SYNOPSIS

ON

CORPORATE SOCIAL RESPONSIBILITY WITH SPECIAL

REFERENCE TO CSR PRACTICES IN INDIAN

CORPORATE SECTOR

SUBMITTED TO: SUBMITTED BY:

Vikram Chanchal
23 MLL10100
LL.M. (CORPORATE LAW)
Table of Contents
1. Introduction....................................................................................................................................3
1.1 Research Problem........................................................................................................................14
1.2 Research Question.......................................................................................................................15
1.3 Research Objectives.....................................................................................................................15
1.4 Hypothesis....................................................................................................................................16
1.5 Literature Review.........................................................................................................................16
1.6 Research Methodology:...............................................................................................................18
1.7 Tentative Chapter Scheme:..........................................................................................................18

2
 1. Introduction

Traditionally business has been viewed beyond morality and public policy. The policy
that might is right stands as the base of all entities. It is all about managing share
holder infect, reputation and investing in the co-competent resources. It is widely
accepted that business has an ethical dimension besides the economic and legal
dimensions.

Corporate social responsibility (CSR) has become an increasingly popular and

contentious field of study since the 1970s, when it began to garner serious scholarly
attention. A recent Google search for the term ‘corporate social responsibility’ yielded
over twenty-one million hits, and a Westlaw search for the same term returns over
two thousand articles. The study and practice of corporate social responsibility appear
to be alive and well, as thousands of companies are vying to gain recognition by
adopting the CSR label. Since 2000, over 5300 businesses and 130 countries have
joined the United Nations’ (‘UN’) Global Compact, the largest extant international
CSR initiative. The World Bank, OECD, and the International Labor Organization all
run similar initiatives with thousands of members.1

There can be no doubt that corporate social responsibility has become increasingly
popular over the last several decades; nevertheless, many scholars vehemently
disagree over its role in economic development and corporate law. Some contend that
because CSR is a young and broad field, it is difficult to define exactly what one
means by "corporate social responsibility' and hence, it is hard to implement and
monitor various initiatives, for example, focus on the environment while others focus
on labor or human rights. Traditional corporate law scholars echo Milton Friedman's
cry that the only of Friedman: they see CSR as a method of undermining the
necessary regulatory development of impoverished countries and would opt for more
regulation over more corporate giving. Understanding the context of this global
debate is a necessary precursor to evaluating the recent initiative in India.

International corporate social responsibility aims to address the problem caused by

multinational corporate enterprises (MCEs) operating in less-developed countries with
1
S.P.Bansal, Kulbhushan Chandel, et.al., Corporate Social Responsibility: Sustainable & Inclusive Growth
32 (Bharti Publications,Delhi,2013)
3
 insufficient regulation. The services traditionally performed by state regulation, such
as ensuring that companies internalize harmful environmental externalities or follow
basic moral tenets in their labor practices, may instead need to be performed through
international law or codes voluntarily adopted by companies themselves!' Since
international law still struggles with issues of enforcement and legitimacy, many
companies have simply crafted their own codes or signed on to voluntary agreements
to indicate to consumers that they intend to be "socially responsible" wherever they
operate!' While the codes are essentially unenforceable, the idea is that they will be
ethically binding on the companies and monitored closely by consumers and NGOs.

Thomas Donaldson characterizes CSR as a global social contract. Obliging companies

to behave in a morally and socially acceptable manner in exchange for access to the
international market. As with any social contract, he posits that we must ask two
questions: why does the contract exist, and how can one tell when it has achieved its
purpose? For some, the answer revolves around the environment and ensuring that
companies avoid imposing negative externalities on ecosystems in developing
countries.' For others, the answer involves paying workers a living wage, keeping
reasonable hours and labor conditions, and respecting the human rights of local
stakeholders. For still others the answer is as broad as being a respectful citizen and
re-investing some profits in the local economy or education system. Most scholars
envision CSR incorporating all these answers and more. CSR, in its broadest sense.
Simply asks companies to consider both the social and financial impacts of their
decisions. This idea can be encompassed by the term "triple bottom line," which has
become something of a cliché, but at its core exhorts companies to consider social,
environmental, and financial outcomes collectively. These debates have gained
increasing importance over the last two decades with the expansion of globalization
privatization, and deregulation Still, prominent scholars disagree over both the form
that CSR ought to take and whether or not CSR is even a worthy goal of corporate
and international law.2

