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Corporate Social Responsibility (CSR) in India: A Review

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SPACE AND CULTURE, INDIA

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Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 81

PESRPECTIVES OPEN ACCESS

Corporate Social Responsibility (CSR) in India: A Review
Mr. Neelmani Jaysawal†and Mrs. Sudeshna SahaῘ
Abstract
Corporate Social Responsibility (CSR) is a concept, which states that private corporation or public
organisation has a responsibility to the society they belong to. It minimises the cost as well as
risks, thereby, increasing the brand value and reputation of the company. According to Howard
Bowen (pp. 3), “CSR refers to the obligations of businessmen to pursue those policies to make
those decisions or to follow those lines of relations which are desirable in terms of the objectives
and values of our society.” The CSR activities need to be in tune with effective strategic policies so
that the aim of sustainable environmental, social and economic progress may be achieved. This
article seeks to explain various initiatives taken in the field of CSR by the different companies of
India. In doing so, it discusses the growth and the key challenges faced while trying to deliver the
activities of CSR.
Key words: Social Responsibility, Strategic Policies, CSR, Community Volunteering, Economic
Progress, India

†
Assistant Professor, Department of Social Work, Visva-Bharati, PO-Sriniketan, Distt.-Birbhum (West Bengal), India,
Pin-731236, email:[email protected]
Ῐ
Assistant Professor, Department of Social Work, Visva-Bharati, PO-Sriniketan, Distt.-Birbhum (West Bengal), India,
Pin-731236, email: [email protected]
© 2015 Jaysawal and Saha. This is an Open Access article distributed under the terms of the Creative Commons
Attribution License (http://creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and
reproduction in any medium, provided the original work is properly cited.
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 82

Introduction practices may have to deviate from the normal

practice of solely focusing on profits into the
Corporate Social Responsibility (CSR) is a term,
public goodwill (Raynard and Forstater, 2002).
which has attracted the attention of social
Due to the liberalisation phase, the private
science academicians very recently. It has a
entities are expanding across the boundaries.
long tradition (perhaps since the late 1800s) of
However, this intervention requires a
corporate philanthropy. In India, Tata has been
collaborative effort between the private
implementing CSR activities since 1912. In
entities and the government. The state needs
similar fashions, vocational and technical
to be in a position to safeguard the interests of
training have been laid on to develop the
the common people, which may ultimately
under-developed sections of the society by
result in promotion of CSR activities in
various business houses across the country.
consonance with their demands. This is also to
William C. Frederick (2006: 20) defines “social
derive that companies need to gain a space
responsibilities [as a way, where the]
among the community members through
…businessmen should oversee the operation of
addressing socio-economic concerns of the
an economic system that fulfils the
people. Even the masses prefer to associate
expectations of the public. And this means in
with those private entities in terms of business
turn that the economy’s means of production
transactions, which invest in the upliftment of
should be employed in such a way that
community welfare. All private corporations are
production and distribution should enhance
beginning to capture social capital through
total socio-economic welfare”. Earlier in 1975,
expansion of their CSR activities around the
S.P. Sethi coined the term as ‘corporate social
world.
performance’, which was revisited and
developed by A.B. Carrol (1979) and has been The article begins with the discussion of the
further refined by S.L. Wartick and P.L. Cochran concept of corporate social responsibility
in 1985. According to Sethi, the corporate social followed by the rationale and constitutional
performance has been classified between status of CSR in India. It will then discuss the
various actors like social obligation, social growth and challenges faced by CSR in India.
responsibility and social responsiveness Corporate Social Responsibility (CSR) - A
(Prabhakar and Mishra, 2013). With the Concept
emergence of globalisation, CSR has emerged
as a key player. India being a developing CSR is a comprehensive set of policies, practices
country bears enormous potential for CSR. It and programmes that are integrated into
may assist her in developing sustainable business operations, supply chains and
livelihood options. Even Gandhijee focused on decision-making processes throughout the
the need for moral leadership and social organisation. It addresses various concerns of
responsibility. Speaking at the Indian society like legal, ethical, commercial
Merchants’ Chamber, he had said — “[i]ndustry associated with business practices and brings
and trade have to discharge many equilibrium between expectation of society and
responsibilities to the community” (Gupta, profit motive of business houses. The main goal
2013: 179). of effective CSR is to achieve commercial
success in ways, which honours ethical values,
The paradigm of the concept of CSR has shifted and respect natural environment. Therefore, it
in the last twenty years because of triangular consists of business ethics, corporate
relationships between the companies, state citizenship, corporate accountability,
and the society. In the current time, the sustainability and corporate responsibility. As
companies can never remain isolated from the per the United Nations and the European
interests of the common people. The Commission, CSR leads to ‘triple bottom line’—
companies are realizing the fact that business profits, protection of the environment and fight
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 83

