues
 Managers indulging in personal interests
 Slow paced business processes due to imbalance of
attention
 Fake CSR practices for advertisment
 Heavier regulations imposed by Government
CONCLUSION
 CSR to be made a firm part of corporate fabric
 A bigger community benefit with diverse CSR
activities
 Accountability for corporations within legal
boundaries
 Promotion of public trust and brand reputation
improvement
 REFERENCES

Mohanty,J,. 2015. Corporate Social Responsibility in India Inc.: Are they spending
right. Journal of Investment and Management, 4(1), pp 9-13.
 Davis, K., 1975. Five propositions for social responsibility. Business horizons,
18(3), pp.19-24.
 Husted, B.W., 2005. Risk management, real options, corporate social
responsibility. Journal of Business Ethics, 60(2), pp.175-183.r
 Merill, N., n.d. A comparative study of the communication of the ethical
aspects of Corporate Social Responsibility in Germany and the US
 Olthuis, B.R. and van den Oever, K.F., 2020. The board of directors and CSR:
How does ideological diversity on the board impact CSR?. Journal of Cleaner
Production, 251, p.119532.
ANY QUESTIONS?
 THANK YOU

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