CSR in India: Evolution, Models, and Impact
As one of the oldest civilizations of the world with a rich history of culture that embraces tolerance and social consciousness, the concept of social responsibility in India dates back to 1500 B.C. and is not a modern day twentieth century phenomenon. When companies emerged in the twentieth century, social responsibility was largely ingrained in volunteerism; however, today corporate social responsibility (CSR), apart from the philanthropy of individuals and companies, is triggered by the mandate to meet government’s legislation. This chapter traces the evolution of CSR in India across four phases. Conceptual models in vogue in the country are then outlined followed by an appreciation of CSR in a few major sectors. This is followed by an analysis of the impact of CSR with regard to overcoming major societal challenges. An attempt is made to answer the moot question whether CSR is part of corporate strategy, followed by an assessment of India’s unique CSR law. Thereafter, a critical evaluation of CSR activities in India including its linkages with the Sustainability Development Goals formulated by the United Nations is carried out.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Subscribe and save
Springer+ Basic
€32.70 /Month
- Get 10 units per month
- Download Article/Chapter or eBook
- 1 Unit = 1 Article or 1 Chapter
- Cancel anytime
Buy Now
Price includes VAT (France)
eBook EUR 117.69 Price includes VAT (France)
Softcover Book EUR 158.24 Price includes VAT (France)
Hardcover Book EUR 158.24 Price includes VAT (France)
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Corporate Social Responsibility Initiatives in a Regulated and Emerging Country: An Indonesia Perspective
Chapter © 2016
Building the Capacity for CSR Through Supportive Initiatives in Estonia
Chapter © 2016
Chapter © 2021
Notes
Manusmriti was one of the first Sanskrit texts studied by philologists. It was translated from Sanskrit into English by Sir William Jones in 1794. The Arthashastra is an ancient Indian treatise on statecraft, economic policy, and military strategy, written in Sanskrit. Kautilya, also identified as Chanakya, is traditionally credited as the author of the text.
INR 10,000,000 = 1 crore
The conversion rate for the whole chapter is based on data from April 15, 2019. The values in US Dollars are rounded accordingly.
The 18 GRI aspects include: (1) community, (2) corruption, (3) public policy, (4) anti-competitive behavior, (5) compliance, (6) investment and procurement practices, (7) nondiscrimination, (8) freedom of association and collective bargaining, (9) child labor, (10) forced and compulsory labor, (11) security plans, (12) indigenous rights, (13) employment, (14) labor/management relations, (15) occupational health and safety, (16) training and education, (17) diversity and equal opportunity, and (18) product responsibility.
References
- Abbott, W. F., & Monsen, R. J. (1979). On the measurement of corporate social responsibility: Self-reported disclosures as a method of measuring corporate social involvement. The Academy of Management Journal, 22(3), 501–515. Google Scholar
- Archel, P., Husillos, J., Larrinaga, C., & Spence, C. (2009). Social disclosure, legitimacy theory and the role of the state. Accounting, Auditing & Accountability Journal, 22(8), 1284–1307. ArticleGoogle Scholar
- Arora, B., & Puranik, R. (2004). A review of corporate social responsibility in India. Development, 47(3), 93–100. ArticleGoogle Scholar
- Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. The Academy of Management Journal, 28(2), 446–463. Google Scholar
- Balasubramanian, N. K., Kimber, D., & Siemensma, F. (2005). Emerging opportunities or traditions reinforced? An analysis of the attitudes towards CSR, and trends of thinking about CSR, in India. Journal of Corporate Citizenship, 17, 79–92. ArticleGoogle Scholar
- Brown, K., & Mehra, M. (2001). Corporate social responsibility: Perceptions of Indian business. Published by the Centre for Social Markets. Accessed May 16, 2019, from http://csmworld.org/wp-content/uploads/2009/03/social_respons.pdf
- Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4(4), 497–505. ArticleGoogle Scholar
- Chakrabarty, K. C. (2009). Furthering financial inclusion through financial literacy and credit counselling. Address at the launch of the Federal Ashwas Trust, Kochi. Accessed April 23, 2019, from https://www.bis.org/review/r091207d.pdf
- Collins, J., & Porras, J. (1994). Built to last. New York: Harper. Google Scholar
- Companies Act. (2013). Section 135: corporate social responsibility. Provided by Advocate Khoj Law Library. Accessed May 16, 2019, from http://www.advocatekhoj.com/library/bareacts/companies2013/135.php
- Construction Workers Federation of India. (2010). Gender equality. Accessed March 14, 2019, from www.cwfigs.org/gender_equality.htm
- Farhoomand, A., & Bhatnagar, S. (2008). ITC e-Choupal: Corporate social responsibility in rural India. Asia Case Research Centre: The University of Hong Kong. Google Scholar
