Corporate Social Responsibility: An Indian Perspective

In the era of frequent corporate frauds and failures, the emphasis on corporate social responsibility has increased multifold. There has been a massive expansion in the concept of corporate citizenship and the proposition that corporations should take into account the interests of all stakeholders. In this back drop, the definition of corporate social responsibility and the objective of its functions are debated by Corporations, Governments, NGOs and academicians. In a way, it becomes very important to know the international provisions in terms of its implementation, legal issues, ethical perspectives, criticism to mandatory corporate social responsibility and best practices. We aim to present a comprehensive analysis of corporate social responsibility practices and issues arising from the Indian domain, tempered with an international perspective. We seek to analyze the various implications of the wide ranging definitions of the term ‘CSR’ and determine what it takes to become a ‘socially responsible’ company. We begin with the objectives of corporate social responsibility, followed by the different perspectives on corporate social responsibility activities, in addition to the various models of CSR. We further discuss the drivers of such practices in India’s business environment, with special emphasis on its sustainability and responsibility arguments. We analyse the Indian practices within a developing economy framework based on past corporate sector experiences of Indian companies with corporate social responsibility, highlighting the role of labor issues, sustainability and environmental issues. We examine the evolution of corporate social responsibility activities in India, and broadly divide the history in this regard into four phases based on the prevalent thoughts and activities undertaken. Finally, we deliberate on the future scenario for CSR in India and its key drivers based on case studies of corporate social responsibility activities undertaken by Indian companies.