Indian CSR - An Overview

Ancient Vedic invocations of India have essentially been global in their value premises. A stakeholder approach to management is elaborated by many great ancient Indian scriptures. The Indian scriptures analyzed essentially point out that organization and its members can relate themselves with the stakeholders either by the Family Relations View or the Transcendental Spiritual View. The Indian scriptures spell out the relationship that should exist between the leader and the stakeholders. The Charity was part of Indian culture and history at all times. The concepts of community food, giving alms to the poor and destitute, making offerings in the temple, serving the underprivileged and feeding orphans on their birthdays, keeping some part of their monthly income aside for donations or in the name of the Almighty, etc. are an indication of rich and socially responsible behavior of every Indian. The four reasons for the adoption of CSR policies and practices attributed by Sundar to the Indian companies were Contributing to society without expecting anything in return, or philanthropy, Internal reasons, such as the desire to improve relations with employees, customers, and shareholders, Better relations with local communities for publicity or tax benefits and Enlightened self-interest. The four phases of business philanthropy in India identified by are, Ethical Model Statist Model Liberal Model Stakeholder Model Oriental thinkers view the entire creation to have emanated from one supreme power, including the instruments of economic production. Nature, which is harnessed by industry, is also a part of that Divine Entity. Hence management now becomes grateful to that Entity for its bounty. An insight into the history of CSR reveals that the idea of philanthropy solely dominated and businesses often restricted themselves to a one-time financial grant till the 1990's. Commitments to their resources for long term projects were absent. . The concept of CSR has been changing over the last few years with the transition from giving as an obligation or charity to giving as a strategy or responsibility. What is necessary today is the need for a reorientation of corporate organizations’ approach towards stakeholders and stakeholders’ welfare, coupled with an ardent desire to implement the same. Relationships with stakeholders are considered extremely important. Changes in business have stressed upon the application of a wide range of approaches. These are characterized by harnessing the product with increased levels of satisfaction among consumers. Attention to business ethics is rising across the globe, and many companies realize that to succeed, they must earn the respect and confidence of their customers. The economic reforms at the beginning of the 1990's opened the Indian economy for international competition and privatization. However; the Indian economy is still challenged by widespread poverty widening gaps between different income groups, which creates opportunities for CSR to contribute to development. CSR in India has always been linked with the idea of social welfare and development. India became the first country to make CSR mandatory in 2013. Mandatory CSR is perhaps a solution to reach places that State cannot reach on its own The CSR mandate may give organizations the opportunity to broaden their vision of CSR. The progress on CSR has been slow but is showing signs of improvement as it completes five years. There is a widespread feeling in India, that the high GDP growth rate of the past decade has remained confined to urban areas only and has not reached rural India to lift the poor section of the society. . But many view the mandatory proposal as a contradiction and contend that CSR should be voluntary.