LBA II

( V I I I T R I M E ST E R )

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

SUBMITTED BY,

VINAY PITALIA

2013 B.A. LL.B 37

A-1288

SUBMITTED TO,

PROF. (Dr) kondiah J.

 CONTENTS

Introduction....................................................................................................................................................................... 3
Corporate Social Responsibility- Definitions........................................................................................................ 3
By European Union................................................................................................................................................ 3

By Michael Hopkins............................................................................................................................................... 3

Professor A. Quartz of Luxembourg University.......................................................................................... 4

The World Bank Committee for Sustainable Development (WBCSD)...............................................4

Approaches to CSR.......................................................................................................................................................... 4
Traditional Approach............................................................................................................................................ 4

Corporate Social Responsibility in India................................................................................................................ 5

Women directors.............................................................................................................................................................. 6
One Person Company (OPC)................................................................................................................................... 6
Class action suits...................................................................................................................................................... 7
Legal provision in a nutshell........................................................................................................................................ 7
Some Cases of CSR Initiatives in India..................................................................................................................... 8
1) Reliance Industries Ltd.................................................................................................................................... 8
2) Hero MotoCorp................................................................................................................................................... 8
3) Infosys Technology Limited........................................................................................................................... 8
4) ITC Limited........................................................................................................................................................... 9
5) LABS of Dr. Reddys Labs.............................................................................................................................. 9
Instances of violation of CSR Principles.................................................................................................................. 9
International Scenario:............................................................................................................................................... 10
Do Corporates have a responsibility towards society?..................................................................................12
VARIOUS RESPONSIBILITIES OF CORPORATES.......................................................................................... 12
Conclusion........................................................................................................................................................................ 13
 INTRODUCTION

The Sanskrit saying Atithi Devo Bhava means- the one who comes to you for being served,
should be taken to be as God, is considered as the highest order of responsibility, be it to
individuals or to the society. Thus the phase Social Responsibility has its roots in Indian context.
This Phrase has long been in use with growth of industries and corporate.

It not only reflects the passage of time in its impact and transformation, but its meaning and
understanding has been affected by the growth of society, nations and changes in their
appreciation of cultural heritage and background. Globalization has influenced trade all over the
world; companies have looked for new opportunities in doing business outside their home
country. In recent years Corporate Social Responsibility (CSR) has gained growing recognition as
a new and emerging form of governance in business. It is already established in a global context,
with international reference standards set by the United Nations, Organization for Economic Co-
operation and Development (OECD) guidelines and International Labor Organization (ILO)
conventions.

Broadly speaking, CSR has three key components:

the basic values, ethics, policies, and practices of a companys business;

the voluntary contributions made by a company to community development;

The management of environmental and social issues within the value chain by the
company and its business partnersfrom the acquisition and production of raw
materials, through the welfare of staff, to product sale, use, and disposal.

CORPORATE SOCIAL RESPONSIBILITY- DEFINITIONS

A good company delivers excellent products and services, and a great company does all that and
strives to make the world a better place. William Ford Jr., Chairman, Ford Motor Co.

BY EUROPEAN UNION CSR is a concept that an Enterprise is accountable for its impact on all
relevant Stakeholders. It is a continuing commitment by Business to behave fairly and
responsibly and contribute to Economic Development while improving the Quality of life of the
workforce and their families as well as of the local community and society at large.

BY MICHAEL HOPKINS CSR is concerned with treating the Stakeholders of the Firm Ethically
or in a socially responsible manner. Consequently, behaving socially responsibly will increase
the human development of Stakeholders both within and outside the Corporation.

PROFESSOR A. QUARTZ OF LUXEMBOURG UNIVERSITY defined Corporate Social

Responsibility as a concept whereby companies voluntarily decide to respect and protect the
interest of a broad range of stakeholders and to contribute to a cleaner environment and a
better society through active interaction.
THE WORLD BANK COMMITTEE FOR SUSTAINABLE DEVELOPMENT (WBCSD) The
continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as well as of
the local community and society at large.

After looking into the aforementioned definitions one can say that Corporate Social
Responsibility (hereinafter referred to as CSR) is basically a concept whereby companies decide
voluntarily to contribute to a better society and a cleaner environment. Corporate social
responsibility is represented by the contributions undertaken by companies to society through
its business activities and its social investment. After the careful perusal of the aforementioned
definition it is clear that CSR is also connected with the concept of sustainable
development in the companys level.