Given that companies have minimal profit incentives to engage in CSR, some
scholars speculate that corporate social responsibility is merely a tool to ward off
regulation and is a mask for corporate self-interest, Milton Moskowitz once observed.
Looking over the history of corporate social responsibility. I can see it as consisting of
2
Jusg, Gerbar. Partnership Between Society And Business In Developing And Newly
IndustrializingCountries-The Business Prospective. (Chris Milner, Edward Elgar Publication).
4
 [ninety-five] percent rhetoric and five percent action. Companies are adept at drawing
up high-sounding mission statements. Changing the way, they do business? That's
something else. Many companies have been accused by NGOs of green washing their
advertising and reports to make their practices look more eco-friendly. The UN, for
example, has already removed almost two thousand companies from its Global
Compact for non-compliance with its terms. By espousing good intentions via CSR,
though, corporations buy themselves more time as they attempt to stave off further
regulation. Vogel bluntly admits that increased corporate regulation would be
preferable to CSR, but corporations are too powerful and will not allow the requisite
political changes.

Accordingly, Scholars like Kent Greenfield argue that since major corporations are
technically "public" in that most are publicly listed with stocks that can be purchased
by anyone, corporate law should take on a more regulatory bent and serve broader
social purposes. Like environmental law and labor law, corporate law should be
viewed as "public" law, or law that concerns society more generally" In the long run,
Greenfield doubts the wisdom of a system like CSR that proposes market solutions
for market imperfections "corporate law" he claims, should be "predicated upon our
collective political decisions about what we want our society to look like" and not
simply on what economic abyss after all, countries with more regulation than the
United States, like Canada, Germany, Holland, and Sweden, are both economically
secure and more likely than America to offer their populace a chance at upward
mobility and the "American dream.3

This leftist critique of CSR claims that further regulating corporations would not
violate any a priori economic "right. To argue that corporations have a right to be free
of regulation seems Lochnerian and retrograde.' Since the government offers
corporations many necessary "goods," such as state-sponsored legal recognition as
well as the ability to own or lease resources and hire employees, businesses ought to
be obliged to furnish something in return, beyond profits for shareholders.' CSR, these
scholars argue, does not go far enough in supporting the development of regulatory
systems abroad; rather, it may undermine developing countries' fledging efforts at
regulation.

India's current system of corporate governance is something of a hybrid. Like many

3
Rural litigation Entitlement Kendra Dehradoon v. State of U.P.,(1985)2 SCC 431
5
 post-colonial countries when India first gained its independence in 1947, it opted for a
socialist governance structure with many industries and enterprises controlled by the
state. In 1991, however, India experienced a massive financial crisis. The IMF agreed
to grant India the loans it needed if it would liberalize its economy and privatize most
sectors. Since then India's economy has been growing at a rapid pace to facilitate
foreign direct investment. India has lifted most of its recently enacted corporate law
from liberal American and British models. The economy is now functionally
capitalist, although the constitution remains socialist. It is largely this divide between
a developing once socialist country with an impoverished populace and its booming
capital white aspirations that the 2013 Companies Act will attempts to navigate.

Emphasis on social environmental and economic sustainability has become a focus of

many CSR efforts. Sustainability was originally viewed in terms of preserving the
earth's resources. In 1987, the World Commission on Environment and Development
published a landmark action plan for environmental sustainability. The commission,
named after former Norwegian Prime Minister GroHarlen Brundlandt, defined
sustainability as "meeting the needs of the present without compromising the ability
of future generations to meet their needs." Companies are now challenged by
stakeholders including customers, employees, investors and activists to develop a
blueprint for how they will sustain economic prosperity while taking care of their
employees and the environment.4

At the same time mainstream investors are being challenged to ensure that they
review CSR issues when analyzing companies. The United Nations Environment
Program Financial Initiative asked one of the world's largest law firms to research
whether institutional investors such as pension funds and insurance companies are
legally permitted to integrate environmental, social and governance issues into their
investment decision-making and ownership practices. The resulting report, released in
October 2005, concluded that investors were not only permitted to but also sometimes
required to take such factors into account.

