Challenges and Opportunities Within the Evolving CSR Landscape in India

Abstract

The present study is an attempt to understand the historical development of corporate social responsibility in India. The present study classified the development of corporate social responsibility in five different phases as phase of individual philanthropy, phase of social movement philanthropy, phase of state philanthropy, phase of corporate philanthropy, and finally CSR Law in India. The present study has also highlighted corporate social responsibility violations and penalties associated with. The study analyzed the major challenges in corporate social responsibility implementations in India. The study adopted doctrinal and archival research methodology. The findings indicate that there has been an increase in CSR activities because it has been made compulsory by the law. However, the challenges are still there such as local communities disapproving of firms supporting CSR initiatives due to lack of knowledge and public awareness, businesses being dissatisfied with local agencies' transparency, and lack of funding, etc.

Key Terms in this Chapter

Board of Directors: a collective body of independent.non-independent and other directors of the company)

Philanthropy: Charitable help in return of consideration

Altruism: moral obligation to serve others

Companies act 2013: The Act consolidates and amends the law relating to companies

CSR: Corporate social responsibility is a business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Transnational Corporations: TNCs, i.e a company operating in more than one country

Public Sector Undertakings: (PSUs i.e. brought in 1956 to develop infrastructure and economy in India

Globalisation: An interdependence of the world’ economics, culture etc.

Ethical Standard: The principles that promote trust, good behavior, fairness and governing the conduct of a person

“Trusteeship”: an idea that people should be satisfied with what the god has given to them: ensuring equal distribution of wealth in the society

Directors: Oversees the management of the CSR activities)

CSR Committee: A committee involved in allocation of funds for CSR activities