- Forbes India. (2018). India rich list 2018. Accessed May 16, 2019, from http://www.forbesindia.com/lists/india-rich-list-2018/1731/all
- Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman. Google Scholar
- Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times, pp. 32–33 and pp. 122–126 Google Scholar
- Gandhi, M. K. (1960). Trusteeship. Compiled by Ravindra Kelekar. Ahmedabad: Jitendra T. Desai Navajivan Mudranalaya Google Scholar
- Gautam, R., & Singh, A. (2010). Corporate social responsibility practices in India: A study of top 500 companies. Global Business and Management Research: An International Journal, 2(1), 41–56. Google Scholar
- Ghosh, J. (2003). Strategy for development. Frontline, 20(18). Google Scholar
- India CSR Network. (2017). We dream of a better world, Tata group launches report on contribution towards the SDGs. Accessed April 24, 2019, from https://indiacsr.in/we-dream-of-a-better-world-tata-group-launches-report-on-contribution-towards-the-sdgs/
- Kaushik, S. K. (1997). India’s evolving economic model: A perspective on economic and financial reforms. American Journal of Economics and Sociology, 56(1), 69–84. ArticleGoogle Scholar
- KPMG. (2018). India’s CSR reporting survey 2017. Accessed April 24, 2019, from https://assets.kpmg/content/dam/kpmg/in/pdf/2018/02/CSR-Survey-Report.pdf
- Kumar, R. (2004). The state of CSR in India 2004: Acknowledging progress, prioritizing action. In Presented at the National Seminar on Corporate Social Responsibility at New Delhi, India on 10 November 2004. Accessed May 16, 2019, from http://csrsupport.org/doc/csr_state.pdf
- Kumar, R., Murphy, D. F., & Balsara, V. (2001). Altered images: The 2001 state of corporate responsibility in India poll. New Delhi: Tata Energy Research Institute. Google Scholar
- Maddison, A. (2007). Contours of the world economy, 1–2030 AD: Essays in macro-economic history. Oxford: Oxford University Press. Google Scholar
- Maignan, I. (2001). Consumers’ perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of Business Ethics, 30(1), 57–72. ArticleGoogle Scholar
- Majmudar, U., Rana, N., & Sanan, N. (2016). Gearing up for responsible growth. India’s top companies for sustainability and CSR 2016. Accessed March 15, 2019, from https://www.iimu.ac.in/upload_data/Publications/IIMU_CSR_REPORT_2016_FINIAL1.pdf
- Majmudar, U., Rana, N., & Sanan, N. (2017). Responsible business rankings 2017. India’s top companies for sustainability and CSR 2017. Accessed March 15, 2019, from https://www.iimu.ac.in/upload_data/Publications/IIMU_CSR_REPORT_2017_FEB14_FOR_WEB.pdf
- McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies, 43(1), 1–18. ArticleGoogle Scholar
- Mehta, V., John, P., Kumar, A., Maitra, I., Puranik, R., Shrivastava, S., et al. (2006). Delivering value: An exploration of community development vehicles adopted by corporates in India. New Delhi: Partners in Change Google Scholar
- Mishra, S., & Suar, D. (2010). Does corporate social responsibility influence firm performance of Indian companies? Journal of Business Ethics, 95(4), 571–601. ArticleGoogle Scholar
- Mitra, M. (2007). It’s only Business! India’s corporate social responsiveness in a globalized world. New Delhi: Oxford University Press. Google Scholar
- Mitra, R. (2012). “My country’s future”: A culture-centered interrogation of corporate social responsibility in India. Journal of Business Ethics, 106(2), 131–147. ArticleGoogle Scholar
- Mohan, A. (2001). Corporate citizenship: Perspectives from India. Journal of Corporate Citizenship, 2, 107–117. ArticleGoogle Scholar
- Muniapan, B. (2008). Kautilya’s Arthashastra and perspectives on organizational management. Asian Social Science, 4(1), 30–34. Google Scholar
- Muniapan, B., & Dass, M. (2008). Corporate social responsibility: A philosophical approach from an ancient Indian perspective. International Journal of Indian Culture and Business Management, 1(4), 408–420. ArticleGoogle Scholar
- Murthy, N. R. N. (2007). Foreword. In R. Mitra (Ed.), It’s only business! India’s corporate social responsiveness in a globalized world (pp. ix–ix). Oxford: Oxford University Press. Google Scholar
- Nasscom Foundation. (2007). Catalyzing change 2006–2007: IT industry’s commitment to societal development. Accessed March 15, 2019, from https://nasscomfoundation.org/images/resources/2007_Catalysing.pdf
- Nasscom Foundation, & Goodera. (2017). Catalyzing change. Study of CSR trends in the IT-BPM sector: 2016–17. Accessed April 24, 2019, from https://www.nasscom.in/sites/default/files/Catalyzing_Change_2016-17.pdf
- National Commission for Enterprises in the Unorganized Sector. (2007). Report on conditions of work and promotion of livelihoods in the unorganised sector. Accessed March 15, 2019, from http://dcmsme.gov.in/Condition_of_workers_sep_2007.pdf
- Peterson, T. R. (1997). Sharing the earth: The rhetoric of sustainable development. Columbia: University of South Carolina Press. Google Scholar
