CONTRIBUTION OF CSR INITIATIVES IN

SOCIAL UPLIFTMENT –A STUDY

DISSERTATION
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF
THE DEGREE OF
MASTER OF LAW
(2021 - 2022)

SUPERVISOR: SUBMITTED BY:

DR. ALOK KUMAR JEEVIKA
ASSOCIATE PROFESSOR OF LAW 5020212215
HPNLU, SHIMLA LL.M. (2021-22)

HIMACHAL PRADESH NATIONAL LAW UNIVERSITY, SHIMLA

16 MILE, SHIMLA-MANDI NATIONAL HIGHWAY, GHANDAL
DISTRICT SHIMLA, HIMACHAL PRADESH- 171014.Ph. 0177-2779802,
0177-2779803, Fax: 0177-2779802
Website: http://hpnlu.ac.in
i
 HIMACHAL PRADESH NATIONAL LAW
UNIVERSITY, SHIMLA

Barcode to be
LL.M. (2nd Semester) Dissertation Submission assigned by the
Exam. Dept.
Form Details of the Student

SI Student’s Name
No. Mr./Ms. Jeevika

1 Enrolment No. 5020212215

2 Title of the THE CONTRIBUTION OF CSR INITIATIVES IN SOCIAL UPLIFTMENT – A

Dissertation STUDY

Personal Details
3 Full Address of the Student Vill- Jogpur, Teh – Vijaypur, district – samba, P.O- Jakh, Jammu and
Kashmir UT

State: JK UT
Pin Code: 1 8 1 2 0 1
Jeevikallm2115@hpnlu
4 E-mail Address
9682558257
Contact No.
Details of the Supervisor
5 Supervisor Name Dr . Alok Kumar

6 Supervisor Contact No. 9 8 1 8 9 5 5 6 8 8

7 Supervisor E-mail ID alok@hpnlu.ac.in

Signature of the Student Signature of the Supervisor

ii
 DECLARATION

I, Jeevika hereby declare that this dissertation entitled “THE CONTRIBUTION OF CSR
INITATIVES IN SOCIAL UPLIFTMENT – A STUDY” is the outcome of my own study
undertaken under the guidance of Prof. Alok Kumar, Himachal Pradesh National Law University,
Shimla. It has not previously formed the basis for the award of any degree, diploma or certificate of
this institute or another institute or university. I have duly acknowledged all the sources used by me
in the preparation of this dissertation.

JEEVIKA
LLM (one year course)
Himachal Pradesh National Law
University, Shimla

iii
 SUPERVISOR CERTIFICATE

This is to certify that Ms. Jeevika (Enrolment no.5020212215) has worked under my Supervision on
the topic “THE CONTRIBUTION OF CSR INITATIVES IN SOCIAL UPLIFTMENT – A
STUDY” To the best of my knowledge, the present dissertation is original and has not been submitted
either in part or full to any other institution.

I am satisfied that this dissertation is fit to be considered for evaluation for the award of degree of
Masters of Law.

Dr. Alok Kumar

Associate Professor of Law
H.P.N.L.U. Shimla

iv
PLAGARISM CERTIFICATE

v
 ACKNOWLEDGEMENT

Every project, big or small, is successful due to the effort of several wonderful people who have
always given their valuable advice or lent a helping hand. I sincerely appreciate the inspiration,
support, and guidance of all those people who have been instrumental in making this project a
success.

I, Jeevika, a student at Himachal Pradesh National Law University, Shimla, am extremely grateful
to Himachal Pradesh National Law University, Shimla, for the confidence bestowed in me and
for entrusting my dissertation.

At this juncture, I feel deeply honoured to express my sincere thanks to the Honourable Vice-
Chancellor Prof. (Dr.) Nishtha Jaswal and Honourable Prof. Registrar S.S Jaswal for making
resources available at the right time and providing valuable insight leading to the successful
completion of my dissertation.

I also extend my gratitude to my supervisor and guide, Dr. Alok Kumar, Associate Professor of
Law, Himachal Pradesh National Law University, Shimla, who supported me in compiling this
dissertation. I would also like to thank all H.P. National Law University faculty members, Shimla,
for their critical advice and guidance, without which this project would not have been possible.

Last but not least, I place a deep sense of appreciation on my family members and friends who have
been a continuous source of inspiration during the formulation of the dissertation

Dated: JEEVIKA
LLM (2021-2022)
Enrollment No: 5020212215
Himachal Pradesh National Law
University, Shimla

vi
 LIST OF CONTENT

DECLARATION……………………………………………………………………………………ⅲ
SUPERVISOR CERTIFICATE……………………………………………………………………..iv
PLAGIARISM CERTIFICATE……………………………………………………………………..ⅴ
ACKNOWLEDGEMENT…………………………………………………………………………..ⅵ
LIST OF CONTENT……………………………………………………………………………..ⅶ-ⅹ
LIST OF ABBREVIATION……………………………………………………………………..ⅺ-ⅻ
LIST OF CASES…………………………………………………………………………………..ⅻⅰ

CHAPTER 1
INTRODUCTION………………………………………………………………………………..1-9
1. Introduction………………………………………………………………………………… 1
1.2 Literature Review…………………………………………………………………………... 3
1.3 Research Gap……………………………………………………………………………….. 5
1.4. Research Objectives………………………………………………………………………… 5
1.5 Research Problem…………………………………………………………………………... 6
1.6 Scope of study ……………………………………………………………………………… 7
1.7 Research Questions……………………………………………………………………….... 7
1.8 Research Methodology…………………………………………………………………….. 7
1.9 Chapterization ……………………………………………………………………………... 8

CHAPTER 2
GENERAL ASPECT OF CORPORATE SOCIAL RESPONSIBILITY………………….10-28
2.1 Introduction……………………………………………………………………………….. 10
2.2 Evolution of Corporate Social Responsibility,…………………………………………… 12
2.3 Meaning of CSR…………………………………………………………………………... 13
2.4 Definition of Corporate Social Responsibility…………………………………………... 13
2.4.1 Idea of corporate social responsibility………………………………………………………14
2.5 Significance of corporate social responsibility…………………………………………..... 15
2.6 Corporate Social Responsibility and Sustainability……………………………………….. 17
2.7 Benefits of actualizing CSR for Corporate………………………………………………... 20
2.8 Practical CSR Initiatives for Small Business………………………………...20
2.8.1 Enhancing the environment…………………………………………...21
vii
 2.8.2 The executive works on enhancing their human resources…………...21
2.9 Company Stakeholders and their concerns…………………………………………………22
2.9.1 Responsibility towards Customers…………………………………………………..22
2.9.2 Responsibility towards Shareholders………………………………………………..23
2.10 Theoretical Studies………………………………………………………………………….23
2.10.1 Stakeholders theory……………………………………………………………….. 23
2.10.2 Business ethics theory of CSR……………………………………………………. 24
2.10.3 The shareholders’ value theory of CSR……………………………………………25
2.11 Carroll’s Pyramid of company social responsibility……………………………………….26
2.11.1 Economic responsibility……………………………………………………………27
2.11.2 Legal responsibility………………………………………………………………..27
2.11.3 Ethical responsibility………………………………………………………………. 27
2.11.4 Philanthropic responsibility………………………………………………………...28

CHAPTER 3
CORPORATE SOCIAL RESPONSIBILITY AN INDIAN PERSPECTIVE……………. 30-68

3.1 Introduction…………………………………………………………………………………...30
3.2 CSR in India…………………………………………………………………………………. 30
3.3 Evolution of company social duty in India…………………………………………………31
3.4 Four stages of CSR development in India………………………………………………….32
3.4.1 The first phase…………………………………………………………………………32
3.4.2 The Second Phase …………………………………………………………………… 32
3.4.3 The third segment……………………………………………………………………. 33
3.4.4 The Fourth phase………………………………………………………………………33
3.5 Current scenario of CSR in Indian context………………………………………………….. 34
3.6 Corporate social responsibility under the Indian legal system…………………………….. 34
3.7 Scope of Corporate Social Responsibility………………………………………………… 35
3.8 Constitutional approach towards CSR…………………………………………………….. 36
3.9 Companies Act and subsequent Rules……………………………………………………...41
3.10 Law Holds for the Corporates ………………………………………………………………43
3.11 CSR amendments under the Companies (Amendment) Act………………………………..44
3.12 Corporate Social Responsibility During Covid-19 Period………………………………… 44
3.12.1 Industry CSR Contributions………………………………………………………...46
viii
3.13 CSR as an opportunity…………………………………………………………………….. 47
3.14 Corporate social responsibility in India: The issues and challenges………………………. 48
3.14.1 Factors pushing businesses towards CSR……………………………………………48
3.14.2 The challenges……………………………………………………………………….49
3.13.3 Comments……………………………………………………………………………51
3.15 Conclusion………………………………………………………………………………….52

CHAPTER 4
INTERNATIONAL PERSPECTIVE OF CSR………………………………………………53-61
4.1 General overview –CSR…………………………………………………………………… 53
4.2 Principles of corporate social responsibility………………………………………………..53
4.3 Recent International trends………………………………………………………………... 54
4.4 Precedents in International CSR regulation………………………………………………...55
4.5 International CSR standards for multinational: A brief history…………………………….55
4.6 Internationalization of CSR………………………………………………………………...55
4.7 CSR and Human rights…………………………………………………………………… 56
4.8 United nation Human Right Instruments…………………………………………………..57
4.9 CSR in Australia……………………………………………………………………………57
4.10 CSR in UK…………………………………………………………………………………59
4.11 CSR in USA………………………………………………………………………………..60
4.12 Conclusion………………………………………………………………………………...61

CHAPTER 5
GENERAL IDEA ABOUT SOCIAL UPLIFTMENT…………………………………….63-68
5.1 Introduction…………………………………………………………………………………63
5.2 Social Empowerment – Women Empowerment……………………………………………64
5.3 Beti Bachao Beti Padhao……………………………………………………………………64
5.4 Pradhan Mantri Matritva Vandana Yojana………………………………………………...64
5.5 Sukanya Samriddhi Yojana…………………………………………………………………65
5.6 One-Stop Centre Scheme…………………………………………………………………...65
5.7 Social Empowerment – Poor and Marginalized Sections…………………………………..65
5.8 Social Empowerment – Senior Citizens…………………………………………………….66
5.9 Social Empowerment – Disabled Group……………………………………………………67
5.10 Social Empowerment – Scheduled Tribes………………………………………………….67
ix
5.11 Conclusion………………………………………………………………………………… 68

CHAPTER 6
CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL
UPLIFTMENT: CASE STUDIES…………………………………………………………..69-93
6.1 Introduction………………………………………………………………………………. 69
6.2 Case studies of companies showing their initiatives leading to
Social upliftment and development……………………………………………………….. 69
6.2.1 Tata Group & CSR………………………………………………………………………….71
6.2.1.1 CSR activities of Tata Companies & Society……………………………………...72
6.2.2 Mahindra and Mahindra…………………………………………………………….79
6.2.3 Infosys Limited…………………………………………………………………… 82
6.2.4 Bharti Airtel Limited……………………………………………………………….85
6.2.5 Reliance Industries Limited………………………………………………………..87
6.2.6 Jubilant Life Sciences Limited…………………………………………………….89
6.2.7 UPL Ltd……………………………………………………………………………89
6.2.8 Dr. Reddy’s Laboratories’………………………………………………………... 92
6.3 Conclusion…………………………………………………………………………………93

CHAPTER 7
CONCLUSION AND SUGGESTIONS……………………………………………………..95-97
7.1 Conclusion…………………………………………………………………………………..95
7.2 Suggestions………………………………………………………………………………… 97

BIBLIOGRAPHY………………………………………………………………………….101 -103

x
 LIST OF ABBREVIATION

AIR All India Reporter

All Allahabad
Anne. Annexure
BSR Business for Social Responsibility
CSR Corporate Social Responsibility
CER Corporate Environmental Responsibility
CEPAA Council on Economic Priority Accreditation Agency
CLJ Company Law Journal
CII Confederation of Indian Industry
Co. Company
CREP Corporate Responsibility for Environment Protection
CPCB Central Pollution Control Board
EU European Union
EPR Environment Protection Regulation
EHS Environment, Health and Safety
EHSMS Environment, Health and Safety Management System
Etc Etcetera
e.g. Example
GOI Government of India
HR Human Resource
IOCL Indian Oil Corporation Limited
IOF Indian Oil Foundation
Ltd Limited
MOEF Ministry of Environment and Forest
MCA Ministry of Corporate Affairs
NGO Non-Governmental Organization
NRHM National Rural Health Mission
NETA National Environment Tribunal Act
NDDR New Drug Discovery Research
OHSAS Occupational Health and Safety Assessment Series
ONGC Oil and Natural Gas Corporation

xi
PCB Pollution Control Board
Pvt. Private
SC Supreme Court
SCC Supreme Court Cases
UNFCCC United Nations Framework Convention on Climate Change
UNCTAD United Nations Conference on Trade and Development
USA United States of America
USD United States Dollar
UK United Kingdom
UN United Nation
UP Uttar Pradesh
Vol. Volume
v. Versus
WSSD World Summit on Sustainable Development

xii
 LIST OF CASES

1. Sher Singh v. State of HP, Criminal Appeal No. 249 of 2008

2. Golak Nath v. State of Punjab, 1967 SCR (2) 762
3. Union of India v. Pushpa Rani, (2008) 9 SCC 242
4. Municipal Corporation. Of Ahmedabad v. Jan Mohd. Usmanbhai, (1986) 3 SCC 20
5. State of Bombay v. FN Balsara, 1951 SCR 682
6. State of Gujarat v. Mirzapur Moti Kureshi Kassab Jamat, (2005) 8 SCC 534
7. LIC of India v. Consumer Education and Research Centre & Ors, 1995 SCC (5) 482
8. Indra Sawhney v. Union of India, 1992 Supp 2 SCR 454
9. National Textiles Workers’ Union etc. v. P.R. Ramkrishnan, 1983 SCR (3) 12
10. Dwarkadas Marfatia & Sons v. Board of Trustees of the Port of Bombay, 1989 SCR (2) 751
11. Consumer Education & Research Centre v. Union of India, 1995 SCC (3) 42
12. Workmen Of Meenakshi Mills Ltd. v. Meenakshi Mills Ltd. & Anr., 1992 SCR (3) 409
13. Air India Statutory Corporation v. United Labour Union, 1“(1992) 1 SCC 695
14. H.M. Hoskot v. State of Maharashtra, 1978 )AIR 1548”
15. GrihKalyan Kendra v. Union of India, 2000) 8 SCC 580
16. M/s, Chintamani Estates Pvt. Ltd. 2017 SCC Online NCLT 11240
17. M/s. Eversmile Construction Co. Pvt. Ltd. 2017 SCC Online NCLT 11276

xiii
 CHAPTER 1

INTRODUCTION

1.1. INTRODUCTION TO THE TOPIC

The concept of Corporate Social Responsibility is a western concept. The idea of CSR stemmed from
the voluntary actions initiated by American Companies at the end of the 19th century. However, the
term CSR was first used by Bowen in 1953 in his book Social Responsibilities of Businessmen. 1 In
India, CSR was introduced by the Companies Act, 2013, and it came into effect on April 1, 2014. It
is mentioned in Section 135 of the Companies Act, 2013. The Companies Act, 2013 makes it
compulsory for the companies under threshold limits to take up CSR activities.

The nature of the triangular connection between companies, the state, and society has shifted
dramatically in the last few decades. Businesses might no longer operate as independent
organizations without regard for the general public's interests. The growth of the relationship between
companies and society has been one of gradual transition from philanthropic interconnection to one
in which the mutual interests of all stakeholders are becoming essential. 2

Companies are acknowledging that to acquire strategic initiative and assure long-term survival,
business models may need to shift away from the traditional practice of focusing on profits and
toward public goodwill and appropriate business etiquette3. Investigating some of the causes that
have contributed to the formation of corporate social responsibility (CSR) would be an excellent
beginning point for conceiving sustainable corporate business practices for emerging and developing
economies.

The commercial environment has changed dramatically in recent years regarding the nature of
competition and the wave of globalization that has swept across markets. Companies are spreading
their limits outside their own country to emerging markets in developing countries, frequently
referred to as emerging markets. The present globalization trend has caused enterprises to recognize

1
Sushil Kumar Dixit and Sarita Dixit, Evolution of CSR in India: Indian Roots In Emerging Context, XIV JAR 2(2018).
2
Mrs Parul Khanna &Mrs Gitika Gupta, Status of Corporate Social Responsibility: In Indian Context, II APJRBM
199, (2011).
3
Id.
1
that to operate effectively in a competitive environment. They require well-defined business practices
with a strong focus on the public interest in markets.

India is spreading its wings worldwide, and the corporate sector is doing everything possible to
compete in the global market. Companies have made progress in presenting a different picture of
their organizations. Corporate social responsibility is one such step. Nowadays it’s becoming
imperative for the businesses to integrate the well-being of society into their core objectives.
Numerous studies on the social aspects of business in India have been conducted, and the results
indicate that a significant number of Indian businesses hold the view that their primary responsibility
is to their stakeholders and that they can use their influence to contribute to the betterment and
upliftment of society.4

Businesses are now considered an integral element of society rather than just market participants.
Corporate Social Responsibility (CSR) is a concept in which companies voluntarily opt to contribute
to a better society and a cleaner environment. In recent years, many businesses worldwide have begun
to promote their businesses through CSR strategies because customers, the public, and investors
demand them to act sustainably and responsibly. The government also advises organizations to
implement a CSR framework and include it in their vision, mission, and strategic planning. If
undertaken by many firms, CSR projects like health care, education, skill development, rural
development will positively influence the actual growth of society and also their company 5.

Corporate Social Responsibility (CSR) is a concept that aims to implement several policies and
practices aimed at decreasing the adverse effects of company activities and boosting their
contribution to society. Several organizations in a variety of businesses have adopted the notion of
CSR. The CSR program addresses various socioeconomic and environmental challenges, including
human rights, education, and climate change.

The significant addition of this research is to the literature by investigating how social expectations
of business behavior have changed the understanding and definitional construct of CSR across time.
Furthermore, this study adds to the literature on CSR by examining the growth of the notion of CSR
in connection to societal upliftment and their interrelationship.

4
Id.
5
Vinayak Patil, Sangeeta Jauhari& Deepti Maheshwari, CSR Activities and its Impact on Socioeconomic Upliftment: An
Integrated Review, VIII IJED 65, (2017).
2
1.2 LITERATURE REVIEW

This study is based on a comprehensive assessment of numerous national and international

publications, statutes, cases, and essays. There is a lot of literature, but only a few significant
literature reviews supply excellent material for my study project. Although a great deal of effort
has been done in the sector, it has tended to be focused on achieving objectives that benefit one
group or another.

 Anupam Sharma and Ravi Kiran (2012) - in their work talked about CSR to be emerging
as a new field in the management research. In India, many firms have taken the initiatives of
CSR practices which have met with varying needs of society. The authors tried making an
attempt to understand the status and progress and also the initiatives taken up by the large
firms in India. They have dealt with the initiatives in the sector oh health, education and the
environment. According to the research the result showed that number of IT and Auto
industry are opting for taking up CSR initiatives while FMCG sector still lags behind.
Authors said that India has entered or taken a transformational change by involving into new
CSR initiatives6 but still there is a long way to go and a lot needs to be done.

