Nishkam Karma - the Path for Corporate Social Responsibility

Abstract

The tremendous changes which have taken place in the post liberalized era has posed many challenges and has simultaneously offered many opportunities in the domain of the corporate world. The recent economic meltdown and governance deficit across the globe has put the issues relating to CSR and good corporate governance in the centre stage of debate in the globalized regime. The Corporate sector, which is one of the significant sub-systems of the economy, enjoys some special privileges, exemptions, benefits, rights, powers, and protections from the government, with a view that they will help the government to attain the objectives of social welfare. During the economic recession, the governments of each country came to the rescue of the corporate sector by offering them economic packages of trillions of dollars. This help was extended out of the government exchequer, which not only profoundly affects the government's spending on the social sector, but also fosters the misappropriation of public money, which is collected by way of direct and indirect taxes. However, it is observed that in return, the corporate sector failed in fulfilling its commitment towards society and the environment. Businesses can survive and grow only by optimum utilization of the natural resources of the society, therefore, it becomes obligatory for the corporations to be sensitive regarding social and environmental concerns. A Corporation is not only an economic entity, but is also a social entity or national trust. As per the definition of the Company Act, 1956, "A company is a legal or artificial natural person created by the process of/aw, having existence separate from its members.