THE RELEVANCE AND PRACTICES OF CSR IN INDIA

Prakash Ranjan Parida

Lecturer ,School of commerce
Ravenshaw University
Abstract
The world in which we are living, where increase in temperature, pollution-water, air, land,
Green house effect ,odd even traffic, so many types of diseases, lack of education, starvation are
order of the day.CSR has found its relevance as never before in todays world especially in India
where now it is mandatory as per the law (Companies Act,2013).Now it is not a matter of doing
some charity work or giving some donation or doing some philanthropic activities and calling
yourself responsible. Whether as a business organization you really care about the various stake
holders of your business, whether you really care about the environment that really matters. CSR
is there since 1800s but its necessity is been realized now.
Key words-CSR , Philanthropic activities.
Introduction
In this age of globalization, corporations and business enterprises are no longer confined to the
traditional boundaries of the nation state. In the last 20years MNCs have played a significant role
in defining markets and consumer behavior.on the one hand globalization gives tremendous
opportunities to MNCs for becoming globally competitive by expanding the production base and
market share. On the other hand the conditions that favoured their growth also placed these
companies in an unfavourable light
Labourers , marginalized consumers,environmental and social activists protested against the
unprecedented and undesirable predominance of MNCs. The revolution in IT and the
effectiveness ofknowledge based economies threw up a new model of business and corporate
governance. Growing awareness of the need for ecological sustainability paved the way for a
new generation of business leaders concerned about the community response and environmental
sustainability.CSR essentially a new business strategy to reduce investment risks and maximize
profits through fulfillment of various stakeholders aspirations.
Today CSR in India has gone beyond merely charity and donations and is approached in more
organized fashion .It has become an integral part of corporate strategy.(Dasgupta 2010).Now a
days companies have become more transparent in their financial statements.In their annual report
they are incorporating corporate social responsibility.Companies today devise specific
policies,strategies and goals for their CSR programmes and allocate budgets to support
them.Companies in India have quite been proactive in taking up CSR initiatives and integrating
them in their business processes

Literature Review
In early 1950s & 60s the literature was not heavily represented in CSR discourse. However ,this
decade marked a significant growth in attempts to formalize , or more accurately, state what
CSR means(Carroll,1999). According to Carroll, CSR encompasses the economic ,legal, ethical
and discretionary (philanthropic) expectations that society has of organizations at a given point
of time.
Some of the most prominent writers during that time were Keith davis, Joseph W Mcguire,
William C Fredrick and Clarence C Walton.Fredrick wrote that Social responsibility in the
final analysis implies a public posture towards societys economic and human resources and a
willingness to see that those resources are used for the narrowly circumscribed interests of
private persons and firms(Carrol 1999)
This operational view of CSR is reflection a firms social performance, which can be assessed by
how a firm manages its societal relationships,its social impact and the outcomes of its CSR
policies and actions(Wood, 1991)
Social reporting and social audits are examples of how firms can assess their social performan
ce.
In 1960s Keith Davies argued that CSR refers to the firms consideration of, and response
to,
issues beyond the narrow economic, technical and legal requirements of the firm (
Davies,
1973). Frederick 1960 stated Social responsibility means that businessmen should oversee
the
operation of an economic system that fulfills the expectations of the people. And this mean
s in
turn that the economys means of production should be employed in such a way that produc
tion
and distribution should enhance total socio-conomic welfare (Fredrick, 1960). Thus,
the
definitions of CSR in 1960s were an attempt to link society and businesses,defining society
in
broadest terms.

Objectives
The study has been conducted for achieving the following objectives
1. To understand the concept of CSR
2. To deterrmine the relevanceof CSR in todays context
3. To examine the CSR practices by Indian companies
Research Methodology
The research paper is an attempt of exploratory research, based on the secondary data sourced
from journals,magazines,articles and media reports.
Looking in to the objectives of the study the research design applied for the study is of
exploratory type.
Secondary data available was extensively used for the study.All the data sources through
secondary sources like different articles,books and web were enumerated and recorded
Concept of CSR
The more the concepts of CSR are fostered and integrated in to the business process,the easier it
will be to benefit from alternative thinking and perhaps handle the occasional problems that for
certain to occur.
The more integrated the business process within the value chain, the more opportunity there will
be for organizations to influence the pproaches of others on whom they depend.The concept of
CSR includes the openness or transparency of companies depend.
The concept of CSR includes the openness or transparency of companies as well as taking into
consideration the will and expectations of their stake holders.
Social responsibility means a doctorine that claims that an entity whether it is govt. ,pvt.
Corporation or public organizations has a responsibility to society.CSR is a concept that reduces
costs and risks,increases the brand value and reputation, effectiveness and the efficiency of
employees, improves transparency, and clarity in the working environment of business house.