for social justice (Mathur and Midha, 2012). association with social indicators. The business
World Business Council for sustained motive can be infinite only when its share into
development states that CSR is “the continuing social welfare seconds it. The inclusive growth
commitment by business to behave ethically of community has the potential to increase the
and contribute to economic development while client base for a particular organisation. The
improving the quality of life of the workforce mushrooming growth of an organisation is very
and their families as well as of the local much dependent upon the satisfaction of the
community and society at large” (Garg, 2014). community with its client base. A society has
Indeed, it is a form of corporate self-regulation numerous dimensions of adversity ranging from
integrated into a business model. It functions as economic to socio-cultural upheavals. The
an inbuilt self-regulating mechanism whereby sudden encroachment of an external actor over
business monitors ensures its active compliance the community may lead to its devastation.
with the spirit of law (Garg, 2014). The goal of Therefore, the active involvement of existing
CSR is to embrace the responsibility for the business houses may safeguard the interest of
company’s actions and encourage a positive society from both internal economic aggression
impact through its activities on environment and external encroachments. The scope of
and communities (Garg, 2014). It is an participation of local people in the welfare
agglomeration of public interest with private programmes initiated by private entities may
profit. Having commented on it, the Canadian lead to harmony between profit motives and
Centre for Philanthropy states that CSR is a set social welfare. The broad rationale for CSR is
of management practices, which ensures that based on a common philosophy, which states
the company minimises the negative impact of that an organisation's social responsibility
its operations on society while maximising its arises from the fact that a business enterprise
positive impact (Garg, 2014). The CSR reaffirms derives several benefits from society, which
the views that business is an integral part of requires the enterprise to provide returns to
society and keeps a pivotal role in sustenance society as well. A business cannot be successful
and improvement of sustainable development. in a society, which fails. In modern times,
CSR is not a mere philanthropy but comprises customers are unlikely to be swayed by mere
voluntary intervention into the arena of welfare product satisfaction but expect socially-
approach. In doing so, CSR aims to attract responsible behaviour of the private entities
socially responsible in the form of providing also. In their view, the ethical standard of the
public good in conjunction with business company in congruence with mass welfare
strategies (Uvais and Cholasseri, 2013). CSR keeps an important position in the way of its
strategies may thus be used to create growth. Therefore, CSR plays an important role
sustainable competitive advantage firm (Uvais in justifying its business motives apart from
and Cholasseri, 2013).This is because CSR is contributing towards social welfare. The scale
indicative of self-serving behaviour on the part and nature of the benefits of CSR for an
of managers (Uvais and Cholasseri 2013), which organisation can vary depending on the nature
encompasses the economic, legal, ethical and of the enterprise, and are difficult to quantify,
discretionary expectations that society has on though there is a large body of literature
organisations at a given point of time (Gautam exhorting business to adopt measures beyond
and Singh, 2010). Bebbington uses the term financial ones (Garg, 2013). CSR is titled to aid
‘CSR reporting’ which establishes the link an organisation's mission as well as a guide to
between reporting function and organisational what the company stands for and will uphold to
function (Gautam and Singh 2010). its consumers (Garg, 2013). Many companies
use the strategy of benchmarking to compete
Rationale for CSR Activities
within their respective industries in CSR policy,
Each organisation has two aspects — first, its implementation, and effectiveness (Garg,
profit orientation, and the second, its 2013). It may improve even perception of
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 84

