ABSTRACT

The concept of business Social Responsibility (CSR) has undergone substantial development in contemporary India, particularly as a result of legislative frameworks, business mandates, and public expectations. An important turning point was the adoption of mandated corporate social responsibility (CSR) under the Companies Act of 2013, which compelled firms to devote money for social development. However, despite these advancements, the implementation of corporate social responsibility (CSR) in India is confronted with a number of obstacles, including as a lack of strategic integration, insufficient community participation, and an uneven focus on environmental sustainability. Companies frequently face difficulties in connecting their corporate social responsibility (CSR) programs with their primary business objectives, which results in outputs that are fragmented and have less of an impact. The success of corporate social responsibility (CSR) programs is further hindered by regulatory challenges, such as the complexity of compliance and monitoring. A balance between generating a profit and doing good for society is promoted by the Gandhian model of trusteeship, which continues to have an influence on the philosophical foundations of corporate social responsibility in India. To summarise, the required corporate social responsibility law has been a driving force behind the participation of corporations in social concerns. However, the dynamics of corporate social responsibility in India are influenced by the interaction of legal frameworks, business strategy, and the larger social context. This calls for a more integrated and holistic approach.

INTRODUCTION

“If you are not sensitive and responsible to the society you operate in, you’d be soon out of business” –Indra K. Nooyi, CEO and President of PepsiCo.[1]

Corporate social responsibility requires companies to act ethically and responsibly, not just donate money. Its triple bottom line approach shows its dedication to corporate social responsibility, which includes economic, social, and environmental sustainability. Corporate social responsibility (CSR) holds that large, successful companies should aim to maximize profitability and shareholder wealth while solving social problems. Human well-being and firm operations and social welfare are covered in the theory. [2]

The phrase “responsibility.” implied that businesses had a duty to address social issues and provide more than financial services to their communities. This notion encourages companies to include social and environmental challenges into their daily operations and stakeholder engagements. [3]A company’s principal goal should be to make a profit by satisfying customer demands with a product or service. This allows the business to reap financial rewards for its backers while also making positive societal impacts, including the steady increase in job possibilities. A company can’t just focus on making money if it wants to be seen as socially responsible; it also has responsibilities to its suppliers, consumers, workers, shareholders, and the community at large. Here are some guidelines for managing a company in a way that satisfies all applicable laws and shows care for people, places, and things.

While giving back to the community is still very much on the rise, there has been a shift in Indian thinking about CSR away from traditional charity and toward more environmentally conscious company methods. Despite receiving negative feedback from a number of sources, community development efforts nonetheless remain importance for corporations. When it comes to India’s CSR initiatives, they are also crucial. The main points of contention center on companies that allegedly breach social and environmental rules by not being upfront and clear about how they want to develop their communities. Businesses, the Indian government, and the courts were all hit hard by the Bhopal Gas tragedy, which highlighted the critical importance of addressing corporate social and environmental responsibility in India.[4]

Indian enterprises are now legally obligated to participate in CSR initiatives as a result of the enterprises Act of 2013. Businesses and individuals in India and throughout the world have responded positively to the government’s proposal to reform the industry. Equal opportunity for all individuals is a crucial component in the fight against injustice. In order to complete our mission, we must all do our part.

One of the most important tools for business strategy is corporate social responsibility, or CSR. More and more, companies’ long-term plans include consideration of social and environmental concerns, whether such concerns are public or private. The Indian corporate structure has found a middle ground between its authoritative ideas, financial resources, and society at large through CSR, making it a crucial weapon of public policy. According to the social responsibility notion, responsibility is defined as the duty to improve society overall. The fact that most global economies are based on capitalism has increased the importance of corporate social responsibility (CSR) in ensuring the long-term viability of companies, ecosystems, and human civilization.