 Anita Yadav (2014) - The author has talked about the connection of CSR and human rights
in this paper. A brief idea about what CSR is and what it incorporates is also given. As the
human rights are becoming more of a buzz words these days, the responsibility of the
corporations in regards to the human rights have also increased. Some of the common human
rights identified in this spectrum of CSR are health, education, environment and sustainable
development, gender justice, child rights, the rights of workers etc. The traditional concept
of the state to be the only organ to be held liable for the violation of human rights is clearly
a very important question, because the companies and the firms are also an integral part of
the society and because of that they are also responsible for the welfare of the society and
also the upliftment of the underprivileged section of the society. 7

 Sushil Kumar Dixit and Sarita Dixit (2018) - In this, the author discusses the recent,
worldwide CSR movement. This article traces the development of the CSR concept in India.
It has also followed the western literature and practices as it explores the development of

6
Anupam Sharma and Ravi Kiran, Corporate Social Responsibility Initiatives of Major Companies Of India with focus
on Health , Education and Environment, African Journal of Basic & Applied Sciences 4 (3): 95-105, (2012)
7
Anita Yadav, Corporate Social responsibility and Human rights, Challenging strategies for Business Management
,415-417,(2014)
3
 CSR during the ancient and medieval periods. The authors have examined the various
components and their effects on Indian business and society in order to analyze the current
legal mandates of the CSR system in India. They conclude by stating that corporations have
the power to change society and, if supported by NGOs and other organizations, can raise
the bar for corporate social responsibility. 8

 Mrs Parul Khanna and Mrs Gitika Gupta (2011) - The authors of this article have
discussed the changes that have occurred in the last 20 years. An enormous amount of change
has occurred in the nature of this triangular relationship between the state, society, and
businesses. The businesses are no longer permitted to act independently, disregarding the
interests of the general public. Companies are now starting to understand that in order to
ensure their survival; they must shift their priorities from purely financial achievement to
societal upliftment and goodwill. They have stated that CSR cannot be an additional extra, it
must run into the core of every business is to quench the hunger of the mankind as a whole
but the fundamental objective of all business is only to help the people. 9

 R. Geetha (2014) - In this, the author discusses how the idea of corporate social
responsibility (CSR) has evolved and how it is now recognized as one of the key factors in
the expansion and sustainability of businesses. The new economy presents a number of
challenges. Due to these challenges, businesses need to broaden their perspectives and look
beyond the conventional short-term goals in favor of long-term, sustainable goals that will
make society better. The nature of the society in which we now live have changed,
necessitating the adoption of a much broader viewpoint that takes into account all
stakeholders in addition to employees. The author made the case that businesses shouldn't
view this as an additional burden or baggage that would reduce their profits, but rather as an
opportunity to give back to those in need, which will help them build their brand image. 10

 Ramandeep Kaur (2018) - The term "corporate social responsibility" (CSR) refers to the
norms that govern how businesses are run to have a generally positive effect on the societies,
cultures, and environments in which they operate. The foundation of corporate social
responsibility is that not only should public policy be responsible enough to address social
issues, but also the corporate houses. Businesses should invest their profits in fields like

8
Supra note 1
9
Supra note 2
10
R.Geetha, Role of CSR in Social Development,VII IRJBM , 86-89 (2014)
4
 education, healthcare, skill development, combating poverty, and gender equality in order to
improve society. The most successful CSR plans, according to the author, make sure that
while organizations comply with the law, investments also respect the environment and the
growth and development of marginalized communities. Author also said that collaboration
between businesses, non-governmental organizations, and the government should be
encouraged because it will combine their knowledge, resources, and manpower to quickly
advance India's socioeconomic development.11

 Dhond Arvind- In his study 'Corporate Social Responsibility of Indian Business

Houses', points out that CSR and corporate philanthropy are often used interchangeably. In
theory, however, CSR is about fulfilling a firm’s essential responsibility to enter a symbiotic
relationship between the business and the society. Corporate philanthropy, on the other hand,
is merely a societal contribution made by a firm that may or may not yield any direct benefits.

 Sumeet Gupta and Debashish Bagg (2011) - in their study depicted that India would have
no choice but to implement CSR in the twenty-first century. CSR does not produce instant
outcomes. Various corporations invest in CSR efforts for a plethora of reasons, which
includes raising brand value, creating employment, working for environmental sustainability,
or just abiding by government and social laws.

1.3 RESEARCH GAP

“The Literature review identified that most of the studies are related to CSR and disclosing
of the basic knowledge relating to CSR, and the Literature review has also covered with the
International Convention and Indian Acts in Corporate Social Responsibilities. There is a lack of
literature regarding CSR of corporate companies. This Research gap motivated the Researcher to
undertake the present study titled ‘THE CONTRIBUTION OF CSR INITIATIVES IN SOCIAL
UPLIFTMENT - A STUDY’.”

1.4 RESEARCH OBJECTIVES

The CSR is regarded as a well-planned management strategy that aims to have a long-term positive
impact on society and the environment through sustained efforts. Therefore, the objectives behind
the study are enlisted below,

11
Ramandeep Kaur, An Overview of Corporate social Responsibility (CSR) initiatives in India, VI IJAR, 1131-
1136(2018)
5
 1. To get an understanding of the general aspects of the Corporate Social Responsibility;”

2. To discuss the law relating to Corporate Social Responsibility of organization under

Companies Act, 2013;”

3. To understand the Indian and International perspective of CSR;

4. To know how the companies have fulfilled their responsibility towards the society, what
specific activities, projects and strategies have they devised and implemented that have led to
uplift in the society;

5. To determine the effects of CSR initiatives on Environment, heath, women empowerment,

skill development, education, safety;

1.5 RESEARCH PROBLEM

Corporate Social Responsibility is one of the major developments that have contributed to the welfare
of society. CSR essentially entails voluntary giving while also acting as a mechanism to meet
stakeholder requirements while maintaining realistic corporate objectives. The Act broadened the
definition of CSR and connected the social commitment and commercial organizations’ goals,
facilitating its leveraging effect on economic advancement in a way that is more broadly and socially
inclusive. Non-doctrinal research of social upliftment concerning the corporate social responsibility
shall entail the contribution of corporations in the welfare of the society as a whole. The Companies
Act, 2013, shifted the emphasis of an industry’s social responsibility from voluntary to mandated,
encouraging businesses to participate actively in social and economic growth.

The present study emphasizes on how far the firms respond to the required CSR and the
contributions to social upliftment. It is crucial to have a distinct understanding of the priorities, focus
areas, and type of CSR social upliftment in India in order to identify them at the grassroots level.
Investigations should focus on how companies make stakeholders’ needs aware of their own, as well
as on the linked development goals and successes. Suggestions are also provided how to make the
established legal provisions more effective and focused.

1.6 SCOPE OF THE STUDY

The scope of the present study is very relevant and vast as the current circumstances regarding
Corporate social responsibilities are testing our sense of reality. The corporate field is ever developing
but the lack of regulating provisions provides a serious issue. This study focuses on a
6
Different aspect of the CSR of corporate firms within the country that is how these corporations have
the power to influence the masses with their outreach. It also focuses on the various initiatives these
big corporate houses have taken in order to uplift the society especially the underprivileged masses.

1.7 RESEARCH QUESTIONS

1. “Whether the corporate firms really complied with the rules and regulations with reference to
CSR.”

2. Is Companies Act, 2013 really appropriate act for amplifying the provisions to tackle with
CSR of corporate companies?”

3. “What are the biggest challenge for corporate companies towards fulfill their Corporate Social
Responsibility?”

4. What is the social impact of CSR activities and what all initiatives have been undertaken by
the companies for the upliftment of society?

5. How have the social initiatives helped in the upliftment of the society.

1.8 RESEARCH METHODOLOGY

“Keeping in view the nature of the problem, ‘doctrinaire method would be adopted by the
researcher. For doctrinaire study, the researcher would use the primary and secondary data as a source
of information, which is published in various books, journals, annual reports of companies, and
various websites. Attempt could be made to study the related statutes like the company’s act-2013,
guidelines, thesis; reports published by the companies, books, case laws and published articles. These
sources would be looked into as far as they have relevance to the present topic, and the collected
primary and secondary data be analysed accordingly for the purpose of the study.” Several national
and international documents have been reviewed and thoroughly interpreted before attempting to use
them for the project work. The original work of the jurists and academicians is duly cited wherever
used.

1.9 CHAPTERIZATION

The entire research work will run into six chapters.”

7
1.9.1 Introduction- “

This chapter will introduce the topic to the reader by a general understanding of the concept of
corporate social responsibility, its impact on society and will include the Research Problem,
Hypothesis and Research Objective and Research Methodology in detail.”

1.9.2 Chapter 2: General Aspect of Corporate Social Responsibility

This chapter includes evolution, development, definition, idea, and significance, of corporate social
responsibility. It gives the brief idea about the benefits of the CSR and it also includes various
theories of CSR.

1.9.3 Chapter 3 : Corporate Social Responsibility an Indian perspective

This chapter explores the idea of Corporate Social Responsibility, evolution, four stages of
development of it India, current situation of CSR in India, the issues and challenges India is facing
in CSR. This chapter includes the scope of corporate social responsibility, constitutional approach
toward CSR, Companies act, and subsequent rules, laws which hold for the corporate, CSR
amendments under the companies act and CSR during the covid-19 period, and opportunities for
CSR.

1.9.4 Chapter 4: International Perspective of CSR

The chapter includes the general overview of CSR, principle of CSR, recent international trends,
precedents of international CSR regulation, and how CSR impacts human rights, and working of
CSR in UK, USA and Australia.

1.9.5 Chapter 6 : General Idea about Social Upliftment

This chapter includes various programme and schemes which helps in the upliftment of the society
as Beti bachaco beti padhao, Pradhan Mantra Matritva Vandana Yojna,Sukanya Samriddhi Yojana,
step centre scheme, social empowerment for poor and marginal section, senior citizen, disabled
people, and scheduled tribes.

1.9.6 Chapter 7: Corporate Social Responsibility and Social Upliftment -Case Studies

The chapter discusses the case studies showing initiative leading for the social upliftment and
development cases are Tata group and CSR, Mahindra and Mahindra, Infosys limited, Bharti airtel

8
limited, Jubilant life science limited, UPL Ltd, and Dr. Reddy’s laboratories.

1.9.7 Chapter 8 : Conclusion and Suggestions-

The Findings, Conclusions and suggestions for further Research will be presented in this chapter.

9
 CHAPTER 2

GENERAL ASPECT OF CORPORATE SOCIAL RESPONSIBILITY

2.1 INTRODUCTION
A human being takes birth, grows, live and die in society. He owes society in a variety of ways. He
will not be able to fully develop if he is detached from society. He relies on society for a wide range
of needs, so he owes a genuine duty to society. Only that nation prospers and advances when its
people perform their respective duties with great dedication. Everyone has to be fully aware of their
respective sense of duty for the upliftment and progress of society, thereby trying to ensure the
betterment and progress of the country and worldwide at large. Businesses, also constitute a part of
the social setup, and are completely dependent on society for its various requirements and can only
develop to the fullest extent with the development of society, and therefore has a duty towards
society.12 Modern nations are taking the form of welfare states. Until recent times, business was
mostly run, controlled, and regulated by the state. However, the process of globalization has broken
down many barriers. The governance of modern democracies is welfare-oriented. The state-
controlled nearly everything in the early twentieth century. There were mostly state-run enterprises
engrossed in various types of business activities. The state continues to generate profits from industry
and revenue by collecting various taxes. The funds collected are used for the nation's security and
its development, with a significant proportion of it going toward welfare activities.

Many private organizations stepped into the ring in which the government world over had a monopoly
at the start of the twentieth century, and these private entities also made their space, got recognized,
and contributed significantly to the overall development of society and its individuals even in the
highly regulated economic environment. Then came the era of liberalization, privatization, and
globalization. These three phenomena have completely corporatized the world's economic
environment. Following economic liberalization, we have seen the state's role shrink and the
corporate and business sectors' role expand in the country's overall development. Most of us live in
a highly corporatized world under liberalized economic patterns. These large corporations are simply
by-products of the activity known as business. So there is a need to have a basic understanding of
what business is, how it evolved, how the current structure of Corporations came into existence, what

12
Supra note 12
10
the relationship between society and business/corporate is, and why corporate must be socially
responsible.13

Business can be referred as any activity that generates utility for the public. The word Company is
the most widely used phrase for a commercial enterprise. A company is elucidated as a voluntary
association of people that assemble together to pursue a specific economic activity for
profit. A company is legally an entity, a juristic person apart from its members, capable of rights and
duties of its own, and endowed with the potential of perpetual succession.

According to Berle(1959) : "Corporations are not simply legal institutions, but a legal device for
achieving any social or economic goal, and to a significant extent, this is done publicly and by being
socially conscious." We can say that it is a combined political, social, economic, and legal institution.
Because of this nature and the relationship of corporations with society, emerged the concept of
Corporate Social Responsibility (CSR). Furthermore, as we understand, these businesses generate
wealth from society, create wealth for society, and gain profits by dealing with the wealth for society.
In a broader sense, it is a society that permits businesses to operate in society and generate revenue. 14

Until recent times, Corporate Social Responsibility (CSR) was construed as a philanthropic initiative
taken only when a company's survival was threatened. However, as a result of enormous change in
the socioeconomic-political environment and the significantly growing role of Corporate in all
spheres, it is now viewed as inclusive, wide-ranging, and diverse. Corporate social responsibility is
now perceived as an important and essential component of business strategy.

Critics however argue that it is nothing but a corporate deception to steal resources in the name of
CSR. There is disagreement among, academicians, professionals, social activities, and
governments about its scope and relevance in today's political, legal, and socioeconomic
environment, and about its administration, along with the fact whether it should be a voluntary
activity or regulated by appropriate mandate. To properly understand the subject's dimensions and its
significance for society in general and corporations in particular, we must explore the different
aspects of the subject "Corporate Social Responsibility." 15

13
Ms.Aruna Sharma and Ms .Neha Gupta , The New Era Of CSR , 5 IRJMST 1, 191-205 (2017)
14
Madhumita Chatterji, Corporate Social Responsibility, Oxford University Press, 2011, p-5.
15
Id.
11
Up till recently, the emphasis of businesses in terms of contributing ad serving to society was by way
of charity, which is not what CSR is in today's terms. CSR programs today are an
amalgamation of legal, ethical, economic, and philanthropic principles. In today's dynamic and
changing business environment, there is a strong emphasis on giving back to the community and
establishing a model that is more sustainable and long-term in nature and it is critical that for inclusive
growth of this model all such practices must be shared with the stakeholders also. Corporate entities,
with their broader reach, resources and technology have the ability to impact any country's rate of
growth and development.

Businesses are now getting engaged in many such activities, such as utility services, social services,
and national security, which were perceived to be entirely the responsibility of governments and the
public sector. On the one hand, these corporations help to create economic growth, provide
opportunities, jobs, and benefits, and increasingly invest enormous resources into environmental
protection, health and safety programs, and social development initiatives that go beyond the
economic role of a private firm. . Each enterprise has a few obligations to improve the overall
expectancies for everyday comforts of most people, hoisting instructive gauges and creating a
effective impact on society. This will be conceivable via CSR on this globalized economic system.16

2.2 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

The development of the idea and methods of corporate social responsibility have a stellar history.
The term "company social responsibility" is generally understood to mean that a business has a
commitment to society that goes beyond its limited commitment to its owners or customers. This
concept has been mentioned at some stage in the 20th century, however it was Howard R. Bowen's e
book 'Social duties of Businessman' distributed in 1953, which changed into the starting point of
cutting-edge banter regarding the problem. Since then, a lot of research has been done on the topic
of corporate social responsibility. He considered the possibility that business would perceive its more
significant social goals in its alternatives and reap well-known, social and economic benefits for
society as a result.

16
Id.
12
2.3 MEANING OF CSR

CSR can be best defined as an obligation of the business houses for the well-being of society at large.
It is based on the ideology of giving and taking. It is believed that as businesses depend so much on
society and the environment like the natural resources for their own operations, they definitely have
some responsibility towards society as well. Its a means of showing gratitude to the environment in
which they operate and showing a sense of belonging to the society as a whole. 17

CSR is a concept in which companies on a voluntary basis incorporate social and environmental
18
issues into their business operations .Corporate social responsibility or (CSR) is a sort of self-
regulation that is integrated into a business model. "Corporate Social Responsibility" (CSR) is a term
that refers to a social movement as well as a set of management practices. It is a global concept in
which corporations assume responsibility for their activities in all parts of their operations that can
affect the well-being of society, employees, consumers, communities, shareholders, and the
environment. The concept of Corporate Social Responsibility (CSR) is based on the fact that
businesses can no longer operate in a secluded manner, indifferent about the rest of society.
Traditional perspectives on competitiveness, survival, and profitability are no longer valid. Thus,
CSR is divided into two categories: reducing or decreasing negative effects and enhancing positive
contributions.

‘Corporate Social Responsibility is operating a business in a manner which meets or excels the
ethical, legal, commercial & public expectations that a society has from the business’

2.3 DEFINITION AND IDEA OF CORPORATE SOCIAL RESPONSIBILITY

CSR is still a developing term with no commonly agreed definition as of now. From the 1980s there
has been a proliferation of definitions of CSR in the literature. Some of the widely acknowledged
definitions are:

 World Business Council for Sustainable Development or WBCSD (2002),

‘defines "corporate social responsibility" (CSR) as a company's commitment to acting

17
Castronova, Edward, Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier
(December 2001). available at -SSRN: https://ssrn.com/abstract=294828 or http://dx.doi.org/10.2139/ssrn.294828 (last
visited Jun 3, 2022).
18
European Commission, “Prompting A European Framework For Corporate Social Responsibility” , Green Paper and
COM 366, Brussels (2001)
13
 ethically and contributing to economic development while also improving the quality of life
of its employees and their families, the local community, and society at large.’ 19

 According to UNIDO or United Nations Industrial Development Organisation, ‘CSR can

be understood as the way in which a company achieves a balance of the economic,
environmental, and social imperatives also called the “triple bottom line approach”, while
addressing the expectations of shareholders and stakeholders.’

 CSR Asia ‘defines it as the company’s commitment to operate in an economically, socially,

and environmentally sustainable manner while balancing the interest of various
stakeholders.’

 Contrary to what you might think, defining CSR is not straightforward. There are various
definitions based on different analyst perceptions. 20

“According to the concept of "corporate social responsibility," businesses should voluntarily

incorporate social and environmental concerns into how they conduct business and interact with their
stakeholders.” European Commission21

2.3.1 Idea of Corporate Social Responsibility

The rapidly increasing concept of corporate social responsibility (CSR) goes beyond
philanthropy and requires businesses to go above and beyond their legal obligations to address social,
ethical, and moral concerns into their business strategies. The world has become smaller as a result
of globalization, and business is expanding globally more than ever. In order to expand their
operations in other nations as well, the agencies are expanding their responsibilities and also
the topographical limits. Indian businesses are at the current time widely regarded as main players
and are likewise adjusting to the global business boom. India is currently among the countries with
the fastest economic growth. The Indian economic system has advanced due to the globalization and
rapid improvement of the global economy.

19
Definition of corporate social responsibility – what is CSR, available at -https://indiacsr.in/definitions-corporate-
social-responsibility-csr/(last visited - Jul 25, 2022)
20
Reddy Sumati, Corporate Social Responsibility: Contemporary Insights, ICFAI University Press, India, 2004
21
European Commission, “Prompting A European Framework For Corporate Social Responsibility” , Green Paper and
COM 366, Brussels (2001)

14
2.4 SIGNIFICANCE OF CORPORATE SOCIAL RESPONSIBILITY

Most academic and professional journals frequently discuss corporate social responsibility, which is
quickly becoming a relevant topic. A growing number of articles about corporate social responsibility
have been published, and most of them devoted a special issue to the topic. Definition of corporate
social responsibility is essential to build this suggestion. It is crucial to have a solid understanding of
the concept of a company, not from the macroeconomic perspective that economic research takes
(especially in light of the neoliberal movement), but rather from the perspective of the commercial
economy. 22

Companies must carefully manage each collective and the context in which it is established in the
competitive marketplace, which is highly competitive and characterized by increased information
flow. Only then can they expect to expand and generate profits. In other words, to have great success,
you need to have a corporate social policy and stakeholders who act responsibly. According to the
World Business Council for Sustainable Development (WBCSD), corporate social responsibility is
"the company's commitment to contribute to the sustained economic development by working with
employees, their families, the local community, and the entire society to improve life quality."23

Companies can contribute to society, the environment, customers, and other stakeholders by
engaging in corporate social responsibility.

The concept of corporate social responsibility offers allan organization's employees the chance to
contribute to the community, the environment, the nation, and other things. We all live for ourselves,
but I can assure you that accomplishing anything or living for someone else is a different experience.
In addition to giving a sense of inner pleasure, pride, and happiness, making people happy simply
because your organization has committed to educating the underprivileged children of a particular
town brings a smile to their faces. Never underestimate the value of society and the environment in
our daily lives. It is past time for us to consider those less fortunate and privileged than we are in our
immediate surroundings.24Corporate social responsibility allows businesses to contribute to the

22
Business review, available at -https://www.therightbank.com/sites/www.therightbank.com /files/files/Business%20
Resource/White%20Papers/Business%20Development/white-paper-importance-of-corporateresponsibility.pdf.(last
visited- Jun 4,2022.)
23
Ib.
24
Management studying guide, available at -https://www.managementstudyguide.com/importance-of-corporate-social-
responsibility.htm( last visited –Jul 19 ,2022)
15
community's development and make it a better place to live. 25

Positive word-of-mouth for the company is greatly aided by corporate social responsibility. Giving
back to your community, stakeholders, and consumers would elevate your company and guarantee
its long-term expansion and success. Corporate social responsibility is essential to building brand
recognition among your target audience, including the media, other organizations, and your direct
customers. People form a favorable opinion of a company when it takes the initiative to educate
underprivileged children, plant more trees for a greener environment, supply energy to a community,
recruit, and do other similar things. The cost of corporate social responsibility initiatives is relatively
low. Engage in CSR initiatives because you care about the cause, not just to get attention. Numerous
companies reach out to isolated areas; some are even unheard of as a corporate social responsibility
effort.26

Additionally, corporate social responsibility makes employees feel extraordinarily happy. If you don't
believe me, ask any employee who takes delight in educating those in need or kids who can't afford
to attend conventional schools. CSR initiatives improve relationships amongst coworkers. People get
into the practice of cooperating to aid others. They begin to enjoy their time spent working together
and eventually develop deep relationships.