"Integrating environment, social and governance considerations into an investment

analysis so as to more reliably predict financial performance is clearly permissible
and is arguably required in al jurisdictions," the report concluded.

4
Ibid.
6
 The origin of the term Sustainable Development (SD) lies in the 18th century and was
actually used in forestry. In those times, it was only allowed to cut down a certain
number of trees so that a long-lasting protection of the tree population was
guaranteed. This method ensured a continuous supply of wood without reducing
resources for forthcoming generations. The Club of Rome precipitated an
international discussion due to its report "Limits to Growth" (Meadows, 1972). In the
course of this discussion, an eco-development approach was created which effected
the protection of resources and environment coming to the fore. This development has
led to the mission statement of SD we have today. In 1987, the World Commission on
Environment and Development defined SD as an ethical concept and has become the
major definition of SD: "Sustainable Development is a development that meets the
needs of the present without compromising the ability of future generations to meet
their own needs. It contains within it two key concepts: the concepts of "needs", in
particular the essential needs of the world's poor, to which overriding priority should
be given; and the idea of limitations imposed by the state of technology and social
organization of the environments ability to meet present and future needs. Thus, the
goals of economic and social development must be defined in terms of sustainability
in all countries developed or developing, market-oriented or centrally planned.", cited
in 'Our Common Future(World Commission on Environment and Development.
1987). Elkington goes more into detail when arguing that companies should not only
focus on enhancing its value through maximizing profit and outcome but concentrate
on environmental and social issues equally. Therefore, SD is defined as a model of
triple-bottom-line.5

Whereas the term SD has mainly started to be used in the 1950's.The framework of
CSR has already been established in the 1950's and 60's. Bowen defined CSR in 1953
as one of the first-as "an obligation to pursue policies to make decisions and to follow
lines of action which are compatible with the objectives and values of society. In the
beginning, however, the term Social Responsibility was rather used than CSR. Social
Responsibility assumes that economic and legal duties of the companies should be
extended by certain responsibilities to society. Carroll argues that Social
Responsibility exists of four components such as economic, legal, ethical and
discretionary expectations that society has of a company and that companies have to

5
M.C. Mehta v. U.O.I., (1991) 2 SCC 137

7
 decide which layer they focus on.

On the other hand, Friedman as most known defender of the neoclassical view of
economics defines Social Responsibility completely differently: "There is one and
only one social responsibility of business - to use its resources and engage in
activities to increase its profits so long as it stays within the rules of the game, which
is to say, engages in open and free competition, without deception or fraud". Until
today this neoclassical view has been the primary paradigm of business. Concepts of
SD and CSR criticize this point of view. Of course, the economic perspective is
important, but a company also has a burden of environmental and social
responsibilities to handle. As wood puts it "the basic idea of corporate social
responsibility is that business and society are interwoven rather than distinct entities:
therefore, society has certain expectations for appropriate business behavior and
outcomes. Organizations such as the World Business Council for Sustainable
Development (WBCSD) actively take part in the sustainability and CSR discussion.
WBCSD regards CSR as engine for the social dimension (social progress) which
supports companies to fulfill their responsibilities as good citizens and defines CSR as
"business' commitment to contribute to sustainable economic development, working
with employees, their families, the local community and society at large to improve
their- quality of life" (WBCSD, 2006). On the other hand, the Commission of
European Communities describes CSR as a "concept whereby companies integrate
social and environmental concerns into their business operations and interactions with
their stakeholders on a voluntary basis-' (Commission of the European Communities
2001):

CSR is an integral part of sustainable development. Exactly where it fits in is

vigorously dedicated, mainly because the concept of sustainable development also has
many different interpretations. This diagram, illuminates CSR's Relationship with
sustainable development should be the main focus on an institutional level, within
NGO's or other organizations (WBCSD vs. EU).6

According to the World Business Council for Sustainable Development (WBCSD)

report for Corporate Social Responsibility; Issues which have emerged strongly from
the work group are as follows: Human Rights are the universal rights that every

6
D. Votaw, and S.P. Sethi, “Do we need a New Corporate Response to a Changing Social Environment?”
California Management Review,12(1)3-16 pp.17-31,1969
8
 person is entitled to enjoy and to have protected. The underlying idea of such rights
fundamental principles that should be respected in the treatment of all men women
and children exists in some form in all cultures and societies. Such rights are
enshrined in the Universal Declaration of Human Rights, adopted by the United
Nations in 1948, The declaration covers two broad sets of rights: Civil and Political
Rights; and Social and Cultural Rights. WBCSD dialogue Identified these sub-issues,
Female/women's rights: inter-generational equity indigenous people survival rights:
freedom from oppressive regimes: gay rights: disabled persons rights: freedom of
speech. Suggested to business that.