Firstly, let us now discuss what do we meant by Sustainable development. Generally, we

define it as, development that meets the needs of the present generation without compromising
the ability of the future generation to meet their own needs. There is a considerable overlap,
interaction and interrelation between the CSR and Sustainable Development. The concept of CSR
has a triple bottom line approach that considers the economic, social and environmental
aspects of corporate activity. Thus CSR demands businesses to manage the economic, social and
environmental impacts of their operations to maximize the benefits and minimize the
downsides. Through an effective CSR programme companies can improve access to capital,
sharpen decision-making and reduce risk, enhance brand image, uncover previously hidden
commercial opportunities, including new markets, reduce costs, attract, retain and motivate
employees.

APPROACHES TO CSR

There are two basic approaches to CSR: Traditional Approach and Modern Approach

TRADITIONAL APPROACH, Under the traditional/classical operation of the corporate

enterprises, societys basic demands upon the business were to produce goods and services
efficiently and the responsibility of business enterprises was to use resources and engage in
activities designed to increase profits and size of enterprises.

The MODERN APPROACH, New social pressures have changed the objectives of business
enterprises. There is growing public demand for corporate involvement in solving many social
practices so that social responsibility becomes a standard by which business practices are
evaluated. It is opined that business houses should formulate financial goals for the
shareholders and social goals like pollution abatement, minority employment and related
corporate activities.

CORPORATE SOCIAL RESPONSIBILITY IN INDIA

Corporate Social Responsibility Practices in India sets a realistic agenda of grassroots

development through alliances and partnerships with sustainable development approaches. At the
heart of solution lies intrinsic coming together of all stakeholders in shaping up a distinct route for
an equitable and just social order.

Indu Jain, Chairman, The Times of India Group, New Delhi

CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the
Indian development sector. A lack of understanding, inadequately trained personnel, non
availability of authentic data and specific information on the kinds of CSR activities, coverage,
policy etc. further adds to the reach and effectiveness of CSR programs.

But the situation is now changing. Corporate houses are realizing that what is good for workers
their community, health, and environment is also good for the business.

CSR Philosophies in India

Model FOCUS CHAMPIONS

ETHICAL Voluntarily commitment by M K Gandhi

companies to public welfare

STATIST State ownership and legal Jawaharlal Nehru

requirements determine corporate
responsibilities

LIBERAL Corporate responsibilities limited to Milton Friedman

private owners(Shareholders)

STAKEHOLDER Companies respond to the needs of R Edward Freeman

Stakeholders- Customers, employees,
communities etc.

Under the Companies Act, 2013, certain class of profitable entities are required to shell out at
least 2 per cent of their three-year annual average net profit towards CSR activities. These
provisions came into force from April 2014.

"Reference to 'any financial year' in Section 135(1) of the Act, needs to be re-examined by the
Ministry of Corporate Affairs with a view to making necessary amendment(s) either in Section
135(1) or in the relevant rule,

"The Companies Act, 2013 has some revolutionary provisions like mandatory women directors
on board, CSR, audit reporting requirements and One Person Company

The Companies Act talks about the constitution of a CSR committee for every company having
net worth over Rs 500 crore, a turnover of over Rs 1,000 crore or a net profit of Rs 5 crore or
more during any financial year.

In line with the European Commissions directives on CSR, Schedule VII of the Companies Act
lists ten activities as CSR policies for a company, including promotion of education and the
eradication of extreme hunger and poverty. The new Companies Act not only promotes greater
transparency in the functioning of a company but also works towards achieving sustainability.

The Companies Act talks about the constitution of a CSR committee for every company having
net worth over Rs 500 crore, a turnover of over Rs 1,000 crore or a net profit of Rs 5 crore or
more during any financial year.

Such a committee must ensure that the company spends, in every financial year, at least two
percent of its average net profit on CSR activities.

WOMEN DIRECTORS
Many countries have opted to pursue this principle of gender equality through their constitution
or through legislation. For example, the Canadian Charter of Rights and Freedoms guarantees
equality, including gender equality and the UKs Equality Act, 2010 also ensures the same.
Article 14 of the Indian constitution provides for right to equality before the law. Various
countries such as Belgium, Canada, France, Denmark and the Netherlands have expressly
provided for reservation of corporate board seats by women.

Under Section 149 (1) of the Companies Act, every listed company and such class of companies
such as a public company having paid up share capital in excess of Rs 100 crore, or turnover of
Rs 300 crore or more, shall appoint a woman director. This is one of the unique provisions
empowering and acknowledging the impact and status of women in the business world. In
furtherance of this, market regulator Sebi has provided a structure of fines to be imposed on
companies who are not in compliance with Clause 49 (which in turn at relevant place, imposes a
requirement for women directors in compliance with the Companies Act).