Corporate Social Responsibility (CSR) is a concept where by companies integrate

social,environmental and health concerns in their business strategy (policy) and operations and in
their interactions with stake holders on a voluntary basis.The social responsibility of business
encompasses the economic,legal,ethical, and discretionary expectations thatsociety has of
organisationsat a given point in time (Carroll, 1979)

CSR practices in India

Corporate Social Responsibility in India is finally a reality.Indian businesses realised they have
to look not only at the economic dimension of their company, but also at its ecological and social
impact-the three pillars of CSR. However,to become a planned strategy integral to business
success,Indian companies have lot of catching up to do.Following are some of the examples of
Indian companies pracicising CSR.
Examples of Corporate Social Responsibilty practices in Indian companies
Tata Group
Tata Group in India has a range of CSR projects, most of which are community improvement
programs. For example, it is a leading provider of maternal and child health services, family
planning, and has provided 98 percent immunization in Jamshedpur. The company also endorses
sports as a way of life. It has established a football academy, archery academy, and promotes
sports among employees. It offers healthcare services all over the country with programs like
rural health development.
Tata Group also has an organized relief program in case of natural disasters, including long-term
treatment and rebuilding efforts. It did laudable work during the Gujarat earthquakes and Orissa
floods. It also supports education, with over 500 schools, and also is a benefactor of the arts and
culture. It has done abundant work in improving the environment and local populations around
its industries.
Aptech
Aptech a leading education player with a global presence that has played a broad and continued
role in encouraging and nurturing education throughout the country since its inception. As a
global player with complete solutions-providing capabilities, Aptech has a long history of
participating in community activities. It has, in association with leading NGOs, provided
computers at schools, education to the deprived, and training and awareness-camps.

Infosys
Infosys is aggressively involved in a variety of community growth programs. In 1996, the
company created the Infosys Foundation as a not-for-profit trust to which it contributes up to 1
percent of profits after tax every year. Moreover, the Education and Research Department at
Infosys also works with employee volunteers on community development projects.
The management team at Infosys continues to set examples in the area of corporate citizenship
and has involved itself vigorously in key national bodies. They have taken initiatives to work in
the areas of research and education, community service, rural outreach programs, employment,
healthcare for the poor, education, arts and culture, and welfare activities undertaken by the
Infosys Foundation.
Mahindra & Mahindra
At Mahindra & Mahindra, The K. C. Mahindra Education Trust was established in 1953 with the
purpose of promoting education. Its vision is to renovate the lives of people in India through
education and financial assistance across age groups and across income strata. The K. C.
Mahindra Education Trust undertakes a number of education plans, which make a difference to
the lives of worthy students. The Trust has provided more than Rs. 7.5 crore in the form of
grants, scholarships and loans. It promotes education mostly by the way of scholarships. The
Nanhi Kali (children) project has over 3,300 children under it and the company aims to increase
the number to 10,000 in the next two years by reaching out to the underprivileged children,
especially in rural areas.
Methodology Of Corporate Social Responsibility
CSR is the procedure of assessing an organizations impact on society and evaluating their
responsibilities. It begins with an assessment of the following aspects of each business:
1. Customers
2. Suppliers
3. Environment
4. Communities

