Papers by Dr Ramakrishnan Ramachandran
Frontiers in Management Science, 2023
Standardization and innovation are relatively complex in nature. The relationship between these t... more Standardization and innovation are relatively complex in nature. The relationship between these two terminologies has witnessed a mayhem in recent past. Some of the scholars believe that focusing on standardization can lead to lack of innovation whereby some of them believe that standardization and innovation should complement each other to get fruitful outcome. This paper examines the various aspects pertaining to standardization. From the intensive literature review, we have found that standardization forms the basis and facilitator for innovation. Hence organizations need to understand that standards are to be followed for achieving innovation. Future studies can be done to know about the level of awareness what organizations have on standardization and innovation.
Good faculty is the most important among the three ingredients needed for producing good-quality ... more Good faculty is the most important among the three ingredients needed for producing good-quality graduates. The other two are Good students, and Good infrastructure. To teach means more than to lecture or explain before a group of students. The best teachers influence their students more in their personal, individual contacts with them than in strict classroom situations.Since teaching and learning are complementary processes, if the teacher is to teach effectively an individual, he must know that individual. The best way for the same is by mentoring.A mentor is someone who takes a special interest in helping another person to develop into a successful professional. Good mentors are able to share life experiences and wisdom, as well as technical expertise. They are good listeners, good observers, and good problem-solvers.Morris Zelditch has given a useful summary of a mentor's multiple roles as under: Mentors are:* Advisors, people with career experience willing to share their k...
SSRN Electronic Journal, 2006
ABSTRACT Globalization has shrunk the world into a global village and there is a need that the ma... more ABSTRACT Globalization has shrunk the world into a global village and there is a need that the management education has to become more meaningful to meet the new challenges. It represents a significant threat as well as a substantial opportunity to the economies and educational systems. The future of countries would be largely determined by their abilities to compete in a global market where industrial based economies are giving way to knowledge based industries. Management education is vitally important to all nations, given the critical role of education in economic, cultural and social development. Countries need to develop a new learning culture, a culture of lifelong learning for all as search for quality is indispensable for a policy based on merit especially with the emergence of the Virtual University. Education is a dialogue between the past, present and the future and Management education is a critical factor and part of any development strategy. It is an important investment in human capital essential to economic growth as it lays emphasis on the training of skilled manpower, market forces requiring “marketable products” and consequently on, “specialization” contributing to a knowledge-based society in many ways. New curricula reflecting novel content, learning objectives, teaching methodology, certification and relevant learning process need to be designed. New standards based on a student-centered curriculum, increased interactive learning, integration of technology into the educational system, and collaborative study activities has to be evolved. Radical changes in the system of examination are to be done to make it reality-oriented and learner-centered. The role of both instructor and student needs to be redefined.
ABSTRACT Health is a basic component of human development, and Health sector is the lifeline for ... more ABSTRACT Health is a basic component of human development, and Health sector is the lifeline for a nation's well being. Hence our Constitution through Article 21 accorded due importance to it as a primary human right. The Indian healthcare sector is one of the largest and rapidly expanding service sectors, in terms of revenue and employment, and has emerged as one of the most challenging sectors. India’s rapid economic growth in the last two decades has not translated into development of the country and improved living conditions for the poorest. It is estimated that 15% of India’s population, still has no access to health care services, either due to lack of availability or economic reasons. Moreover, 75% of the qualified doctors practice in urban areas and 23% in towns, while only 2% practice in rural areas. Analysis of available qualitative and quantitative data clearly shows extremely uneven health and development progress in various parts of the country. Often this differen...
SSRN Electronic Journal, 2012
After working in the Government of India in the Cabinet Secretariat and Indian High Commission Se... more After working in the Government of India in the Cabinet Secretariat and Indian High Commission Seychelles for 22 years, he worked in the manufacturing and IT sector for the next 8 years and has also done consultancy works in the field of Quality for small and medium industries in India. He joined academics to pursue his passion-teaching. Author of books ranging from Total Quality management to Environmental Science to Ethics, Ramakrishnan has presented over 28 papers on various management topics. He is continuing his research work on various topics ranging from Mentoring to Marketing as he tries to give shape to the future managers of India. He is reachable at Cell No.
