Corporate Social Responsibility-The Indian Perspective

Abstract

A capitalist economy is usually keen on furthering the motive of sustained profitability whether it involves conglomerates or standalone firms. India, being one of the emerging superpowers is often perceived to be driven purely by the quest for corporate wealth. However, this study, brings out several instances of established firms investing in Corporate Social Responsibility (CSR) initiatives. It is observed that by and large, the older and more established firms apportion a larger portion of their profits towards community developmental activities. Not to be left behind, the annual reports of smaller firms bring out key findings: 1) these firms are keenly involved in furthering social and community interests and 2) the nature and pattern of deployment of resources to social causes and welfare programmes vary across firms. The paper is organized into two parts. The first part undertakes a review of literature in the field. Emphasis is given to developing an integrated theoretical framework that can shed light on the motivations of industrial houses leading to their investment in developmental activities. The second part of the study looks at specific developmental projects undertaken by corporate entities in the social domain. It attempts to view the process from diverse perspectives: a) the beneficiaries, b) the organized firms and c) the other stakeholders- capital markets, shareholders and the consumer. Based on the findings from CSR initiatives of Indian firms, the message to a global audience from the Indian perspective can be succinctly stated thus: Corporate Social Responsibility spends, and activities are being undertaken seriously by Indian corporate houses even as legal and regulatory bodies are swiftly recognizing the greater potential for development of this domain.