CSR HISTORY
Corporate Social Responsibility (CSR)
is a formation of corporate self guideline module merged into a business model.
It is also alternately termed as Social performance, Corporate Citizenship,
Corporate Conscience and Sustainable Responsible Business. H R Bowen first referred CSR in his academic topic "Social
Responsibilities of the Business" in
the year 1958. It then gained significance in the 1960’s and became prevalent since then
covering the moral and legal responsibilities of the Corporate for the society
as a whole. The term "Corporate Social Responsibility" became highly
popular and has been retained as a term used randomly by the masses to relate
morally and legally to its responsibility towards social obligations. Corporate
Social Responsibility can also be defined as receptiveness of businesses
towards stakeholder’s ethical, social, legal and
environmental expectations. It’s a dedicated response to the civil society and
consumer expectations. Here the policy works as an inherent self regulating
mechanism where organizations regularly monitor and implement its continued
compliances within the regulations of law & social ethical standards by
abiding all international norms.
The standards for measuring CSR or recognized
international parameters of evaluating CSR are ISO 26000, whereas public sector organizations also adhere to the John Ellington’s 1994 coined Triple Bottom Line Concept (TBL, TPL, 3PL) of integrating People, Planet
and Profit referred as the Three Pillars
namely. Various social aspects
affecting business practices like environmental degradation & pollution,
labor exploitation, human right abuses, gender discrimination, complex cross
cultural work environments and consumer awareness negligence have forced
organizations to seriously rethink towards environmental & social causes.
Strategically also organizations have recognized the business value of being
able to align products with relationships and be more responsible towards
society as a whole. The World Bank which promotes industrial growth worldwide
defines CSR as a commitment of businesses contributing sustainable economic
development by working fairly with their employees and families, local communities
and society at large. CSR has helped in impacting and improving Community
living, which has further reflected positively in organization’s businesses and
enlargement goals.
CSR MODELS AND ITS
INDIAN CONTEXT
Indian Pre and Post Independence contribution to CSR has grown steadfast
at a healthy pace from Philanthropy to active participation in
shouldering social & community responsibility and development. Mahatma Gandhi- ‘The Ethical Model’
(1930-1950) is one of the prime model where during 1930’s Gandhiji laid
emphasis on Family Businesses and promoted joint family ventures for
contributing society by providing employability, security and cultural
upliftment. Through this model many companies voluntarily contributed in Nation
Development. Leading M.K Gandhi’s model Pt. Jawaharlal Nehru, Statist Model
(1950-1970) was implemented where States were the prime owners for promoting
extensive developments on social structure regulation and administrations. This
model gave States freedom for developing industry and providing employability
and resourcefulness to states for far-reaching corporate regulation. Milton
Friedman’s Liberal Model (1970-1990) illustrates the purpose of CSR
is primarily focus on the relation between the owners and the stakeholders. It
also highlighted that all profitable organizations must pay tax the generated
revenue must be used on social reform and development. R. Edward Freeman’s
Stakeholder Model (1990- present) highlights the collaborative ownership of
each responsible citizen of the country towards raising the social structure,
the role should not only be reserved to stakeholders but also to employees,
customers, corporate, public and private partnership.
INDIAN PERSPECTIVE OF
CSR
In the globalized 21st century unprecedented
opportunities and challenges have risen with the craving for comprehensive
development and the necessity of accessing crucial climate changes. In the last
two decades, India has emerged as a global leader at various commercial forums
with its economy undergoing tremendous growth. It has been acknowledged as one
of the fastest growing economies and billed as the next superpower in the
coming years. CSR in India is a welcome & healthy challenge and it is
implementing it cautiously and judiciously in respect to international
perspectives.
Business & Commercial industry here is viewed globally as a liable component of the poised growth that the country is looking to achieve and has made several inroads into. Now it’s also imperative to take leadership roles towards those challenges. It is also joining hands in integrating environmental, social and ethical responsibilities with able governance of businesses to achieve sustainability, competitiveness and long term success and goals. We have faith in the global viewpoint, that all businesses are a essential part of society and have a vital and prominent role in sustaining and promoting a healthy ecosystem, along with fostering social equity and upholding good governance by following ethical practices. Indian organizations and entrepreneurs have value based ancient traditions of well being of the stakeholders and nation building as a whole. These values and prior traditions are prevalent even today in the neo modern India and thus encompassing modern day challenges of the enterprises, stakeholders and citizens to actively participate in the socio economic growth and development measures.
Taking a keen
interest in the challenges of Social corporate responsibility the Indian Ministry
of Corporate Affairs have formulated and proposed voluntary guidelines for
Indian organizations in 2009.
Voluntary Corporate Social Guidelines-2009
Adopting responsible governance practice by
the organizations is the government’s primary focus and to assist them they
have framed some guidelines as per expectations & challenges of the society
and the country. These have been drafted in consultations with the industry
experts, stakeholders, chambers of trade and commerce along with
internationally practiced and prevalent guidelines.
Fundamental Principle
A CSR policy should
be formulated by each individual business entity detailing roadmaps for
implementing its CSR initiatives. These initiatives should align with the
business goals of the concerned organization, thus being a vital part of their
overall business policy. Framing of the policy should be done by the active
participation of the executives at different levels and duly approved by the
board.
Author: Manjul Thapliyal
Principal Consultant
Visions Ahead
Web: www.visionsahead.com
No comments:
Post a Comment