Additionally, they grow a sense of loyalty and commitment to their company, which at the very least
has social responsibility in mind. Who doesn't want to work for a company whose management is
thoughtful enough to make time for the community and give back in a small way? When was the last
time you helped your community, consumers, stakeholders, or the environment? Corporate social
responsibility also contributes significantly to the brand's positive perception. You can count on your
brand turning into a "common man's brand." People begin to trust the brand, and nothing will benefit
you more than having customers who do. Positive word-of-mouth eventually assists in increasing the
organization's revenue. 27

Everyone is so preoccupied with chasing targets and managing the pressure at work in today's
environment of tough competition that we forget there is a world outside of us. Have you ever
considered people who aren't even able to purchase two meals per day? Please attempt to visit a

25
Id.
26
Id.
27
Id.
16
village once if you can find some free time in your tight schedule. The way people handle their lives
there would stun you. In a sense, corporate social responsibility is also essential for the advancement
of society, which ultimately only serves our interests.
The corporate class should offer its assistance to the community. Business productivity will
inevitably rise if they are improved socially and economically. The environmental variables listed in
Fig. 2.1, such as the social, legal, and ethical environment, must guide corporate behavior.

Figure (2.1) Corporates and Environmental Factors

Source: Sethi, Carroll, Shivaramu

According to the above diagram, corporate social responsibility (CSR) refers to an organization's
duty to act in a manner that advances both its interests and those of the organization's numerous
external communities and environmental factors, such as the social environment, which includes
customers, employees, creditors, suppliers of goods, society, and the legal environment, which
provides for state and local governments. The company should uphold moral norms, judgments, and
values to achieve effective results.

2.5 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Sustainability and corporate social responsibility (CSR) both center on an organization's efforts to
make positive contributions to social and environmental impacts. Businesses all over the world are
trying hard to adapt to a new role that requires them to satisfy the needs of the current generation
without adversely affecting the ability of future generations to satisfy their own needs. Businesses
are being urged to accept accountability for how their operations affect society and the environment.
Additionally, they are expected to incorporate sustainability principles into their operational
17
processes. Sustainability is a term used to describe an organization's activities, which are typically
seen as voluntary and show how social and environmental concerns are taken into account in business
operations and stakeholder interactions. Numerous factors and influences have led to an increase in
the amount of attention given to CSR and organizational work. These include:

1) Sustainable Development: Countless studies, including those by the United Nations (UN),
have highlighted how people are using natural resources at a faster pace than they are being
replaced. If this keeps happening, future generations might not have the resources they need
for their development. This tells us that there is an eminent need for the reduction of such
excessive usage so that our future generations don’t have to pay for it. through CSR this
objective can be achieved if businesses acknowledge these issues and devise strategies to
tackle these problems because they have the potential to deal with such issues.

2) Globalization: Multinational corporations have benefited from increased opportunities and

from globalization, but they are also forced to adapt to changing environmental conditions
and take on previously unheard-of challenges at the global, industrial, and other levels. One
of the most important challenges facing companies conducting international business is CSR
or corporate social responsibility. In other words, multinational corporations reevaluate the
idea that moral, ethical, environmental, and social concerns ought to be taken into account
when making decisions about business strategies and operations.

3) Governance: Governments and intergovernmental organizations, such as the UN, the

Organization for Economic Cooperation and Development (OECD), and the International
Labor Organization (ILO), have devised their own agreements, declarations, rules, and
specifications that set out the requirements for what they consider to be acceptable business
conduct.

4) Company sector impact: The massive magnitude and variety of partnerships, as well as their
ability to influence the political, social, and ecological frameworks with regard to
governments and general society, raise questions about impact and responsibility. It is
undeniable that all things considered, even small and medium-sized businesses (SMEs),
which are considered to be the largest single commercial venture, have a significant impact.
These Groups serve as global exemplars of the development of a country. The manner in
which they communicate with society and other stakeholders is gaining interest and
significance.

18
5) Communications: correspondence improvements, Technology advancements like the
internet and mobile devices make it simpler to follow and observe corporate activities. This
encourages and motivates the board internally, revealing a conversation. NGOs, the media,
and others can examine and profile business exercises remotely if they deem them to be
difficult or admirable. Modern interchanges and innovation provide opportunities to improve
institutions and discourse within the context of CSR.

6) Finance: Customers and financial analysts are showing growing zeal for supporting effective
strategic plans and requesting more information on how organizations are handling the
risks associated with social as well as environmental issues. A rightful CSR strategy can help
to increase supply value, lower capital costs, and ensure better responsiveness to business
sectors.

7) Ethics: There have been numerous notable and real transgressions of business ethics that have
harmed representatives, investors, stakeholders the general public. A good CSR approach can
assist enhance corporate management, straightforwardness, duty and moral measures.

8) Consistency and network: No matter where they work, people are emphasizing that
businesses must fulfill the social and ecological considerations. In the context of CSR,
businesses can contribute to the creation of a sense of community and a common approach to
resolving everyday issues.

9) Leadership: In order to fully address all of the issues that CSR deal with, there is concurrently
growing focus on the most remote corners of government authoritative and administrative
activities. CSR can provide the flexibility and motivation needed for businesses to act before
a situation arises where such initiatives seem far-fetched.

10) Business device: Businesses are of an opinion that adopting a productive approach to dealing
with CSR can reduce the risk of business interruptions, open up new opportunities, help in
the development, and improve brand image in the eyes of the public.

19
2.6 BENEFITS OF CSR FOR CORPORATE

For commercial enterprises participating in different projects, corporate social responsibility has
several internal and external advantages.28

Through its external actions, the corporation develops a favorable public opinion of itself and gains
its competition's respect. Accepting various projects, including the construction of parks, schools,
etc., gives temporary work opportunities. Working with the local community's interests has several
advantages for the company. For instance, local consumers are a significant source of revenue for
many businesses. Gaining a better reputation may make it simpler to hire and keep staff. 29

Additionally, businesses have broader effects on the environment. The planting and farming
endeavors started by Intel India are a step in that direction. Reduced waste can also be achieved by
recycling used goods.30

Internally, it fosters a sense of loyalty and faith in the corporate ethics among the staff. It increases
the company's operational effectiveness and is frequently followed by improvements in quality and
production. More importantly, it provides a calming break from the routine workday activities and
gives them a sense of fulfillment and purpose in life. Employee motivation is higher, which leads to
higher productivity. In addition, CSR ensures that the firm complies with legal and regulatory
standards.31

2.7 PRACTICAL CSR INITIATIVES FOR SMALL BUSINESS

Here is a list of acceptable CSR activities that a private undertaking can conduct, drawing on
specific events of companies that are practicing CSR. The workforce at large corporations will likely
continue to value these activities.

28
Simply CSR Benefits of CSR , available at- http://www.simplycsr.co.uk/the-benefits-of-csr.html (last visited- Jun
8,2022) .
29
Rana N. & U. Majmudar, Gearing Up for Responsible Growth: India’s Top Companies for Sustainability and CSR
2016, ECONOMIC TIMES(Sept. 15, 2016) available at -
https://economictimes.indiatimes.com/blogs/ResponsibleFuture/gearing-up-for-responsible-growth-indias-top-
companies-for-sustainability-and-csr-2016/?source=app&frmapp=yes ( last visited 08 Jan., 2022).
29
Castronova, Edward, Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier
(December 2001), available at- SSRN: https://ssrn.com/abstract=294828 or http://dx.doi.org/10.2139/ssrn.294828 (last
visited- Jun. 9, 2022).
30
Id.
31
Id.
20
2.7.1 Enhancing the environment:

a. Reduce the use of energy, water, and many other shared resources, as well as the
discharge of hazardous pollutants;
b. Utilize or create recycled and recyclable materials, increase product durability, and
reduce packaging through practical engineering (lessen, reuse and reuse).
c. Develop a team of employees and encourage them to look for different ways to lessen
the association's environmental impact
d. Utilize "green" (sustainable energy supply) electricity sources and energy-saving lighting
equipment
e. Begin or join a local "green business" organization that may help nearby businesses get
safety certifications and certification for waste minimization, rainwater harvesting, and
energy.
f. Recall employing video conferencing to connect with a capacity provider or customer
rather than in every instance physically going to gatherings; and
g. Create a framework for environmental management that includes objectives and
procedures for monitoring progress, eliminating undesirable outcomes, and advancing
successful practices.

2.7.2 The executives work on enhancing their human resources

a. Develop procedures to ensure the safety and security of all subjects under
consideration, and make the plans known to staff.
b. Involve representatives in company decisions concerning employees and optimize the
workplace
c. Provide external consulting administrations, training, and compensation benefits
where layoffs or terminations are probably unavoidable
d. Give training opportunities and assistance to help employees progress within the
organization;
e. Increase preparation for administrators' lifestyle, retirement planning, and ward care;
Be available for job splitting, intelligent planning, and various methods to work-life
balance;

21
 f. Consider providing child care for young children or elderly dependents;
g. Promote a stable working environment (for example, implement a smoking ban or a
programme to support those who misuse drugs and alcohol); and
h. Offer practice workspaces or subsidized membership in a neighborhood fitness
facility.

2.8 COMPANY STAKEHOLDERS AND THEIR CONCERNS

The following table showed different important stakeholders and their concerns and responsibility
towards them:

Stakeholder Stakeholders’ Concerns

Customers Value, quality, customer care, ethical products.

Shareholders Return on investment, income

Employees Rates of pay, job security, compensation, respect, truthful

communication, Quality, worker protection, jobs.

Society Jobs, involvement, environmental protection, shares, truthful

Communication.
Government Taxation, VAT, legislation, employment, truthful reporting,

Diversity, legalities, externalities.

Owner(s) Profitability, longevity, market share, market standing, succession

Planning, raising capital, growth, social goals.

2.8.1 Responsibility towards Customers

An association's partners include its buyers. The benefit that comes from being responsible is
that prompt the customers to donate money. Consumers expect the company to provide high-quality
goods at fair and affordable costs32. A business couldn't prevail without customers. Due to CSR,

32
Reena Shyam, An Analysis of Corporate Social Responsibility in India, IV IJRG 56 (2016)
22
emphasis was also placed on brand reputation and customer confidence. Therefore, businesses' true
targets are to build customer loyalty by developing and providing goods and services that are
beneficial in terms of price, quality, and wellbeing, and have a less environmental impact, and that
is supported by creative business aptitude. As a way to demonstrate their commitment, moral
perspective, and competent conduct, organizations are progressively donating funds. According to
research findings, CSR programs have a significant impact on consumers' attitudes and behaviors
toward brands and nonprofits. Experts comprehended the assessment of an organization's socially
responsible activities is a great way to see how it affected consumers' purchasing decisions in addition
to the traditional standards of value, quality, and administration.

2.8.2 Responsibility towards Shareholders

We constantly hear the notion that when conducting business, we must act strictly professionally and
that nothing else should interfere. This implies that the language of business is one of profitability.
The fact that corporations have come to embrace the very essence of corporate social responsibility
means that, while still true, that prior notion is no longer applicable to all businesses (CSR).
Businesses have learned how to conduct themselves ethically and in the interests of the general
public. Additionally, adhering to CSR calls for the ability to strike a balance between the needs of
the community and those of shareholders and investors. Corporate social responsibility has a
very broad scope now and necessitate a company's obligations and accountability to a variety of
stakeholders. All stakeholders who come into contact with the organization directly or indirectly are
also held accountable, in addition to the shareholders.

2.9 . THEORETICAL STUDIES ON CSR

Three CSR theories have been used to illustrate the current practice of CSR:

2.9.1 Stakeholder Theory

The idea of "stakeholder theory" emphasizes on the interaction between businesses and their various
stakeholders, such as shareholders, clients, employees, and suppliers. This theory emphasizes that an
organization should create value for all of its stakeholders, not just its shareholders, who are impacted
by its business actions and decisions. According to the theory, managers must be accountable to all
stakeholders in order to protect their interests. It operates from the viewpoint of three different
business perspectives.

23
  stakeholders with an effect on the company's business operations

 how the organization and key stakeholders are affected by these connections; and

 how the opinions of important stakeholders affect the effectiveness of the company's strategic
measures (Bonnafous-Boucher & Rendtorff, 2016).

Therefore, in order to increase the efficiency and effectiveness in conducting business operations
successfully over the long term, businesses should plan strategies to deal with key stakeholders in an
appropriate manner.

Organization's stakeholders can be assembled in the accompanying three classifications fig (2.2):

1. Colleagues - Employees, providers, exchange affiliations, and specialist co-ops are all
33
colleagues. These partners help organization in arriving at its goals;

2. Client gatherings - All sort of clients falls inside this partner gathering; and

3. External influence - Community individuals, media, and issue advocates additionally impact
organization's basic leadership process.

Figure (.2.2) Stakeholder Model

Source: Based on Dell (2017)

As shown in Figure 2.2, the stakeholders play a key role in the success of CSR initiatives.

33
C.M. Bindal, “Corporate Social Responsibility: A Desirability”. Chartered Secretary.Dec – 2010.P.1760.
24
 Without the involvement, skill, knowledge, and allegiance of its various stakeholders,
organizations would not be able to accomplish their CSR objectives. One crucial component
of CSR is that every stakeholder who has a legitimate interest in a company is held
accountable for the business decisions that affect those interests.

2.9.2 Business ethics theory of CSR

The theory of business ethics is based on a much broader social conscience and the moral obligation
that business has towards society (Bigg, 2004). This theory offers three distinct but related ethical
justifications for CSR:

 Social expectations and responses to particular social problems are evolving and changing.

 Kantian ethics has always served as a model for eternal or intrinsic ethical values, which are
expressed as some normative and universal values like social justice, fairness, and human
rights.

 Corporate citizenship, or acting as a good member of society in order to promote social

progress.

The business ethics theory sees CSR as more of an ethical and philanthropic obligation than
a legal or financial one. CSR starts where legal obligations stop.

2.9.3 The shareholder value theory of CSR

According to Milton Friedman, a Nobel Prize winner and staunch advocate of the shareholder value
theory, a company's only social responsibility is to increase profits while abiding by the law.
According to neoclassical economists, the focus of the organization is to conduct activities that
benefit society and the economy; this purpose ought not be confused with other social duties carried
out by governments and nonprofit organizations. If not, it is not the finest method of distributing
resources in a free market. According to agency theorists and economists, a corporation's managers
are its owners, and its agents have a fiduciary duty to prioritize the interests of its shareholders over
those of any other parties. Corporate social obligations are frequently seen as a powerful asset for a
corporate competitive benefit and more profit gain, even though it is justified that maximizing
shareholder profit is the most important or the only corporate responsibility.

25
2.10 CARROLL’S PYRAMID OF CSR

Over time, a wide variety of writing on CSR has been available, with each offering their arrangement
of CSR and associated themes. Archie Carroll's formulation of CSR, which sees CSR as a construct
associating with four separate areas of business-society members of the family, is the most often
accepted and referred to in business and executive literature. A few materials to the argument that
CSR consists of going beyond the regulation contended that a meaning of social obligation, if it is to
completely address the entire scope of commitments commercial enterprise has to society; it must
signify the financial, legal, moral, and optionally available classifications of business execution.
Commercial business organizations should be evaluated not just on their financial success, but also
on non-financial criteria. He also suggested that business entities be assigned four social
responsibilities: financial, legal, moral, and voluntary. Some further research suggests that those
categories be seen as a pyramid. Fundamentally, a corporation is socially successful if it is profitable,
follows the law, engages in moral behavior, and gives back to society via charity. Other research
defines CSR as attempting to earn a profit (monetary), following the law (legal), being ethical
(morals), and being a first-rate corporate local in its interactions with partners (charitable).

Carroll's four spaces have "enjoyed widespread popularity among SIM (Social Issues in
Management) researchers." Carroll's CSR pyramid structure reflect a fundamental view of CSR
within the social concerns within the executive’s discipline. Carroll provided an accompanying
version of CSR known as "Pyramid." Every one of these four additions is highlighted in fig (2.3) of
the Pyramid of Corporate Social Responsibilities (CSR):

Figure (2.3) Carroll’s Pyramid of CSR

26
2.10.1 Economic responsibilities:

. The improvement of profit and the expansion of investor value ensure the survival of the business.
Investors in companies expect a high return on their investments. Companies have employees who
require secure and well-paying jobs, consumers who require high-quality goods and services at a
reasonable cost, and so on. Groups are formed in public, and their first responsibility is to function
well as a monetary unit. This main layer of CSR is the foundation for all responsibilities. According
to Carroll, the success of financial commitments is ultimately important the whole thing being the
same.

Economic duties are considered to satisfy cultural needs and desires by handing over objects and
administrations to them. It is expected that the organization would create and support critical planning
while keeping its production costs as low as possible under the conditions 34.

2.10.2 Legal responsibility:

Society has not only recognized companies as economic entities but has also defined the basic ground
principles by which enterprises are supposed to operate and function. These basic principles include
laws and regulations, representing society's sense of "codified ethics" by articulating core concepts
of fair business practices created by legislators at the federal, state, and municipal levels. As operation
condition, businesses are expected and obligated to comply with various rules and regulations. It is
no coincidence that compliance officers currently hold key and high-level positions in corporate
organizational structures. While meeting these legal obligations, significant business requirements
includes

 Performing per government and legal expectations.

 Observance of different federal, state, and local regulations.
 They are acting as law-abiding corporate citizens.
 Meeting all of their legal responsibilities to societal stakeholders.
 Providing products and services that at the very least fulfill the bare minimum of legal
criteria.35

34
Carroll, A.B. Carroll’s pyramid of CSR: taking another look., I IJCSR 3 (2016)
35
Id.
27
2.10.3 Ethical responsibilities:

Most societies' normative expectations maintain that laws are necessary but not sufficient. Society
expects businesses to operate and conduct their operations ethically in addition to what is required
by laws and regulations. Taking on ethical obligations indicates that companies will adopt activities,
norms, standards, and practices that are still expected while not written in law. Businesses are
expected to be responsive to the "spirit" of the law, not merely the word of the law, as part of the
ethical requirement. Another component of the ethical expectation is that enterprises would handle
their operations fairly and objectively, even when the law does not give advice or impose courses of
action.

Thus, ethical duties include acts, norms, rules, and practices that society expects or prohibits even if
they are not established in law. The goal of these expectations is for businesses to be accountable for
and responsive to a wide range of norms, standards, values, principles, and expectations that reflect
and honoring what consumers, employees, owners, and the community consider to be consistent for
the protection of stakeholders' moral rights. The line between legal and ethical standards is frequently
blurred. Legal expectations are unquestionably founded on ethical foundations. However, ethical
expectations extend these. In essence, both have a strong ethical dimension or character, and the
mandate society determines the distinction has given business through legal codification.

Important corporate expectations include satisfying these ethical commitments: -

 Conducting oneself per society social norms and ethical principles

 Recognizing and accepting society's new or changing ethical/moral norms
 Keeping ethical standards from being violated to attain corporate objectives
 Being excellent corporate citizenship by doing what is morally or ethically expected
 Recognizing that business integrity and ethics extend beyond simply adherence to laws and
regulations (Carroll 1991)

In addition to society's expectations for ethical performance, there are fundamental, universal
concepts of moral philosophy such as rights, justice, and utilitarianism that should influence and
guide company choices and actions, as an overlaying to everything expressed about ethical
duties. 36

36
Id.
28
2.10.4 Philanthropic responsibilities:

Corporate philanthropy covers all types of corporate charity. Corporate philanthropy encompasses
the voluntary or discretionary acts of businesses. Philanthropy or company giving may not be a legal
obligation, but it is commonly anticipated by corporations nowadays and is part of the public's
everyday expectations. The number and character of these activities are unquestionably optional or
discretionary. They are motivated by the desire of business to participate in social activities that are
not legislated, compelled by legislation, or usually expected of business in an ethical sense. Some
firms do provide partly for ethical reasons. That is, they want to do the right thing for society. The
public does believe that companies would "give back," which is the "expectation" part of obligation.
Examining the social compact between business and society today reveals that citizens want
corporations to be good corporate citizens like individuals. Companies engage in a variety of giving
forms to fulfill their perceived philanthropic responsibilities, including monetary gifts, product and
service donations, volunteerism by employees and management, community development, and any
other discretionary contribution to the community or stakeholder groups that comprise the
community.

Although there is often a humanitarian purpose for business donating, most businesses use
philanthropy to display their good citizenship. This is done to improve or enhance the company's
reputation, rather than for noble or self-sacrificing purposes. The fundamental distinction in the four-
part paradigm between the ethical and philanthropic categories is that business donating is not always
anticipated in a moral or ethical sense. Society expects such donations, but it does not designate
businesses as "unethical" based on their giving patterns or whether they give at the appropriate
amount. As a result, business's charitable role is more discretionary or optional. As a result, this
category is frequently seen as excellent "corporate citizenship. “Charity has historically been one of
the most essential parts of CSR definitions and continues to be so today.In summary, the four
components of the CSR definition provide a conceptual framework covering the financial, legal,
moral, and philanthropic or discretionary demands society sets on corporations at any particular
moment. In terms of understanding each type of responsibility, economic responsibility is "required"
of business by society; legal responsibility is also "required" of business by society; ethical
responsibility is "expected" of business by society; and philanthropic responsibility is
"expected/desired" of business by society (Carroll 1979, 1991). Furthermore, what these four
categories signify may vary or evolve over time. 37

37
Id.
29
 CHAPTER 3

CORPORATE SOCIAL RESPONSIBILITY AN INDIAN PERSPECTIVE

“Service of society – service of the collective, is the highest utilization of the force of life” – Abhijit
Naskar

3.1. INTRODUCTION

The nature of the triangle-shaped association between businesses, the government, and society has
undergone a dramatic transformation in the past decade. Firms can no longer operate as independent
entities without regard for the general public's interests. The transformation of the relationship
between businesses and society has been one of gradual transition from philanthropic coexistence to
one in which the mutual interests of all stakeholders are becoming imperative. Companies are
beginning to notice that in order to gain strategic initiative and ensure future survival, business
activities may need to shift from the traditional practice of focusing solely on profits but instead factor
in public goodwill and responsible business norms.

