Total views : 244

Legislation of CSR-Smart Strategy for Sustainable Growth Model in India

Affiliations

  • Symbiosis Centre for Management Studies, Symbiosis International University, Pune – 411014, Maharashtra, India
  • Symbiosis Institute of Management Sciences, Symbiosis International University, Pune – 411020, Maharashtra, India

Abstract


Objectives and Purpose: The purpose of this paper is to analyze the initiatives covered in Corporate Social Responsibility (CSR) after the passing of the New Companies Act, 2013 and its impact on the growth trends of India. Design/Methodology/Approach: Primary data was collected from 48 top companies in India. This was done by face to face in depth interviews of Sr. Executives, Presidents, Vice Presidents, and Chief Executive Officers of company’s CSR Department, Human Resource Department, Public Relations and Corporate communications Department. Statistical Package for Social Sciences (SPSS) was used to carry out the analysis. Binomial tests were used as Statistical Tools to validate the results. Findings: Results indicate more focus on inclusive growth. Corporate houses have started improving the overall quality of life of people in the communities around their premises. Expenditures initiated towards CSR activities are now reported and mentioned in their Annual Reports under separate heads of CSR. The findings are exceptional in nature as this kind of practice was not followed by most of the companies till the passing of the New Companies Act, 2013. The 2% net profits after tax have shifted from shareholders outlook to stakeholders’ outlook. Conclusion/ Improvements: To conclude, ever since the country took initiatives to have it legalized, there has been a paradigm shift in the CSR policies in Indian companies. However, Indian companies need more personnel with specialized qualification of CSR at the top level. Originality/Value: The paper introduces a framework to enable more inclusiveness by providing socially responsible initiatives to the weaker section of the society for improving the overall growth pattern of India. Paper Type: Empirical Research Paper

Keywords

Companies Act 2013, Corporate Social Responsibility, Inclusive Growth.

Full Text:

 |  (PDF views: 178)

References


  • Fernando AC. Ethical issues in human resource management, Business Ethics: An Indian Perspective, 2/e Dorling Kindersley (India) Pvt. Ltd., Pearson, New Delhi; 2013. p. 437.
  • Taneja SS, Taneja PK, Gupta RK. Researches in CSR: a review of shifting focus, paradigms, and methodologies. Journal of Business Ethics. 2011; 101(3):343–64.
  • Bowen HR, Johnson FE. Social responsibility of the businessman. Harper; 1953.
  • Porter ME, Kramer MR. The competitive advantage of corporate philanthropy. Harvard Business Review. 2002; 80(12):56–68.
  • Fifka MS. Towards a more business-oriented definition of CSR: discussing the core controversies of a well-established concept. Journal of Service Science and Management. 2009; 2(4):312.
  • Russo A, Perrini F. Investigating stakeholder theory and social capital: CSR in large firms and Small and Medium-Sized Businesses (SMEs). Journal of Business Ethics. 2010; 91(2):207–21.
  • Bhattacharya J. CSR: ethical and strategic choice. Asian Books Private Limited; 2012.
  • Sarkar J, Sarkar S. Bridging the welfare gap? CSR in India is Mahendra Dev S, editor. Government Development Report, India, Oxford University; 2015.
  • Companies Act 2013; Bare Act, Section 135 [Internet]. 2016 [cited 2016 Nov 18]. Available from: www.mca.gov.in/Ministry/pdf/Companies Act 2013.
  • Companies Act 2013; Bare Act, Schedule VII [Internet]. 2016 [cited 2016 Nov 19]. Available from: www.mca.gov.in/Ministry/pdf/General_Circular_21_2014.
  • Mahanta V. Good growth in corporate dossier, Economic Times, India; 2014 Nov 28. p. 3.
  • Arora R. Ministry cuts estimate of Cos’ CSR spend by half. Economic Times, India; 2014 Sep 30.
  • Tare S. CSR caux initiatives of business. European Society for Periodical Research (ESPRit). 2014; 1(4).
  • Venkatesan R. Making CSR really matter. Economic Times; 2014 Mar 31.
  • Mukherjee J. CSR- The new currency of reputation capital in India, Linked in; 2015 Jun 7.
  • Joshi R. The 2 per cent nettle. Business India. 2016 Jul; 4(7):25.
  • Kumar K. Businessmen vow to back Maharashtra CSR project. Economic Times; 2016 Aug 26. p. 6.

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.