SSRN Electronic Journal, 2008
SSRN Electronic Journal, 2011
SSRN Electronic Journal, 2013
Financial innovations have changed the world from the time man invented the concept of interest i... more Financial innovations have changed the world from the time man invented the concept of interest in Mesopotamia, paper money in china to the modern Debt or Equity based mutual funds. Financial innovations occur because market participants are constantly searching for new ways to make greater profits. Profit making is the fundamental dimension for an enterprise to sustain, perform and grow. The aim of financial innovation is to make different services offered by financial system cheaper and more available. With financial innovations market participants attempt to minimize risk and to maximize return. Financial innovation will lead to decrease the effectiveness of the monetary control. Financial innovation also makes it is much harder to interpret financial data as sensitivity of the data is likely to change as a result of financial innovation. The effects of the financial innovation on the structure and operation of the financial system are thus profound. Regulation and competition are the two basic drivers of financial innovation. Most financial innovation exploits inefficiencies created by regulation and governance mechanisms. Regulation should directly aim at the systemic containment of risks. Financial innovation may provide a short-term safety valve when politics and regulation become stalled or dysfunctional. The task of regulation should be to design a robust system while reintroducing the freedom to go bankrupt. Therefore, a radical change in the approach to financial regulation is needed.
SSRN Electronic Journal
Stakeholder Management addresses the legal, ethical, commercial and other expectations of society... more Stakeholder Management addresses the legal, ethical, commercial and other expectations of society on business, in making decisions that fairly balance the claims of all key stakeholders. Organizations need to inspire their stakeholders, by developing relationship and creating communities where everyone strives to give their best to deliver the promised value. Organizations have to rely upon healthy relations with the stakeholders for their survival and growth. Organizations providing good returns for shareholders are not enough, as shareholders are also customers, employees and other stakeholders as well. They need to be providing good jobs for employees, reliable products for consumers, responsible relations with the community and a clean environment. Organizations are now expected to shoulder a greater responsibility for the integrity, use and consequences of their products and services. CSR thus appears to be well on its way to becoming a necessary ingredient in today’s global competitiveness formula. CSR has traditionally been associated with large corporation due to their high profile and the media attention they attract, as they are more concerned to keep their reputation intact and enhance it, with public as well as key stakeholders. Many also believe that CSR require huge resources. Small firms contribute significantly to the economy and are important to the economy and to society as a whole. Their adoption of CSR and ethical practices are crucial for a balanced development in a country like India, where they are spread widely geographically. There are diverging opinions over the firm size and its relation with the quantum of CSR and it is still not clear whether a small firm is better at CSR or whether larger firms fare well in being socially responsible. Many studies have suggested Company size as a correlate for the level of CSR activity. Due to more visibility, and the impact on their reputation, larger companies face the pressure of various stakeholders groups for improving their CSR performance. Small firms do not have formal processes for CSR reporting and implementations like larger corporations. Reporting is not proof of superior ethical behaviour and does not constitute the validation for real CSR. Several studies indicate that Small firms to be better positioned and equipped for socially responsible behaviour than large firms as they are closer to the community and are socially responsible by nature. Global economy expects responsible business practices among all firms, their suppliers including the small business who form part of the supply/value chain. Global corporations are thus on the lookout for smaller business as solution providers. However, such opportunities will come to small firms only when they are known to be responsible firms. Small businesses clearly have the human element at the core of their work that decides their approach to stakeholder management. Regardless of the size of the company, values cannot be separated from day to day issues. Values are equally important for small companies also. Small business has relatively few employees. Most of these employees are from the same community and are known to the managers and owners, leading to a more tangible concern for their well-being. Hence, it should be natural for these firms to be concerned with the local environmental and social issues and community development. World over, there is increasing emphasis on the reasons why firms must manage their relationships with stakeholders in an ethically efficient manner. In large businesses, it seems easier to separate personal ethics from businesses ethics. In small businesses, the relationship with one’s coworkers is more like family relationship making it even harder to make “ethical” decision. Small business must adopt stakeholder management to reap the benefit of improved products and processes that can result in better satisfaction of customers and loyalty. It will also lead to higher motivation and loyalty of employees that could result to greater innovation that is essential for survival and growth. *****************************