company towards their staff by engaging them are environment sustainability, empowering
in community volunteering work (Garg, 2013). women and promoting gender equality,
It also encourages customer orientation among education, poverty reduction and eradicating
employees. More importantly, in this age of hunger, social business projects, reducing child
widespread communication and growing mortality and improving maternal health,
emphasis on transparency, clients and improvement of health, imparting of vocational
employees are supposed to prosper reputation skills, contribution towards central and state
of organisation based on its ethical and social government funds for socio-economic
inclination. Therefore, CSR activities assist the development and relief, etc.
organisation in widening its mass base. It leads Growth of CSR in India
to good public image, which in turn may
improve the business of private or public CSR in India has been quite old. In ancient
organisation. As long as consumers are aware times, it used to be called as charity in the
about social impact of their private name of “daan”. During the Gupta period (320
organisation, they become attracted towards it. to 550 CE), the philanthropy was at its peak
Many potential clients who themselves operate where the emperor used to donate a major
CSR activities expect their suppliers to do some chunk of treasury for the welfare of the
kinds of developmental activities. The common people. Philosophers such as Kautilya
implementation of CSR programmes in an from India and pre-Christian era philosophers in
organisation insulates the organisation from the West preached and promoted ethical
risks of social mistrust. principles while doing business. Even during the
Mughal period, the concept of philanthropy
Constitutional Status of CSR in India received its promotion under the reign of
The Companies Act, 2013 is an historic Akbar. This scenario continued during the
milestone in the area of growth of CSR. It British period also. In the pre-industrialisation
provides an opportunity to corporate sector to period, which lasted until 1850, wealthy
socialise its business operations. The 2013 Act merchants shared a part of their wealth with
has introduced several provisions, which would the wider society by way of setting up temples
change the way Indian corporates do business, for a religious cause (Garg, 2014). However, the
and one such provision is spending on CSR beginning of the 19th century transformed this
activities concept of philanthropy and encouraged the
(http://gtw3.grantthornton.in/assets/Compani industrialists to empower communities through
es_Act-CSR.pdf). Thus, CSR, which has largely different capacity-building programmes. The
been voluntary contribution by corporates, has industrial families of the 19th century had a
now been included in law. The Section 135 of strong inclination toward charity and other
this Act states that every company having net social considerations. Prominent business
worth of ₹50 million or more, or turnover of houses of India like Tata, Birla, Godrej and
₹100 million or more, net profit of ₹50 million Singhania industries changed the way
or more during any financial year, shall require philanthropy used to be seen. Influenced by
establishing one full-fledged CSR board Gandhijee’s views of Trusteeship, these
(http://gtw3.grantthornton.in/assets/Compani entrepreneurs turned their attention towards
es_Act-CSR.pdf). Even in terms of the building knowledge capital in the country. His
constitution of the board, the CSR provisions view of the ownership of capital was one of
under the 2013 Act requires a minimum of trusteeship, motivated by the belief that
three directors for the constitution of the CSR essentially society was providing capitalists
committee with an opportunity to manage resources that
(http://gtw3.grantthornton.in/assets/Compani should really be seen as a form of trusteeship
es_Act-CSR.pdf). As per schedule VII of the Act, on behalf of society in general. Therefore, the
the activities of intervention under CSR project major chunk of their profit was utilised in
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 85

developing indigenous human resources and based on a clearly defined social philosophy or
inclining their clients towards upgrading their are closely aligned with the companies
status in the society. The independence of our “business expertise”. CSR is not only used for
country broadened its scope and witnessed branding but also to curb the hands of
participation of even public sector undertakings regulation (Amaeshi et al., 2007).
in CSR. The public sector was seen as the prime Growth of CSR of TATA
mover of development. The nomenclature of
CSR got into existence in India in the early After independence, TATA has broadened its
1970s. In 1965, Indian academicians, politicians CSR intervention in India. After independence,
and businesspersons set up a national JRD Tata who always laid a great deal of
workshop on CSR aimed at reconciliation. They emphasis to go beyond conducting themselves
emphasised upon transparency, social as honest citizens pointed out that there were
accountability and regular stakeholder many ways in which industrial and business
dialogues (Garg, 2014). Furthermore, the enterprises can contribute to public welfare
emergence of liberalisation policy in India led to beyond the scope of their normal activities
relaxation in factories Act and licensing policy, (Ahmed, 2013). He advised that apart from the
which encouraged the private as well as the obvious one of donating funds to good causes
public sector organisations to undertake the which have been their normal practice for
CSR activities at large scale. Increased growth years; they could have used their own financial,
momentum of the economy helped Indian managerial and human resources to provide
companies grow rapidly and this made them task forces for undertaking direct relief and
more willing and able to contribute towards reconstruction measures (Ahmed, 2013). It has
social cause (Garg, 2014). The basic objective of intervened into the area of social welfare of
CSR in these days is to maximize the company’s employees. It has focused extensively on
overall impact on the society and stakeholders. education and livelihood security in its
An increasing number of companies throughout intervention areas. They have also participated
their business operations and processes are with the government to improve sanitation in a
comprehensively integrating CSR policies, village called Tiruvidenthai. The Tata Council for
practices and programs (Garg, 2014). For Community Initiatives (TCCI) is a unique
example, some corporations such as Bharat initiative that lends structure to the Tata
Petroleum Corporations Limited (BPCL), Maruti group's approach of sustainable development
Suzuki India Limited, and Hindustan Unilever while driving its community engagement and
Limited (HUL) adopt a more comprehensive improvement programmes (Uvais and
method of development (Garg, 2014). Provision Cholasseri, 2013). The healthcare projects of
of improved medical and sanitation facilities, Tata Steel include facilitation of child
building schools and houses, and empowering education, immunisation and childcare,
the villagers and in process, making them more plantation activities, creation of awareness of
self-reliant by providing vocational training and AIDS and other healthcare projects. Tata Steel
a knowledge of business operations are the has hosted 12 Lifeline Expresses in association
facilities that these corporations focus on with the Ministry of Railways, Impact India
(Garg, 2014). It has been estimated that India Foundation and the Government of Jharkhand
has over 200,000 private sector trusts and (Srivastva et al., 2012). It has served over
foundations, a large number of which are set 50,000 people. Five thousand people have
up by Indian business houses and are working received surgical facilities and over 1,000
towards social causes of mitigating social evils. people received aids and appliances (Srivastva
Companies have CSR teams that devise specific et al., 2012). Tata Steel has also covered 42
policies, strategies and goals for their CSR villages in Gamharia block in Seraikala
programs and set aside budgets to support Kharsawa for promotion of SHGs (Srivastva et
them. These programs, in many cases, are al., 2012). In Pune, the TATA Trust is
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 86