3.2 . CSR IN INDIA

In India, the phrase "corporate social responsibility" has no equivalent. Lal Bhahadur Shastri, India's
then-prime minister, led a national gathering in 1965 that issued the accompanying announcement at
the social duty of business: "Business has a responsibility to itself, to its customers, the people,
buyers, and the community; each challenge, no matter how big or small, must strive to efficaciously
discharge its obligations everywhere, and no longer to more than one gathering, for example,
investors or people, to the detriment of network and buyer. Business must be as virtual and caring
and compassionate as it is talented and dynamic. Corporate Social Responsibility (CSR) is now
perceived by most individuals as a core principle for business operations, as compared to
philanthropy, because "enterprise cannot prevail in a popular public that falls flat." While corporate
Social Responsibility is critical for business in all social orders, it’s especially significant for
emerging economies including India.

CSR in India has long been understood as a charitable activity. And, in keeping with Indian tradition,
it was an activity that was performed without much thought. Due to this, there is a almost no
documentation that backs up or demonstrates any explicitly stated or specific actions associated with
30
this concept. The fact that much of this had a national character combined with all its features was,
however, immediately apparent. Whether it was supporting institutions or actively taking part in the
freedom movement in India, it was deeply ingrained in the concept of trusteeship.

As some experts have noted, CSR in India is still primarily concerned with charitable donations, but
it has shifted from institutional building to educational research and cultural development, to
community development initiatives through various projects. Furthermore, with global influences
and communities becoming more active and demanding, there appears new change that CSR is
focusing more on community development, rather than merely money-giving to charities, and a large
number of companies are reporting the activities they are undertaking in this space in their annual
reports.

3.3. EVOLUTION OF CSR IN INDIA

India has a long history of corporate involvement in social activities that benefits the countries growth
.CSR as a social obligation/charity has been known in India for a long time and has evolved also over
time to become known as CSR in a larger sense. Social and environmental challenges have deep roots
in the history of business, as they stem from the origins of the company, which lead to excess
prosperity. India has a long history of corporate philanthropy, with industrial welfare programs in
place since the late 1800s.In the past, for business people's philanthropy in India was similar to
western philanthropy in that it was based on religious belief. Business practices in the 1900s included
gifts to charity, improving employee welfare, community service, and supporting religious conduct.
Corporations used to donate money to charity or educational organizations, claiming that they are
doing good deeds, when in reality they are attempting to buy community goodwill. In the 1950s, the
CSR concept was primarily built on the assumption that business has a social responsibility. 38

In the initial years, there was a menial record of social responsibility activities in India. Since then,
there has been a growing awareness of the importance of contributing to social activities around the
world, as well as a desire to enhance the immediate surroundings. It has also been observed that
companies that pay true attention to socially responsible conduct principles are increasingly favored
by the general public and preferred for their goods and services. That’s how the notion of corporate
social responsibility (CSR) was born.

38
Boli and Hartsuiker, 2001

31
The word CSR first became popular in the early 1970s; however, it was rarely abbreviated. By the
late 1990s, the concept had gained widespread acceptance, and people and institutions from many
walks of life began to embrace it. This is supported by the fact that, while less than half of Fortune
500 companies mentioned CSR in their annual reports in 1977, by the end of 1990, nearly 90% of
Fortune 500 companies had embraced CSR as an essential component of their organizational goals
and actively promoted their CSR initiatives in annual reports.39

India, among other countries, has one of the most extensive CSR traditions. Although much has been
done in the last few years to make Indian entrepreneurs aware of their social responsibility as a vital
aspect of their business, CSR has yet to gain universal acceptance in India. If this goal is to be
achieved, corporate CSR practices must be consistent with their views toward mainstream businesses,
such as stating their goals clearly, making possible investments, and publicly assessing and reporting
results.

3.4. FOUR STAGES OF CSR DEVELOPMENT IN INDIA

The historical narrative of corporate social responsibility in India has four stages that traces India's
factual development and has introduced specific methodologies toward CSR. The four durations of
improvement of CSR are mentioned underneath40:

3.4.1 The first phase

Charity and philanthropy were the major determinants of CSR in the initial days. CSR was influenced
by cultural factors, religious practice, family values, and tradition factors, as well as globalization.
With the arrival of colonial rule in India in the 1850s, the mindset shifted. The industrial families of
the 19th century, such as Tata, Bajaj, Birla, were strongly influenced by economic and social aspects.
However, it has been witnessed that their efforts toward social and industrial development were
impacted not only by selfless and religious factors, but also by caste groups and political objectives.

3.4.2 The Second Phase

During the 2nd phase of the independence movement, there was a strong emphasis and weigh on
Indian industrialists trying to demonstrate their commitment to the betterment of mankind. This is

39
Id.
40
T.S. NishaI “Issues and Challenges faced by Corporate Social Responsibility in Community Development: India
Human Resource Development “Journal of Business and Management 58-61, available at- http://iosrjournals.org/iosr-
jbm/papers/ncibppte-volume- 1/1059.pdf, ( last visited- Jul.1, 2022)
32
when Mahatma Gandhi brought up the idea of "trusteeship," under which major industry giants were
needed to manage their assets in order to benefit the general populace. Gandhi's influence put pressure
on various industrialists to contribute to the nations and its socioeconomic development.

Gandhi's impact put weight on different Industrialists to make a move towards the development of
country and its financial advancement Indian organizations should be the "sanctuaries of current
India". Organizations built up trusts for schools and universities and furthermore helped in setting up
preparing and logical foundations. The missions of the trusts were largely in consonance with
Gandhi's changes, which attempted to eliminate inapproachability, boost female empowerment, and
promote provincial advancement.

3.4.3 The Third phase

The phase three of CSR, which lasted from 1960 to 1980, was concerned with the aspect of "mixed
economy," the development of (PSUs), and laws relating with environmental norms. The open
endeavors were believed to be the major force behind socio - economic growth. The private sector
was pressured to take a back seat during this period. The government was regarded as the most
important driver of development. The time was acknowledged as an "era of command and control"
because of the strict legal guidelines and standards governing private sector operations. licensing of
industries, high tax rates, and constraints on the private sector all made a significant contribution to
corporate malpractice. This resulted in the introduction of legislation addressing corporate
governance, labor issues, and environmental problems. The state established PSUs to ensure
appropriate resource allocation to the needy. The public sector, on the other hand, was only partially
effective. This created a shift in expectations from public to the private sector, and their active
engagement in the country's socio-economic development became absolutely necessary. In spite of
such extreme attempts made by the academicians, political businessmen etc. the CSR failed to catch
stream41.

3.4.4 The Fourth phase

In the fourth phase (1980-present), Indian firms started to renounce their traditional CSR practices
and integrate it into a sustainable business strategy. The first steps toward globalization,
liberalization was taken in the 1990s. Partially removing restrictions and licensing laws helped the
economy, the effects of which are still easily visible today. The nation's economic growth

41
Dr Surya Bhushan Tiwari and Mr. Dinesh Sharma, Corporate Social Responsibility: Pattern and Perspective in
India, 8 IJOCR 28261[2016]
33
 momentum helped Indian companies grow very quickly, seeking to make them more capable and
willing to contribute to social causes. Indian companies that export and produce goods for the
developed world need to pay a lot of attention to compliance with the standards as Western markets
become more concerned about labor as well as the environmental standards in developing countries.

3.5. CURRENT SCENARIO OF CSR IN INDIAN CONTEXT

The Indian economy's globalization has caused a fundamental change in the country's attitude to
carrying out corporate social responsibilities. It has shifted from the sphere of state-owned public-
sector powerhouses to private-sector players. Companies' perspectives on CSR activities have
shifted from philanthropic to more professional. CSR has become a greater responsibility and
compulsion for Indian corporations in all aspects of their operations. As a result, it can be deduced
that CSR practices in India will continue to progress toward a more holistic upliftment of Indian
society. India's businesses of the twenty-first century will have no alternative but to implement
CSR. CSR does not produce quick gratification. Csr programs conducted by various corporations
may be oriented towards their own economic advantages such as promoting brand value, increasing
employable population, attaining a more sustainable environment, or meeting government and
societal laws, but they'll still make a significant contribution to Indian society as a whole.
Authorities and organizations should indeed take the necessary steps to ensure that these CSR
practices contribute to the overall development of the Indian society. 42

3.6. CORPORATE SOCIAL RESPONSIBILITY UNDER THE INDIAN LEGAL

SYSTEM

Each individual living in society has certain obligations towards it. This is particularly
relevant in cases of companies, which are considered to be ‘artificial persons’ in the eyes of law. Any
business organization must aim at operating in ways that help it to fulfill the expectations of society.
An enterprise is permitted by society to carry out its economic activities and earn profits, but it should
also refrain from activities that are undesirable from a society’s perspective, under what is called a
Triple Bottom Line (TBL) approach.”

“Having noted that, Corporate Social Responsibility (CSR) can be said to mean the achievement of
commercial success in ways that honor ethics and respect people, communities, and the environment.
It also involves addressing several legal, ethical, and commercial expectations that society has from

42
Id.
34
corporate, whose decisions should aim to balance the claims of all those groups which have an interest
in the life of the body corporate. Therefore, by upholding the norms of socially responsible and
ethically upright behavior, a business serves its own good by ensuring its durable success in this
manner.”

3.7 SCOPE OF CORPORATE SOCIAL RESPONSIBILITY

“To what extent is a corporate socially responsible? Writers such as Carroll Archie have tried to
categorically divide CSR into responsibilities across economic, legal, ethical, and philanthropic lines.
Over the years, the latter two categories, which involve the significant exercise of discretion on part
of the corporate, have occupied a significant place in the concept of CSR 43. The other two, on the
other hand, continue to remain driven by certain compulsions (making them necessary for either
earning profits or avoiding regulation).”

“Changing ethics (and the responsibilities derived there under) precede the establishment of law
because their changing nature becomes the driving force behind these regulations. For instance, the
ideas behind the environment, civil and consumer rights movements reflected basic shifts in values
held dear by society, eventually resulting in their ethical demands going on to become the foundations
of future legislation.”44

“Philanthropic responsibilities involve an active role played by a corporate in engaging in such

initiatives that promote the general welfare and human goodwill. Even though communities might
expect firms to contribute their resources towards humanitarian programmes, these firms per se are
not regarded as unethical if the desired levels of such efforts are not reached. 45 It is necessary to make
such a distinction because certain firms believe in fulfilling their social responsibility just by being
good citizens in the community. It also leads us to hold that CSR can involve philanthropic
contributions, but is certainly not limited to just them.”

“Several stakeholders in a corporate life have different expectations from its operations. CSR can,
therefore, be said to be the extent to which a firm can go ahead and arrive at a situation where the
satisfaction of all such claims is fairly balanced. Anything that the firm does towards achieving this
state of equilibrium is what it is required to do as part of its social responsibility.”

43
“Anirudh Narain Bhatt, ‘Corporate Social Responsibility: Rationale, Scope and Legislation regarding Environment
Issues in UK and India’ (2013) PL January 50”
44
“Id.
45
“Ib.
35
3.8 CONSTITUTIONAL APPROACH TOWARDS CSR

“Corporate Social Responsibility (CSR) was the concept emerged long back in our society. The
concept of explains about the social responsibilities of the companies in our country. Through a legal
enactment this concept was done in a systematic manner. In general, CSR does not have any clear-
cut definition which completely denotes the term. But in later stage CSR was legally enforceable. It
was stated under the Section 135 of Companies Act, 2013. Under the general prudence it clearly
enhances that CSR and Sustainable development are complementary to each other. In nutshell, CSR
means those activities taken by corporate with the aim of welfare of the society and the sustainable
development refers to the resources utilized in a better way which can be saved for the future
generation. In this era, the concept of CSR was linked with the corporate citizenship, sustainable
business, environmental and corporate accountability, and business ethics. CSR acts as a link to
connect both corporate and the stakeholders. Here stakeholders refer to the shareholders, employees,
private sector, local communities, the government and the society.”

“Before the Companies Act, 2013 itself there were lot of other enactments which highlighted about
Corporate Social Responsibility (CSR) and its applicability such as Article 48A and 51A of Indian
Constitution delays with protection of environment. The citizens of the country have a fundamental
right to a wholesome, clean and decent environment. The Constitution of India, in terms of Article
48A, mandates that the State is under a Constitutional obligation to protect and improve the
environment and to safeguard the forest and wild life in the country. By 42nd Amendment to the
Constitution, the Parliament, with and object of sensitizing the citizens of their duty, incorporated
Article 51A in the Constitution, inter alia, requiring a citizen to protect and improve the natural
environment including the forests, lakes, rivers and wild life and to have a compassion for living
creatures.”

“The legislative intent and spirit under Articles 48A and 51A (g) of the Constitution find their place
in the definition of 'environment' under the Environment (Protection) Act, 1986 (for short the 'Act of
1986').46 For this case it clearly shows that every citizen in our nation has the responsibilities to protect
the environment. Even it’s applicable to corporate firms in our nation. Our society deals with lot of
issues which not only deals with the environmental matters also deals with the societal matters. Under
Factories Act, 1948, the specified provisions deal with the health and welfare of the workers and
many other provisions also indirectly specifies about the CSR.”

46
“Sher Singh v. State of HP, Criminal Appeal No. 249 of 2008”
36
“The Preamble states the ideals and goals in a nutshell intended to be achieved through the
Constitution. 47 The Supreme Court (SC) of India in Pushpa Rani48observed that the founding fathers
of the Constitution were aware of the widespread inequalities in the social fabric of the country as
well as the gap between the rich and the poor, which is precisely why social, economic and political
justice was included in the Preamble. CSR is one of the courses to be resorted to, in order to deal
with such widespread inequalities and the ever-widening gap between the rich and the poor, and
provide economic justice to the underprivileged.”

“Article 19(1)(g) guarantees the right to carry on any occupation, trade or business, however Article
19(6) imposes certain reasonable restrictions on this fundamental right, in the interests of the general
public. The expression ‘in the interest of the general public’ has been given a wide import in the
court’s interpretation, keeping in mind the public order, security, health, morals, economic welfare
and the objectives of DPSPs.”49

“The SC first in, FN Balsara50 and later, in State of Gujarat v. Mirzapur Moti Kureshi Kassab Jamat 51
observed that where a restriction has been imposed for the implementation of the Directive Principles
of State Policy (DPSPs), then the same would be a reasonable restriction. The author contends that
CSR could be sourced in various DPSPs to be discussed later; hence its introduction would fall within
the ambit of reasonable restriction on the fundamental right to carry on trade/business freely. Section
135 has been passed for the welfare of the general public, which is one of the reasonable restrictions
envisaged under Article 19(6).”

“According to Article 3752, the DPSPs are fundamental to the governance of the country, thereby
imposing a duty on the State to apply these principles while drafting laws. In the present case, CSR
has been introduced bearing in mind the principles laid down under Article 38, 39(b), 39(c), 39(f),
41, 45, 46, 47, 48-A and 49. The State through CSR pursues to secure a social order in order to attain
social, economic and political justice, promotion of educational and economic interests of the weaker
sections, protection of environment and increasing the standard of living.”

47
“Subba Rao, CJ in Golak Nath v. State of Punjab, 1967 SCR (2) 762.”
48
“Union of India v. Pushpa Rani, (2008) 9 SCC 242.”
49
“Municipal Corpn. of Ahmedabad v. Jan Mohd. Usmanbhai, (1986) 3 SCC 20.”
50
“State of Bombay v. FN Balsara, 1951 SCR 682.”
51
“State of Gujarat v. Mirzapur Moti Kureshi Kassab Jamat, (2005) 8 SCC 534.”
52
“Art. 37, the Constitution of India- The provisions contained in this Part shall not be enforceable by any court, but the
principles therein laid down are nevertheless fundamental in the governance of the country and it shall be the duty of the
State to apply these principles in making laws.”
37
The SC in LIC v. Consumer Education and Research Centre & Ors.53 Asserting the importance of
DPSPs observed that private persons and industries are obligated to follow the directives contained
within the Preamble, Part III and Part IV of the Constitution. This implies that the right to practice a
trade is subject to the principles contained within the Constitution of India, Universal Declaration of
Human Rights and International Covenant on Economic, Social and Cultural Rights.”54

“Article 3855, the State strives for the welfare of the people by way of minimizing the income and
status inequalities amongst the individuals and communities in order to achieve social, economic and
political justice. CSR activities to be undertaken by Indian corporations such as contribution to the
fund set up for socio-economic development and welfare of the underprivileged 56, rural development
projects57 intend to transfer certain benefits from the company to the general public in order to serve
the common good as well as ensure that the concentration of wealth isn’t in a few hands, which is
one of the chief purposes of DPSPs.”

“Article 39(b) and (c) - Another rationale behind corporations undertaking CSR activities is to
compensate the society for the natural resource’s companies utilize to expand. This is done through
distribution of material resources to the needy and deprived in order to advance the common welfare
and ensure that the rich don’t continue to get richer and the poor poorer This rationale can be traced
to Article 39(b) 58 and (c)59 which aim at the building of a welfare society and an egalitarian social
order”60.

“Article 39(f) – One of the CSR activities that can be undertaken is providing education and
vocational training to children from poor families with no access to education, in order to enhance
their chances of earning future livelihood. The intent behind the same could be traced to Article

53
“LIC of India v. Consumer Education and Research Centre & Ors, 1995 SCC (5) 482.
54
“Ib.
55
“Art. 37, the Constitution of India- (1) The State shall strive to promote the welfare of the people by securing and
protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the
institutions of the national life.”
“(2) The State shall, in particular, strive to minimize the inequalities in income, and endeavor to eliminate inequalities in
status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different
areas or engaged in different vocations.”
56
“Item (viii), Schedule VII, Companies Act, 2013.”
57
“Item (x), Schedule VII, Companies Act, 2013.”
58
“Art. 39(b), the Constitution of India- That the ownership and control of the material resources of the community are
so distributed as best to subserve the common good.”
59
“Art. 39(c), the Constitution of India- That the operation of the economic system does not result in the concentration of
wealth and means of production to the common detriment.”
60
“"M.P. Singh,V.N. Shukla’s Constitution of India, 348 (11th ed., 2012).
38
39(f)61 which obligates the State to provide opportunities to children to develop in a proper manner;
one of the examples is the Right of Children to Free and Compulsory Education Act, 2009.
Introduction of mandated CSR is an attempt towards fulfilling this obligation; hence CSR can be
traced to Article 39(f).”

“Article 41-The State is directed vide this Article 62 to guarantee employment, education and public
assistance to the citizens wherever necessary, which it strives to fulfil as far as possible through
legislations (E.g., Right to Education) and Schemes (E.g., Jawaharlal Nehru Rozgar Yojna). But the
State does have a limited financial capacity, which necessitates third-parties to share this burden in
order to eliminate unemployment and illiteracy entirely. This is where the corporations with their
CSR programmes, aimed at promoting education and vocational training for the children, women and
differently abled to enhance their chances of earning livelihood 63, setting up old-age homes and day
care centers for the senior citizens 64, would step in. Therefore CSR, in light of Article 41, is a good
example of how profitable companies should compensate the communities.”

“Article 46-This Article65 puts an obligation on the State to promote the educational and economic
interests of SCs, STs and other weaker sections of the society, however the Constituent Assembly
failed to provide a definition of the term ‘weaker sections of people’. The SC however, in Mandal
Commission case, 66 observed that ‘weaker sections of the people’ would comprise of sections of the
society rendered helpless, by virtue of their poverty, natural and physical handicaps. The legislature
at the time of drafting the list of CSR activities under Schedule VII considered this expansive
definition to include activities such as setting up old-age homes, female hostels and other measures
intending to bridge the gap between the privileged and the socially and economically backward
groups67 as well as contributions to funds set up by the State for the furtherance of economic interests
and general welfare of the SCs, STs, minorities and women.”68

61
“Art. 39(f), the Constitution of India- That children are given opportunities and facilities to develop in a healthy manner
and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against
moral and material abandonment.”
62
“Art. 41, the Constitution of India- The State shall, within the limits of its economic capacity and development, make
effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old
age, sickness and disablement, and in other cases of undeserved want.”
63
“Item (ii), Schedule VII, Companies Act, 2013.
64
“Item (iii), Schedule VII, Companies Act, 2013.”
65
“Art. 46, the Constitution of India- The State shall promote with special care the educational and economic interests of
the weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall protect
them from social injustice and all forms of exploitation.”
66
“Indra Sawhney v. Union of India, 1992 Supp 2 SCR 454.”
67
“Item (iii), Schedule VII, Companies Act, 2013.”
68
“Item (viii), Schedule VII, Companies Act, 2013.”
39
“Article 47-One of the main duties of the State is to increase the standard of living of its citizens as
well as improve the public health,69 in which the state’s attempts would be bolstered with the
inclusion of CSR programs of profitable companies aimed at eradication of hunger, providing
sanitation facilities and safe drinking water 70 in Indian villages and towns, to citizens living below
the poverty line.”