COVID-19 has generated an unprecedented impact in almost all countries of the world. As on 20 Jul... more COVID-19 has generated an unprecedented impact in almost all countries of the world. As on 20 July 2020, there have been 14,043,176 confirmed cases of COVID-19, including 597,583 deaths, reported to WHO. Most countries have tried to fight the spread of the virus with lockdown and policies of social distancing along with COVID-19 screening tests and isolating the affected by institutional or home quarantine for protecting people's health. Satellite images confirm dramatic improvements in every country affected by the pandemic in air quality, as industry and transport shut down. Shipping has declined worldwide and reduced impacts on marine systems might be expected. This year will very likely see a global decline in greenhouse gas emissions, as well as large reductions in other drivers of global warming, such as the contrail cirrus from high-flying aircraft. These may be short-term improvements, but they dramatically underline the pervasiveness and severity of anthropogenic impact...
SSRN Electronic Journal
Ancient Vedic invocations of India have essentially been global in their value premises. A stakeh... more Ancient Vedic invocations of India have essentially been global in their value premises. A stakeholder approach to management is elaborated by many great ancient Indian scriptures. The Indian scriptures analyzed essentially point out that organization and its members can relate themselves with the stakeholders either by the Family Relations View or the Transcendental Spiritual View. The Indian scriptures spell out the relationship that should exist between the leader and the stakeholders. The Charity was part of Indian culture and history at all times. The concepts of community food, giving alms to the poor and destitute, making offerings in the temple, serving the underprivileged and feeding orphans on their birthdays, keeping some part of their monthly income aside for donations or in the name of the Almighty, etc. are an indication of rich and socially responsible behavior of every Indian. The four reasons for the adoption of CSR policies and practices attributed by Sundar to the Indian companies were Contributing to society without expecting anything in return, or philanthropy, Internal reasons, such as the desire to improve relations with employees, customers, and shareholders, Better relations with local communities for publicity or tax benefits and Enlightened self-interest. The four phases of business philanthropy in India identified by are, Ethical Model Statist Model Liberal Model Stakeholder Model Oriental thinkers view the entire creation to have emanated from one supreme power, including the instruments of economic production. Nature, which is harnessed by industry, is also a part of that Divine Entity. Hence management now becomes grateful to that Entity for its bounty. An insight into the history of CSR reveals that the idea of philanthropy solely dominated and businesses often restricted themselves to a one-time financial grant till the 1990's. Commitments to their resources for long term projects were absent. . The concept of CSR has been changing over the last few years with the transition from giving as an obligation or charity to giving as a strategy or responsibility. What is necessary today is the need for a reorientation of corporate organizations’ approach towards stakeholders and stakeholders’ welfare, coupled with an ardent desire to implement the same. Relationships with stakeholders are considered extremely important. Changes in business have stressed upon the application of a wide range of approaches. These are characterized by harnessing the product with increased levels of satisfaction among consumers. Attention to business ethics is rising across the globe, and many companies realize that to succeed, they must earn the respect and confidence of their customers. The economic reforms at the beginning of the 1990's opened the Indian economy for international competition and privatization. However; the Indian economy is still challenged by widespread poverty widening gaps between different income groups, which creates opportunities for CSR to contribute to development. CSR in India has always been linked with the idea of social welfare and development. India became the first country to make CSR mandatory in 2013. Mandatory CSR is perhaps a solution to reach places that State cannot reach on its own The CSR mandate may give organizations the opportunity to broaden their vision of CSR. The progress on CSR has been slow but is showing signs of improvement as it completes five years. There is a widespread feeling in India, that the high GDP growth rate of the past decade has remained confined to urban areas only and has not reached rural India to lift the poor section of the society. . But many view the mandatory proposal as a contradiction and contend that CSR should be voluntary.
