Shaping Corporate Social Responsibility (CSR) in India—Does the Global Compact (original) (raw)

Global perspectives of Corporate Social Responsibility (CSR)

International Journal of Research in Commerce, IT & Management, 2016

We live in an age in which companies equivalent in wealth to countries call the shots and control much of the earth's resources. Because corporates intervene in so many areas of social life, they must be responsible towards society and the environment. In India as in the rest of the world there is a growing realisation that capital markets and corporations are, after all, created by society and must therefore serve it, not merely profit from it. And that consumers and citizens‟ campaign can make all the difference. In the age of globalisation, corporations and business enterprises are no longer confined to the traditional boundaries of the nationstate. One of the key characteristics of globalisation is the spread of the market and the change in the mode of production. Recently however the term has come to the forefront of public attention and this is probably because of the problems of governance which have been revealed at both a national level and in the economic sphere at the level of the corporation. One core value of doing business is obviously the economic one, that is, business is expected to be profitable and to make money for the owners, shareholders, and investors. However, business is further expected to achieve this economic value in conformity with the value of legality, but also, since the law may be non-existent, deficient, or not enforced, with the value of morality. That is, business must act in a profitable, legal, and moral manner. Today, moreover, business must deal with another value – the expectation that business, as it grows and especially once it attains a certain size, wealth, and prominence, be “socially responsible.” KEYWORDS corporate social responsibility, values, ethics, morality, philanthropy, globalisation, philosophical.

Corporate Social Responsibility (CSR) and challenges of Globalisation in India

The flow of information has enormously increased due to globalisation, which in turn have empowered the stakeholders and enhanced people’s expectation from the corporate houses. Hence Corporate Social Responsibility (CSR) has become more relevant today than ever before. On the other hand due to adverse impact of globalisation, society and environment have to pay a heavy price. Therefore, the corporate houses should realise their responsibility to address the social, environmental and political challenges of globalisation (Wood et al, 2006). Pluralistic society, multiparty-democratic polity and liberalised economy of India have been highly influenced by globalisation. Problems of pollution, carbon emission, energy crisis, inequality, displacement, conspicuous consumption, urbanisation and unemployment have been magnified due to globalisation in India. To meet the expectations of people and to face the challenges of globalisation government and corporate sector have to implement CSR policy in a more complimentary and mutually reinforcing manner (Utting, 2005). The dynamics of social change, influenced by globalisation has compelled the Multinational Corporations (MNCs) and government of India to incorporate CSR in their business strategy and legal framework. The real challenge is how to attain global competitiveness and economic growth without compromising the ecological balance. The way out is to achieve sustainable development through CSR. The major fields in which CSR can play a crucial role to address the challenges of globalisation in India are social, environmental, global governance and economic sectors.

CSR and Global Compact: The Indian Perspective

The IUP Journal of Corporate Governance, 2010

Abstract: In India, Global Compact (GC) is accepted with great appreciation and has achieved large participation that enabled it to create an advanced network structure. However, GC failed to involve all business houses into its network due to the partial acceptance of multi-stakeholder approach. Apart from this, non-communicating and nonreporting behavior of the participants was observed and analyzed in detail in the paper. Several reasons like lack of resources with firms, lack of understanding the need and ...

Corporate responsibility in the global economy: a business case

Society and Business Review, 2006

Purpose -To develop the self-interested, business rationale for the export of socially responsible business behavior by multinational firms to developing economies. Design/methodology/approach -Review the rationale for the ascendance of corporate social responsibility (CSR) in the developed economies, the skepticism that emerged regarding CSR and the proliferation of codes to guide CSR conduct. From this perspective build a parallel case for the development of a business rationale for CSR in the developing economies and how multinational firms can play a transformative role. Findings -Corporations typically have a self-interested approach to adopting CSR values; either for marketing purposes, or to sustain acceptance among socially conscious investors, consumers, competitors, etc. This same approach should be adopted in the developing world: because consumers and investors transfer these same expectations globally; because businesses in developing countries want acceptance; and because multinationals can test performance-based rather than regulatory-based approaches to CSR behaviors. Research limitations/implications -Measurements of on the ground progress in implementing CSR standards abroad are limited both by lack of empirical data, and accepted understanding of measurement yardsticks. This should be the subject of additional research and analysis. Originality/value -Corporations and stakeholders might find common ground in developing acceptable codes of conduct for CSR behavior in the developing economies and non-governmental organizations (NGOs) might serve as credible, third-party auditors of conduct.