collaborating with several NGOs in assisting providing all infrastructural facilities and
employees’ women dependents in terms of medical expertise.
providing medical care, short-stay homes. In CSR of Hindustan Petroleum Corporation
the area of educational support, it has initiated Limited
a scholarship program called ‘Vidyadhanam’,
which supports 211 students. It has entered The CSR activities of Hindustan Petroleum
into the sector of skill development through Corporation Limited (HPCL) have been based on
upgrading ITI on Public Private Partnership creating shared value. The underlying principle
(PPP) model. In Kerala, TATA has set-up Srishti behind this concept is conglomeration of
Welfare Centre, which provides education, corporate success and social welfare. The
training and rehabilitation of children and programs of CSR of HPCL are more oriented
young adults. TATA Steel has been awarded towards education and healthcare of
Corporate Social Responsibility Excellence communities. They cater to not only general
Award in 2010 by Associated Chambers of mainstream population but disabled children
Commerce & Industry of India. Even Tata also. In terms of childcare, it has collaborated
Consultancy Services (TCS) bagged Community with Child Rights and You (CRY), an NGO for
Awards for Excellence in Category for Adult improving the lives of under-priviledged
Literacy Programme in 2011. It has won a very sections of society. Even a programme called
prestigious award called “Gold Stevie® for CSR” “Muskan (Smile)” aims at providing basic needs
in 2014. In the way of training facilities, the like food, clothes, healthcare and vocational
TATA Archery Academy was established in 1996 training. It also provides time-bound computer
at Jamshedpur. Even Tata Chemicals Limited training program to students in semi-urban and
established TATA Chemicals Society for Rural rural schools. During the year 2011-12, the
Development in 1980 to encourage various project was implemented in 30 schools in
social objectives around the communities of different parts of India covering 5500 students
Mithapur. It supports sustainable rural as beneficiaries of this program. In the same
development. The initiatives taken by it are year, another sub-set of CSR program named
agricultural development, animal husbandry, Nanhi Kali (Girl Child) has covered 9168 female
watershed development, education, rural children from Standard I to X. The programme
energy, etc. It has intervened even in disaster provides quality education to girls from
relief activities. During natural calamities, TATA economically disadvantaged families through a
Relief Committee provides relief in terms of sponsorship, designed to deliver academic
rehabilitation and relief measures. Tata has support that empowers them to make a success
collaborated with UNDP for developing Tata of their schooling experience, material support
Index for Sustainable Human Development, including uniforms
which aims at directing, measuring and (www.hindustanpetroleum.com/.../pdf/Bringin
enhancing community welfare activities g_Smiles_2010-11.pdf). It has also started a
initiated by it (Srivastva et al., 2012). Tata project called Navjyot in 2005 in coordination
Motors has also ventured into the affairs of CSR with Navjyoti India Foundation, New Delhi for
through establishing two societies in Lucknow facilitating the residents of Bawana
— Samaj Vikas Kendra & Jan Parivar Kalyan resettlement colony, Delhi in terms of Child
Santhan for rural development and for Health and Welfare Program. Furthermore, it
providing healthcare to the rural areas intervened into the area of HIV testing also
(Srivastva et al., 2012). These societies are through establishing project Suraksha, which
engaged with the task of improving health, aims at testing of patients for HIV/AIDS. They
education and women’s empowerment in rural provide vocational training among youths in
areas. With funding support from the Tata developing IT skills, skin care and beauty
Motors, these societies run the dental check-up culture. In terms of livelihood, HPCL has
and satellite clinics in selected villages by initiated the work in the area of lighting a
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 87