SSRN Electronic Journal
The availability of jobs has been a great concern in developing countries like India, with explod... more The availability of jobs has been a great concern in developing countries like India, with exploding population, increasing urbanization rate and regional disparities in development. This results in migration from one to other cities, states in search of employment for improved livelihood. Migration has become essential, where population densities are high in relation to land. Frequent shortage of rainfall or suffer floods also forces people to move. Informality, circular migration, labor market and social discrimination, and segmentation go hand in hand. This puts these migrants vulnerable. The announcement of stringent lock-down at a notice of about four hours on 24, March 2020 in India in response to the Corona pandemic intensified the feeling of insecurity among the migrant labourers across various parts of the country. The loss in employment and incomes of the workers in the informal economy, some 93 percent of all workers, was almost complete in the first phase of the lockdown. The loss in employment and incomes immediately threatened their access to food and non-food essential items, rented accommodation and shelter in many places. The central government as well as many of the state governments failed to anticipate and understand the scale and nature of the problem faced by migrants. They chose to interpret and deal with the urgent issues as a law and order problem arising due to what it considered were planned spread of misinformation. With all forms of transport stopped completely at the initial stage of this lockdown, most of the immigrant laborer's had no choice but to walk miles to their homes. This paper confines the study to internal laborer's of India and uses secondary data sources and observations of the researchers during the lock down phase of COVID19.
SSRN Electronic Journal
Sustainable development and social responsibility of businesses or corporations have become incre... more Sustainable development and social responsibility of businesses or corporations have become increasingly an issue of concern since the early 1990s. The basic human activity trade is not always about making money though profit has been associated with it. Business with their products and consequence are essentially more social than economic. Through the marketplace and governmental regulation, social and environmental concerns are related to business. Society and business depend on each other and business must take full account of the societal expectations. Sustainable business looks at how a business can adapt to global social and environmental trends, such as future regulation on carbon output, water shortages, and changing demographics. Social, Economic and environment are the three pillars or dimensions of Sustainable development. Sustainability is a conscious choice on a continuous basis. To move towards more sustainability, all of us need to change our patterns of consumption and production. Principles of Sustainable Development and CSR have close links. Sustainable businesses create the future by creating stronger, richer markets for business. Every business strives to earn maximum profit. However, companies have to shoulder certain responsibilities as a corporate citizen. Corporation need to review and consider new or modified business practices regularly that will improve the quality of life of all stakeholders. Both society and business used to believe that taking care of other social and environmental concerns are the duty of the state or government. Companies have become the main players in creating environmental and social problems; therefore, change must begin with companies that can lead a transition. CSR matters as it mirrors the core values of the society and been instrumental in bringing about Sustainable development. CSR has a complex relationship between business and society and plays an important part of the business environment. Business organizations are accountable to that society for their actions as they are part of the larger society Responsible leaders are concerned with reconciling and aligning the demands, needs, interests, and values of the key stakeholders. CSR expects accountability from all stakeholders. Good Stakeholder relationships can lead to competitive advantage The relationship between Sustainable Development and CSR was not explicit as these concepts progressed separately for a long time. In recent years these two concepts of CSR and sustainable development has strengthened with their interactions. A dynamic and well-functioning business sector, can be driving force of sustainable development CSR is multifunctional in nature. Hence, it is important that integral and broad sustainable CSR is undertaken. This will help in the quest to develop transformational and sustainable CSR practices. **************************
SSRN Electronic Journal
Business can survive and grow only when the Society is stable and thriving. Trust is critical, an... more Business can survive and grow only when the Society is stable and thriving. Trust is critical, and stakeholders must feel that they can trust the organization and the environment in which they function. Employing stakeholder management in an organization is important as it creates a mutually beneficial relationship between an organization and its stakeholders. Stakeholder theory is based on important principles such as cooperation, relationship building, fairness, integrity, reciprocity, long-term thinking, and win-win solutions. Organizations can only be effective and reach their goals if there is shared meaning between them and their stakeholders. In order to meet demands to decrease costs and errors and increase efficiency and quality, Health care organizations need to become flexible, adaptable and knowledgeable. Any individual or institution affected by the operation of the healthcare industry directly or indirectly is considered a stakeholder. Hospitals are an exceptional case when it comes to dealing with stakeholders as they have to deal with more complex situations and many stakeholders. The environment they operate in is extremely complex, as they operate not in an entirely free market and have to deal with many regulations from the government as well. Patients are the end consumers of a hospital’s services and their experience matters. A well-managed health organization should deal effectively with the social, political and legal dynamics of its environment as well as the more traditional product and market-focused variables found in the economic and technological environment. It could be concluded that the main task of the governance model is to build and maintain conditions, where the actual health care service production can perform well according to the strategy of the organization. These conditions require that different stakeholder expectations are considered and managed to ensure a balanced strategy and stakeholder commitment to any strategic changes. At the same time a risk of leading through compromises need to be acknowledged.