“Article 48-A-One of the State’s approaches towards improving the environment and protecting the
forest cover71 is through mandating the corporations, by means of their CSR programmes, to adopt
environmentally friendly practices in order to preserve the ecological balance and conserve natural
resources.72 Such approach is justified as these corporations are the largest emitters of air and water
pollution which hampers the environment and decreases the air and water quality. Hence, Article 48-
A is one of the CSR’s many underlying roots in the Constitution.”

“Article 49-This Article73 places an obligation on the State to protect monuments, places and objects
of national importance. The legislature through mandated CSR makes an attempt to fulfil this
obligation through a provision for preservation of national heritage and restoration of buildings of
national importance, to be undertaken by companies.”74
“In the constitutional bench judgment in National Textiles Workers’ Union75, by majority, held that
the directive principles under Part IV of the Constitution should guide the corporate decision-making
in order to promote dignity amongst the individuals. The courts have time and again, reiterated that
the right to practice a trade under Article 19(1)(g) is subject to and, should be in accordance with the
‘constitutional conscience’76, such as preservation of environment 77 and other directive principles 78.
These restrictions on freedom under Article 19(1)(g), as culled out from the SC judgments, imposes
restraint on the businesses as well as makes them accountable, to ensure that they don’t make their
money at the expense of the society and the environment. Such restrictions assume the shape of a
mandatory CSR under Companies Act, intending to promote responsibility amongst the corporations

69
“Art. 47, the Constitution of India- The State shall regard the raising of the level of nutrition and the standard of living
of its people and the improvement of public health as among its primary duties.”
70
“Item (i), Schedule VII, Companies Act, 2013.”
71
“Art. 48-A, the Constitution of India- The State shall endeavor to protect and improve the environment and to safeguard
the forests and wild life of the country.”
72
“Item (iv), Schedule VII, Companies Act, 2013.”
73
“Art. 49, the Constitution of India- It shall be the obligation of the State to protect every monument or place or object
of artistic or historic interests, declared by or under law made by Parliament to be of national importance, from spoliation,
disfigurement, destruction, removal, disposal or export, as the case may be.”
74
“Item (v), Schedule VII, Companies Act, 2013.”
75
“National Textiles Workers’ Union etc. v. P.R. Ramkrishnan, 1983 SCR (3) 12.”
76
“Dwarkadas Marfatia & Sons v. Board of Trustees of the Port of Bombay, 1989 SCR (2) 751.”
77
“Consumer Education & Research Centre v. Union of India, 1995 SCC (3) 42.”
78
“Workmen Of Meenakshi Mills Ltd. v. Meenakshi Mills Ltd. & Anr., 1992 SCR (3) 409.”
40
to address social issues, after taking into consideration the socio-economic objectives of the DPSPs.”

Directive Principles of State Policy

“Notably, the Directive Principles of State Policy and Corporate Social Responsibility both operate
for the society. In fact, the goals of directive principles and Section 135 of Companies Act, 2013 can
be championed only when the socialistic objectives (Directive Principles of State Policy) and the
corporate philanthropies (Corporate Social Responsibility) are paid a heed in a true and material
sense. In Air India Statutory Corporation v. United Labour Union79, Supreme Court explained the
concept of social justice, which consists of diverse principles essential for the orderly growth and
development of personality of every citizen. Justice is the genus, of which social justice is one of its
species. In H.M. Hoskot v. State of Maharashtra80, the apex court was of the opinion that ‘legal aid’
and ‘speedy trial’ have now been held as a fundamental right under article 21. The Supreme Court
observed in Grih Kalyan Kendra v. Union of India81, that the word ‘socialist’ in the Preamble must
at least mean “equal pay for equal work”. The state is the ultimate care-taker of the future of India
and its people, and so is it legitimate for the state to undertake various patterns of planning and
governance under the guidance of the Constitution. In the context of India, there is a need to
understand the level of compatibility between socialism and democracy.”

3.9 COMPANIES ACT AND SUBSEQUENT RULES

“The 2013 successor to the 1956 Companies Act has ushered in a new era of corporate governance
in the government’s aim to simplify regulations. The Act has made sweeping changes to how CSR
had traditionally been fulfilled across India. Under section 135 of the Act, CSR is now mandatory
for all companies (whether private or government-owned), upon meeting one or more of the
following fiscal criteria:”

 A net worth of Rs. 500 crore or more; or

 An annual turnover of Rs. 1000 crore or more; or
 Net profit exceeding Rs. 5 crore or more.82

“The Board of Directors would then be required to constitute a Corporate Social Responsibility
Committee to enforce its CSR mandate. This committee shall comprise of three or more directors

79
“(1992) 1 SCC 695”
80
“1978 AIR 1548”
81
“(2000) 8 SCC 580”
82
“Companies Act 2013, s 135(1)”
41
(one of whom should be an independent director).83 The functions of this committee include the
creation of an elaborate policy to implement its legally mandated CSR activities; these activities must
conform to Schedule VII of the Act.84 In addition, it would recommend the expenditure required for
different CSR purposes.”85

“The Board is required to monitor the utilization of the company’s average net profit from time to
time such that at least two per cent of the same is spent every financial year, in pursuance of its CSR
policy. 86 It is also made clear that in case of its failure to spend this amount on CSR activities, the
Board would be required to specify the reasons for not spending the amount in its report under section
134(3)(o) of the Act.”

“Under the 2014 Companies (Corporate Social Responsibility) Rules, companies are free to conduct
these activities through the establishment of a registered trust or a society, or through its subsidiaries
or collaborations with other companies. 87 Even outsourcing has been permitted as a way of fulfilling
this responsibility. It is worth noting that individual acts of personal charity, events being strictly
‘one-off’, and lawful duties rendered under other statutes, are excluded from the purview of CSR.”

“Hence, what this means is that the codification of the CSR provisions in the Act and the Rules
prescribes a Comply or Explain mechanism. The spending of two per cent of the average net profit
is not mandatory, but reporting about it is mandated. The failure to spend the required amount can
easily be explained in its financial statements. No specific provision exists for the punishment for
failure to spend the required amount under section 135(5). However, two kinds of punishments are
prescribed for non-compliance of reporting provisions under section 134(8): for the company (limited
to a fine between Rs. 50,000 and Rs. 25 lakh) and for its officers (imprisonment up to three years,
fine between Rs. 50,000 and Rs. 5 lakh, or both).”

“Under section 441 of the Act, the National Company Law Tribunal (NCLT) enjoys the power of
compounding those offenses which are punishable with only fines before or after the initiation of
prosecution. This implies that the company itself can be waived off its liability for failure to comply
with the reporting provisions only to a limited extent – even this mitigation would be conditional
only on whether the ordinary financial practices of the firm meet the required standards of law.
However, its officers would continue to remain personally liable for non-compliance. In doing so,

83
“Id.
84
“Companies Act 2013, s 135(3)(a)”
85
“Companies Act 2013, s 135(3)(b)”
86
“Companies Act 2013, s 135(5)”
87
“Companies (Corporate Social Responsibility) Rules 2014.”
42
the legislation aims at enforcing compliance of such provisions by encouraging sound and transparent
financial policies and discouraging ambiguity.”

3.10 LAW HOLDS FOR THE CORPORATES

“Throughout the years, it has been the large business firms which have taken the lead in trying to do
their bit and thus enhance their goodwill in society by being socially responsible and behave in a
manner that satisfies their expectations. The current provision of law possibly aims at universalizing
this ethical behavior. However, with its set fiscal criteria, the law seeks to be applicable to those big
firms only while the Small and Medium Enterprises retain their discretion in deciding terms of social
behavior.”

“It has not been much time since the new provisions entered into force. In its first few years, a number
of matters have come up before the NCLT with regard to these provisions, where it has taken note of
certain lacuna in the law while compounding certain offenses for the company.”

“In the matter of M/s. Chintamani Estates Pvt. Ltd., there was a shortfall of expenditure that was
required to be made under these provisions. However, this shortfall was not disclosed in its
statements. The firm contended not to have any mala fide intention in doing so and did make a
revision in the Directors’ Report to accommodate the same. Hence, the Mumbai Bench took several
factors into consideration while compounding off the fine:”

“…this provision regarding CSR is newly incorporated in the Statute and thereafter number
of circulars were issued and as a result of those circulars no clear clarification regarding the
provision can be recorded by the Company or its Directors.”

“…the determination of the Quantum of the CSR responsibility can only be ascertained/
quantified after the finalization of accounts at the close of the Books of Accounts of a
particular financial year. As a result, the amount to be contributed for a charitable purpose as
CSR responsibility can be intimated to the concerned authorities thereafter only i.e. after the
finalization of accounts of a particular financial year.”88

“The above findings were also considered and upheld in the matter of M/s. Ever smile Construction
Co. Pvt. Ltd.¸ while compounding the fine in a similar instance.”89

88
“M/s, Chintamani Estates Pvt. Ltd. 2017 SCC Online NCLT 11240”
89
“M/s. Eversmile Construction Co. Pvt. Ltd. 2017 SCC Online NCLT 11276”
43
“The existence of too many circulars and notifications has led to a situation of overregulation in a
matter fairly simple (and previously voluntary) as Corporate Social Responsibility. Moreover, there
are other challenges which companies would have to tackle with respect to the quantification of the
amount spent by a company. Since a company could fall under the scope of section 135 on the basis
of its net worth/turnover too, it remains to be seen how a loss-making firm would be able to spare
funds for CSR, without the erosion of its share capital (especially in cases of inadequate reserves).”

3.11 CSR AMMENDMENTS UNDER THE COMPANIES (amendment) ACT, 2019

“Until now, if a company was unable to fully spend its CSR funds in a given year, it could carry the
amount forward and spend it in the next fiscal, in addition to the money allotted for that year. The
CSR amendments introduced under the Act now require companies to deposit the unspent CSR funds
into a fund prescribed under Schedule VII of the Act within the end of the fiscal year. This amount
must be utilized within three years from the date of transfer, failing which the fund must be deposited
in to one of the specified funds.”

“The new law prescribes for a monetary penalty as well as imprisonment in case of non-compliance.
The penalty ranges from INR 50,000 (US$700) to INR 2.5 million (US$35,000) whereas the
defaulting officer of the company may be liable to imprisonment for up to three years, or a fine up to
INR 500,000 (US $7,023), or both.”

“The government, however, is reviewing these rules after the industry objected to the strict
provisions, especially with respect to the jail terms for CSR violations, and is yet to operationalize
them. In the meantime, corporate spend fund for various activities like Contribution made to ‘PM
CARES Fund’. It shall qualify as CSR expenditure under item no (viii) of Schedule VII of the
Companies Act, 2013 and it has been further clarified.”

3.12 CORPORATE SOCIAL RESPONSIBILITY DURING COVID 19 PERIOD

“The coronavirus epidemic came to know on December 31, 2019 when China informed the World
Health Organization of a cluster of cases of pneumonia of an unknown cause in Wuhan City in Hubei
Province. Subsequently the disease spread to more Provinces in China, and to the rest of the world.
The WHO has now declared it a pandemic. In the past, corporations took a step back during crises.
However, as the role of business in society sustained evolve and safe stakeholder capital. Businesses
are rising to the challenge. It’s encouraging to see how industry is response to the stakeholder during
covid 19 epidemic.”

44
“The COVID-19 - the infectious disease triggered by corona virus has been considered as global
pandemic by the World Health Organization (WHO). This contagious disease tremendously
disrupted the socio-economic circumstances of the whole world. Social distancing plays a pivotal
role in order to mitigate the spread of this deadly infection. The Government of India and State
governments announced lockdowns throughout the country in March 2020 in order to promote social
distancing, which basically directs the public to maintain distance both socially and physically. Even
extended lockdowns further worsen economic troubles, but Social Distancing by means of lockdowns
is the only weapon that can destroy the spread of this transmittable disease. Most of the companies
in Indian economy are playing significant roles in creating awareness of social distancing as an aid
to mitigate the spread of this deadly infection covid-19. Here, comes the importance of CSR, which
plays a crucial role in the age of this pandemic covid-19, where people are trying their level best to
get through this tremendous challenging time. CSR is a self-regulating business model that implies
the procedures of interaction by a company with its stakeholders and the general public at large,
creating a scenario of being socially responsible.”

“Amid the COVID-19 (coronavirus) outbreak, the Ministry of Corporate Affairs has notified that
companies’ expenditure to fight the pandemic will be considered valid under CSR activities. Funds
may be spent on various activities related to COVID-19 such as promotion of healthcare including
preventive healthcare and sanitation, and disaster management. The amendment notified in the
Companies Act, 2013 requires companies with a net worth of INR 5 billion (US$70 million) or more,
or an annual turnover of INR 10 billion (US$140 million) or more, or net profit of INR 50 million
(US$699,125) or more, to spend 2 percent of their average net profits of three years on CSR.”

“Prior to that, the CSR clause was voluntary for companies, though it was mandatory to disclose their
CSR spending to shareholders. CSR includes but is not limited to the following:”

 Projects related to activities specified in the Companies Act; or

 Projects related to activities taken by the company board as recommended by the CSR
Committee, provided those activities cover items listed in the Companies Act.
 Businesses must note that the expenses towards CSR are not eligible for deduction in the
computation of taxable income. The government, however, is considering a re-evaluation of
this provision, as well as other CSR provisions recently introduced under the Companies
(Amendment) Act, 2019 (“the Act”).

45
3.12.1 INDUSTRY CSR CONTRIBUTION

 “Reliance Industries Limited (RIL) and Reliance Foundation have contributed Rs 5 crore
to the Telangana Chief Minister Relief Fund (CMRF) to support the COVID-19 relief efforts
cause of the state. In addition, RIL and Reliance Foundation have also contributed
cumulatively over Rs 530 crore to the PM-CARES and several Relief Funds Sir HN Reliance
Foundation Hospital in collaboration with the BMC has set up a dedicated 100-bedded which
will now be expanded to 250 beds center at Seven Hills Hospital in Mumbai, Maharashtra.
Reliance Foundation, the philanthropic arm of the Mukesh Ambani-led Reliance Industries
Ltd, has pledged to provide 3 crore meals to marginalized communities and frontline workers
across the nation.”

 “Tata Steel to provide 50,000 meals per day to vulnerable communities in Jamshedpur. It
follows a robust management system framework and a sound safety governance structure that
drives its health and safety measures. The company is constantly monitoring the COVID-19
situation and is also ensuring regular communication with its stakeholders in and around
Jamshedpur. The company has taken several initiatives at TMH and within the communities
to address COVID-19 crisis situation. 90”

 “ITC limited-The conglomerate has set up Rs 150 crore COVID-19 contingency fund for
vulnerable sections of society. This fund will be used to provide relief to most vulnerable
section of the society, provide assistance to rural healthcare and even provide protective gear
for medical staff.”

 “Hindustan unilever limited : It is reducing the prices of Lifebuoy sanitizers, Lifebuoy

Liquid hand wash and Domex floor cleaners by 15 per cent. It has also committed Rs 100 or
Hand-wash or Alcohol based Sanitizer to combat against the spread of Corona Paytm founder
Vijay Shekhar Sharma announced that the company is going to commit Rs 5 crore for
development of medical solutions to fight Covid-19 like potential ventilators and COVID
cure.”

 The Adani Foundation had contributed Rs 100 crore to the PM-CARES. Adani Foundation
has contributed Rs 5 crore to the Gujarat CM-Relief Fund and Rs 1 crore to the Maharashtra

90
Tata motors , Annual CSR Report FY2020-2021,available at- https://www.tatamotors.com/wp-
content/uploads/2021/06/30063751/annual-csr-report-2020-21.pdf ,(last visited- Jul 16, 2022)

46
 CM- Relief Fund as well.”

 Mahindra and Mahindra is planning to immediately start working on making ventilators

for Covid-19 patients. Anand Mahindra, the chairman of the group, also announced that
Mahindra Holidays resorts will be offered to government as temporary care facilities. “Our
Projects team stands ready to assist the Govt/Army in erecting temporary care facilities,”
Mahindra said. “The Mahindra Foundation will create a fund to assist the hardest hit in our
value chain small businesses and the self-employed,” Mahindra added. He said he would
contribute 100 per cent of his salary and gradually increase collections in the fund to assist
small-scale businesses.”.”

 “Infosys Foundation provides Rs 50 crore to PM CARES Fund. It also contributes additional

Rs 500 crore to be utilized for providing testing kits, masks, ventilators, food and nutrition to
the poor persons. It also joined hands with Narayana Hospitals to provide 100 beds
quarantine.”

3.13 CSR AS AN OPPURTUNITY

“The present COVID-19 pandemic is putting the corporate social responsibility to test. As the
economic activity gradually resumes in the coming weeks, companies must strive to use this crisis as
an opportunity to expand their CSR footprint. Instead of resorting to easier options of discharging
their CSR obligations, like contributing to designated funds, they must first strive to professionalize
their CSR teams, forge new partnerships with NGOs and work with the district administrations to
deploy their CSR funds in the most effective manner. Contribution to designated funds already
receives a small proportion of CSR funds (approximately 5.6%) which shows that it is being used as
a last resort measure and not as the habitual way of discharging legal obligations. This statistic will
certainly be drastically altered for 2020-2021 as large amount of CSR funds have already been
committed to the PM CARES fund. While it is understandable, that given the urgent need for
mobilizing resources, donations to designated funds is a good option for smaller companies, the larger
MNCs must follow the hybrid approach i.e. commit a part of their CSR to the relief/disaster
management funds and the rest should be used by them in implementing Covid-19 resilience projects
on the ground. Companies following the hybrid approach are already setting a good example for
others to follow. They have proactively lent their support to the Government in manufacturing
ventilators, PPE kits and face covers. Defense Public Sector Units are building isolation wards and
supplying N95 masks, sanitizers etc. to our frontline workers. Many private companies have already

47
teamed up with NGOs to provide daily food and rations to the needy during the lockdown period and
are doing exceptional work to complement the efforts of the state governments.”

3.14 CORPORATE SOCIAL RESPONSIBIITY IN INDIA : ISSUES AND

CHALLENGES

Many businesses believe that corporate social responsibility is a secondary concern and that
customer satisfaction is more important. They think price and service are the only factors
influencing customer satisfaction today. Still, they fail to acknowledge significant changes that are
occurring across the globe that have the potential to destroy the company. The change is known as
social responsibility, and it represents a business opportunity91.

3.14.1 Factors pushing businesses toward CSR are:

a) The Government's Shrinking Role

In the previous decade, governments primarily focused on laws and policies to achieve
social and environmental goals in the corporate sector. Because of limited public funds
and dissatisfaction with legislation, voluntary and non-regulatory initiatives have been
explored.

b) Greater Transparency Demands

Customers, suppliers, employees, communities, investors, and activist organizations

are increasing their demand for corporate transparency.

c) Increased interest from customers

There is the possibility that consumers' decisions to buy products are becoming more
and more influenced by the ethical practices of businesses.

d) Competitiveness in the Labor Market

Employees are increasingly choosing firms whose ideologies and business practices
align with their values and looking at their salary and benefits. Companies must

91
Ravindra Kumar , Corporate Social Responsibility( CSR) In India – Issues and Challenges, 1 PJAEE , 285- 294
(2021)
48
 improve working conditions to attract and keep qualified workers92.

e) Distributor Relations

Many businesses are taking measures to ensure that their partners behave responsibly
since stakeholders are becoming more engaged in corporate matters. To safeguard
their image from being damaged by the policies or practices of other businesses,
several are enacting codes of conduct for their suppliers.

3.14.2 The challenges are listed below:-

a) Community Participation in CSR Activities Is Lacking:

The local community does not show much enthusiasm for taking part in and supporting
corporate social responsibility (CSR) initiatives. As no genuine efforts have been
made to raise awareness of CSR and inspire trust in the local communities about such
activities, this is mainly because there is no information on CSR among the local
communities. The situation is worsened by a communication breakdown between the
corporation and the local community.

b) The Need to Increase Local Skills:

As there is a severe lack of skilled and effective organizations that can significantly
contribute to the ongoing CSR initiatives started by businesses, there is a need to
develop the capacity of local non-governmental organizations. This severely restricts
the scope of CSR programs and makes it difficult for them to scale up.

