Corporate social responsibility (CSR) in India involves businesses integrating social and environmental concerns into their operations. The Companies Act of 2013 requires listed Indian companies to spend on CSR activities such as eradicating hunger and poverty, promoting education, and ensuring environmental sustainability. During the COVID-19 pandemic, CSR played an important role as companies supported government initiatives and undertook additional social responsibility projects. Leading Indian companies like Infosys and TATA Group have set benchmarks for CSR and are seen as good corporate citizens due to their socially responsible strategies and stakeholder relations. While CSR benefits companies' reputations, it also helps address social and environmental problems through partnerships between businesses and government.
3. Understanding Corporate Social Responsibility
Corporate Social responsibility (CSR) is the continuing commitment by businesses to
integrate social and environmental concerns in their business operations. Changes in the
global environment increasingly challenge businesses around the world to look beyond
financial performance. It also challenges the business to integrate social and environmental
concerns into their strategic management.
4. Corporate Social Responsibility (CSR) in India
The concept of CSR underwent significant development and received far more attention in the
second half of the 20th century. During that time it reached the forefront of the interests of political
organizations including the Committee for Economic Development. CSR primarily manifests in the
form of communication with interest groups. That’s how companies face increased demands from
their interest groups concerning information on CSR activities.
5. Implementation of CSR in India
• CSR in India was traditionally seen as a philanthropic activity. In keeping with the Indian
tradition, it was believed that every company has a moral responsibility to play an active
role in discharging the social obligations. These are subject to the financial health of the
company. In the early ’90s, Mahatma Gandhi introduced the concept of trusteeship
helping socio-economic growth. CSR was influenced by family values, traditions, culture,
and religion.
• On 29th August 2013, The Companies Act 2013 replaced the
Companies Act of 1956. The New Act has introduced far-reaching changes
that affect a company’s formation, administration, and governance. Also, it
incorporates an additional section i.e. Section 135 – clause on Corporate
Social Responsibility obligations (“CSR”) for companies listed in India.
The clause covers the essential prerequisites pertaining to the execution,
fund allotment, and reporting for successful project implementation.
6. Implementation of CSR by Indian Firms
Implementation of CSR (as per Schedule VII) in Project Mode by firm in India are as follows:
• Eradicating hunger, poverty, and malnutrition. Also promoting health care including preventive health care
and sanitation. It undertakes contribution to the Swachh Bharat set-up by the Central Government.
• They Promote education, employment enhancing vocation skills especially among children, women, the
elderly, and the differently-abled people.
• Also, promote gender equality, empowering women, setting up homes, and hostels for women and orphans.
• They Ensure environmental sustainability, ecological balance, protection of flora and fauna.
• Protection of national heritage, art, and culture including restoration of buildings and sites of historical
importance and works of art.
• measures for the benefit of armed forces veterans, war widows, and their dependents;
• training to promote rural sports, nationally recognized sports, Paralympic sports, and Olympic sports.
• Contributions or funds provided to technology incubators located within academic institutions; these funds
are approved by the Central Govt.
• Rural development projects
• Slum area development programs
7. Impact of COVID-19 on CSR Activities
• During the COVID-19 pandemic, CSR has played an even greater role with corporates. Also,
individuals undertaking Corporate Social Responsibility projects over and above the minimum
criteria determined by law. Corporates have stood by the Government, during the time of crisis to
strengthen the country both socially and economically. The ideology of our beloved Prime
Minister Narendra Modi, of
• Atmanirbhar Bharat and Sashakt Bharat can be met through the private-public partnership model
in CSR activities. CSR had also played a major role in implementing the Swatch Bharat Abhiyan.
8. CSR Activities of Indian Firms
• The first company that comes to mind as a beacon of good corporate governance is the Indian IT industry
bellwether, Infosys. Indeed, Infosys is one of the companies that has set benchmarks for other companies
not only in India but all over the world. This way corporate governance and social responsibility are handled
and projected to the outside world. The point here is that companies not only need to walk the talk for CSR
but also broadcast their achievements to the world at large.
• Another Indian company that has done an exceptional job of portraying itself as a good corporate citizen is
the TATA group. Followed by The Body Shop (formerly owned by Anita Roddick) company in the United
States. While these two companies are at different ends of the spectrum as far as their product lines and
lines of business are concerned. However, the public perceives these companies’ favorable mainly due to the
visionary leaders that have led these companies. Also, their reputation has been established through
decades of doing the right thing.
9. Conclusion
The key take away from this discussion is that companies do gain tangible and intangible benefits by practicing
CSR; and by projecting an image of good governance and social responsibility to the external world. Of course, we
have seen how companies resort to “Green Washing” and spin to project something which does not exist fully or
partially.
The point about these examples is that these companies not only pursue socially and environmentally responsible
strategies; but also make it a point to be on cordial terms with all the stakeholders. They can be the suppliers,
governmental agencies, employees, consumers, and society at large. These efforts further translate into measurable
and immeasurable benefits to these companies.
Finally, being a good corporate citizen brings its own benefits to the companies. For instance, it is common to find
leaders from these companies sitting on various boards and advisory committees which speak volumes about the
high esteem. This translates into instant recognition and a “halo” effect. For all practical purposes, it is like the
adulation that rock stars and sports personalities receive from the people. The point here is that good corporate
behavior is rewarded at some point or the other. Hence, companies must seek to do well and do the right thing
always. While not preaching, some of these companies also help other companies in actualizing their visions for
society; and by being transformational change agents as well as catalysts for CSR.
Companies and businesses work together with governmental agencies to promote sustainable practices. Also,
alleviate the severe environmental and social problems that are besetting us. In this respect, the firms should indeed
look beyond their bottom line. They need to have a social component in their accounting statements as a means of
measuring the environmental and social impact of their businesses.