Poor people often have just hand to mouth existence and have few reserves for major expenses such... more Poor people often have just hand to mouth existence and have few reserves for major expenses such as illness, weddings, house repairs or education. They are unable to build their savings and are forced to borrow at exorbitant rates. This further adds to their burden and worsens their economic situation.Micro finance is the supply of loans, savings, and other basic financial services to the poor. The idea of micro finance was developed as a survival strategy for the poor. In India, Ela Bhatt established the Self-Employed Women's Association (SEWA) in 1974.Mohammed Yunus founded the Grameen Bank project in Bangladesh in 1976. Micro credit provides poor people with access to small loans at more manageable interest rates, and can lead to self-sufficiency and poverty alleviation. There are many models of micro credit.Saving and borrowing are really different ways of turning small amounts of money into lump sums. Saving involves building a lump sum by first accumulating smaller amount...
The future of countries would be largely determined by their abilities to compete in a global mar... more The future of countries would be largely determined by their abilities to compete in a global market where industrial based economies are giving way to knowledge based industries. Higher education is vitally important to all nations, given the critical role of education in economic, cultural and social development.The global village is witnessing a growing emphasis on international cooperation and action to find satisfactory solutions to problems that have global dimensions with the increased development of transport and communication. Rapid developments in technology and communication are forcing changes within educational systems across the world as ideas, values and knowledge, vital to education, cross nation states and boundaries. As economy progresses, techniques alter rapidly. Globalization has shrunk the world into a global village and there is a need that the higher education has to evolve into more meaningful to meet the new challenges. It represents a significant threat as...
Corporate restructuring related to M & A, Amalgamations, Takeovers etc. Mergers & Acquisitions ar... more Corporate restructuring related to M & A, Amalgamations, Takeovers etc. Mergers & Acquisitions are an integral part of market oriented free enterprise economic system. Merger or Amalgamation is a combination of two or more companies into one company. Acquisition does not involve combination of companies. The control can be acquired though a friendly manner or through forced manner. The former is called Acquisition while the later is called Take over. There are many reasons for mergers like: Economics of scale; Operating economies; Synergy; Growth; Diversification; Tax shields; Increase in value; Elimination of competition; Better Financial Planning; Economic necessity.There are three different types of take over arrangements: Acquire controlling interest and run the unit as a separate company; Acquire controlling interest and merge it with the present company; Purchase assets with or without liabilities without purchasing the company as a whole.There are many issues to be considered...
The key success factor for any business in the age of global competition is its ability to innova... more The key success factor for any business in the age of global competition is its ability to innovate continuously, appropriately, and faster than its rivals. This can only happen through unleashing the untapped capabilities of all its employee.When one considers that in any economic activity it is the human element that commands, directs, organizes, controls and maximizes the factors of production. The skills of a nation's workforce and the quality of its infrastructure are what make it unique, and uniquely attractive, in the world economy.The quality of people appropriate to the particular level and complexities of the activity determines how well or poorly, these tasks are accomplished. The pace at which education and training systems transmit knowledge and skills of the requisite quality directly affects the pace of development.Education and training are the primary systems by which the human capital of a nation is preserved and increased. Education should contribute to the de...
