Essay on Corporate Social Responsibility in INDIA for UPSC : The term 'Corporate Social Responsibility (CSR)'came about in the late 1960's and early 1970's after many multinational corporations used it to describe organizational activities that impacted their responsibility towards the greater environment. Today, Corporate Social Responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people's lives. It has come up as a significant subject matter in the international business community and is progressively becoming a mainstream activity.
Essay on Corporate Social Responsibility in INDIA for UPSC
It is recognized that the world over integrating social,
environmental and ethical responsibilities into the governance of businesses
ensures their long term success, competitiveness and sustainability This
approach also reaffirms the view that businesses are an integral part of
society, and have a critical and active role to play in the sustenance and
improvement of healthy ecosystems, in fostering social inclusiveness and
equity, and in upholding the essentials of ethical practices and good
governance Many companies have been quick to sense this development, and have
responded proactively while others have done so only when pushed.
In the past, businesses primarily concerned themselves with
the economic results of their decisions. Today, however, businesses must also
reflect on the legal, ethical, moral and social consequences of their
decisions. It is important for businesses not only to provide products and
services to satisfy the customer, but also to ensure that the business is not
harmful to the environment in which it operates. In order for an organization
to be successful, the business must be built on ethical practices. Companies
are increasingly pressurized to behave ethically. This pressure comes from
customers, consumers, governments, associations and the public at large.
This also makes business sense as companies with effective
CSR, have image of socially responsible companies, achieve sustainable growth
in their operations in the long run and their products and services are
preferred by the customers. Although the roots of CSR lie in philanthropic
activities (such as donations, charity, relief work, etc.) of corporations,
globally, the concept of CSR has evolved immensely. It now encompasses all
related concepts such as triple bottom line, corporate citizenship,
philanthropy, strategic philanthropy, shared value, corporate sustainability
and business responsibility.
The term 'Corporate Social Responsibility (CSR)'came about
in the late 1960's and early 1970's after many multinational corporations used
it to describe organizational activities that impacted their responsibility
towards the greater environment. Today, Corporate Social Responsibility is no
longer defined by how much money a company contributes to charity, but by its
overall involvement in activities that improve the quality of people's lives.
It has come up as a significant subject matter in the international business
community and is progressively becoming a mainstream activity. There is
mounting recognition of the momentous effect the activities of the private
sector have on the workforce, clientele, the society, the environment,
competitors, business associates, investors, shareholders, governments and
others groups. It is also becoming progressively clear that organizations can
contribute to their individual wealth and to overall community wealth by taking
into account the effect they have on the entire globe when making decisions One
of the more contemporary definitions is from the World Bank Group, stating,
"Corporate social responsibility is the commitment of businesses to
contribute to sustainable economic development by working with employees, their
families, the local community and society at large, to improve their lives in ways
that are good for business and for development."
The World Business Council for Sustainable Development
(WBCSD) defines CSR as "the continuing commitment by business to
contribute to economic development while improving the quality of life of the
workforce and their families as well as of the community and society at
large."
CSR originated in philanthropy. Currently it supports
projects external to the normal business activities of a company that are not
directed towards making a profit. Typically, such projects have a strong
developmental approach and utilize company resources to benefit non-profit
organizations and communities.
It is a concept whereby organizations consider the interests
of society by taking responsibility for the impact of their activities on
customers, employees, shareholders, communities and the environment in all
aspects of their operations. This obligation is seen to extend beyond the
statutory obligation to comply with legislation and sees organizations
voluntarily taking further steps to improve the quality of life for employees
and their families as well as for the local community and society at large.
The protection of the environment has become the center
stage of many humanitarian organizations. Most of these humanitarian organizations
argue that the protection of the environment should be the key concern of any
corporation. This is because the environment is the only natural resource that
is invaluable to the human race. The issue of handling industrial waste by many
corporations has always been at the forefront of many environmental
organizations. This is because corporations are guilty on more than one accord
of irresponsibly handling their waste. Evidence such as the great pacific
garbage patch exists to show how many corporations are not handling the dumping
of waste seriously. The great pacific garbage patch is a myriad of human waste
that has found its way into the ocean after being improperly dumped. The great
pacific garbage patch leads to problems such as loss of aquatic life and the
contamination of the water not mentioning the corporate introduction of many
pollutants into the water.
Corporate social responsibility makes it clear that it is
certainly unethical for these corporations to be making profits at the expense of
the environment and other aspects of the human life. It is therefore viewed as
a control mechanism to ensure that multi-corporations are responsible for their
actions.
The 21st century is characterized by unprecedented
challenges and opportunities, arising from globalization, the desire for
inclusive development and the imperatives of climate change. Indian business,
which is today viewed globally as a responsible component of the ascendancy of
India, is poised now to take on a leadership role in the challenges of our
times. Companies too have been the target of those perturbed by this uneven
development and as a result, their contributions to society are under severe
scrutiny. With increasing awareness of this gap between the haves and the have
notes, this scrutiny will only increase over time and societal expectations
will be on the rise.
India is a country of myriad contradictions and diversity.
On the one hand, it has grown to be one of the largest economies in the world,
and an increasingly important player in the emerging global order, on the other
hand, it is still home to the largest number of people living in absolute
poverty (even if the proportion of poor people has decreased) and the largest
number of undernourished children. What emerges is a picture of uneven
distribution of the benefits of growth which many believe, is the root cause of
social unrest.
CSR in India has traditionally been seen as a philanthropic
activity; it was an activity that was performed but not deliberated. In other
words, it is referred to as teleological ethics. Though it still remains within
the philanthropic space, but the Companies Act, 2013 has introduced the idea of
CSR to the forefront and through its disclose-or-explain mandate, is promoting
greater transparency and disclosure. It has moved from institutional building
educational, research and cultural) to community development through various
projects. Also, with global influences and with communities becoming more
active and demanding, there appears to be a discernible trend, that while CSR
remains largely restricted to community development, it is getting more
strategic in nature (that is, getting linked with business) than philanthropic,
and a large number of companies are reporting the activities they are undertaking
in this space in their official websites, annual reports, sustainability
reports and even publishing of CSR reports.
This is evident from some of the notable contributions made
by companies in Indian society. Ashok Leyland operates a Fun Bus in Chennai and
New Delhi. This bus, equipped with a hydraulic lift, takes differently able
children and those from orphanages and corporation primary schools on a day's
picnic. Bharat Petroleum Corporation's rain water harvesting project
"Bond", in association with the Oil Industries Development Board,
selects draught-stricken villages to turn them from "water-scarce to
water-positive". The Computer Based Functional Literacy (CBFL) initiative
for providing adult literacy by Tata Consultancy Services has benefitted approx.
1.2 lakh people. This program is available in nine Indian languages.
As the business environment gets increasingly complex and
stakeholders become local about their expectations, good CSR practices can only
bring in greater benefits. Globally, the notion of CSR and sustainability seems
to be converging, as corporate social responsibility and sustainability are so
closely entwined, it is a company's commitment to its stakeholders to conduct
business in an economically, socially and environmentally sustainable manner
that is transparent and ethical. Thus, a major corporate thrust toward ethical
and socially responsible behavior is to go green.
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