There is no argument that shareholders who own the company have the first call on
the performance of management. But some argue that companies also have to satisfy a
broader group of interested parties, commonly called stakeholders. These include not
only shareholders, but also employees, customers, consumers, suppliers, communities
and legislators. Such stakeholders are seen to have both influence and rights, which
although different in kind and degree from those of shareholders, still demand respect.

Employee rights are embodied in the International Labour Organization's Declaration

on the Fundamental Principles and Rights at Work. These include: freedom of
association and the right to collective bargaining: elimination of all forms of forced
and compulsory labor; abolition of all child labor: and the elimination of
discrimination in respect of employment and occupation.7

Protecting the environment from the impact of operations is a core responsibility.

Besides their legal obligations, which differ according to region and country,
corporations are seen to have a broad responsibility to protect the physical
environment throughout their supply chains. They should commit to continuous
improvements in eco-efficiency (doing more with less) and managing the full
lifecycle of their product or service.

CSR is the firm’s consideration of, and response to, issues beyond the narrow
economic, technical, and legal requirements of the firm. CSR is ‘the economic, legal,
ethical and discretionary expectations that society has of organizations”. The well
accepted definition of CSR is not a common term; MNC's prefers sustainable
development or sustainable business while several Indian companies talk about

7
The Indian Journal of Commerce, Vol.XXVII, No. 101, December1974
9
 responsible business or Triple P (People, Planet, and Profit).

It is important to note that Indian companies and stakeholders give a broader

definition of CSR then MNC and stakeholders. According to the Indian Corporate:
“Sustainable development implies optimizing financial position while not depleting
social and environmental aspects and CSR implies supporting issues related to
children, women and environment”. These corporate refer in its definition of CSR to
community development. In the context of Western community, development is often
seen as charity. In the Indian context it is seen as a large responsibility of a corporate,
not only by stakeholders but also by the local Indian management. The background of
this is that stakeholders see the large western companies as capitalist islands in a
developing country. This position gives them a certain responsibility towards the
community. Most of the MNC's leave room to their Indian daughter company to
develop initiatives in this field; sometimes they have a special fund. All kinds of
initiatives are developed by the interviewed Indian companies, many times bottom up
initiated by the employees. Nearly all leading corporate in India are involved in
corporate social responsibility (CSR) programs in areas like education, health,
livelihood creation, skill development, and empowerment of weaker sections of the
society. Notable efforts have come from the Tata Group, Infosys, Bharti Enterprises,
ITC Welcome group, Indian Oil Corporation among others.8

The sustainable development is the barometer to measure inclusive and integrated

growth of an economy. The economy of the country is said to be good if there is
balanced and equitable growth of all sectors of the economy like infrastructure,
agriculture, rural development, industry, information technology, education, health,
irrigation, real estates. “In 1992, at the United Nations Conference on Environment
Development (UNCED) The Earth Summit, at Rio-deJaneiro 1992, the term
sustainable Development finally came its own. It is now an integral party lexicon of
international discourse and as a result the next conference held at Johannesburg in
2002 was called the World Summit of Sustainable Development (WSSD) and believe
to be an integrated concept that can give real meaning to the sustainable development
and it will create sustainable livelihood for all.” The World Business Council for
sustainable Development (WBCSD), having a membership of 200 leading
multinationals, which has been active and dedicated to sustainability issues. The
8
S.P.Bansal, Kulbhushan Chandel, et.al, Corporate Social Responsibility: Sustainable & Inclusive Growth4
(Bharti Publications, Delhi, 2013).
10
 council’s main focus is on energy and climate. The council has three main
recommendations for business working on sustainable development i.e. Worker
awareness-raising and common understanding, measuring the impact of sustainable
development initiatives in a transparent way for further improvement and made its
necessary to work with others.9

These three features will help the multinational to contribute for sustainable
development of a country.”