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Papers by Dr Ramakrishnan Ramachandran
The announcement of stringent lock-down at a notice of about four hours on 24, March 2020 in India in response to the Corona pandemic intensified the feeling of insecurity among the migrant labourers across various parts of the country. The loss in employment and incomes of the workers in the informal economy, some 93 percent of all workers, was almost complete in the first phase of the lockdown. The loss in employment and incomes immediately threatened their access to food and non-food essential items, rented accommodation and shelter in many places.
The central government as well as many of the state governments failed to anticipate and understand the scale and nature of the problem faced by migrants. They chose to interpret and deal with the urgent issues as a law and order problem arising due to what it considered were planned spread of misinformation. With all forms of transport stopped completely at the initial stage of this lockdown, most of the immigrant labourers had no choice but to walk miles to their homes. This paper confines the study to internal labourers of India and uses secondary data sources and observations of the researchers during the lock down phase of COVID19.
Keywords: Covid-19, coronavirus, lockdown, India, migrant, labour,
workers.
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Satellite images confirm dramatic improvements in every country affected by the pandemic in air quality, as industry and transport shut down. Shipping has declined worldwide and reduced impacts on marine systems might be expected. This year will very likely see a global decline in greenhouse gas emissions, as well as large reductions in other drivers of global warming, such as the contrail cirrus from high-flying aircraft. These may be short-term improvements, but they dramatically underline the pervasiveness and severity of anthropogenic impacts worldwide. Protected areas appear to be safe at this point. Biodiversity is benefitting due to reduced human activities.
The first studies estimated an increased organic waste from home, Increase in Medical waste and Reduction in waste recycling also. Noise, air, and water pollution, greenhouse gas emissions, and the many other adverse human impacts on wild nature will rebound.
Society's priorities must be containment of the pandemic and human health. However, we need to have resumption of conservation practice and education. Reduction on funding and other support for conservation are likely, as they will have to compete with a wide range of new priorities for financial resources.
This paper uses secondary data sources and observations of researchers.
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A good leader thinks rationally and focusses on what is to be done. They have the big picture as well as focus on the details to understand the causes and find a solution to the problem. Great leaders trust the people who work with them by listening actively and attentively to understand the situation. They listen, respond, and not react. They delegate and instil confidence to act independently and decisively.
Great leaders will give the respect due to the experts and try to get the best out of them. They cannot be whimsical. They will never ridicule or berate others or speak ill of the previous leaders. Great Leaders will readily admit their mistakes and open for suggestions to improve. They never can be arrogant at any time. People who do not have leadership skills are good at making jibes and blaming others.
Leaders must have the ability to visualize the path to see the light at the end of the tunnel before others can see it. They need to be transparent and innovative, ready to learn from early setbacks and consolidate. Leaders need to have fortitude, the mental and emotional strength to face the adversity. Trust involves being trustful and trustworthy. A virtuous leader tends to trust others, and is trustworthy.
Leaders must have the ability to inspire, motivate, and foster commitment to a shared purpose Leaders need to embrace complexity as opportunity, value collaboration, and develop a network mind-set. Leaders must take ownership and accountability.
The arrival of Covid-19 has turned the world upside down. COVID-19 has put us in the midst of a devasting calamity that has made most people helpless and this is the time we look upon our leaders to deal with the resultant crisis and save us. Good leadership is essential especially at turbulent times like a compass in unknown terrain. But unfortunately there was a collective global leadership failure. The COVID-19 has exposed the dearth of real leaders. COVID-19 has proven that pathogens thrive in disruption and disorder
Most of the current global leaders are populist leaders. They may good in running an effective campaign or a giving a stirring speech. Democratic leadership is not necessarily populist and about popularity. Doing what is right is more important. Competence and confidence are not same. Kindness is contagious and it calms the situation and heals faster We need a kind and gentler approach and not a stern and aggressive approach during the pandemic.
