A look into Corporate Social Responsibility in Indian and emerging economies. Soheli Ghose. M.Phil, B.Ed.
Assistant Professor Department of Commerce J.D.Birla Institute, Jadavpur University.
ABSTRACT: In recent years, scholars and managers have devoted considerable attention to the strategic implications of corporate social responsibility (CSR). Consistent with McWilliams and Siegel (2001), CSR can be defined as situations where the firm goes beyond compliance and acts to further some social good, beyond the interests of the firm and that which is required by law. CSR activities have been posited to include incorporating social characteristics or features into products and manufacturing processes (aerosol products with no fluorocarbons, environmentally-friendly technologies), adopting progressive human resource management practices (promoting employee empowerment), achieving higher levels of environmental performance through recycling and pollution abatement (reducing emissions), and advancing the goals of community organizations (working closely with groups such as United Way). In this context I have studied the theoretical aspect of CSR including the Global Reporting Initiative and CSR Legislation norms. I have also studied few specific cases of CSR activity and CSR violation in India. Finally I have studied the possible impact of CSR investment on Sales of few companies selected at random to see whether there is any significant correlation between the two.
Keywords––Corporate Social Responsibility Reporting, Global Reporting Initiative, Legislation in Corporate Social Responsibility.
The world cannot get out of its current state of crisis with the same thinking that got it there in the first place. ALBERT EINSTEIN. World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” CSR can be thus be simply defined as the additional commitment by businesses to improve the social and economic status of various stakeholders involved while complying with all legal and economic requirements. As Warhurst (2001) points out, the three major elements of CSR are product use which focuses on contribution of industrial products which help in well being and quality of life of the society, business practice which focuses on good corporate governance and gives high impetus for the environmental well being and equity which tries for distribution of profits equitably across different societies especially the host community. CSR has a significant role in controlling the perils of uncontrolled development, satisfying the needs of the present generation and at the same time ensuring that the resources of future generations is not jeopardized. Companies are more willing to report on their contributions to the maintenance of a sound environment, a healthier society or more ethical business practices through both internal and external action within the countries in which they operate. The area often lacking is CSR reporting in the area of labour rights and relations. One of the prime concerns of CSR should be the quality of industrial relations within a company. There will be increased costs to implement CSR, but the benefits are likely to far outweigh the costs. The term „emerging market‟ was originally coined by IFC to describe a narrow list of middle-to-higher income economies among the developing countries, with stock markets in which foreigners could buy securities. The term‟s meaning has since been expanded to include more or less all developing countries. World Bank (2002)...