The term "Sustainable Development” was born and developed in the world
conservation strategy produced jointly in 1980 by the International Union for the
Conservation of Nature and Natural Resource (IUCN) World Wildlife Fund (WWF)
and United Nations Environment Programme (UNEP) and planned ‘to help advance
the achievement of sustainable development through the conservation of living
resources’. It declared that ‘conservation like development is for people'.
Conservation includes conservation of all living and non-living things, which are for
human use. Thus, sustainable development means the management of biosphere (the
earth's crust and atmosphere where living matter is found) for human needs and that is
conservation's primary concern.

The field of sustainable development can be conceptually broken into three

constituent parts: environmental sustainability, economic sustainability and socio-
political sustainability. Sustainable Development is said to encompass: (a) help for
poor, because they are left with no option but to destroy their environment; (b) the
ideas of self-reliant development, within natural resource constraints; (c) the idea of
cost-effective development using non-traditional economic criteria; (d) the issues of
health care, appropriate technology, food, self-reliance, clean water and shelter for all;
and (e) the notion that people-centered initiatives are needed.10

The Apex Court has always been flag-runner of CSR initiatives right from Bhopal
Gas Tragedy11, Dehradoon Quarrying Case12, CNG case13, Oleum Gas Leak Gas14,

9
Jusg, Gerbar. Partnership Between Society And Business In Developing And Newly
IndustrializingCountries-The Business Prospective. Chris Milner, Edward Elgar Publication.
10
S.P.Bansal, KulbhushanChandel,et.al., CorporateSocial Responsibility:Sustainable & Inclusive Growth
304,305(Bharti Publications,Delhi,2013)
11
Union Carbide Corp. v. Union of India,(1991) 4SCC 586.
12
Rural litigation Entitlement Kendra Dehradoon v. State of U.P.,(1985)2 SCC 431
13
M.C. Mehta v. U.O.I., (1991) 2 SCC 137
14
M.C. Mehta v. U.O.I.,(1986) 2 SCC 176
11
 Ganga Pollution Case15 etc. In National Textile Workers Union v. P.R. Ramakrishnan
the Apex Court held that the traditional view that a company is the property of the
shareholders is an exploded myth. According to the new socio-economic thinking a
company is a social institution having duties and responsibilities towards the
community in which it functions.

In Birla Zauri Agro Chemical Ltd. Goa Case. In this case, the Goa High Court ordered
the closure of the company’s operations because the effluents of the company were
polluting the sea. Obviously, the Hon’ble Supreme Court of India is referring to
Corporate Social Responsibility when it talks to duties and responsibilities towards
the community. The supreme legal document, the Constitution of India under Art.297
vests natural resources in the Union of India and Art. 39(b) requires distribution of
resources to sub serve the common good, commercial practice in the oil and gas
industry.

The S.C. in M.C. Mehta vs. Union of India16 A case dealing with leakage of oleum
gas from one of the plants of an Indian company, developed the absolute liability
principle. The court reasoned that the 19 th century Rylands vs. Fletcher principle of
strict liability was not suitable to meet the needs of a modern industrial society.

The newly enacted Companies Act, 2013 incorporates provisions relating to

Corporate Social Responsibility activities. CSR, which had previously been voluntary
contribution, by corporates, has now been made mandatory under this new law.
Ensuring environmental sustainability, ecological balance and conservation of natural
resources by the corporates forms an important care of the policy contemplated under
section 135 of the Companies Act, 2013. Lastly, the Judicial Activism through Public
Interest Litigations also need greater credit in enforcing. Corporate under take
environmentally healthy operations and activities.