5. Employees
Triumphant CSR plans take organizations ahead of compliance with legislation and lead them to
respect moral values and respect people, communities and the natural environment. Corporate
social responsibility is sustainable involving activities that an organization can uphold without
negatively affecting the business goals
CSR is not only about ecological accountability or having a recycling policy. It is about
considering the whole representation of the company, from internal processes to your clients,
taking in every step that a business takes during day-to-day operations. Rising economies such as
India have also observed a number of companies enthusiastically engaged in CSR activities.
Organizations in India have been quite sensible in taking up CSR initiatives and integrating them
in their business processes. It has become progressively projected in the Indian corporate setting
because organizations have recognized that besides growing their businesses, it is also important
to shape responsible and supportable relationships with the community at large. Companies now
have specific departments and teams that develop specific policies, strategies and goals for their
CSR programs and set separate budgets to support them. Most of the time, these programs are
based on well-defined social beliefs or are carefully aligned with the companies business
domain.
Corporate Social Responsibility-The French Way
France was the first nation to make public company reporting compulsory. The rules require
public companies to comprise information on a series of topics in their yearly report, such as:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Status of employees
Mobility of staff
Work hours
Social relations
Health and safety
Training
Health policy
Profits distribution
Outsourcing

They must also illustrate their manners when it comes to communities who are concerned by
their activities in the countries where they have offices. They must explain the ways in which
their sub-contractors respect International Labor Organization agreements. They must also report
on ecological issues such as the measure of progress in terms of energy effectiveness and dipping
environmental impacts; conditions on use of land, air and water; and documentation obtained in
the area of environmental safety
Alstom
At Alstom, people, sustainability, and the environment are positioned at the heart of corporate
strategy. Alstom offers rail transport, power generation and transmission solutions that defend the

environment while ensuring financial expansion and social progress, providing a major
contribution to global sustainable development. Alstom expects to further its cooperation with
the local communities and people in the countries they are operating in.

Indo-French Chambers of Commerce and Industry Event

The Indo-French Chambers of Commerce and Industry (IFCCI) Mumbai is organizing an event
on CSR on July 14, 2012 at Sofitel in Mumbai. The event emphasizes the best practices in CSR
and will be attended by the president of IFCCI, the Honorable French Consul of Mumbai, and
many corporate leaders.
Presently in India, it is hard for one sole entity to bring about change, as the gauge is vast.
Organizations have the know-how, strategic thinking, manpower, and financial strength to enable
widespread social transformation. Operative partnerships between corporations, NGOs and the
government will place Indias social development on a developing mode.
A concern for social and environmental development should be made a part of every corporate
entity through its inclusion in the annual agenda backed by strong and genuine programs. Its up
to the lobbying groups and governmental agencies to convince the corporate power houses to
come forward and take up the challenge by making them aware of the associated advantages that
these companies stand to gain from effective CSR campaigns.
Dezan Shira & Associates
Is a specialist foreign direct investment practice, providing corporate establishment, business
advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review
services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm
has grown into one of Asias most versatile full-service consultancies with operational offices
across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and
the United States

Conclusion
As society is getting more concerned about the working policies of the companies.society
expectations are increasing towards the social development by the companies. So it has
become necessary for the companies to practice social responsibilities to enhance their image
in the society. Even though the companies are taking serious efforts for the sustained
development, some critics still are questioning the concept of CSR. It as a myth. The reality
is that CSR is not a tactic for brand building; it creates an internal brand among its
employees.Induldging into activities that help society in one way or the other only adds to the
goodwill of a company.Corporate Social Responsibility is the duty of everyone i.e. business
corporations, governments, individuals because of the reasons: the income is earned only
from the society and therefore it should be given back; thus wealth is meant for use by self
and public; the basic motive behind all types of business is to quench the hunger of the
mankind as a whole; the objective of all business is only to help people.Thus,CSR is
becoming a fast developing and increasingly competitive field.The case for demonstrating
corporate responsibility is getting stronger as expectations among key opinion formers,
customers and the public are increasing. Being a good corporate citizen is incresingly crucial
for commercial commercial success and the key lies in matching public expectations and
priorities and in communicating involvement and achievments widely and effectively
References
[1]

Crowther, David and Guler Aras, Corporate Social Responsibility

[2]

Kotler, Philip and Nancy Lee, Corporate Social Responsibility: Doing the Most Good for
Your Company and Your Cause

[3]

Corporate Social ResponsibilityPerceptions of Indian Business.

www.csmworld.org/public/pdf/social_respons.pdf

[4]

Corporate Social Responsibility - Issues and Challenges in India, IJRFM Volume 3, Issue
2 (March 2013) (ISSN 2231-5985)

[5]

Corporate Social Responsibility Practices in India, Times Foundation, the corporate social
responsibility wing of the Bennett, Coleman & CO. Ltd.

[6]

http://www.iisd.org/business/issues.