Corporate Social Responsibility in Indian Dissertation

Pages: 32 (10268 words)  ·  Bibliography Sources: 30  ·  File: .docx  ·  Level: Master's  ·  Topic: History - Asian

Therefore, those who are provided with more assets have responsibility of sharing them with the deprived ones in the society. Hence, the owners of the assets are actually trustees in nature who are expected to serve the society, take from their assets as per their needs and use their property to the best interest of society. It is important to note that Gandhi was a supporter of neither capitalism nor socialism. However, communism was an unacceptable theoretical model for him. He believed in giving everyone equal rights of continuing their lives; therefore, use of non-violence and unjustified means was not expectable for him at all.

Due to his compliance to socialism and capitalism, he presented an idea of economy which was capable of using its own resources and was able to flourish on its own without being dependent on external forces, and having a mechanism of self-governance. Therefore, it presented an amalgam of a capitalist model coupled with socialist regime.

2.3 Modern Form of CSR in Indian Society

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1980s was the precise time period when Indian industrial model was gaining strength. Industries were expanding with new innovations and technological developments whereas diversification was being observed in every forte of industrial framework. Where industries and business empires were expanding, public expectations from these business houses also arose due to which the NGOs culture appeared. The main aim of these NGOs was welfare of the society and opposing actions by public and private sector which are causing harm to the general population of the country along with environmental considerations. Due to these consolidated efforts of the NGOs, an Environmental Protection Act came out in 1986 which was levied on many public and private organizations in consideration to the environmental protection (Divan & Rosencranz, 2001).

Dissertation on Corporate Social Responsibility in Indian Assignment

At the same time, the industry witnessed emergence of many conglomerates and the overall business community grew extensively. Many business empires like TATA, Birla, and Hindustan Lever came into emergence. With the expansion in overall business model, a need for the suitable talent also arose due to which the employment rate in the private sector also became high. Since it was the time of growth and development, the industry faced a competition in attracting the suitable talent. Therefore, employee retention and employee development practices were initiated by many corporations in order retain their talent (Sundar, 2008).

With the expansion of Indian economy, the new wave of globalization also left its mark in India where new business ventures and various opportunities appeared for Indian businessmen. Hence, in 1991, various reforms appeared which were initiated by government in order to facilitate business and trade development (Sawhney, 2004). Where the environmental protection act was formulated rather late and enough environmental damage had been done already, therefore aggressive efforts were made in formulating policies which were suitable for clearing the mess created by earlier industrial practices and also regulating the existing business processes.

With more privatization, the possibilities for foreign trade increased due to which Indian organizations were required to comply to international requirements of trade, labor and environmental management. A current profile of Indian industry consists of entrepreneurs, family businesses and business houses performing national as well as international trade. With an expansion in international trade and divulgence of Indian businesses into aggressive business practices, CSR gained more popularity. Where CSR has emerged as a defined integral business practice, its development as a consistent corporate policy model is yet to be taken place. It is important that instead of considering international best practices and trying to adopt them as they are, a customized model suiting Indian society and business needs should be formulated which would be accepted as welfare to the society and not the businesses themselves.

Series of events like causalities in coal mine, Jharkhand which killed hundreds of miners; and Bhopal gas incident which took place in 1984 and is still considered as one of the biggest casualties that have taken place in Indian. Other than the casualties that took place in the same timeframe were over 3500 whereas hundreds of thousands of people remain affected by the side effects of gas leakage. Even the ecosystem of the same locality is highly unsuitable for animals, plants and humans. The inhabitants of this region have appeared to be highly affected by the disaster that took place in 1984 (Tinsley & Anseley, 2011).

Where the legislations is now in place and has clear directives related to environmental and human life protection, it is important to note that there is not much emphasis levied on influencing the Indian business enterprises to undertake their responsibilities and practice the given CSR policies aggressively and religiously. The local NGOs and social activists are expected to play their role in this regard. However, since most of the trade comes from foreign organizations; therefore an influence from international bodies would make a difference (Sawhney, 2004). With the change in overall landscape of business practices taking place in India, the forms of CSR practices are also changing and have evolved from religious and social practices to formal strategic business policies.

There are several studies which support the notion that in the Asian economies, India is one of the pioneers to adopt CSR practices. As a matter of fact, many leading Indian business empires now appear to be publishing their CSR compliance details in their financial statements which appear to be a breakthrough in Indian history (Chambers et al. 2003; Khan, 2008). Since there is no governing body involved in active management of the CSR practices in India, therefore out of two percent of the organizations which are part of CSR regime, may be presenting false or inconsistence information in the name of CSR compliance (Chambers et al. 2003). Therefore, there is a need for a consistent effort which would ensure that CSR practices are not only religiously complied with but are also included in the public declarations as well.

According to the literary evaluation of Kumar et al. (2001), the current CSR model in India comprises of the original Indian form of teachings of Gandhi which is entailed in the Trusteeship Theory coupled with advocacy of Statism by Nehru. Other than this Indian version of CSR, the current Indian organizations appear to be following the western best practices as well. The models which are considered to be followed by today's Indian organizations consist of traditional practices merged with Milton, Friedman's liberal CSR model. This model argues that where there are various stakeholders in the organizations including leadership, employees, customers, vendors etc., the shareholders have the highest degree of importance.

In accordance with the principles defined by Friedman, many Indian organizations have appeared to following practices which would focus on shareholder's interest and profit generation as well (Gopal & Karjat, 2012). As per the ideology of Friedman, the business is only responsible to its shareholders and is meant to generate profits only. Another western model which the Indian corporations have appeared to be following is Edward Freeman's Stakeholders theory (Khan, 2008). According to the model presented by Freeman, the stakeholder's satisfaction should be the sole objective of the business and their welfare and well-being must be taken into consideration.

This particular model is rather concurrent to the Gandhi's trusteeship theory since most of the stakeholders form a large share of the society, therefore while taking care of the stakeholders and not the society itself, the business is actually complying with the CSR model. However, various researches have been conducted in this regard and there is evidence that the western theories do not fit the model of Indian organizations and they need to be customized accordingly. This is so because Indian industrial sector is mainly governed by the ideologies presented by national and religious figures whereas most of the western CSR models are presented by management scholars. This concrete differentiation makes the western theories rather unfit for Indian society (Mohan, 2001).

The main reason for non-compliance of Indian business enterprises to CSR practices is the distance that it bears from the core corporate objectives which makes CSR practices not a part of mainstream business operations. Since there is no return on investment visible, therefore, it is evident that lack of financial gains makes the compliance to CSR the least prior thing to do. However, as per the various studies conducted in the pursuit of evaluating the compliance to CSR standards by Indian businesses, it has been discovered that change has been initiated and many business leaders in Indian industry are actually taking necessary measures which would perform synergy between the earlier Philanthropic model and the new western regime (British Council et al. 2002). Transformations in the tradition model of organizational management and development of management into business leadership is also changing the landscape of social welfare performed by businesses as well.

It is also argued that the changing face of CSR in Indian economy is because of emergence of MNCs in the given industry. Ruud (2002) argued that MNCs in India are… [END OF PREVIEW] . . . READ MORE

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