ONE PERSON COMPANY (OPC)

With the changing economy and the need for giving a chance to individuals to operate in the
economic domain on their own and contribute efficiently, the Companies Act provides for One
Person Company. OPC provides a new vehicle of corporate structure, thereby enabling
entrepreneurs carrying on the business in the sole-proprietor form of business to enter into a
corporate framework. OPC is a hybrid of sole-proprietor and company form of business, and has
been provided with concessional/relaxed requirements under the Companies Act.

With the seeds of the concept of OPC sown firmly in the Companies Act, it will take time for this
to incentivise innovation and entrepreneurial participation. Having been successful in places
like the US, Australia and EU, OPC is expected to perform similarly in India.

CLASS ACTION SUITS

Class action suits came to the limelight in the context of securities market when a major scam
broke out in 2009. Subsequently, Indian investors in India could not take any legal remedy
against the company while their counterparts in the US filed class action suits claiming
compensations from the company.

To remedy this situation, the Companies Act has introduced a new concept of class action suits
with a view of making shareholders and other stakeholders more informed and knowledgeable
about their rights. Under Section 245 of the Companies Act, shareholders or depositors (number
defined) may file an application with the National Company Law Tribunal alleging that the
management or conduct of the affairs of any company (other than banking companies) are being
conducted in a manner prejudicial to the interests of the company, its members or depositors.
Such class action may include suits against the company, its directors as well as experts or
consultants or any other person for any wrongful, fraudulent or wrongful act; suits may also be
filed against the audit firm as well as the partners responsible for any misleading or improper
statements in the auditors report or any misconduct or fraud by act or omission.

LEGAL PROVISION IN A NUTSHELL

Section 135 of the Companies Act, 2013 provides that it will

apply to every company with a net worth of Rs. 500 crores or more, turnover of Rs. 1000 crores
or a net profit of Rs. 5 crores or more during any financial year; The amount has to be a

minimum of 2% of average net profit.

The amount has to be spent on the 9 broad areas that result in social good as specified in
Schedule VII of the new Act. The areas are:

(i) eradicating extreme hunger and poverty;

(ii) promotion of education;

(iii) promoting gender equality and empowering women;

(iv) reducing child mortality and improving maternal health;

(v) combating human immuno deficiency virus, acquired immuno deficiency syndrome, malaria
and other diseases;

(vi) ensuring environmental sustainability;

(vii) employment enhancing vocational skills;

(viii)social business projects;

(ix) contribution to the Prime Ministers National Relief Fund or

any other fund set up by the Central Government or the State Governments for socio-economic
development and relief and funds for the welfare of the Scheduled castes, the Scheduled Tribes,
other backward classes, minorities and women.

(x) such other matters as may be prescribed.

In spending the funds, the company is to give preference to the local area and areas around it
where it operates and the activities to be undertaken will be those specified in Schdule VI. The
residuary sub-clause(x) in the Schedule gives power to the Government to enlarge this list. A
number of claims are bound to be made for inclusion in the list by the Government by exercising
power under this sub-clause, which is going to be a continuing exercise. The Company falling in
any of the categories referred to earlier shall have to constitute a Corporate Social Responsibility
Committee (CSRC), which shall formulate andrecommend to the Board, a Corporate Social
Responsibilit Policy, which shall indicate the activities to be undertaken by the company as
specified in Schedule VII; recommend the amount of expenditure to be incurred on the activities
referred to in clause (a); and monitor the Corporate Social Responsibility. Policy of the company
from time to time.

The Board of Directors of the Company shall after taking into account the recommendations
made by the Corporate Social Responsibility Committee, approve the Corporate Social
Responsibility Policy for the company and disclose contents of such Policy in its report and also
place it on the Companys website, if any, in such manner as may be prescribed; and ensure that
the activities as are included in Corporate Social Responsibility Policy of the Company are
undertaken by the Company. The Board of every company falling in the categories specified
earlier has to ensure spending of the amount as prescribed and if the Company fails to do so, the
Board shall, in its report made under section 134(3)(o) of the new Act specify the reasons for
not spending the amount. Section 134(3)(o) mandates that with financial statements to be
presented, there shall be a statement showing the details about the policy developed and
implemented by the Company on corporate social responsibility initiatives taken during the
year. Section 134(8) of the new Act provides that if it is not done, the company shall be
punishable with fine which shall not be less than fifty thousand rupees but which may extend to
twenty-five lakh rupees and every officer of the company who is in default shall be punishable
with imprisonment for a term which may extend to three years or with fine which shall be less
than 50 thousand rupees but which may extend to five lakh rupees, or with both.

