Corporate Social Responsibility in India

Abstract

CSR--Identifying the Common Denominator Any discussion on corporate social responsibility requires understanding of the term. In addition, it is also imperative to understand as to who shall decide whether a corporate is socially responsible or not. It is interesting to note that there are innumerable definitions of CSR adding to confusion on what it constitutes. Carroll (1994:14) had termed the situation as an eclectic field with loose boundaries, multiple memberships, differing training/perspectives and multidisciplinary. At the same time the origin of most of the existing definitions of CSR can be traced to the West. Thus the way CSR is perceived and implemented is largely guided by the West to the rest of the World. Definitions of CSR range from basic to most demanding, from specific reference to a number of necessary activities to demonstrate responsibility, to a general call for a comprehensive, integrated and committed pursuit of social and environmental sustainability (Aras & Crowther 2009). It has been defined as integration of stakeholder's social, environmental and other concerns into a company's business operations (EIU 2002:2). CSR is a process of managing the cost and benefits of business activity to both internal (workers, shareholders, investors) and external (institutions of public governance, community members, civil society groups, other enterprises) stakeholders (World Bank 2002). According to Carroll (1994), a conscientious business should embrace economic, legal, ethical and philanthropic responsibilities. Garriga and Mele (2004) consider CSR as obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account the society at large, and improving welfare of society independently of the direct gains of the company. Relying on Parson's framework they have also mapped the territory in which most relevant CSR theories and related approaches are situated. They have thus classified the existing theories in four groups. In the first group come theories which believe that corporation is instrument for wealth creation and that this is its sole social responsibility. This group of theories, they call instrumental theories. The second set of theories are called political theories as they emphasize on the social power of the corporation specifically in its relationship with society and its responsibility in the political arena associated with this power. This leads the corporations to accept social duties and rights or participate in certain social cooperation. The third group includes theories which consider that the business ought to integrate social demands. These theories usually argue that business depends on society for its continuity and growth and even for the existence of business itself. These they term as group integrative theories. The fourth group of theories contends that the relationship between business and society is cemented with ethical values. This leads to a vision of CSR from ethical perspective i.e. as ethical obligation. These are termed as group ethical theories. The surge in definitions and also the initiatives that go in the name of CSR, with flavours differing from region to region, implies that what CSR means is open to contest. At the same time, diversity of issues addressed under CSR umbrella precludes any attempt towards a singular universal definition. Gallie (1956) proposed the essentially contested concepts (ECC) theory to address concepts that, by their very nature, invite perpetual disputes and are inevitably contested. CSR, on account of factors such as diverse describability, internal complexity, open character, aggressive and defensive uses is open to consideration for being essentially contested concept (Okoyo 2009). The Debate The debates on the role of CSR have taken place within specific social, economic and political context, for instance, in USA during the Great Depression (Berle 1931, Dodd 1932, Donham 1929); during the Cold War (Abrams 1951, Spector 2006, 2008); with the onset of globalisation (Palazzo & Scherer 2008). …

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