The current Covid-19 situation requires leaders to identify and address the most critical issues at each point. They are required to think ahead, and retain the sight of the bigger picture to avoid decisions that could have unintended adverse consequences now or in future. The rapidly changing nature of this crisis necessitates agility in thought well as action. As the situation evolves, Leaders must evaluate and recalibrate the way forward continually
Most of the male elected leaders seems to have no clue and were not able to lead. They tried the traditional method of controlling and were not transparent or authentic with the result that they were not able to instil any confidence on the people. They failed to show the leadership during the Crisis.
Exemplary leaders during this pandemic were compassionate, courageous, databased, decisive, and kind. They engaged in calm, caring, clear, empathetic, honest, science-driven, and transparent communications to the media and public.
Leadership has to change from an individualistic to collective process that requires a paradigm shift of leadership spread across networks of people. By democratizing and by innovating we need to develop collective and responsible leadership. Leaders should be willing and ready to change as the situation demands. They also should articulate enough to communicate the vision of the organization and drive everyone towards the attainment of that vision.
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ABSTRACT
Industry and Business play a crucial role in the social and economic development of a nation. It is a creative entrepreneurial process that provides livelihoods for the majority of the world’s people. It has been instrumental in bringing about sustainable development.
CSR is an increasingly important part of the business environment and constitutes a complex aspect of the relationship between business and society. It is not just about building schools or providing scholarships, but about doing business that companies do not regard as being an obligation ensuring sustainability of business. It is an extension of efforts to foster strong corporate governance. It is a multi dimensional concept evolved over the years from Corporate Philanthropy to Stakeholder management and Sustainable development.
CSR brings positive change inside businesses. It sets the framework and defines the manner in which a business must operate to be able to meet the ethical, legal, commercial and public expectations that a society has of any company.
Corporations are now involved in all aspects of public and private life and Corporate Social Responsibility (CSR) has been propelled into the limelight in recent years due to increasing influence and power of corporations. CSR extends beyond the interests of shareholders to the interests and needs of diverse stakeholders. It includes environmental, social, and governance issues’
Law is the codification of basic human values. The goal of CSR is to implement these values in corporations, thus CSR develops and functions in a legal framework that is feasible and has the support of all the stakeholders concerned. Codification helps in defining the purpose and gives clarity. Further it ensures consistency and credibility.
There need to be laws, of course, and regulations to force compliance. Compulsory laws and regulations tend to be rigid for controlling self-interest. The very nature of right and power, obligation and responsibility implies that social obligation is inherent in almost every legal right, legal power or actual power. Thus best model for CSR is voluntary compliance with sensible social codes
Social responsibility needs to take care of the changes and hence companies need to have choice. CSR require long-term perspective to have any major beneficial impact in society. The perception of the public concerning business is important. Governments need to take the initiative of bringing all the segments in society to discuss CSR to ensure minimum legal standards as well.
CSR could exist at three levels:
Compliance in letter of the law;
Observing norms of common morality, like ethics and fair play, in its internal management and dealings; and
A social trusteeship mindset in deploying its resources for sustainable development
The main focus of CSR should continue to be a voluntary one while the role of Government needs to be that of a facilitator. They may set the appropriate policy framework with the right mix of tools including fiscal and regulatory measures where appropriate to boost socially and environmentally responsible performance. Regulations need to be well designed and focused if it is the right solution. But CSR should continue to take compliance with legal requirements as the base and go beyond that in the interests of business and the rest of society.
Above and beyond this understanding, business firms should move toward a spirit of trust at all times but more in matters that are integral to the existence of the firm such as data privacy. Finally it is also essential to have proper measurement systems to track, control and implement CSR initiatives that are both sustainable as well as beneficial to all stakeholders.
This is the first part of the research on the legal aspects of CSR in India before it became mandatory in 2013. The second part will discuss the post 2013 scenario of mandatory CSR.
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