C) Concerns with Transparency:

One of the main challenges is a lack of transparency. The corporations claim a lack of
clarity on the side of the local implementing agencies since they do not make sufficient
efforts to provide information about their programs, audit problems, effect
evaluations, and fund utilization. This alleged lack of openness has a detrimental effect
on fostering trust between businesses and local communities, which is essential to the
achievement of any local CSR program.

92
Id.
49
 d ) Absence of Effective Non-Governmental Organizations:

In isolated and rural locations, it is reportedly difficult to find well-organized non-

governmental organizations that can assess and identify the community's actual needs
and collaborate with businesses to ensure the successful execution of CSR initiatives.
Increasing local communities' capacity to carry out development projects at the local
level further strengthens the argument for investing in local communities.

e) Visibility Aspects:

As it distributes positive news and educates the local public about the numerous
ongoing CSR initiatives of businesses, the media's involvement in showcasing good
cases of successful CSR projects is praised. Many nonprofit groups participate in
event-based programs with the seeming impact of increasing awareness and branding,
often skipping out on effective grassroots interventions.

f) Limited Viewpoint on CSR Initiatives:

Non-governmental and government organizations frequently have a limited

perspective on the CSR initiatives of businesses, frequently categorizing CSR projects
as being more donor-driven than locally focused. They consequently struggle to decide
if they should engage in such pursuits in the medium and long term. 93

g ) Lack of Properly Specified CSR Guidelines:

The CSR initiatives of businesses lack obvious statutory requirements or policy

directions to provide a clear vision. According to research, the scope of a company's
CSR initiatives should be determined by the size and nature of its industry. In other
words, a company's CSR program grows in scope as it becomes more prominent.

h) Lack of Agreement on CSR Implementation:

Implementation of CSR initiatives, local agencies are at odds with one another. Due
to this lack of clarity, corporate houses frequently duplicate their efforts in the regions
where they are intervening. Instead of creating collaborative approaches to challenges,
this encourages competition among local implementing agencies. This issue makes it

93
Id.
50
 more difficult for the organization to evaluate the impact of its activities periodically94

3.14.3 COMMENTS

 For CSR projects to be more successful there is a need to raise public information
about CSR. To illustrate the work done by business houses in an area, various
stakeholders, including the media, can take on this awareness creation. This will result
in significant adjustments in how the public perceives and feels about corporate social
responsibility programs. This initiative would encourage other businesses to join the
league and use their creative CSR initiatives to address problems like providing many
Indians with access to education, healthcare, and possibilities for a living. As a result,
the current social justice objective would be more effectively achieved.

 To educate students about social and developmental issues and the role of CSR in
assisting corporate houses to strike a wise balance between their business and societal
concerns, it is noted that CSR as a subject or discipline should be made mandatory at
business schools and colleges. Such a strategy will inspire and excite young minds,
equip them to meet development difficulties in the future, and support them as they
search for more creative answers to the needs of the underprivileged and needy. To
ensure youth involvement in civic concerns, it is advised that business schools, non-
governmental organizations, and corporate experts be involved.

 Corporate entities and non-governmental groups should seriously consider combining

their efforts and creating synergies to implement excellent CSR practices, scale up
existing projects, and develop new initiatives to benefit more people. This will have a
more significant effect on how their activities affect the lives of ordinary people. After
all, through their different projects and objectives, both for-profit corporations and
nonprofit groups have the potential to benefit the public. For CSR projects to be
effective and efficient, it is advised that their projectization, scaling up, and
sustainability be protected at all costs.

 Partnerships between the government and other interest groups have been clearly
stated in policy documents at all levels, and as a result, they are here to stay. The only
thing left to do is to develop shared strategies for turning policy declarations into

94
Id.
51
 action agendas that can be seen as taking real-world action. This will guarantee a
"bottom-up" approach for the nation's numerous development projects.

 The private sector has played a visible and productive role in advancing the
development agenda, emphasizing livelihood, education, health, the environment, and
women's empowerment, to name a few. There are also some cutting-edge models for
private sector interventions in these fields. It is advised that practical and operational
interaction models between the government, non-governmental organizations, and the
corporate sector be jointly investigated and addressed to advance the development
agenda in a mission mode.

3.15 CONCLUSION

“Corporate Social Responsibility is a way of getting companies to honor the expectations of the very
society that provide it with the means to conduct business operations in a fruitful manner. The
legislation and subsequent rules enacted, though good in intent, suffer from certain shortcomings that
could have widespread implications for the CSR scene in India. If a society is to hold businesses
accountable in a quid pro quo fashion (which is how CSR works), then conditions must be made
ambient for businesses to fulfil these responsibilities willingly, with a sense of incentive and initiative
for the same.”

“Corporate social responsibility (CSR) has evolved into a global norm and new patterns of global
governance have emerged to facilitate the ability to reach collective decisions on transnational issues.
This study has given brief note on how industry takes necessary steps with government in this
pandemic. For many corporate companies, it is difficult to know where their responsibilities begin
and end in relation to building infrastructure, creating economic opportunities, and access to core
services such as health, education and poverty alleviation. The CSR activities taken by corporate
during the covid 19 epidemic creates good image, reputation and name among their customer and it
pull new customer in future.

52
 CHAPTER 4

INTERNATIONAL PERSPECTIVE OF CSR

4.1 GENERAL OVR VIEW- CSR

CSR is becoming an increasingly important issue for businesses. It is a complex and

multidimensional organizational phenomenon defined as the extent and manner in which an
organization is consciously responsible for its actions and inactions, as well as the impact on its
stakeholders. It represents not only a change in the commercial environment in which individual
companies operate, but also a company's pragmatic response to its consumers and society. It is
increasingly understood as a means for businesses to strive for a balance between their efforts to
generate profits and the societies that these efforts have an impact on.95Corporate social responsibility
and ethics are topics that are becoming increasingly important in today's business world.

Many businesses have begun to recognize the importance of CSR as a tool for dominating the
competitive conditions that exist in both the domestic and international markets, for customer
retention, and for long-term growth. Businesses also emphasize customer-centric excellence in terms
of high-quality products and services while providing value for money, treating employees fairly and
partners as valuable assets, agility, innovation in products and services, social responsibility, and the
development of environmentally friendly production, design, recycling industrial waste products, and
conserving the country's natural resources, forest conservation by planting more and more
trees96. Corporate Social Responsibility or CSR constitutes the foundation of the tripartite
relationships among companies, society and the nation. 97

4.2 PRINCIPLES OF CORPORAL SOCIAL RESPONSIBILITY

Following principles must be followed while introducing corporate social responsibility in company;
 Supply chain responsibility

95
John Clark, Worlds Apart: Civil Society and the Battle for Ethical Globalization (2003),
96
Bridget M Hutter and Joan O’Mahony, ‘The Role of Civil Society Organisations in Regulating Business’ (Centre for
Analysis of Risk and Regulation, London School of Economics and Political Science, 2004) 3.
97
Amita V Joseph , Successful Examples of Corporate Social Responsibility44Indian Journal of Industrial Relations,402
(2009), Published by: Shri Ram Centre for Industrial Relations and Human Resources, p-402, available at-
www.jstor.org. (last visited Jul 10,2022)
53
The social responsibilities of a company should include all those with whom it enters into contracts,
regardless of the relationship (formal or informal), product or service, or geographic location. These
could include suppliers, contractors, alliances, and so on. Companies must do everything possible to
promote corporate social responsibility practices throughout their supply chain.

 Stakeholder involvement
Companies must be prepared to engage in dialogues with stakeholders (employees, suppliers, local
residents, consumers, social organizations, government agencies, and so on). This will assist them in
understanding stakeholders' concerns about the consequences of company behavior. There should be
an initial exchange of information between the company and its stakeholders regarding the company's
corporate social responsibility policies, in which the companies reach mutually agreed upon company
norms, values, rights, and obligations.

 Transparency and reporting

Companies must be transparent and open about their policies and social practices. Companies must
report to stakeholders about the effects of their conduct and the consequences of these effects on
other stakeholders. Stakeholders can obtain information through (a) regular public reports, (b)
assessment reports, annual reports, and meetings, and (c) data publication and consultation.

 Independent verification
Companies must internally monitor their corporate social responsibility policies, the quality of their
reports, and their management systems and processes. This verification should be performed by
organizations that are not affiliated with companies and have the full trust of the shareholders
involved. The results of the verification procedures should be made public in a timely manner.

4.3 RECENT INTERNATIONAL TRENDS

The WSSD Plan of Implementation includes a provision in which state parties commit to "actively
promote corporate responsibility and accountability, based on the Rio Principles, including through
the full development and effective implementation of intergovernmental agreements and measures,
international initiatives and public-private partnerships, appropriate national regulations, and
continuous improvement in corporate practices in all countries."

54
4.4 PRECEDENTS IN INTERNATIONAL CSR REGULATION

The regulatory debate over CSR has reached a decision point. Clearly, there is a case to be made for
additional, stronger international regulation of multinational corporations in terms of health, safety,
and the environment. While soft law standards and "corporate codes of conduct" may have improved
some multinationals' CSR performance, rising production costs and fierce competition among
countries for inward investment mean that workers and communities, particularly in developing
countries, will continue to suffer. It appears reasonable to expect home states to play a larger role.
However, many multinationals' structural complexity and difficulties in defining their boundaries is
a major drawback.

4.5 INTERNATIONAL CSR STANDARDS FOR MULTINATIONALS: A BREIF HISTORY

The search for an International regulatory solution to multinational corporations' social and
environmental problems began in earnest in the mid-1970s. At the national and international levels,
there was growing concern about 'big business' and its implications for national sovereignty,
democracy, and cultural diversity. Between 1975 and 1980, three separate initiatives relating to the
social regulation of multinational corporations were unveiled: the Draft UN Code of Conduct on
Transnational Corporations,(the "Draft UN Code") 98, the 1976 OECD Guidelines on Multinational
Enterprises (the 'OECD Guidelines') 99 and the 1977 ILO Tripartite Declaration Concerning
Multinational. Enterprises and Social Policy (the 'ILO Tripartite Declaration").

4.6 INTERNATIONALIZATION OF CSR

CSR has quickly evolved from a US-only concern to a multinational and even international one. Two
qualifications must be made to the hasty conclusion that an American template of global CSR is
emerging, despite the fact that the United States was the birthplace of CSR. To begin, the flow of
ideas and innovation is far from unidirectional. Second, even though CSR has clearly become more
internationalized, the presence of CSR in many national business systems does not constitute a single,
or global, system. Looking first at the flow of CSR influence, it should be noted that CSR ideas are

98
UN Norms
99
the 1976 OECD Declaration on International Investment and Multinational Enterprises, 21 June 1976; (1976) 15

55
not simply migrating from the United States. European CSR has frequently led the way in the
development and operation of multi-actor partnerships.

Europe has seen a much greater willingness on the part of governments to integrate CSR into broader
public policy frameworks, as well as on the part of businesses to participate in these processes.
Furthermore, CSR diffusion does not occur solely from the West/North to the East/South. Many of
the most intriguing innovations, including microfinance, microproducts, ICT applications for
development, supplier-driven ethical trade, and capacity building through business, have their origins
in Asia and Africa. These frequently reflect concerns about fundamental aspects of empowerment or
systemic reform that Western companies may be hesitant to undertake 'away from home. ‘Yet this
seemingly multinational character of CSR holds in it the seeds of a more genuinely international
phenomenon. This is because increasingly Western companies have to give an account to their home
country societies and, in some cases even to their governments, of the impacts of their business on
social and environmental conditions in host countries.

As with CSR in general, flourishing CSR activity frequently follows specific cases of business
irresponsibility abroad. Companies' reactions to revelations of Bangladeshi child labor in Western
textile supply chains in the late 1990s and, more recently, to the Bangladeshi Rana Plaza disaster
demonstrate this. In both instances, new firm-wide policy commitments were made to ensure that
this "never happened again. “Even so, responses vary. Many US companies, such as Walmart,
responded unilaterally to the Rana Plaza disaster, whereas many UK, Danish, and Norwegian
companies responded collectively through their Ethical Trade Initiatives. Such collective systems
have the potential to improve international CSR by more easily connecting home country (typically
Western) customers and their watchdogs with supply conditions in host countries. In both cases,
however, these US and European companies draw on and develop international CSR management
practices in tandem with new international CSR organizations and systems in order to manage their
cross-border responsibilities.

4.7 CSR AND HUMAN RIGHTS

The Voluntary Principles on Security and Human Rights establish behavior standards for resource
extraction companies working in conflict zones. These principles are intended to assist businesses in
ensuring security while also promoting and protecting human rights. The principles were developed
in 1999 and 2000 through consultations between the United Kingdom and other countries. and United
56
States governments, corporations, and non-governmental organizations, and were jointly launched in
December 2000 by the Foreign and Commonwealth Office .The Commonwealth Office and the
United States The State Department Following that, the governments of the Netherlands and Norway,
as well as an increasing number of businesses and non-governmental organizations, signed on.100

4.8 UNITED NATIONS HUMAN RIGHTS INSTRUMENTS

Although states bear primary responsibility for the promotion and protection of human rights, there
is growing recognition of the critical role that the private sector and other actors can play in avoiding
any involvement in human rights violations and, more broadly, promoting human rights respect. The
majority of multilaterally supported CSR initiatives include a human rights component, which is
based in part on key United Nations human rights instruments such as the Universal Declaration of
Human Rights, ILO Tripartite Declaration of Fundamental Principles And Right To work, UN Global
Compact (UNGC) etc concerning Multinational Enterprise and Social Policy. Human rights sections
of existing mechanisms, on the other hand, are not as well developed as other aspects of CSR. These
various instruments are evident of the fact that human rights law is cautious towards promotion of
CSR activities; however, the non-binding nature of Human rights declaration is a threat. There is no
Instrument to deal with strict enforcement of CSR Policy by various Companies within a state. This
calls for better and exhaustive convention with a strong enforcement mechanism to ensure adherence
nationally and internationally.

4.9 CSR IN AUSTRALIA

While there is no specific CSR reporting requirement under Australian law, directors and officers of
Australian companies are becoming aware of the call to report on factors other than just the financial
bottom line. The finance and securities industry currently requires the reporting of a certain amount
of non-financial information. Institutional investors commonly use CSR reports to decide factors
such as the quality of a company’s management. The reports are already considered to be indicators
of corporate longevity and profitability. It is arguable that Australian directors should take into
account the long term sustainability of the company when exercising their powers, especially in

100
Hohnen Paul, Corporate Social Responsibility: An Implementation Guide for Business, Edited by Jason Potts,
(International Institute for Sustainable Development, Manitoba, Canada, 2007). p-54,available at -
http://www.iisd.org/pdf/2007/csr_guide.pdf, ISBN 978-1-895536-97-3.( last visited -Jul 12, 2022)
57
relation to their environmental responsibilities and impacts.101Corporate social responsibility (CSR)
has grown in importance both in Australia and around the world. As the twenty-first century begins,
the corporate sector wields unprecedented power, influence, and wealth across international borders.
CSR became increasingly important and entrenched as the modern company grew.
The 1960s and 1970s brought external demands for increased social responsibility as well as direct
charitable contributions in many countries. Companies responded by establishing or expanding in-
house foundations and setting pre-tax giving goals. Meanwhile, the scope of what would become
CSR was expanding. Along with the growth of international and multinational businesses, the nascent
concept of’ social auditing' reflected a company's need to appease public sentiment for respectful
marketing, environmental impact controls, and civic consciousness. Companies were more
vulnerable to exposure of their harmful ethical, social, and environmental policies or mistakes as
international awareness and communication increased.

It no longer seemed sufficient to do what was legal; instead, businesses needed to stay ahead of rules
and regulations, as well as respond to, or even anticipate, community expectations. In the 1970s,
public relations disasters like Nestlé's marketing of infant formula in developing countries and the
formation of advocacy groups like Greenpeace prompted the development of new accountability
practices. This increased awareness and exposure promoted the concept of stakeholder recognition
and management. As a result, each society's understanding of CSR would be defined by a
combination of legislation, regulation, and expectation, with both local and universal expectations. 102

In Australia these practices have been celebrated most prominently as the Prime Minister’s
Community Business Partnership and the promotion of a social coalition. In an era of cooperation by
necessity or choice, these approaches publicly call for, promote and reward the use of cross-sector
collaboration to support social services previously provided primarily by government and the
community sector. Changes in funding, service provision and spheres of accountability highlight this
shift in perspective. These changes suggest that the community sector develop a sound understanding
of CSR theory, practice and trends.

101
Anne Durie, “Legal Requirements for CSR Reporting in the United Kingdom, Denmark and Australia” ,Journal of
the Australian law teachers Association19(2009)
102
Caitlin Cronin, “Corporate Social Responsibility in Australia: A Select Review of the Literature, Research and Social
Policy Team Background ”The Smith Family 13 (2001).
58
4.10 CSR IN UK

The Companies Act 2006 (UK) (Companies Act) mandated a business review in the directors' report,
which is consistent with the provisions of the 2003 European Union (EU) Accounts Modernization
Directive and applies to all companies other than those subject to the small companies' regime. The
business review acknowledges the need for companies to provide information to investors and other
stakeholders, as well as a narrative explanation that expands on and supplements increasingly
complex financial accounts. Although the new legislation contained a number of major reforms, two
key reforms for present purposes were: in relation to directors' duties; and the requirement for
directors' reports to include business reviews. The business review must be a balanced and
comprehensive analysis of the company's business development and performance during the fiscal
year, as well as its position at the end of that year, which must be consistent with the size and
complexity of the business. Although this reporting requirement is less stringent than the previous
statutory operating and financial Review (OFR), it signals a shift in corporate culture, particularly in
terms of the contents of annual reports and what, and how much, management commentary must be
made public. 103 The initial business review required by the act focused on the current fiscal year, with
the element of foresight required being the reporting of risks and uncertainties.

The liability protection provided for directors by the provision may encourage greater detail in this
area. A description of the company's principal risks and uncertainties should be included in the
business review to aid understanding of the company's development, performance, or position.
According to a Black Sun report, this area has seen the most improvement in reporting practices.
According to a separate Deloitte survey, most companies met the legal requirements but focused
solely on financial risks, ignoring strategic, commercial, and operational risks.

To achieve best practice results, company reporting practices must be vastly improved. The annual
report should disclose strategic, commercial, operational, and financial risks that may have a
significant impact on an entity's strategies and value. This area of narrative reporting has proven to
be difficult for directors because the tendency has been to list all, or perhaps most, of the risks faced
by the company, rather than identifying and describing the major risks creating uncertainty for the
company. These primary risks must be identified, as well as an explanation of potential mitigation,

103
Brian Rutherford, The Future of Narrative Reporting, association of Chartered Certified accountants, p-1, available
at - http://www.accaglobal.com/pubs/general/activities/library/ governance/ofr views/tech-ofrbr0306.pdf (last visited -
Jul 12,2022)
59
or how the risks affect the corporation's strategy. This information was discovered to have been
included in the annual reports in various places, implying that additional guidance is required for
appropriate corporate comparisons to be made

4.11 CSR IN USA

Because the emphasis for CSR incorporation in the United States is driven by a context in which
minimal legislative control over business is preferred, this country emphasizes the development of
specialized organizations to assist companies in incorporating CSR principles into their business
strategies. The Occupational Safety and Health Administration, Equal Employment Opportunity
Commission, Consumer Product Safety Commission, and Environmental Protection Agency, for
example, are committed to maintaining standards for responsible corporate business practises that set
thresholds for CSR behavior in daily business operations. This process is best known for its
contributions to the development of industry-specific and sector-specific regulation, such as pollution
control, working conditions, and consumer protection. The US Model Business Principles is a
voluntary guideline for businesses with the goal of providing a benchmark for developing self-
regulated responsibility at the company level. It is based on the ILO Tripartite Declaration of
Principles on Multinational Enterprises and Social Policy, as well as the OECD Guidelines for
Multinational Enterprises. These principles have begun to be incorporated into corporate societies'
self-regulation mechanisms. For example, automobile manufacturers in the United States require
their suppliers to implement environmental management systems as a condition of doing business.
Similarly, the American Forest and Paper Association requires its members to follow a set of
sustainable forestry management practices.

CSR was developed in the United States over the last century. It was unusual in the rest of the world,
where it would have been considered unusual even thirty years ago, except by a few lone scholars
and niche businesses. As a result, there has been a global migration of CSR, but it has not been one-
dimensional or unidirectional. Despite its origins, CSR is not a simple 'Made in the USA' export.
CSR internationalization has not been one-dimensional because, while the concept has international
currency, it encounters various long-standing ethical traditions with their distinct connotations of
responsible business behavior as it migrates. CSR encounters various societal governance systems,
reflecting various institutions and regulations regarding the respective roles of business, government,
and civil society. As a result, CSR has not simply been adopted in different countries. Rather, it has
been adapted to various national ethical and regulatory frameworks that frame assumptions and
60
systems of responsibility. As a result, despite its internationalization, CSR does not reflect a
consistent set of assumptions. Despite the importance of its integrative systems, CSR reflects a wide
range of issues and approaches. International CSR does not supersede or replace previously
established national business-society relationships. They instead interact with one another. The
internationalization of CSR has not been unidirectional. While US companies (e.g., Johnson and
Johnson, Ford, and IBM in Europe) and approaches (e.g., use of standards with a focus on human
rights) have often had a significant impact on CSR internationalization, there have been significant
non-American sources of CSR innovation. Some of these innovations, such as the importance of
business associations, multi-actor partnerships, and government participation, have been influenced
by European approaches to CSR.