SOME CASES OF CSR INITIATIVES IN INDIA

1) RELIANCE INDUSTRIES LTD.

Reliance Industries Ltd. launched a countrywide initiative known as Project Drishti, to

restore the eye-sights of visually challenged Indians from the economically weaker sections of
the society.

2) HERO MOTOCORP

Hero MotoCorp takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. The Company believes it has managed to bring an economically and
socially backward region in Dharuhera, Haryana, into the national economic mainstream.

3) INFOSYS TECHNOLOGY LIMITED

Infosys promoted, in 1996, the Infosys Foundation as a not-for-profit trust to which it

contributes up to 1% PAT every year. Additionally, the Education and Research Department
(E&R) at Infosys also works with employee volunteers on community development projects.

4) ITC LIMITED

ITC partnered the Indian farmer for close to a century. It is now engaged in elevating this
partnership to a new paradigm by leveraging information technology through its trailblazing e-
Choupal initiative. ITC is significantly widening its farmer partnerships to embrace a host of
value-adding activities viz. creating livelihoods by helping poor tribes make their wastelands
productive, investing in rainwater harvesting to bring irrigation to parched dry lands,
empowering rural women by helping them evolve into entrepreneurs, and providing
infrastructural support to make schools an exciting platform for village children.

5) LABS OF DR. REDDYS LABS

Dr. Reddys lab started LABS (Livelihood Advancement Business School) in the year 1999. It
trains the underprivileged youngsters, even street children for livelihood earnings in the job
areas i.e. technology, healthcare, hospitality, finance and marketing issues. It involves four types
of volunteers viz Student volunteer mentors, Faculty volunteer mentors, Network mentors and
Resource mentors.

In a newly emerged global market as the competition is very intense and the customers are very
sophisticated, companies must ensure social responsibility in order to secure fundamental
relationships that fuel business growth.

INSTANCES OF VIOLATION OF CSR PRINCIPLES

1. Bhopal Gas Tragedy, the Bhopal disaster also known as Bhopal Gas Tragedy was one
of the worlds worst industrial catastrophes. It occurred on the night of December 23,
1984 at the Union Carbide India Limited (UCIL) pesticide plant in Bhopal, Madhya
Pradesh, India. A leak of methyl isocyanate gas and other chemicals from the plant
resulted in the exposure of hundreds of thousands of people. Estimates vary on the
death toll. The official immediate death toll was 2,259 and the government of Madhya
Pradesh has confirmed a total of 3,787 deaths related to the gas release. Others estimate
3,000 died within weeks and another 8,000 have since died from gas-related diseases. A
government affidavit in 2006 stated the leak caused 558,125 injuries including 38,478
temporary partial and approximately 3,900 severely and permanently disabling injuries.
UCIL was the Indian subsidiary of Union Carbide Corporation (UCC). In 2001 the US-
based gigantic Dow Chemical purchased Union Carbide, thereby acquiring its assets and
liabilities. However it has been steadfastly refusing to clean up the site, provide safe
drinking water or compensate the victims, or even disclose the composition of the gas
leak, Dow Chemical, like UCIL earlier, claims that it has no liability of the past. The Dow
Chemical Company, with annual sales of $28 billion, says in its web site: it is committed
to the principles of Sustainable Development and its approximately 50,000 employees
seek to balance economic, environmental and social responsibilities.

2. Cadbury, In October 2003, a Cadbury stockiest in Mumbai detected worms in Cadburys

Dairy Milk chocolate. Then the Commissioner of Food and Drug Administration of
Maharashtra examined the sealed Dairy Milk packs and found worms in them. He
immediately ordered the seizure of all Cadburys Dairy Milk chocolates from the
companys factory in Talegaon near Pune. This attracted lots of criticism from consumer
activists on lack of appropriate laws on storage. They also demanded immediate
government action against Cadbury. Another factor brought to light was that the
chocolates were delivered by three wheelers, which did not have refrigberation facility
for appropriate transit maintenance of the product.