billion lives. Under ADAPT (Abled Disabled All and market access for the local produce, to
People Together) programme, children with provide an alternative and sustainable
special needs are assisted for in receiving livelihood. The establishment of District
education. In terms of healthcare, it has made Disability Rehabilitation Centre established by
provision for testing of truck-drivers for HIV GAIL has been instrumental in taking care of
under Suraksha program. It also provides free disabled people in the Jhabua district. Better
rural health care services by operating mobile care has been extended to over 500 persons
medical units (Priya and Autade, 2013). In living with disabilities in the form of operative
terms of skill development, HPCL has initiated and reconstructive surgeries. GAIL's project
Swavalamban, a project, which enables rural Aarogya (healthy state) is a unique programme
youths to be self-employed (Priya and Autade, wherein Mobile Medical Units (MMU) travel
2013). In the sustainable model of energy, it door to door for providing basic healthcare
has intervened solar lighting- Lighting a Billion services covering awareness, diagnosis and cure
Lives — The LaBL program sets up solar in the remote areas of Pata and Vijaipur. It aims
charging stations in villages that offer certified, to roll out 1,000 MMUs in rural India to reach
bright, solar lanterns for rental to the local out to 25 million Indians by 2017
people (Priya and Autade, 2013). (http://www.gailonline.com/final_site/pdf/Gail
_CSR_14-03-2013.pdf).
CSR of Gas Authority of India Limited
CSR of Steel Authority of India Limited
The Maharatna PSU of India, Gas Authority of
India Limited (GAIL) has contributed towards Steel Authority of India Limited (SAIL) has been
promotion of education and healthcare for contributing towards the development of
children. GAIL’s education-based CSR called society through various community welfare
‘Padho Aur Badho’ (Learn and Advance)’ strives programs. It has provided access to nearly 7.3
to bring some degree of succour to the children million people across 435 villages by
living in poverty by fulfilling their dreams of constructing roads and ensuring availability of
receiving education water resources to 3.9 million people
(http://www.gailonline.com/final_site/pdf/Gail (http://saiindia.gov.in/english/home/our_prod
_CSR_14-03-2013.pdf). Being engaged with ucts/audit_report/Government_Wise/union_au
literacy enhancement programme of GAIL, dit/recent_reports/union_performance/2010_2
many children have been benefitted in the area 011/Commercial/Report_no_27/chap6.pdf).
of universal access to quality education. One of SAIL has adopted 79 villages in eight states for
its initiatives in the area of innovative comprehensive development as Model Steel
education methodology is E-Shiksha Villages. In 2008-09, it has opened 138 schools
programme. This programme has helped in for providing education to 73,925 students. It
making computer literacy accessible to has set-up health centres to provide medical
government schools and facilitated students to care to the poor and needy persons. Between
accomplish their regular computer school 2007-08 and 2008-09, 10 MMU were provided.
curriculum. Since 2009, this project has been SAIL has organised nearly 5989 medical camps
functional in setting up 200 non-formal and treated 1.75 million patients during 2009-
education centres in the slum areas of Delhi. In 10. During 2006-10, it has provided financial
the area of empowerment of women, GAIL has assistance of worth ₹50 million for facilitating
collaborated with Infrastructure Leasing and education to 47,718 students. SAIL has also set
Financial Services (IL & FS) for multi-skill up six special schools exclusively for the poor,
development. It has provided livelihood underprivileged, below poverty line (BPL)
opportunities to rural women through self- children at its five integrated steel plant
employment initiatives. In the Jhabua district of locations covering around 1,400 children
Madhya Pradesh, Anhad Gram is a project that providing free education, midday meals,
provides skill based training, better technology uniform, including shoes, textbooks, stationery
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 88