According to Schedule-VII of Companies Act, 2013 the following activities can be

included by companies in their CSR Policies: -

i. Eradicating extreme hunger and poverty.

ii. Promotion of education;

15
M.C. Mehta v. U.O.I., AIR 1988 SC 471
16
AIR 1987 SC 1086
12
 iii. Promoting gender equality and empowering women;

iv. Reducing child mortality and improving maternal health;

v. Combating human immune deficiency virus, acquired immune deficiency

syndrome, malaria and other diseases;

vi. Ensuring environmental sustainability;

vii. Employment enhancing vocational skills;

viii. Social business projects;

ix. contribution to the Prime Minister’s National Relief Fund or any other fund set
by the Central Government or the State Governments for socio-economic
development and relief and funds for the welfare of the Scheduled Caste, the
Scheduled Tribes, other backward classes, minorities and women; and

x. Such other matters as may be prescribed.17

The Companies Act 2013, under section 135 also provides for constitution of a CSR
Committee of the Board. The CSR Committee is required to

a. Formulate and recommend to the Board, a CSR Policy which shall indicate
the activities to be undertaken by the company as specified in Schedule VII;

b. Recommend the amount of expenditure to be incurred on the activities

referred to in clause(a)

c. Monitor the Corporate Social Responsibility Policy of the company from time
to time.

The format for disclosure of CSR policy and the activities therein as part of Boards
report will be prescribed in the rules.18

Nature and Meaning of Corporate Social Responsibility

The concept of social responsibility has become a complex one. It has a positive side as
well as a negative side. On the positive side, its focus is on solving community
17
S.P.Bansal, Kulbhushan Chandel, et.al., Corporate Social Responsibility: Sustainable & Inclusive Growth
32 (Bharti Publications,Delhi,2013)
18
S.P.Bansal, Kulbhushan Chandel,et.al., Corporate Social Responsibility: Sustainable & Inclusive Growth
32,33 (Bharti Publications,Delhi,2013).
13
 problems to live up to public expectations. On the negative side, it aims at avoiding
public criticism by restoring social balance through the production of social benefits
equivalent to social costs. It is also interpreted as an attitude, as a constraint, as a cost,
as a goal, and as a policy. It is also defined as social reform and a social movement. It
is considered a relative term as no absolute interpretation of it at any point of time at
any place is possible. It is seen as a natural obligation, a moral duty, a legal
compulsion, civic responsibility, or statesmanship.

K.N. Modi (1980) describes it as statesmanship. “…business in India has often

accepted social responsibilities, vis-à-vis the public at large, which is a more
industrialized country are presently the responsibility of government.”19

Rama Krishna Bajaj (1971) regards it not as a matter of philanthropy but an

indispensable civic responsibility. “Social Responsibility by its inseparable bond with
economic responsibility is inescapable. Today the businessman has to accept civic
responsibilities…In other words; community service must now become an integral part
of business activity. This is not a matter of more philanthropy.”20

Rama Krishna Bajaj (1971) regards it not as a matter of philanthropy but an

indispensable civic responsibility. “Social Responsibility by its inseparable bond with
economic responsibility is inescapable. Today the businessman has to accept civic
responsibilities…In other words; community service must now become an integral part
of business activity. This is not a matter of more philanthropy.”21

1.1 Research Problem

The researcher has examined and analyzed the issues of Corporate Social
Responsibility and its impact on society and its relationship with Stakeholders. The
researcher emphasizes that the company should recognize that every action and the
implementation of that action affect people, communities and the environment.

Many of the CSR practitioner, researcher and academicians express their opinion that
there are number of survey studies were carried out based secondary information and
organizational reports but very few studies conducted to understand the practice of
CSR in India in a true sense. Community is one the important stakeholders in CSR,
19
D. Votaw, and S.P. Sethi, Do we need a New Corporate Response to a Changing Social Environment?
California Management Review,12(1)3-16 pp.17-31,1969
20
The Indian Journal of Commerce, Vol.XXVII, No. 101, December1974.
21
The Indian Journal of Commerce, Vol.XXVII, No. 101, December1974
14
but the existing review of literature shows that the studies to understand CSR from
community prospective is lacking at present literature. Therefore, an attempt is made
in the present study to understand the interface between the company and community
to the concept of CSR as a societal motto of CSR initiatives and sustainable
development.

1.2 Research Question

This work attempts to answer the following questions:

1) What is the impact of CSR on the Society and environment?