3. Unilever Global Company, In the year 2001 the Unilever Company has dumped 300
metric tons of mercury at Kodaikanal located at South India. As a contrast to the above
activity the Unilever website states, We are committed to conducting our operations
 with integrity and with respect for the interests of our stakeholders.. We are also
committed to making continuous improvements in the management of our
environmental impacts and to working towards our longer term goal of developing a
sustainable business.
In order to tackle above situations a new initiative has taken by Government of India,
that is CREP, or The Corporate Responsibility for Environmental Protection initiated by
the Indian government recently this year in 2003, is a case in point. A guideline for a set
of non-mandatory norms for 17 polluting industrial sectors has been set but there is no
real pressure for implementation or internalization. An ethical being which claims to
respect the earth cannot have discontinuities in its practices. Ethical practices have to
place in an integrity framework, and that implies at the very least a lack of multiple ways
of being. This can be no different for individuals as for companies. Contrast to the above
news the Unilever website states All Unilever companies must comply with local laws
and adopt the same standards for occupational health and safety, consumer safety and
environmental care.

The above cases show that emerging markets might have loose laws which protect the interests
of the local population. However it is in the best interest of the corporations to take care of the
welfare of the local community. The adverse publicity caused by the protests and media
coverage brings out high degree of negative public response for the product safety of the
company.

INTERNATIONAL SCENARIO:
Hinkley groundwater Contamination, Pacific Gas & Electric operates a compressor station in
the town of Hinkley in the Mojave Desert of California in the United States for natural gas
transmission pipelines. The natural gas has to be re-compressed approximately every 350 miles
(560 km), and the station uses large cooling towers to cool the compressors. The water used in
these cooling towers contained hexavalent chromium to prevent rust in the machinery. Since the
water was stored between uses in unlined ponds, it ultimately severely contaminated the
groundwater in the town. The wastewater dissolved the hexavalent chromium from the cooling
towers and was discharged to unlined ponds at the site. Some of the wastewater percolated into
the groundwater, affecting an area near the plant approximately two miles long and nearly a
mile wide. PG&E had alerted the townsfolk earlier about the chromium but said that it was
nothing to worry about, saying that chromium was in many multivitamins. While trivalent
chromium does exist naturally in many fruits and vegetables, hexavalent chromium can be toxic.
When inhaled, it can damage the lining of the nose and throat and irritate the lungs. Studies of
workers in chromium processing factories have shown that hexavalent chromium is a known
human carcinogen due to chronic inhalation exposures. When swallowed, it can upset the
gastrointestinal tract and damage the liver and kidneys; however, evidence suggests hexavalent
chromium does not cause cancer when ingested, most likely because it is rapidly converted to
the trivalent form after entering the stomach.

People and domestic animals in the town of Hinkley, California started getting sick and some
died. Since residents depended on the local groundwater supply for all their needs, were the
illnesses somehow related to PG&Es Gas Compressor Station located nearby?
Steps PG&E took to evade their responsibility-

Whereas the fact was that hexavalent chromium was toxic and a known cancer-causing
chemical. When swallowed, it upset the gastrointestinal tract and damaged the liver and
 kidneys permanently. PG&E records revealed that the company knew about it all. Yet
they preferred to evade their responsibility towards the residents.

One official even represented that he and his children would gladly drink their well
water. As a result, the people of Hinkley who lived in the path of the contaminated
plume continued to use the groundwater and remained on their property where they
continued to be exposed to dangerous levels of a cancer-causing chemical.

PG&E told the residents to, avoid drinking your well water, but it is safe to use for all other
domestic purposes such as bathing and watering animals and plants. It is difficult to
comprehend how anyone could have made such a statement in light of the facts.
After many arguments the case was finally led to arbitration with maximum damages of $400
million. After the first 40 people received about $110 million, PG&E reassessed its position and
decided it was a bad idea. The case was settled in 1996 for $333 million, the largest settlement
ever paid in a direct-action lawsuit in U.S. history.

Chernobyl nuclear power plant in Ukraine, The April 1986 disaster at the Chernobyl nuclear
power plant in Ukraine was the product of a flawed Soviet reactor design coupled with serious
mistakes made by the plant operators. It was a direct consequence of Cold War isolation and the
resulting lack of any safety culture. The resulting steam explosion and fires released at least 5%
of the radioactive reactor core into the atmosphere and downwind.

Two Chernobyl plant workers died on the night of the accident, and a further 28 people died
within a few weeks as a result of acute radiation poisoning.

Acute radiation syndrome (ARS) was originally diagnosed in 237 people on-site and involved
with the clean-up and it was later confirmed in 134 cases. Nobody off-site suffered from acute
radiation effects although a large proportion of childhood thyroid cancers diagnosed since the
accident is likely to be due to intake of radioactive iodine fallout. Furthermore, large areas of
Belarus, Ukraine, and Russia and beyond were contaminated in varying degrees.