Globalization of Corporate Social Responsibility Focussing On Indian Markets

In recent years, scholars and managers have devoted considerable attention to the strategic implications of corporate social responsibility (CSR). 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 and globalization of CSR in the including India. I have also studied few specific cases of CSR activity and CSR violation in India.

Global Corporate Social Responsibility: The Significance of International Guidelines and Standards

IntechOpen eBooks, 2024

This chapter focuses on the critical role international norms and standards play in shaping global Corporate Social Responsibility (CSR) practices. As global firms operate in multiple jurisdictions, adherence to a single set of values becomes increasingly important. This chapter examines the effects of important frameworks such as ISO 26000, the UN Global Compact, and GRI Standards on CSR implementation around the world. It analyses their global effectiveness in encouraging sustainable business practices, stakeholder engagement, and accountability procedures. Furthermore, the chapter elucidates the difficulties in establishing consistent CSR outcomes across diverse cultural, legislative, and economic environments. This chapter contributes to a better understanding of how standardised CSR frameworks support responsible business conduct in an increasingly linked global setting by shedding light on the diverse influence of international norms. The methodology used in this chapter was secondary sources, and the acquired data was examined utilising text content to derive significant insights. Eight recommendations are put forward by this chapter on how companies or businesses ought to follow the CSR guidelines and standards as well as seven recommendations for future research direction.

Corporate Social Responsibility in a Global Context

2013

In this chapter we will:  Examine the recent rise to prominence of corporate social responsibility  Analyse different definitions of corporate social responsibility  Outline six core characteristics of corporate social responsibility  Explore corporate social responsibility in different organizational contexts  Explore corporate social responsibility in different national contexts  Explain the approach to corporate social responsibility adopted in the rest of the book Introduction: the recent rise of CSR The role of corporations in society is clearly on the agenda. Hardly a day goes by without media reports on corporate misbehaviour and scandals or, more positively, on contributions from business to wider society. A quick stroll to the local cinema and films like 'Blood Diamond', 'The Constant Gardener' or 'Supersize Me' reflect a growing interest among the public in the impact of corporations on contemporary life. Corporations have clearly started to take up this challenge. This began with 'the usual suspects' such as companies in the oil, chemical and tobacco industries. As a result of media pressure, major disasters, and sometimes governmental regulation, these companies realized that propping up oppressive regimes, being implicated in human rights violations, polluting the environment, or misinforming and deliberately harming their customers, just to give a few examples, were practices that had to be reconsidered if they wanted to survive in society at the end of the twentieth century. Today, however, there is virtually no industry, market, or business type that has not experienced growing demands to legitimate its practices to society at large. For instance,

Mandatory Corporate Social Responsibility in India: Policy Discourse and Mainstreaming CSR

Development-Oriented Corporate Social Responsibility (Vol. 2), 2015

This chapter revisits traditional arguments of whether corporate social responsibility (CSR) should be voluntary or regulated, considering the 2013 India Companies Act, which mandates CSR spending—making India the only country in the world to legislatively require CSR. Adopting a communicative approach to the study of policy discourse and attuned to India’s geopolitical standing as an emerging economy, we engage in a critical discourse analysis, examining the Act vis-à-vis prevalent social practices of CSR in India, and ongoing discursive practices related to the text. Our findings suggest: (1) a blend of different CSR models operating—ethical/religious, statist, neo-liberal, and stakeholder-based understandings; (2) a rhetorical emphasis on creating a “culture of CSR”, corporate governance, and institutionalizing communicative practice; and (3) three dialectics characterizing the discursive practices surrounding the CSR mandate (i.e., local/global, developmental/economic, and mandatory/ obligator). We close by discussing implications for CSR and development studies. The full volume provides a platform for localized perspectives on CSR in developing countries across the globe. The chapters bring local context and business to the forefront and highlight the efforts spearheaded by indigenous actors from within the developing world. They present insights from developing countries through successful and less successful examples of locally led CSR efforts. Together, these perspectives capture the complex paradoxes of CSR in developing countries and highlight common features in national institutions across the developing world, such as weak political and regulatory institutions, that shape local CSR initiatives and often limit its developmental impact. The editors argue the need to embrace partnership models that leverage the strengths of different actors to promote effective development and tackle the complex challenges facing the developing world. This important series will be the reference source for academics, practitioners, policy-makers and NGOs involved in development-oriented CSR.