2) What is the efficacy of present law in reference of Indian perspective of CSR?
3) How can the long-term effects of CSR activities be evaluated beyond immediate
outcomes?
4) How does effective stakeholder engagement influence the success of CSR
strategies?
5) Can CSR initiatives lead to sustainable competitive advantages for businesses?
6) What role do ethics play in shaping a company's CSR strategy and
implementation?
1.3 Research Objectives

Corporations around the world are struggling with a new role, which is to meet the
needs of the present generation without compromising the ability of the next
generations to meet their own needs. Organizations are being called upon to take
responsibility for the ways their operations impact societies and the natural
environment. They are also being asked to apply sustainability principles to the ways
in which they conduct their business CSR is therefore a prominent feature of the
business and society. Thus, the present study tries to address itself to the objectives
stated below:

1. To understand the efficiency of CSR in Indian and international perspective.

2. To observe the different strategies adopted by the organizations and its
effectiveness.
3. To focus on issues and challenges faced in the implementation of CSR
activities in India.
4. To provide remedial measures or suggestions to overcome the problems faced
in the implementation of CSR.

15
1.4 Hypothesis

To realize the aims and objectives of the present research, the following hypothesis
have been conceived:-

1. There is no proper and effective implementation of CSR mandate under the

Companies Act, 2013 in India.
2. There is lack of sustainable development due to ineffective implementation of
CSR.

1.5 Literature Review

The present research work is based on all-embracing literature review of various

national and international publications, legislations, cases, and articles. There are
numerous literature but few main literature review provides the fabulous matter for
my research work, which are as follows: S.P. Bansal, Kulbhushan Chandel et.al,
Corporate Social Responsibility: Sustainable &Inclusive Growth (Bharti
Publications, Delhi, 2013).The present book has been divided into three sections.
The first section deals with conceptualization of the idea of corporate social
responsibility. This section contains twenty-one chapters. The main focus of this
section is on Corporate Social Responsibility- Issues and Challenges, Corporate
Social Responsibility and Sustainable Growth, New Company Law: New dimensions
of Corporate Social Responsibility, etc.

In the second section an effort has been made to understand CSR and Inclusive &
Sustainable Development in the back drop of Gandhian Philosophy. The main focus
area of this section emphasized on understanding CSR with Gandhian Perspective,
CSR and the Theory of Trusteeship of Gandhi, Gandhian Philosophy and Corporate
Social Responsibility and relevance of Gandhian Philosophy in CSR for Inclusive
Growth. The third section of this book deals with various other issues such as
Corporate Governance, Business Ethics etc.

The next literature is Ramon Mullerat Corporate Social Responsibility: The

corporate Governance of the 21st Century (Kluwer Law International,
Netherlands, 2005) There are many Authors in this book like as Daniel Brennan,
Richard Brophy, James E. Brumm, Hans Corelletc., but the General Editor of this
16
book is Ramon Mullerat. According to the Mullerat CSR as, something new, is still a
vague, imprecise and even misty concept. Undoubtedly there are already some good
definitions. CSR is a concept whereby companies voluntarily decide to respect and
protect the interests of a broad range of stakeholders while contributing to a cleaner
environment and a better society through an active interaction with all. CSR is the
voluntary commitment by businesses to manage their roles in society in a responsible
way. CSR is the cooperation with government, civil society and businesses, etc.

The next book is Jeremy Moon Corporate Social Responsibility: A Very Short
Introduction (Oxford University Press, United Kingdom, 1 st edition, 2014) this
book explores Corporate social responsibility has been defined as' the responsibility
of enterprises for their impacts on society'. Is Corporate Social Responsibility (CSR)
just window dressing or is it a contradiction in terms? In this Very Short Introduction,
Jeremy Moon shows that CSR holds much more value than it first appears, and shows
how it has come of age in recent years. Illustrating the sorts of CSR investments
companies make, the ways in which they practice.

The next literature is Jennifer A. Zerk Multinationals and Corporate Social

Responsibility: Limitations and Opportunities in International Law (Cambridge
University Press, New York, 2006) this book explores the implications of
developments for international law. Its Central argument is that, while international
law has its limitations, it is also capable of supporting new regulatory opportunities
that have the potential greatly to improve the welfare of people and communities
affected by multinational activities, particularly in less developed countries. This book
focuses on three issues that are currently at the forefront of most CSR-related
campaigns: workplace, environmental and consumer safety standards. Part I of this
book is concerned with background and theory. Chapter 1 outlines the background to
the CSR movement, and the relationship between CSR and the law. Chapter 2 is a
discussion of the basic principles of international law- making, as they relate to CSR.
Part II of this book is an examination of developing state practice in relation to CSR,
and particularly the problem of ‘double standards’, that is the practice of applying
different social and environmental standards in different countries depending on
prevailing regulatory conditions.