items, school bag, water bottles, etc. SAIL has backgrounds per month for 4 years (Priya and
contributed immensely to the economic Autade, 2013). Even for skill enhancement, it
development of its peripheral areas. Peripheral has made provision for merit scholarship to
development means growth of grass-root level Industrial Training Institutes (ITI) students
people in the areas of education, healthcare, (Priya and Autade, 2013).
drinking water, women’s upliftment, CSR of Oil and Natural Gas Commission
employment generation and other associated
activities. Under peripheral development, Oil and Natural Gas Commission (ONGC) has
various activities are being undertaken around taken various initiatives in terms of carrying out
the plants/units up to a radius of 16 kms. It is CSR activities. It has ventured into various
making special efforts to initiate new projects sectors like education, employment,
in the area of road connectivity, construction of environment protection, rural development
bridges/culverts, and access to improved water and eradication of poverty. It is offering merit
sources. In terms of water availability, it has scholarship to the students pursuing graduation
provided access to drinking water to 3.9 million and master degree in different universities of
people through installation of 5,153 water India (Das and Halder, 2011). It has spent nearly
sources in India. In terms of education, SAIL has ₹42 million in the year 2004-05 and 2005-06 on
established about 146 schools in its steel health care, drinking water scheme and medical
townships to impart modern education to more camps (Das and Halder, 2011). Until March
than 69,000 children. It has also established 54 2009, 300 power tillers had been provided to
primary health centres, 12 reproductive and different SHGs in Assam under special
child health (RCH) centres, 17 hospitals and 7 Swarnajayanti Gram Swarozgar Yojana (SGRY)
super-specialty hospitals to provide modern through credit linkage from nationalized banks
health care to more than 30.60 million people. with the help of State Institute of Rural
Development (SIRD) (Das and Halder, 2011). In
CSR of Indian Oil Corporation Limited terms of employment activity, ONGC has
At Indian Oil Corporation Limited, CSR practices contributed ₹0.7 million to the Centre for Rural
have been running since 1964. The CSR Development (CRD) for the innovative project
activities are run under the major framework of “Rickshaw Bank Gauhati”. Under this project, it
community development, which consists of provides rickshaws to participating pullers. It
education, healthcare, drinking water and concurrently organises health awareness camps
sanitation as well as empowerment of and further extends the mass consciousness for
marginalised women and depressed classes health and hygiene. In Sibsagar, Assam, ONGC
(Priya and Autade, 2013). In Mathura, Uttar has supported various Self-Help Groups (SHGs).
Pradesh, the IOCL has established 50-bed It has provided nearly 50 percent subsidy in
Swarna Jayanti Samudaik hospital. For power tillers. Under Yuva Samridhi project, it
comprehensive healthcare of existing has created self-employment opportunities in
community of project area, it has founded Sibsagar district. In coordination with HelpAge
Assam Oil School of Nursing at Digboi, Assam in India, ONGC has continued its efforts for
1986. Another landmark progress has been facilitating healthcare at the doorsteps of the
achieved in the area of setting up Indian Oil elderly people through MMUs
Rural Mobile Health Care Scheme whereby (http://www.ongcindia.com/wps/wcm/connect
qualified doctors treat poor patients for even /ongcindia/Home/CSR/). In 2011-12, all the 20
critical diseases (Priya and Autade, 2013). Apart MMUs were launched and almost 0.19 million
from the health sector, IOCL has progressed were provided across the eight states and one
towards education sector also. The IOCL has Union Territory of India
made the provision for a total of 600 (http://www.ongcindia.com/wps/wcm/connect
scholarships under which ₹3000 is awarded to /ongcindia/Home/CSR/). It has also started
the students of engineering and medical empowering female tribal population through
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 89