While CSR as a concept has gained traction in recent years, increasing concern for workers’ well-being and productivity among manufacturers goes all the way back to the mid to late 1800s. However, in recent times, there have been notable CSR initiatives in management practices worldwide. The “Triple-Bottom-Line Approach,” sometimes called corporate social responsibility, combines the three Ps: profit, people, and the ecology.[5]

In corporate social responsibility (CSR), the “Triple-Bottom-Line Approach” means that businesses can achieve both their financial and social goals at the same time. Striking a balance between financial interests and employee welfare is highly valued by firms in today’s globalized environment. The World Business Council for Sustainable Development (WBCSD) defines corporate social responsibility (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.” Governmental organisations, the media, non-governmental organisations, and private people all hold businesses accountable for their sustainable business practices. Corporate social responsibility, or CSR, encompasses a wide range of actions, such as giving to charities, settling labour disputes, protecting human rights, etc., in order to implement sustainable business practices. CSR practices, however, vary from company to company.  The protection and advancement of society at large is the aim of corporate social responsibility, or CSR. The participation of large corporations has raised the concept’s profile globally. [6]

Corporate Social Responsibility (CSR) now encompasses the economics of a company’s business partners in addition to the upper echelons of the organisation. Corporate social responsibility, or CSR, has at last established a connection in India between company and community needs and environmental stability. Businesses were forced to address urgent societal issues by CSR. The reporting and transparency practices of both governmental and commercial organisations have been discussed in India. The activities listed in Schedule VII have also given the corporates access to a menu with a greater variety of developmental activities. Corporate social responsibility, or CSR, is the strategy or policy used by businesses to achieve sustainable development by helping society’s members on a social, environmental, and technological level.

Corporate culture engagement in CSR looks into whether business success has a positive or negative impact on the community in order to maintain the emphasis on the performance of the organisation. Governments and corporations must work together to solve societal demands through corporate social responsibility, or CSR. India was one of the first countries to participate in CSR projects because of its diverse cultural norms, habits, and practices. Its inception dates back to the Vedic era. Many of the lessons and ideals contained in epics such as the Bhagwad Gita, the Ramayana, the Mahabharata, the Vedas, the Artha Shastras, etc. are rooted in the idea of ethics’ role in the Indian value system. The moral idea that has endured since the beginning of time in the current corporatization and globalisation era is known as “corporate social responsibility.” This chapter looks at the policies surrounding corporate social responsibility (CSR), as opposed to Indian CSR, and how they are implemented in other nations. The two main goals of corporate social responsibility are to improve stakeholder management and increase accountability. It could have a charitable foundation or be more focused on morals, openness, or the community’s overall well-being. Nearly all nations place a high priority on environmental, social, and economic issues; however, the primary areas of attention differ based on the historical context, prevailing laws and regulations, and public preferences. The degree of government involvement—whether active or passive—influences how CSR is implemented.  functions and how its goals, strategies, and objectives affect corporate social responsibility.  CSR, or corporate social responsibility, is a guarantee of a company’s dedication to advancing society. It is not an altruistic necessity, but rather one of resource usage. “Corporate social responsibility” is a relatively new legal concept. [7]

A CSR policy may be stated clearly or it may just be observed in practice. Once more, these norms’ nature and extent vary according to a number of internal factors. Comparative analysis is performed to analyse it equitably. The findings’ practical value also lies in the revision of CSR policies. There is a dearth of comparative study on CSR legal policy, as the prior research on CSR policy change amply illustrates. The fact that there are multiple operational definitions of corporate social responsibility (CSR) has been correctly observed, indicating that the findings of empirical research are not comparable. Empirical research is still in its infancy and is referred to as a “emergent field.”

[1] Corporate Social Responsibility in India by Sanjay K. Agarwal-SAGE Publications Ltd,1st edition, page 18.

[2] McAdam, R., and Leonard, D. (2003). Corporate Social Responsibility inaTotal Quality Management Context: Opportunities for Sustainable Growth. Corporate Governance: The International Journal of Business In Society, 3(4), 36-45.

[3] Zhang, F. (2008). Corporate Social Responsibility in Emerging Markets: The Role of Multinational Corporations. Foreign Policy Centre.

[4]Ernando A.C. (2013) Ethical Issues in Human Resource Management, Business Ethics: An Indian Perspective,2/e Dorling Kindersley (India) Pvt. Ltd., Pearson, New Delhi- Page 437.

[5] Watt, Phil; God, Home; Rrio, Tinto (2000). “Company‘s social duty: conferences changing expectations” coaches, Geneva, WBCSD publishing.

[6] Shinde, Shilpa (2014). ―Study of impact of CSR application on client‘s buying conduct for FMCG merchandise in Mumbai.‖ Abhinav worldwide monthly refereed journal of studies in management and era 3(four) pp 67-73.

[7] Bottomley, Andrew (2002). ―The cancer affected person and exceptional of life‖. The oncologist 7(2) pp 120-125.