The next literature is Dr. G.K. Kapoor, Sanjay Dhamija, et.al., Corporate

17
Governance (Taxmann Publication, New Delhi 2015) this book describes that
Corporate governance essentially involves balancing the interests of the many
stakeholders in a company. These include its shareholders, management, employees,
customers, suppliers, bondholders, financiers, government and the community. This
volume aims to demonstrate familiarity with the concept of corporate governance
while discussing the issues affecting business community and wider societal effects
on corporate governance. It also discusses the relationship between and among
shareholders, management and the board of directors in corporations.

The next book is of K.S. Ravichandran entitled as “Corporate Social

Responsibility; Emerging Opportunities and Challenges in India” published by
Lexis Nexis, 2016. This book analyses the various aspects and dimensions of CSR as
means for commercial enterprise to promote sustainable development. Thematically
arranged, the book examines and explains the philosophy and objectives of CSR
emphasizing its social and ethical base.

1.6 Research Methodology:

The present study is mainly a descriptive and analytical study. Where things are of
introductory and observatory in nature the descriptive method is applied regarding
analysis of the legal provisions, Social status of a country and various social
psychological problems of the CSR, the applied method is analytical. A uniform mode
of referencing based upon Indian Law Institute.

1.7 Tentative Chapter Scheme:

The work has been divided in following chapters for a lucid and effective execution;

Chapter One Introduction

This entitled as “Introduction” introduces the topic of the thesis. This chapter
introduces the objective and research questions and relationship between CSR and
SD. This chapter also introduces the research problems, scope of the study,
hypothesis and literature review. The chapter also defines the adopted research
methodology.

Chapter two concept and theories of Corporate Social Responsibility

18
It is titled as “concept and theories of Corporate Social Responsibility. This chapter
describes the characteristics of CSR, current CSR activities in India and many famous
companies like as Tata Steal Ltd., COCA-COLA India, Arcelor, BHEL, Reliance
power etc. are playing vital role in the field of CSR through organised the campaign,
social welfare programmes and charity events. The chapter explains four main
theories of CSR

Chapter third Historical Development of Corporate Social Responsibility

It is titled as “Historical Development of Corporate Social Responsibility”. This

chapter describes the stages of Development of CSR since 1960 to 1990. It also
explains the evolution of CSR, CSR and Brands because Brands are the way to
success for a business. The sales and revenue of the company are widely dependent
on the brand they give to customer.

Chapter four CSR in International perspective

It deals with “CSR in International perspective”. Therein it elaborates the idea of CSR
according to OECD, international treaties and initiatives of United Nations, WBCSD.

Chapter five Indian perspective and Corporate Social Responsibility

It discusses the “Indian perspective and Corporate Social Responsibility”. In this

chapter the provisions related to CSR under the Companies Act 2013. This Act makes
CSR as mandatory affair has taken positively by the Indian Corporate and companies
in the public and private sector both Indian and multinational started contributing as
per the act. The chapter also explains the models of CSR as ethical model, statist
model, Literal model, and stakeholder model. This chapter denotes the impact of CSR
on society.

Chapter six the efficacy of Corporate Social Responsibility in the Indian Context

This chapter discusses the “the efficacy of Corporate Social Responsibility in the
Indian Context”. It denotes the efficacy & challenges are as follows: Lack of
Awareness of General Public in CSR Activities, need to build local capacities, lack of
transparency, non-availability of well-organized non-governmental organizations.
Thus, these challenges obstruct the concept of CSR, but the Companies Act 2013
presents a unique opportunity to stand up to the challenge of providing equal access to

19
opportunities.

Chapter seven Corporate Social Responsibility and Sustainable Development

“Corporate Social Responsibility and Sustainable Development” explains

Fundamental principles of Sustainable development, Characteristics of Sustainable
development, Models of Sustainable Development. In this chapter the researcher has
tried to portray the historic development of CSR and Sustainable development,
notions of progress growth, development and sustainability in different social,
economic and philosophical contexts from antiquity to post modernity.

The last chapter eight conclusion and suggestions

Concludes the present study and denotes remedial suggestions.

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