4.12 CONCLUSION

Under the current legal framework, TNCs and MNCs are subject to only ‘guidelines’ or ‘soft laws’
that are non-binding international law standards as discussed above 104. While some scholars deny the
existence of soft law, others consider it a new source of international law.

All the major countries take CSR with a lot of seriousness, may be out of conscience or because the
laws that are being formulated. Some countries are governed by various boards in this matter whereas
for some countries, strict laws are made. By and large, what we can say for sure is that though the
methods are being different, the end result is quite encouraging. Some other reasons for embracing
CSR are that it is an innovation that is a huge benefit to a company and society. Brand differentiation
is another reason why companies embrace CSR. CSR is more than fulfilling a duty to the society; it
should also bring competitive advantage. All in all, it is an excellent step for the companies and the
societies. The models made for implementation of CSR should be made with more planning and skill
so that the effect is deeper and wider.

Of all functions played by international law, the social function is perhaps the most important in
terms of ushering in a peaceful society105. International law no doubt caters to commerce, but it also
emphasizes on CSR practices and RBC ( Responsible Business Conduct ) by corporations.

104
Duncan PW, Et al (1990) Functional reach: a new clinical measure of balance. J Gerontol 45:M192-197
105
Jentsch JD, Taylor JR (1999) Impulsivity resulting from frontostriatal dysfunction in drug abuse: implications for the
control of behavior by reward-related stimuli. Psychopharmacology 146: 373-390.
61
This will in turn pave the way for international peace. However, as stated by legal scholar John
Anthony Carty the society is constantly evolving and an international law that is complete in itself is
not good law106. As standards improve, some of today’s expectations could become tomorrow’s
essential requirements. International law must therefore adapt and grow as the society evolves, laying
down specialized CSR standards and codes of conduct for corporations along the way.

106
Carty A (2019) The decay of international law: A reappraisal of the limits of legal imagination in international
affairs,With a new introduction. Manchester University Press 1st Edn,UK: 1-216.
62
 CHAPTER 5

GENERAL IDEA ABOUT SOCIAL UPLIFTMENT

5.1 INTRODUCTION

“Being able to uplift others is the biggest miracle in the world.”

- Sri Avinash Do

The world Social refers to almost everything, norms, behavior, rituals, ceremonies, practices from
birth to death, treatment towards fellow human beings and other living beings of a particular
society/community or a group of people. Upliftment can be taken in two ways. One to uplift for the
sake of taking something to newer heights of development. Another refers to uplift something that is
falling down a deep well and bring it back to normal.

Every country in this world has gone through a revolutionary phase leading to disruption in traditional
methods of working so has India. India was not as much damaged economically as socially people
were subdivided and tagged into working groups. The seeds of social quality were so rotten that the
harvest now is useless and troublesome. Social upliftment is necessary in India to enhance both
economy and social life. India has been primarily facing problems regarding poverty, education and
lack of women empowerment.107

Many social workers like Raja Ram Mohan Roy, Ishvar Chandra Vidhyasagar worked for the
upliftment of the women and evil practices like sati were stopped and widow remarriage started. The
constitution of India guaranteed equal protection of the law, equal opportunities in public, prohibited
discrimination in public places.

In the 1985-1986, the former Ministry of Welfare was divided into the Department of Women and
Child Development and the Department of Welfare. At the same time, the Scheduled Castes
Development Division, Tribal Development Division and the Minorities and Backward Classes
Welfare Division of the Ministry of Home Affairs and the Wakf Division of the Ministry of Law left
those ministries to form the new Ministry of Welfare.

107
Bhunmika Bansal, Social Upliftment : Of Individuals In India, II IJAR , 213-217( 2020)
63
In 2012, the Union Minister of Social Justice and Empowerment launched Oblindia, an online library
for visually impaired college students. At launch, the library included 12,000 books in 10
languages.108

The system of education which has developed during Vedic period is termed as the Vedic system of
education. The administration and organization of education remained almost the same thought the
Vedic period, but with time, its circular and teaching methods underwent a change. After
independence government tried to spread education as fast as possible. Initially women were denied
education and were used to remain in background. Later women were encouraged to study.
Government make plan to provide free and compulsory education for all children up to the age of 14.

5.2 Social Empowerment – Women Empowerment

In the words of the current Prime Minister “empowering women means empowering the entire
family.” In a country like India, a girl child faces challenges right from the time of her birth or one
can say a girl child has to fight even for her birth. Hence the Government of India has given a big
focus on empowering women through various government-sponsored schemes. Some of the
important schemes are mentioned below.109.

5.3 Beti Bachao Beti Padhao

Beti Bachao, Beti Padhao (BBBP) campaign was launched on 22 January 2015 by Prime Minister
Narendra Modi. It aims to address the issue of the declining child sex ratio image (CSR) and is a
national initiative jointly run by the Ministry of Women and Child Development, the Ministry of
Health and Family Welfare and the Ministry of Human Resource Development. It initially focused
on multi-sector action in 100 districts throughout the country where there was a low CSR.

5.4 Pradhan Mantri Matritva Vandana Yojana

It is a maternity benefit program run by the Government of India. It was introduced in 2016 and is
implemented by the Ministry of Women and Child Development. It is a conditional cash transfer
scheme for pregnant and lactating women of 19 years of age or above for the first live birth. It

108
Id.
109
Ashma Vaidya, The Need For Social Empowerment of Women: An Elephant in The Room (2020), available at -
file:///C:/Users/Admin/Downloads/Articles-GEWNet-SocialEmpowermentofWoman_AshmaVaidya.pdf, (last visited –
Jun.8, 2022)
64
provides partial wage compensation to women for wage-loss during childbirth and childcare and to
provide conditions for safe delivery and good nutrition and feeding practices.

5.5 Sukanya Samriddhi Yojana

It is a Government of India backed saving scheme targeted at the parents of girl children. The scheme
encourages parents to build a fund for future education and marriage expenses for their female child.
The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti
Bachao, Beti Padhao campaign. The scheme currently provides high-interest rates and tax benefits.
The account can be opened at any India Post office or branch of authorized commercial banks. 110

5.6 One-Stop Centre Scheme

An initiative of the Ministry of Women and Child Development, the scheme intends to cater to
women affected by violence in a public or private space or within a family or at the workplace. At
the centre, the beneficiaries are given access to specialized services.

5.7 Social Empowerment – Poor and Marginalized Sections

For poor and marginalized sections, empowerment means access to basic education, livelihood, and
equal opportunities for growth.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

It is a financial inclusion program of the Government of India open to Indian citizens (minors of age
10 and older can also open an account with a guardian to manage it), that aims to expand affordable
access to financial services such as bank accounts, remittances, credit, insurance and pensions. This
financial inclusion campaign was launched on 28 August 2014. Under this scheme, 15 million bank
accounts were opened on inauguration day. 111

Pradhan Mantri MUDRA Yojana

Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as
manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh

110
Id.
111
Dr. Shashank Shekhar AND Aasif Naikoo,Women Empowerment and their Empowering Schemes In India(2019),
available at - file:///C:/Users/Admin/Downloads/womenempowerment.pdf,( last dated –jul.5,2022).
65
can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance
Agency Ltd. (MUDRA) loans under Pradhan Mantri Mudra Yojana (PMMY).

Skill India Mission

Skill India Mission was launched by Prime Minister Narendra Modi on 15 July 2015 to train over 40
crore people in India in different skills by 2022. It is managed by the National Skills Development
Corporation of India. United Kingdom (U.K), Japan, Oracle have collaborated with India for Skill
India Programme. One of the prominent initiatives under it is Pradhan Mantri Kaushal Vikas Yojana
(PMKVY).

The aim of the PMKVY scheme is to encourage aptitude towards employable skills and to increase
the working efficiency of probable and existing daily wage earners, by giving monetary awards and
rewards and by providing quality training to them. The scheme has a target to train 1 crore Indian
youth from 2016-20.112

Scholarship Schemes for Education

To meet its goal of educational empowerment of the SC population, a large portion of the budget of
the Department of Social Justice and Empowerment is directed to scholarships and there has been
considerable success in its distribution within the target group. Post-Matric Scholarship (PMS – SC)
for SC students has been in operation since 1944 and is the single largest intervention by the
Government of India for the educational empowerment of scheduled caste students. It covers
approximately 55 lakh students per year, studying at the post matriculation or post-secondary stage,
right up to PhD. It has had positive outcomes on literacy levels of the target groups, on dropout rates
participation in higher education, and finally in the achievement of excellence and building human
capital for the service of the nation. Other scholarship schemes for SC students are the Pre-Matric
Scholarship, Top Class Education Scheme for studying in premier educational institutions and the
National Fellowship Scheme run in conjunction with UGC.

Pradhan Mantri Adarsh Gram Yojana (PMAGY)

It focuses on the integrated development of SC majority villages. The programme is being taken up
in villages that have more than 50% SC population.

112
Id.
66
5.8 Social Empowerment – Senior Citizens

Many senior citizens feel neglected and unwanted in the twilight years of their life. The government
has taken measures to enable them to lead a respectable life with economic self-sufficiency. Some of
the schemes for senior citizens are listed below. 113

Atal Pension Yojana

It is a government-backed pension scheme in India, primarily targeted at the unorganised sector. All
subscribing workers below the age of 40 are eligible for a pension of up to 75,000 per month on the
attainment of 60 years of age.

Rashtriya Vayoshri Yojana

It is a scheme for providing Physical Aids and Assisted-living Devices for Senior citizens belonging
to the BPL category. This is a Scheme, fully funded by the Central Government. The expenditure for
implementation of the scheme will be met from the “Senior Citizens’ Welfare Fund”. The Scheme
will be implemented through the sole implementing agency – Artificial Limbs Manufacturing
Corporation (ALIMCO), a PSU under the Ministry of Social Justice and Empowerment. 114

Pradhan Mantri Vaya Vandana Yojana

This is a pension scheme for senior citizens. This is to enable old age income security and the welfare
of Senior Citizens.

5.9 Social Empowerment – Disabled Group

For the differently-abled, their disability often makes them feel that they are a burden on society.
Their requirements for empowerment are very different thereby requiring programmes customized
to suit their needs. Some of the schemes to help them lead to quality life are mentioned below.

 Deendayal Disabled Rehabilitation schemes

 Accessible India Campaign

113
Id.
114
Id.
67
5.10 Social Empowerment – Scheduled Tribes

National mainstream policies and compulsions result in the tribal communities feeling either isolated
from the mainstream or losing their identity. The government has taken initiatives to handle the issues
faced by the Scheduled Tribes which are listed below.

 Forest Rights Act

 Minimum Support Price (MSP) for Minor Forest Produce.

 Schemes for Vocational Training

 Van Dhan Yojana

5.11 CONCLUSION

From the current perspective, it appears that Organizations are playing a crucial role in
educating and raising awareness through welfare programs in our society. The ability to affect
millions more lives through their work for mass development has increased because of CSR.
Organizations through CSR make a significant contribution to the growth of the social sectors.
Large corporations must spend 2% of their revenue on social issues, according to the CSR
mandate. These companies have grown in a variety of ways over the years, and the scope of
their projects has multiplied. these companies work with the underprivileged community in
a variety of areas, including women's empowerment, health, education, and social issues. But
such companies must be transparent in their operations. We are all aware that our nation can
move forwards by constructing infrastructure, encouraging industrialization, achieving
socioeconomic equality, social upliftment, and raising the standard of living for its citizens.
Companies and business houses are essential in bridging the gaps in society by various socio-
economic development projects. By moving in the right direction companies can make sure
that the poorest of the poor, and the most underprivileged can experience sustainable growth,
have access to opportunities for education and employment, and receive vital services for their
survival.

Finally, this evaluation of the benefits of social and economic development can function as a
torch that can illuminate positively the lives of those who are most marginalized.
Companies can help achieve poverty eradication, sustainable growth, and citizen
empowerment in a number of different ways.
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 CHAPTER 6

CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL

UPLIFTMENT: CASE STUDIES

“Power has only one duty- to secure the social welfare of the people”- Benjamin Disraeli

6.1 INTRODUCTION

Starting from the times of barter system to today’s modern era of plastic money, the mankind has
trodden a remarkably long path. Undoubtedly “profitability” has always been the driving force and
an undercurrent behind all this development; but as every coin has two facets; growing cut throat
competition and business rivalries started taking heavy toll on the quality, transparency, environment
and the society in general, endangering the peaceful coexistence of business and society. The
businesses houses started realizing that they would have to rise over and above the profitability and
take care of all those associated with their survival in the society directly or indirectly. This realization
resulted into the concept of Corporate Social Responsibility (CSR). This research paper moves
around developing an understanding about the corporate social responsibility (CSR), delving into its
concept and finding out its scope taking the case studies of companies who has exemplified the sense
of responsibility towards the upliftment of common masses and protection of the environment and
development of the nation.

6.2 CASE STUDIES OF COMPANIES SHOWING THEIR INITIATIVES LEADING TO

SOCIAL UPLIFTMENT AND DEVELOPMENT

6.2.1 Tata Group & CSR

Ranging from steel, automobiles and software to consumer goods and telecommunications the Tata
Group operates more than 80 companies. It has around 200,000 employees across India and thus has
the pride to be nation‘s largest private employer. Mr. Ratan N. Tata has led the eminent Tata Group
successfully. He was trained as an architect at New York’s Cornell University but he chose to enter
the family business .He assumed the Chairmanship of the Group in 1991. 115Named Business Man of

115
Tata motors , Annual CSR Report FY2020-2021,available at- https://www.tatamotors.com/wp-
content/uploads/2021/06/30063751/annual-csr-report-2020-21.pdf ,(last visited-Jul 12, 2022)
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the Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board of the Ford Foundation and
the program board of the Bill & Melinda Gates Foundation’s India AIDS initiative. Tata Group
chairman Ratan Naval Tata has stepped down to pass on the entire responsibility to Cyrus Mistry .
Under Tata, the group went through major organisational phases — rationalisation, globalisation, and
now innovation, as it attempts to reach a reported $500 billion in revenues by 2020-21, roughly the
size of what Walmart is today. Approximately two third of the equity of the parent firm, Tata Sons
Ltd., is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji
Tata, the founder of today’s Tata empire in the 1860s. Through these trusts, Tata Sons Ltd. utilizes
on average between 8 to 14 percent of its net profit every year for various social causes. Even when
economic conditions were adverse, as in the late 1990s, the financial commitment of the group
towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in
1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45 crore on social services..Tata is
accredited to initiate various labor welfare laws. For example- the establishment of Welfare
Department was introduced in 1917 and enforced by law in 1948; Maternity Benefit was introduced
in 1928 and enforced by law in 1946.116

 Recognition of CSR

In a free enterprise, the community is not just another stakeholder in business but is in fact the very
purpose of its existence.” - Jamsetji Nusserwanji , Tata Founder, Tata Group.

“Corporate Social Responsibility should be in the DNA of every organization. Our processes should
be aligned so as to benefit the society. If society prospers, so shall the organization...” - Manoj
Chakravarti, G M - Corporate Affairs & Corporate Head - Social Responsibility, Titan Industries
Limited in 2004.

Corporate Social Responsibility has always been taken care of by the Tata group. The founder Mr.
Jamshedji Tata used to grant scholarships for further studies abroad in 1892 . He also supported
Gandhiji‘s campaign for racial equality in South Africa . Tata group has given country its first science
centre and atomic research centre . “The wealth gathered by Jamsetji Tata and his sons in half a
century of industrial pioneering formed but a minute fraction of the amount by which they enriched
the nation. Jamshed Irani, Director, Tata Sons Ltd, says, “The Tata credo is that ‘give back to the

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people what you have earned from them’. So from the very inception, Jamshetji Tata and his family
have been following this principle.”

. In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that in
future TISCO would not deal with companies, which do not conform to the company’s Corporate
Social Responsibility (CSR) standards. Speaking at the annual general meeting of the Madras
Chamber of Commerce and Industry, He stated, “We will not either buy from or sell to companies
that do not measure up to Tata Steel’s social responsibility standards.”

 Introducing Changes in the Company’s Article and Rules for Sustaining CSR Clause
No. 10 of Tata Group

A Tata Company shall be committed to be a good corporate citizen not only in compliance with all
relevant laws and regulations but also by actively assisting in the improvement of the quality of life
of the people in the communities in which it operates with the objective of making them self reliant.
Such social responsibility would comprise, to initiate and support community initiatives in the field
of community health and family welfare, water management, vocational training, education and
literacy and encourage application of modern scientific and managerial techniques and expertise.
This will be reviewed periodically in consonance with national and regional priorities. The company
would also not treat these activities as optional ones but would strive to incorporate them as integral
part of its business plan. The company would also encourage volunteering amongst its employees
and help them to work in the communities. Tata companies are encouraged to develop social
accounting systems and to carry out social audit of their operations. 117 Amendments were made to
the Articles of Association of the major Tata group companies in the 1970s. Newly included was an
article stating that the “company shall be mindful of its social and moral responsibilities to
consumers, employees, shareholders, society and the local community. To institutionalize the CSR
charter, a clause on this was put into the group’s ‘Code of Conduct.’ This clause states that group
companies had to actively assist in improving quality of life in the communities in which they
operated. All the group companies were signatories to this code. CSR was included as one of the key
business processes in TISCO. It was one of the eight key business processes identified by TISCO’s
management and considered critical to the success of the company.

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Amit Kumar Shrivastva, CSR:Case study of Tata Groups (2016),IOSR Journal.Org,(2016).
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6.2.1.1 CSR Activities of Tata Companies & Societies

Through the following companies and societies Tata group keeps on heading towards the fulfilment
of corporate social responsibility. Demonstrating their commitment to the socio economic
development of the society tata groups have invested around 663 crores on various programs in the
FY2020-21

1) Tata Steel

Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and the
Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after tax on
several CSR initiatives. 118

(a) Self-Help Groups (SHG’s)

Creating Self Help Groups (SHGs), the majority of which are made up of women from low-income
families, is a crucial strategy in the development of rural enterprises. Regular training is provided to
develop the necessary skills for a variety of jobs A total cash inflow of over Rs. 1 crore occurred, and
approximately 700 SHG members received skill development. Over 500 self-help groups are
currently operating under various poverty alleviation programs; out of which over 216 are engaged
in activities of income generation thorough micro enterprises. Women empowerment programs
through Self-Help Groups have been extended to 700 villages. Maternal and infant survival project
had a coverage area of 42 villages in Gamharia block in Seraikela Kharsawa and a replication project
was taken up in Rajnagar bloc7k. For providing portable water to rural communities 2,600 tube wells
have been installed for the benefit of over four Lakh people. The preservation and upliftment of the
Birhor and Sabar tribes has been defined as a CSR strategy. Tata aims at promoting indigenous art
and culture through its Tribal Cultural Centre. The commitment is to create opportunities for
sustainable livelihood, increase wages, enhance the quality of life, and preserve culture. Under the
bespoke project ‘Prema,' close to 100 youths from Greenfield areas in Orissa and Chhattisgarh
obtained voca7tional training.119

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(b) Supports Social Welfare Organizations

Tata Steel supports various social welfare organizations. They include;

 Tata Steel Rural Development Society

 Tribal Cultural Society

 Tata Steel Foundation for Family Initiatives

 National Association for the Blind

 Shishu Niketan School of Hope

 Centre for Hearing Impaired Children

 Indian Red Cross Society,

(c) Healthcare Projects

In its 100th year, the Tata Steel Cent7enary Project has just been announced. The healthcare projects
of Tata Steel include facilitation of child education, immunization and childcare, plantation activities,
creation of awareness of AIDS and other healthcare projects.

(d) Economic Empowerment

A program aiming at economic empowerment through improvised agriculture has been taken up in
three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh. An expenditure of Rs 100 crore
has been estimated for the purpose and this program is expected to benefit 40,000 tribal living in over
400 villages in these three States.

(e) Assistance to government

Tata Steel has hosted 12 Lifeline Expresses in association with the Ministry of Railways, Impact
India Foundation and the Government of Jharkhand. It has served over 50,000 people. Five thousand
people have got surgical facilities and over 1,000 people received aids and appliances. Over seven
lac rural and another seven Lac urban population have been benefited by the CSR activities of Tata
Steel. The National Horticulture Mission program that has been taken up in collaboration with the
Government of Jharkhand has benefited more than a thousand households. In collaboration with the

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Ministry of Non-Conventional Energy and the Confederation of Indian Industry, focus is laid on
renewable energy aiming at enhancing rural livelihood. 120

(f Maitree

Tata Companies puts a focus on health, education, along with diversity, ethical global sourcing, and
environmental stewardship. Tatas' differentiator is its employees' volunteerism through "Maitree."
"Maitree," a massive network of employees and their families, is a key CSR driver for the
company. In addition to other activities, "Maitree" develops vehicles for community service and
volunteering, such as outreach to the disabled, AIDS education, and other similar initiatives.

