Social Responsibilities of Corporate Societies in India

CSR, as a system of rules and responsibilities has gained global currency and bolstered corporate ethos, and its uptake into the Indian business landscape has been deep and long-term. Over time, both corporate and governmental actors in India have tried, often ad hoc, to integrate responsible business practices in the business activities. However, these initiatives lacked a systemic approach and clear goals. More recently there’s been a shift in this terrain as a result of a number of interrelated factors, including globalised commerce, the rising salience of environmental issues and the Millennium Development Goals (MDGs): all of these are driving greater attention to and commitment of CSR by business. This push towards formal CSR was inaugurated by the legislation on joint stock companies passed in 2013, which requires certain classes of companies to set aside funds for social responsibility goals. This has had a strong effect both in terms of encouraging compliance as well as a number of companies stepping over the threshold to indicate their intent to go beyond the relatively minimal requirements by providing more than the minimum amount. This has happened at the same time that, in the image of international trends, there has been a thoughtful attempt by companies to integrate the purview of CSR into their core business models in order to enhance and maintain a sustainable competitive advantage. This article explores into the evolution of CSR within India, examines key governmental policies driving the incorporation of CSR in the corporate domain, and traces the changing trend in different sectors in this country.