The paper 'Corporate Social Responsibility in India" is an outstanding example of a business research paper According to Samuel & Walter (2009), Corporate Social Responsibility (CRS) is an idea whereby organizations incorporate environmental and social concern in their operations and in their relations with stakeholders on a voluntary basis. CSR is also viewed as corporate conscience, sustainable responsible business, or social performance. The corporate social responsibility aims at contributing to sustainable development. Responsibility of an organization for its activities and decisions impacts on the community and the environment through ethical and transparent behavior is called social responsibility.
The main objective of CSR is to embrace liability for the actions of the corporation and persuade an optimistic impact through its actions on the stakeholders, employees, communities, consumers, environment, and other members of the communal sphere. This contributes to sustainable development that includes the health and welfare of society. It also takes into considerations the stakeholders expectations. In short form, CSR is how business activities are run by companies so as to generate an overall positive outcome on the community as illustrated by Anuradha & Kellogg School of Management, (2007).
It involves balancing shareholders’ interests against the wider community interests. CSR is the addition of communal concern into the decision making of the corporate while taking into consideration the profit, people, and planet. Corporate Social Responsibility is being aware of as well as bringing about change to working practices to reduce exploitation and promote safety and equality. CRS deals with governance, business ethics, human rights, and the environment in developed countries. This compares to developing countries like India that focus on employment, healthcare, community support, rural development, national building, and socio-economic development according to Fernando, (2009). Development of CSR in India Sanjay, (2008) illustrates that India is ranked among number 73 in the world with 56 percent according to world Social Responsibility Index (NSRI).
CSR is not a fresh idea in India. Nevertheless, there is a shift of focus from organizations that make profits to the ones that meet societal challenges or problems. They are various philosophies in India that have led to the rise of various models that include ethical, liberal, statist, and stakeholder. The ethical model was championed by MK Gandhi and focused on voluntary commitment to the public welfare by organizations.
The statist model was championed by Jawaharlal Nehru and focused on how corporate responsibilities are determined by state ownership and legal requirements. Milton Friedman championed liberal model that focused on corporate responsibilities limited to the shareholders or private owners. Edward Freeman championed stakeholder model that focused on how companies respond to stakeholders needs. In India, CSR is believed to be the continued dedication by organizations to act justly as well as contribute towards financial growth while improving the value of the life of the employees and their families and that of local society.
In India, CSR exhibits the ethical behavior exhibited by organizations towards its external and internal stakeholders including employees and customers. It also denotes the organization’ s responsibility towards society and the environment where it operates. Corporate Social Responsibility in India started in 1907 when Tata Steel was established in Indian industry. However, this was less corporate social responsibility involvements from 1900 to 1990s. However, this has been a significant rise of CSR since 2000 in India to 2010.
Different from the past as argued by Shanker, (2010), CSR has been the key agenda of many companies where most of them are engaging in some CSR activities. The private sector has overtaken the public sector towards corporate social responsibility which was not cased sometimes back. In past, there was little involvement of the private sector towards corporate social responsibility with aggressive involvement of government/public in social responsibility in India. Currently, there is adequate and aggressive involvement of all sectors in India as the need for and importance of corporate social responsibility increases.
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