on-the-job training in the improvised looms in CSR of Reliance Industries

Assam. It is fully supporting a project known as The contribution of Reliance industries in CSR
“Aakha” the Boat of hope — the mobile activities has been immense. It has extensively
medical ships for tribals living in the Majuli worked in the area of children’s education. Its
Island in Assam. It also supported Shankar CSR team provides uniforms and books to the
Nethralaya, Guwahati for up gradation of students of the neighboring villages around its
diagnostic services manufacturing locations. The Dhirubhai Ambani
(http://www.ongcindia.com/wps/wcm/connect Protsaham Scheme provides financial aid to the
/ongcindia/Home/CSR/). ONGC has contributed toppers, who aim to pursue higher education in
Rs.0.7 million to Centre for Rural development medical stream or engineering. Until now, 656
(CRD) for the innovative project “Rickshaw students have received this support. In
Bank Guwahati”. Under this project, it provides addition, another initiative called Mumbai
rickshaws to participating pullers Indians Education for All (MIEFA) that began in
(http://www.ongcindia.com/wps/wcm/connect 2010 has invited until now nearly 700 children
/ongcindia/Home/CSR/). from various NGOs to watch the Mumbai
CSR of Balmer Lawrie & Co. Ltd Indians play cricket
(http://www.ril.com/html/aboutus/social_resp
This Mini-Ratna PSU of Central Government has
_comm_dev.html). In addition, this MIEFA has
also worked intensively in terms of benefiting
provided education to over 70,000
the community. It is based on financial
underprivileged children – many of whom
assistance to certain target groups. Under
dropped out of school earlier for various
“Family Home Sponsorship”, it sponsors two
reasons. Apart from education, health issues
financially weak families of Kolkata and one in
have also been key areas of intervention by its
Vishakhapatnam
CSR — it has developed community medical
(http://www.csr.tiss.edu/research/BalmerLawri
centres near most of its manufacturing
eEvaluationreport201213.pdf). In terms of
divisions to provide comprehensive health
education-based scholarship, it has benefited
services covering preventive, promotive and
nearly 75 students. Even in the skill-building
curative healthcare services to the community
sector, this CSR has initiated a project called
from neighbouring villages
Sambal for vocational training of girls in
(http://www.ril.com/html/aboutus/social_resp_c
tourism
omm_dev.html).
(http://www.csr.tiss.edu/research/BalmerLawri
eEvaluationreport201213.pdf). Balmer Lawrie Another unique joint initiative of RIL and
sponsored ₹3.7 million in the year 2011-2012 National Association of Blind called Project
for this project, benefiting 104 girls from all Drishti has undertaken over 9,000 free corneal
over India. It has supported in building graft surgeries for the visually challenged
infrastructure for 2400 schools in West Bengal. Indians from the underprivileged segment of
Apart from education, this PSU has the society. Under the health sector, they have
strengthened the health sector too through expanded even for coverage of patients
reducing infant mortality rate (IMR). 12,000 suffering from HIV/AIDS and TB. Hazira
beneficiaries include mothers and children Manufacturing Division along with an NGO
(aged 0-5 years) are being benefitted every have launched an orthopedic hospital with
year under its healthcare ultra-modern facilities and one rehabilitation
(http://www.balmerlawrie.com/pages/csr). In centre at Nagothane Manufacturing division.
Silvassa and Sunderban, the PSU has ensured Visualising environmental concerns, Reliance
availability of sanitation facilities. It has industries have ventured into solid waste
supported Akshaya Patra to procure kitchen management too. It has assisted in building a
equipment & a van for mid-day meal 900-metre road using 5% plastic waste in
distribution in some schools in New Delhi. various locations of Gujarat. Furthermore, for
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 90

the development of rural infrastructure, it has Smaller enterprises do not take adequate
undertaken 797 works in 760 beneficiary interest in CSR activities and thereby, fail to
villages of 125 talukas in Gujarat. Continuing promote the same. Hence, some of the
with the services and keeping up the tradition, significant challenges are as follows:-
Hazira, Vadodra, Nagothane, Gadimoga and Absence of Inclination of Community towards
many other manufacturing divisions offer CSR Activities
training programmes through various SHGs,
thereby, helping the rural women and the The general apathy of the community towards
youths to be "self-sustaining" and generating CSR initiatives of enterprises also leads to its
income for themselves and supporting their slow growth. Due to lack of mass awareness,
families. It has also initiated work in the area of people are kept outside the boundary of CSR.
construction of community halls, burial ground. Very little efforts are being made to spread CSR
RIL continues to support the social, educational, within the local communities and instil
cultural and spiritual activities of Shardapeeth confidence in the people (Gupta, 2014). The
of Jagadguru Shankaracharyaji, Dwarka. In communication gap between the organisation
terms of ensuring availability of water to the and the grassroots people have been leading to
rural areas of Gujarat, it has extended financial its discontinued existence. The grassroots
assistance to Swajaldhara Scheme organised by people remain unaware of imminent benefits
Water and Sanitation Management of CSR programs, which further discourages
Organization (WASMO), Government of their involvement either at the planning or
Gujarat, for developing drinking water facility execution stages.
by laying pipeline in the neighbouring villages. Lack of Skill in Execution of CSR
Challenges of CSR in India The successful implementation of CSR requires
Despite several benefits, CSR in India has efficiency in its management. Unfortunately,
suffered from various obstacles in the form of the deficiency of skill among organisational
challenges. CSR is not only about reducing the worker leads to ineffective handling of CSR.
negative consequences of companies’ activities, This initiative also leads to unequal access of
but about the manner in which company can benefits of CSR to communities. The paucity of
take part in a society in a meaningful way technical and managerial capacity of various
(Jonker and de Witte, 2006). In India, it is seen corporate sector employees leads to faulty
as a weapon for social activities. While some expansion of CSR project in the community.
other academicians argue that, the government Absence of Transparency and Accountability
does away with their role of playing a
regulatory body over powerful business houses. The lack of transparency among manager of
It is also argued that CSR initiatives undertaken CSR projects leads to unequal distribution of
result into deviation from basic business roles. CSR benefits among the masses. This perceived
The main challenge is to use the capabilities lack of transparency has a negative impact on
and competences of the company to address the process of trust building between the
social and environmental concerns while at the companies and the local communities, which
same time continuing to operate successfully in are keys to the success of any CSR initiative
the traditional business sense (Jonker and de (Gupta, 2014). They do not make adequate
Witte, 2006). Therefore, the CSR practices have efforts to disclose information on their
been judged from various points of view. One programmes, audit issues, impact assessment
section of society opposes the CSR activities and utilisation of funds (Gupta, 2014).
while other one supports its growth. In India, Non-consensual Existence of Local Agencies in
the biggest problem of CSR is the lack of budget CSR Projects
allocation followed by lack of awareness among
The lack of consensus among local agencies
the people towards its true nomenclature.
over implementation of CSR projects is also one
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 91

