Corporate Social Responsibility practices in India
* Vivek Srivastava
Introduction: - Today, businesses are expected to extend their attention beyond stockholders, customers and employees to include other stakeholders such as the community and environment. The concept of corporate social responsibility (CSR) emerged expectations and consists of transparent organizational management; careful consideration of the global environment, human rights, employment and in particular, compliance with ordinances, regulations, and laws.CSR can lead to more sustainable corporations by encouraging good relationships with society. it is not easy for all to achieve the ...view middle of the document...
It is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms. Consequently, business would embrace responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.
General Issues in CSR: - There are three groups of issues: legal compliance, ethical practices, and social contributions.
1. Legal Compliance: The compliance section is mainly concerned with establishing the legal way to avoid the application of laws. The objective is to find the loophole that makes it possible to avoid the reach of the law. If international agreements are ratified and codified into domestic laws, companies at this level will try to comply with international agreements; but other than that, companies will not comply with such agreements willingly.
2. Ethical Practices: Companies try to avoid any action resulting in a negative impact on others and any action that might cause harm or damage to others. Companies comply with not only the letter but also the spirit of the law. Even if international agreements are not ratified or codified into domestic laws, companies at this level will try to understand and put those spirits into practice.
3. Social Contributions: Companies exert positive influences and impacts to help others or, for example, develop environmentally friendly technologies.
Important Driver of CSR: - The first relates to globalization. Business corporations are trying to develop CSR policies to establish internal systems that make it possible to reduce negative impacts and increase the positive influences over external stakeholders. Globalization is the creation of a new business era when a business corporation can enjoy an enormous amount of freedom. There is no single government or single law enforcement body to apply the same laws and regulations to all players. International agreements exist but can easily be ignored in a number of countries. The second driver of CSR varies from country to country and region to region. Each society has different issues to be solved with the help of a business corporation.
Role of Public Sector Unit: - The corporate sector will slowly become more involved in social development and with its huge financial, technical and human resources will be able to bring in far –reaching social changes. Public sector oil companies spend a minimum of 2 percent of their net profits of the previous year on CSR activities. Oil & Natural Gas Corp(ONGC)and Indian Oil Corporation(IOC)has been spending 0.75-1 percent of their net...