- Peterson, T. R., & Norton, T. (2007). Discourses of sustainability in today’s public sphere. In S. K. May, G. Cheney, & J. Roper (Eds.), The debate over corporate social responsibility (pp. 351–364). Oxford: Oxford University Press. Google Scholar
- PHD Chamber. (2013). Corporate social responsibility in India. Potentials to contribute towards inclusive social development. In Global CSR Summit 2013, CSR: An agenda for sustainable inclusive growth Google Scholar
- Planning Commission Government of India. (2008). Eleventh five year plan (2007–2012). Inclusive growth (Vol. I). Oxford: Oxford University Press. Google Scholar
- Porter, M. E. (2004). Competitive advantage: Creating and sustaining superior performance. New York: Simon & Schuster. Google Scholar
- Porter, M. E., & Kramer, M. R. (2006). Strategy and society. The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92. Google Scholar
- Prahalad, C. K. (2007). Foreword. In V. Kasturi Rangan, J. A. Quelch, G. Herrero, & B. Barton (Eds.), Business solutions for the global poor: Creating social and economic value (pp. xv–xvi). Hoboken, NJ: Wiley. Google Scholar
- Prakash-Mani, K. (2002). Corporate social responsibility in the Indian context. UK: Sustainability Radar. Google Scholar
- PwC. (2013). Handbook on corporate social responsibility in India. Accessed April 24, 2019, from https://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-responsibility-in-india.pdf
- Rangan, K., Chase, L. A., & Karim, S. (2012). Why every company needs a CSR strategy and how to build it (Working paper 12-088). Accessed March 14, 2019, from https://www.hbs.edu/faculty/Publication%20Files/12-088.pdf
- Richards, G. (1995). The philosophy of Gandhi: A study of his basic ideas. Abingdon-on-Thames: Routledge. Google Scholar
- Roy, S. (2019). Poverty and equity brief South Asia – India. World Bank Group. Accessed May 31, 2019, from https://databank.worldbank.org/data/download/poverty/33EF03BB-9722-4AE2-ABC7-AA2972D68AFE/Global_POVEQ_IND.pdf
- Sagar, P., & Singla, A. (2004). Trust and corporate social responsibility: Lessons from India. Journal of Communication Management, 8(3), 282–290. ArticleGoogle Scholar
- Sarkar, J., & Sarkar, S. (2015). Corporate social responsibility in India – an effort to bridge the welfare gap. Indira Gandhi Institute of Development Research. Accessed March 14, 2019, from http://www.igidr.ac.in/pdf/publication/WP-2015-023.pdf
- Sharma, E., & Mani, M. (2013). Corporate social responsibility: An analysis of Indian commercial banks. AIMA Journal of Management & Research, 7(1/4). Google Scholar
- Shukla, R. (2015). Healthcare spend pushing households below poverty line. The Financial Express. Accessed May 31, 2019, from https://www.financialexpress.com/opinion/healthcare-spend-pushing-households-below-poverty-line/126656/
- Sood, A., & Arora, B. (2006). The political economy of corporate responsibility in India. Geneva: United Nations Research Institute for Social Development. Google Scholar
- Sundar, P. (2000). Beyond business: From merchant charity to corporate citizenship Indian business philanthropy through the ages. New Delhi: Tata McGraw-Hill. Google Scholar
- The Institute of Company Secretaries of India. (2015). Corporate social responsibility: An engine for inclusive growth. New Delhi: The Institute of Company Secretaries of India. Google Scholar
- United Nations Development Programme. (2018). India ranks 130 on 2018 Human Development Index. Accessed April 24, 2019, from http://www.in.undp.org/content/india/en/home/sustainable-development/successstories/india-ranks-130-on-2018-human-development-index.html.
- United Nations Development Programme, British Council, Confederation of Indian Industry, & PricewaterhouseCoopers. (2002). Corporate social responsibility survey 2002 – India. Accessed March 14, 2019, from http://www.indiapartnershipforum.org/csrs2002/p1-6.pdf
- Waldman, D. A., & Siegel, D. (2008). Defining the socially responsible leader. The Leadership Quarterly, 19(1), 117–131. ArticleGoogle Scholar
- World Bank Group. (n.d.-a). Poverty and equity data portal. Accessed April 24, 2019, from https://databank.worldbank.org/data/reports.aspx?source=poverty-and-equity-database
- World Bank Group. (n.d.-b). Poverty and equity data portal India. Accessed May 15, 2019, from http://povertydata.worldbank.org/poverty/country/IND
- World Commission on Environment and Development. (1987). Our common future. Accessed January 22, 2019, from http://www.un-documents.net/our-common-future.pdf
- Wuttke, M., & Vilks, A. (2014). Poverty alleviation through CSR in the Indian construction industry. The Journal of Management Development, 33(2), 119–130. Google Scholar
Author information
Authors and Affiliations
- Narsee Monjee Institute of Management Studies, Bangalore, India Suresh Mony
- Amrita School of Business, Amrita Vishwa Vidyapeetham University, Bangalore, India Shekar Babu
- Suresh Mony