of the important reasons behind its failure. companies, often defining CSR initiatives more
Furthermore, it results into unhealthy as donor-driven. As a result, corporates find it
competitiveness among the local organisations hard to decide whether they should participate
and limits its abilities to undertake impact in such activities at all in the medium and in the
assessment of its initiatives from time to time long run. Until recently, however, in the
(Gupta, 2014). This lack of consensus often interface between “society” and “business”,
results in duplication of activities by corporate Corporate Social Responsibility (CSR) was
houses in areas of their interventions. manifested as “philanthropy”. With successive
changes in the business and societal
Lack of Consultation Process
environments, and a better understanding
One of the major challenges of CSR is paucity of among the stakeholders, ‘philanthropy’ has
consultation process. While implementing CSR evolved into more of “business strategy”
projects, the organisations have very less (Gupta, 2014).
interaction with grass-roots level agencies. It
Unilateral Decision-making
works more on top-down approach where the
upper authority has more vertical functions. On The CSR implementation in India has been
vertical lines, it does not percolate in the arbitrary in its nature. All major decisions
development discourse. Therefore, CSR has related to CSR are taken within closed
been affected by a huge paucity of wide boundary of financial incumbents of respective
consultation among worker as well as its companies without involving community-based
subjects. stakeholders of the project. Therefore, the
expected deliverables of CSR is judged on the
Lack of Dissemination of Progress of CSR
lines of profit and loss rather than on the
In the area of CSR, there has been very less impact over the community. Furthermore, this
dissemination of information regarding process leads to uni-dimensional growth of
progress of CSR. Even if many works continue CSR. It keeps on addressing issues of similar
yet, its effect over society are still not nature everyday overlapping current demand
projected. The presentation of CSR progress is of community. This decision-making process
done within very close boundaries of the results into perception of CSR before
concerned organisation. The existing community just mere eyewash.
community is completely unaware about its
Conclusion
potential benefits as well as further expansion.
CSR has proved to be an important landmark in
Absence of Regulatory Framework of CSR
the arena of peaceful co-existence of business
The CSR practice in India had been unregulated and society. On one hand, industrial houses
until Company’s bill’ 2012 was passed in 2013. have garnered public support through their
There were no statutory guidelines for developmental intervention, on the other,
regulating the CSR framework in India. Still, common people have actively supported these
there is a lack of regulatory mechanism for enterprises visualising its transcendental
governing expansion of CSR projects in India. nature. The image of the organisation has been
Although the Company’s Act prescribes certain improved. The further statutory provision has
financial limit for expenses on CSR, yet, the made CSR obligatory for all the industries and
absence of the governing body on CSR leads to regulated its expansion so that the ultimate
unregulated allocation of CSR projects by objective may be fulfilled. The case for
several companies. demonstrating corporate responsibility is
Narrow Perception about CSR getting stronger as expectations among key
opinion former, customer and the public are
Non-governmental organisations (NGOs) and increasing. Therefore, the proposition that CSR
Government agencies usually possess a narrow is mere eyewash is, in itself, a myth.
outlook towards the CSR initiatives of the
Jaysawal and Saha. Space and Culture, India 2015, 3:2 Page | 92

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