CORPORATE SOCIAL RESPONSIBILITY (CSR) IN INDIA AND ITS IMPLICATIONS
Written BY-HARSH SRIVASTAVA, CHANAKYA NATIONAL LAW UNIVERSITY
WHAT IS CORPORATE SOCIAL RESPONSIBILITY (CSR)?
While there exists no single universally accepted definition of Corporate Social Responsibility (CSR), each definition that currently exists hints us towards the impact that businesses have on the current society. Although the roots of Corporate Social Responsibility (CSR) lies in the various existing philanthropical activities (such as donations, charity, relief work, etc.) of the corporations, globally, the theme of Corporate Social Responsibility (CSR) has witnessed improvements .This is visible in the various definitions by various authors and authorities: The EC1 defines CSR as “the responsibility of enterprises for their impacts on society”. To completely meet their social responsibility, enterprises “should have in situ a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders, it’s clear that:
- The CSR approach is focusing on the core business which is that themain nature of CSR.
- CSR mustaddress happiness of all the stakeholders and not only companies stakeholders are benefitted through it.
- Philanthropic activities are only partof CSR, which otherwise constitutes a farlarger set of activities entailing strategic business benefits.
CSR IN INDIA:
After understanding the Definition and basic idea of CSR, it’s important to see and understand the current situation of CSR in India. In India, it has traditionally been seen as a philanthropic activity. As a result, there exists limitation in the documentation on specific activities related to the very topic. As some observers have pointed out, the practice of CSR in India still remains within the philanthropic space, but now it’s not only limited to only the institutions but has come to a community phase through various projects. Also, with global influences and with communities becoming more active and demanding, there appears a positive trend , that while CSR remains largely restricted to community development, it is getting more influenced with business activities (strategic) than philanthropic and a positive trend has been scene among the MNC’s applying the idea , publishing CSR reports as well.. With the inclusion of Companies Act 2013, CSR was introduced and is promoting better transparency the ever before. Schedule VII of the Act, which lists out the CSR activities, suggests communities to be the focus. On the opposite hand, by discussing a company’s relationship to its stakeholders and integrating CSR into its core operations, the draft rules suggest that CSR must transcend communities and beyond the concept of philanthropy. It’ll be interesting to watch the ways within which this can translate into action at the bottom level, and the way the understanding of CSR is about to undergo a change.
SCOPE OF THE STUDY:
The very purpose of the study was to understand the basic idea of CSR and its implications. Moreover we looked out at the advantages and what are the various challenges and advantages of CSR in India.
OBJECTIVES OF THE STUDY:
- To understand the very idea of CSR.
- To understand the development of CSR in India.
- To see the Challenges faced by CSR in India.
- To understand the benefits of CSR for stakeholders.
- What does the word CSR?
- What is the basic concept CSR?
- What is the ambit in which CSR deals with?
- What are the challenges faced by CSR?
CHALLENGES FACED BY CSR:
Several issues are challenging the effectiveness of CSR despite the fact that it has gained importance in India. There are many challenges faced by CSR like, no proper understanding of CSR, non-availability of authentic data and specific information on the styles of CSR activities, coverage, and policy etc. Addition to it, coaching and undeveloped staff is also creating problems which lead to reduction in CSR initiatives. A survey was conducted in which participating organisation provide elicited response on various challenges faced by CSR initiatives. This survey is conducted by Times Group which revealed certain problems.
- Lack of interest of Public in CSR activities: There’san absenceof interest of the area people in participating and contributing to CSR activities of companies. So, it must be checked and folks should be told the benefits of the identical.
- Need to createlocal capacities: This initiative is wayneeded on make awareness at local levels and thus local capacities have to be built.
- Lack of transparency: As per the variedsurveys, it’s noted that transparency has been dead and hence has been very problematic. CSR needs toplay the matter of transparency and switch this negative into positive,
- Visibility factor: The role of media in highlighting good cases of successful CSR initiatives is welcomed because itspreads good stories and sensitizes the local population about various ongoing CSR initiatives of companies.
The first and foremost advantage of CSR is that the transparency filter that has shown positive trends in India .CSR is absolutely about ensuring that the corporate can grow on a sustainable basis, while ensuring fairness to any or all stakeholders, CSR has come a protracted way in India. It’s successfully interwoven business with social inclusion and environment sustainability. From responsive activities to sustainable initiatives, corporate have clearly exhibited their ability to create a major difference within the society and improve the quality of life. Within the current social situation in India, it’s difficult for one single entity to motivate change, because the scale is gigantic. Corporate have the expertise, strategic thinking, manpower and money to facilitate extensive social change. Effective partnerships between corporate, NGOs and therefore the government will place India’s social development on a faster track.
Thus the sole important suggestion that may be made is increasing more and more transparency and it’s only possible when there’s much awareness within the community. So, it’s to be noted that certain steps are to be go for increase awareness of CSR among the assorted strata of the prevailing society.
- Broad view of CSR in India and its implications.