Progressive closure of the Chernobyl plant:

Chernobyl Unit 4 is now enclosed in a large concrete shelter which was erected quickly (by
October 1986) to allow continuing operation of the other reactors at the plant. However, the
structure is neither strong nor durable. Some 200 tons of highly radioactive material remains
deep within it, and this poses an environmental hazard until it is better contained. A New Safe
Confinement structure is due to be completed in 2014. In the last two decades there has been
some resettlement of the areas evacuated in 1986 and subsequently. Recently the main
resettlement project has been in Belarus.

DO CORPORATES HAVE A RESPONSIBILITY TOWARDS SOCIETY?

As we know that the traditional role of a corporation is to generate income, to employ people
and to earn profit. Therefore traditional goals of corporation have been profits, sales and wealth
maximization. Now, profit is still the main motive of the corporation but it is not the sole motive
as the role of contemporary corporations has been to serve the society at large, since it uses
societal resources, namely man power and raw material. Since a company operates within the
society, it affects the society. Therefore there is a need to regulate the corporate power to get
optimum societal benefits. Justice P. N. Bhagwati has aptly remarked in this connection that
maximization of social welfare should be the legitimate goal of a company. Originally, a company
has been considered an artificial person, though having a legal entity apart from its members,
yet could not enjoy rights like human beings. But with the advent of organic theory, a company
or corporation is considered a living organism, is entitled to rights and also liable for duties, and
the same has been declared by the Apex Court time and again. The corporation is viewed as a
central institution within a dynamic economy. The term social responsibility emphasizes the
intimacy of the relationship between the corporation and society. It is not a philosophy, but a
goal. This goal is accepted by business in response to demands of the society for an improved
standard of living. It means that business should oversee the operation of an economic system
that fulfils the expectations of the public at large.

VARIOUS RESPONSIBILITIES OF CORPORATES

Responsibility towards itself-

It is the duty of each corporate entity to do business and stay in the business. It has to work
towards growth, expansion and stability and thus earn enough profits. If the corporation is to
achieve social and economic ends, it has to give enough importance to the efficiency factor.

Responsibility towards shareholders-

The main responsibility of corporate entity is to secure and safeguard the shareholders
investment and endeavour to provide a reasonable return on their money. At the same time, a
careful balance must be maintained between the long term needs of business enterprises and a
need to pay current dividends. If the corporation behaves in a manner which is prejudicial to the
interest of the shareholders, then the shareholders are free to take action against the
corporation.

Responsibility towards state-

It has undoubtedly been settled that the business sector is the major source of income in every
economy, whether capitalist or socialist. Thus, out of the profit available, the state is entitled to a
definite to definite share as per the income tax laws and this commitment has therefore to be
performed at priority.

Responsibility towards consumers-

The company should maintain high quality standards at reasonable prices. It is the consumer
who decides the fate of every business institution. Therefore it is imperative for every corporate
entity to fulfill its contractual obligations to its customers.
 CONCLUSION

CSR is not new to India; companies like TATA and BIRLA have been imbibing the case for social
good in their operations for decades long before CSR become a popular cause. Inspite of having
such life size successful examples, CSR in India is in a very nascent stage. It is still one of the
least understood initiatives in the Indian development sector. It is followed by a handful of
public companies as dictated by the very basis of their existence, and by a few private companies
with international shareholding as this is the practice followed by them in their respective
foreign country. Thus the situation is far from perfect as the emphasis is not on social good but
rather on a policy that needs to be implemented.

But organizations are coming to realize the bottom-line benefits of incorporating sustainability
into their DNA. Its beneficial for attraction and retention and its the right thing to do. HR is a
key organizational leader and can take the lead or partner with other executives to work cross-
functionally to integrate CSR objectives into how business gets conducted. HR practitioners can
act as translators of the organizations CSR commitment vertically and horizontally across
departments. To guarantee the supply of responsible and ethical goods, it is especially important
to implement a nationwide system of CSR standards.

I think that today, more so than ever, corporate responsibility is the best strategic as well as
financial path that most businesses can follow. For most businesses there are both
compelling reasons to be responsible and compelling statistics that validate that responsible
businesses do better according to traditional financial metrics.

By accepting responsibility, we take effective steps toward our goal: an inclusive human
society on a habitable planet, a society that works for all humans and for all nonhumans.
By accepting responsibility, we move closer to creating a world that works for all.