2) Tata Motors:

(a) Pollution Control

Tata Motors is the first Indian Company to introduce vehicles with Euro norms. a major effort was
introduce by bringing emission control technology in India and make environment friendly engines.
It has manufactured CNG version of buses and also launched a CNG version of its passenger car, the
Indica. Over the years, Tata Motors has also made investments in the establishment of an advanced
emission-testing laboratory. 121

(b) Employment Generation

the employees have been encouraged to make various industrial co-operatives engaged in productive
activities like re-cycling of scrap wood into furniture, welding, steel scrap baling,” battery cable
assembly etc. The Tata Motors ‘Grihini’ Social Welfare Society assists employees’ women
dependents; they make a variety of products, ranging from pickles to electrical cable harnesses etc;
thereby making them financially secure.

(c) Economic Capital

In Lucknow, two Societies - Samaj Vikas Kendra & Jan Parivar Kalyan Santhan have been formed
for rural development & for providing healthcare to the rural areas. These societies have made great
efforts for health, education and women empowerment in rural areas.

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(d) Human Capital

Tata motors has introduced many scholarship programs for the higher education of the children.
Through a scholarship program Vidyadhanam, the company supports 211 students. Out of these
students 132 students are from the marginalized sections of the society. These students get books,
copies and other study materials. They also undergo different kinds of workshops, creative & outdoor
sessions and residential camps as well. The company has entered into Public-Private Partnership
(PPP) for upgrading 10 Industrial Technical Institutes (ITI) across the country.

3) Tata Tea :

Tata Tea has been working hard since the 1980s to fulfil the needs of specially-abled people. It has
set up the Srishti Welfare Centre at Munnar, Kerala; its various programs provide education,
training and rehabilitation of children and young adults with special needs. Tata Tea‘s welfare
officers help identify and encourage relatives or children of employees who are handicapped to join
the Welfare Centre for special education and rehabilitation.

Shrishti has 4 projects :

a. The DARE school project

It provides the students with training in basic academics, self-help skills and skills like gardening,
cooking, weaving etc. Children are taught to paint and some of the paintings are printed and sold as
greeting cards. The sales proceeds of which are used back into the units.

b. The DARE strawberry project

It preserves unit trains youngsters to make natural strawberry preserve. The trainees are paid for the
work; they receive social cover, free medical aid and other benefits.

c. Athulya

It has two units -

(i) A vocational training centre that imparts training in stationery-making

(ii) A handmade paper-making unit which trains physically challenged persons in the art of
making recycled paper

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d. Aranya

This project was started to nurture the lives of the disabled and also to revive the ancient art of natural
dye. Individuals are given training in various natural dyeing techniques including block printing, tie
and dye, batik work, etc. Their products are sold in and outside the country. 122

Tata Tea’s Jaago Re! Campaign exemplifies the Social-Cause Marketing Initiatives. .

4) TISCO :

TISCO was awarded The Energy Research Institute (TERI) award for Corporate Social
Responsibility (CSR) for the fiscal year 2002-03 in recognition of its corporate citizenship and
sustainability initiatives. As the only Indian company trying to put into practice the Global
Compact principles on human rights, labor and environment, TISCO was also conferred the
Global Business Coalition Award in 2003 for its efforts in spreading awareness about HIV/AIDS.

5) TELCO :

TELCO, Puna has started community development activities for the benefit of TELCO families
and local residents in 1973 with the following objectives:

1. To create social awareness in all the employees and their families, to promote congenial
mutual relations amongst them, to improve personal and environmental hygiene and health

2. To help the families of employees develop better living standards by organizing extension
education programs, training in various trades/skills and providing opportunities to earn
additional income123.

TELCO is fighting against Leprosy at Jamshedpur.

6) Tata Consultancy Services (TCS) :

TCS aims at the Tata group ‘s philosophy of building strong sustainable businesses community.
The elements that make for strong corporate sustainability at TCS include the following: A fair,
transparent corporate governance, a strong strategy for long-term growth ,Best-in-class HR
processes , initiatives for community betterment and welfare.

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Navitha Pereira , Report on corporate social responsibility: The Tata Group, IOSR Journal, (2019).
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 Tata Consultancy Services runs an adult literacy program. Indian government launched Saakshar
Bharat, an adult education programme in 2009 and the programme will now go online via
TCS‘partnership. The scheme, aimed at female literacy aims to make literate 70 million people,
of which at least 85 percent are women literate and the program has already been rolled out in 167
districts across 19 states. 124

7) TBEM based performance excellence goals:

Basically TBEM Criteria is designed to help organizations use an integrated approach to performance
management that results in delivery of ever-improving value to customers and stakeholders,
contributing to organizational sustainability improvement of overall organizational effectiveness
organizational and personal learning.

8) TCSRD:

Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural Development (TCSRD)
in 1980 to promote its social objectives for the communities in and around Mithapur, where its facility
is located. This service was further extended to the communities in and around its Babrala and Haldia
facilities.

Through (TCSRD) Tata Chemicals works to improve the quality of life of the people and
communities. It also aims at supporting sustainable development, which is the central theme of the
company’s corporate philosophy. It works to protect and nurture the rural populations in and around
TCL’s facilities, and assists people in attaining self-sufficiency in natural resource management,
livelihood support. It also aims at the building of health and education infrastructure i.e. schools and
hospitals, maternity canters etc. 125

The initiatives that TCSRD is involved in include:

 Agricultural development;

 Watershed development;

 Education , women’ programs and relief works ;

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  Rural energy .

9) Tata Council for Community Initiatives (TCCI):

TCCI was established in 1994. TCCI’s mission states: “We will work together to be, and to be seen
as, a group which strives to serve our communities and the society at large”. TCCI is also involved
in assisting Tata companies maintain sustainability reporting the guidelines of Global Reporting
Initiative (GRI). It is the focal point for the UN Global Compact in India, which has 42 Tata
companies as signatories, the highest in the world from a single business group.

In collaboration with the United Nations Development Programme (India), TCCI has crafted the Tata
Index for Sustainable Human Development, aiming at directing, measuring and enhancing the
community work those Tata enterprises is undertaking for the upliftment and welfare of the people.

10) Tata Corporate Sustainability Policy :

“No success or achievement in material terms is worthwhile unless it serves the needs or interests of
the country and its people.” - J R D Tata

The corporate policy of the group encompasses the sustainable development of all the stakeholders.
The major points included in the corporate policy are following:

 Demonstrate responsibility and sensitivity to biodiversity and the environment

 Comply with rules and regulations relating to environment

 constantly upgrade technology and apply state-of-the-art processes and practices with
institutional arrangements that will combat larger issues like climate change and global
warming

 Create sustainable livelihoods and build community through social program pertaining to
health, education, empowerment of women and youth, employee volunteering,

 Find ways to enhance economic human, social and natural capital for bringing and
maintaining a balance among business, society and environment. 126

For bringing back and maintaining the general balance in the economic and social arena it is evident

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to think deeply and act wisely about CSR. Every business house owes some responsibility towards
the society, nation and world in general which provide it with all human resources, material and
natural resources. Considering the long run growth and sustainable development following the
norms of CSR, devising new policies and effective implementation is inevitable to bring and sustain
a balance between corporate world and society, present generation and upcoming generation, man
and nature . As far as the Tata group is concerned, it has gone a long way in fulfilling its duty and
responsibility towards the upliftment of society and the nation at large. It has reached the masses
to elevate their lives, to nurture their dreams and to hone their skills justifying the statement of the
founder. “We do not claim to be more unselfish, more generous and more philanthropic than other
people. But we think we started on sound and straightforward business principles, considering the
interests of the shareholder, our own, and the health and welfare of the employees, the sure
foundation of our prosperity.”

6.2.2 MAHINDRA AND MAHINDRA

Mahindra and Mahindra Limited, the Mahindra Group's flagship company, is a provider of mobility
products and farm solutions. Since the company's founding in 1947, it has grown tremendously. It
currently provides a range of products and services, including SUVs, electric. cars, pickup trucks,
commercial trucks, tractors, two-wheelers, and construction machinery. Mahindra concentrates on
creating resilient communities through its Corporate Social Responsibility (CSR) projects. The
organization's true purpose is to "challenge conventional thinking and, through the inventive
application of all of our resources, endorse positive change in our stakeholders' and
among communities around the globe, thereby enabling an upliftment." It is abundantly clear that
CSR is fundamental to and at the heart of the company's guiding principles. Mahindra and
Mahindra Limited has been careful and very diligent with the money it spends on CSR. Mahindra
and Mahindra have constantly spent the mandated amount for CSR since the FY 2014–15, when
the companies were required to spend 1% of their net profits on CSR. The company spent more on
CSR in FY 2019–20 than was required (106.56 crores vs. 126.6 crores).127

The company either implements its CSR projects directly through its ESOPs structure, in which
case employees of the company directly implement the CSR programs, or through
there implementing partners, which include NGOs. The company primarily collaborates with the
Mahindra Foundation, The KC Mahindra Education Trust, Tech Mahindra Foundation, and Naandi

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Henry Thacker, The Complete CSR report of Mahnidra and Mahindra Limited, the CSR journal (2021), available
at- https://thecsrjournal.in/mahindra-csr-corporate-social-responsibility-activities-report/, (last visited- Jul 12, 2022)
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Foundation on implementation projects. Mahindra Groups has consistently gone above and beyond
legal and regulatory requirements to create reliable interests in the group. In recent years, Mahindra
Group has concentrated its CSR efforts in a number of areas, not limited to: scholarships and gifts
only. The following are the various initiatives that fall under Mahindra and Mahindra's CSR
umbrella:128

1. Nanhi kali : Project Nanhi Kali, which means "little bud" in Hindi, aids in the education of
underprivileged girls. Over 450,000 girls from underprivileged areas nationwide have
benefited from the Mahindra and Mahindra Limited flagship project, which was created to
help low-income girls from families complete ten years of formal education. Currently, the
project helps around 1,74,681 Nanhi Kalis receive education through 6,001 educational
support centers spread across 9 states129. The Nanhi Kali team also focuses on educating
communities and parents about the value of supporting girls' education and its overall
benefits and how it helps in the upliftment of society. The Nanhi Kali team has increased
its efforts to ensure that underprivileged girls continue their education at this crucial time
by making investments in their access to high-quality digital education. Every girl in the
Nanhi Kali project receives all-encompassing assistance, such as:

 Academic support and access to digital learning

 School supply kits

 Trained women tutors

2. Mahindra pride schools: A special 90-day livelihood training course for young individuals
from economically and socially marginalized communities is called the Mahindra Pride
School. it has T nine schools in cities like Pune, Patna, Chandigarh, Srinagar, Hyderabad,
Varanasi, and three in Chennai trained and placed around 6,045 students in FY 2019–20
with a placement rate of 100%. 39,280 youths have received training through this program
to date.130

Some what around 1,01,391 students were trained in FY 2019-20 through 2,374 Mahindra

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“Corporate Social Responsibility Practices In Indian Companies – A Study”, IJMIE Volume 2, Issue 5, ISSN: 2249-
0558 (Pgs. 519-536)
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 Pride Classrooms held at ITIs centres , Polytechnics, and Arts & Science Colleges across
16 states. Final-year students receive 40-120 hours of training in topics such as English
speaking, life skills, aptitude tests, interviews, group discussions, and digital literacy
through the Mahindra Pride Classroom131s

3. Aanganwadi: These Centre serve for educational & recreational needs of local children.
Such centers are created in many states so as to provide facilities at the local levels.

4. K.C Mahindra Educational Trust: its basic aim is to uplift the society by imparting education
and transforming the lives of people in India. Education is the key to self-development and
also the development and upliftment of society. the trust promotes education in the society
by way of scholarships. Till now it has provided more than 13. 00 crores worth scholarships
and loans.

5. Employee social options: ESOPs are a long-running Employee Volunteering Initiative in

which the employees of Mahindra groups volunteer their time and skills to address the
needs of a community. In fiscal year 2019-20, 22,877 M&M employee volunteers
contributed 1,63,818 person-hours to give back to the community. 132

6. M&M also launched the MySeva initiative for employees, which aimed to extend the spirit
of giving back in a personal capacity as well. Of the total volunteering hours across the Group,
employees contributed 51,625 hours through the MySeva initiative and the remaining through
the ESOPs initiatives. 83,789 person-hours were contributed by 10,184 M&M employees.

7. The company provided CSR grant to Ratna Nidhi Charitable Trust (partnering with
Brihanmumbai Municipal Corporation or BMC) for purchase of ICU beds for the BMC
managed COVID care centre at the NESCO convention centre in Goregaon, Mumbai. After
the pandemic, these beds would be donated to healthcare centres with inadequate medical
infrastructure in the rural areas of Maharashtra.

8. Project Prerna was launched in 2018 by M&M Ltd. to empower women farmers in India by
enhancing their knowledge, capability, and income. 3,260 women farmers were supported
under Project Prerna by M&M in the vicinity of its manufacturing plants in Maharashtra,
Telangana, Uttarakhand, Rajasthan, and Madhya Pradesh. Through Project Prerna, women

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 farmers witness an average 30-40% rise in their incomes, develop an entrepreneurial mindset
and earn a dignified stature in their community.

9. M&M actively undertakes initiatives to protect and restore water resources of communities
to support sustainable development. To increase the groundwater levels, M&M entered a
Private Public Partnership (PPP) with the Government of Madhya Pradesh in Bhopal, and
with the National Bank for Agriculture and Rural Development (NABARD) in Hatta,
benefitting 48 villages. M&M has also partnered with NABARD for a watershed project in
Igatpuri, Maharashtra, covering 20 villages and benefitting more than 23,020 individuals.
Additionally, the company took up four projects with NABARD for capacity building
among farmers who gained insights and skills on soil conservation. M&M also initiated a
climate-proofing project in 3 micro watersheds to develop climate change resilient practices
impacting over 3,453 beneficiaries

The Mahindra & Mahindra group plays a huge role in complying to the societal orientation
segment. Its Kisan-Mitra Initiative assists farmers in creating wealth by educating them on
the latest argi-trends, and in this way, the company generates good revenues from wealthier
and more loyal customers, as well as expands their customer base. Finally, we can say that
social responsibility can coexist with high business profits, resulting in win-win situations.

6.2.3 INFOSYS LIMITED

In the Indian corporate field, the name Infosys is synonymous with corporate ethics. Infosys is the
industry leader in India's Information Technology Enabled Services sector. The company was an
early adopter of Corporate Social Responsibility initiatives. In the areas such As education, Gender
Equality & Women Empowerment, rural development, Environment Sustainability, Hunger,
Poverty, health and malnutrition, Infosys addresses some of India's most pressing development
challenges. Before it became imperative for firms in India to spend 2% of their net profits on CSR
initiatives, the Infosys Foundation spent on development projects through its CSR initiatives. In FY
2020-21, the company spent Rs. 325.32 crores on its CSR initiatives.133

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Henry Thaker, The ultimate Report on CSR of Infosys Limited, The CSR Journal (2019) ,available at -
https://thecsrjournal.in/infosys-csr-report-india-2020/,( last visited- Jul 6 ,2022)
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Over the years, the company has been focusing on sustainable business practices encompassing
economic, environmental and social imperatives that not only covers its business but also the
communities around it. The company’s CSR is not limited to philanthropy, but it includes holistic
community development, institution-building and sustainability-related initiatives.

Through its Csr projects, Infosys aims to develop in a way that benefits society and affects the
community for the long term. The CSR initiatives encourage the company to be accountable for its
deeds and to have a positive impact on the environment, communities, stakeholders, and society
through its activities with regard to hunger, poverty, malnutrition, and other related issues.

 Education;

Tech-based company Infosys has led the charge to raise education standards in the nation. The
company has real knowledge of the country's educational standards because it annually hires and
trains thousands of engineers. It collaborates with other non-profits, such as Avanti Fellows, to
support low-income students enrolled in public schools in securing stable, well-paying STEM careers
(Science, Technology, Engineering and Mathematics). 134

Key programs:

 Avanti Fellows Partnership initiative – A problem that stems for inequality

It focuses on providing learning’s through debate, problem solving and testing, digital education
.in this the students get access to quality STEM education by getting them live there dreams of
IIT’s and NIT’s . This program has helped nearly 10000 students get access to quality education

 Elimination of hunger from classrooms initiative:

Due to the need for children from low-income families to work to support themselves, primary
school dropout rates are very high. In order to support education among BPL (Below Poverty
Line) families' children. Infosys Foundation worked with Sri Ramakrishna Vidya Kendra in
the Bannerghatta Forest neighbourhood of Bangalore. They hope to make a long-term
difference in this community by educating its children and uplifting the entire community.

 Agastya international foundation Partnership – getting teachers future ready:

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 This program is based on up skilling the teachers with the tools that are required to educate
students in the changing times.135 This foundation provides 4 day residential workshop to
teachers with an understanding of knowledge construction by student , experimental learning
which included modules on ‘ make your own lab- low cost teachers kits etc.

 Healthcare

. Healthcare is central to the concept of national development, which is why almost all major
players in society aim to concentrate on this sector for societal development. When society
grows, that is what ultimately results in global social upliftment.

Key initiatives:

 Destitute care centre – partnership with AIIMS

Under this program underprivileged cancer patients and their families are provided with
shelter within the hospital. around 800 bed Dharamshala is made inside the campus in Indian
institute of medical science (AIIMS) in Haryana. this program is one of the largest flagship
programs of the GOI. NCI,AIIMS- has nearly 710 patient care beds, 25 theatres , 1500
accommodation units .this program has helped families find reasonable accommodations near
to the patients .

 Providing basic healthcare

Women in Jharkhand lag much behind the rest of the country because the state is mostly
tribal, with unreachable areas and villages untouched by advanced technologies. Jan Chetna
Manch, Bokaro (JCMB) has been working on women's health, there financial independence,
and empowerment in rural areas. The common goal of women's empowerment prompted
Infosys Foundation to support JCMB The initiative has new wheels and will have the
greatest impact in the such areas. The very first Women's Health Centre was established in
1997, with financial assistance from the SHGs. The centre has grown immensely and now
offers antenatal care to approximately 1,600 women and maternity care services to over 1,000
women per year. This year, the Infosys Foundation made a significant contribution to the

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 health center's operations in order to provide more allied care facilities at the centre, allowing
women to avoid large distances to receive better care.

6.2.4 BHARTI AIRTEL LIMITED

Bharti airtel also known as Airtel is a flagship telecom company of the Bharti groups. this
company operates in nearly 20 countries across south Asia, Africa. it is the fifth largest
telecom service operator in the world with somewhat around 231 million operators. The
company believes that the success of a business is not just about the profits its making and
the shareholders returns but its in pursuing a wider socio-economic objective. The
Foundation, which was founded in 2000, aims to give underprivileged children in rural India
access to free, high-quality education, with a focus on girls. In 2006, the Bharti Foundation
inaugurated its flagship initiative, the Satya Bharti School Programme. 136

 Bharti foundation

 Delivery of quality education

Bharti foundation is the philanthropic arm of Bharti enterprises. it has helped underprivileged
children and the youth to realize their true potential they have implemented and supported
initiatives like primary, secondly and also higher education. This foundation aims in bridging
the educational divide and also helps in creating and equitable and empowered society which
ultimately contributes in the overall development as well as upliftment of the society.

 The satya Bharti school program

It is a flagship rural education programme. launched in the year 2006, it is one of the largest
ends to end initiative in the field of education, ever undertaken by a corporate body in India.
It provides free education to the underprivileged students with a special focus on the education
of girl child. Currently the foundation runs around 253 schools, of which 186 are primary
schools, 62 are elementary and around 5 are higher secondary schools 137 .

 Key features of satya Bharti schools:

136
C. A . Kamal Garg , CSR reporting Vis-a- Vis Indian Companies, Corporate Social Responsibility p-245,( 3rd
Edition 2021)
137
Id.
85
  Quality education initiative to underprivileged children’s

 Free schools with facilities of mid-day meals, school supplies

 Primary to higher education

 Special focus on the girl child

 Imparting vocational education

 Community initiatives:

Beside all the other initiatives of the company, the employees of Bharti airtel engages
themselves in various community services as well it includes improving the standards of
living of the lower strata and underprivileged communities, increasing level of awareness
amongst the underprivileged on issues like health, education, safety, environment
conservation .138

 Welfare of the farmers

The company takes advantage of its vast presence in the nation to reach out to the farmers.
through a joint venture between IFFCO – IFFCO Kisan Sachar limited (IKSL) it provides key
information about government schemes, agronomy, horticulture, the prices of crops etc . with
a strong association with NABARD they provide various programs for the farmers welfare.139

 Healthcare

True to our brand essence of ‘enriching the lives’ a bundle of healthcare services are offered
by the company to prove the best possible services to its customer through the use of digital
technology. the company was the first one to enter into the domain of m-health and launch
innovative products for the community. The main focus of the company is to increase the
knowledge among the communities, change the attitude and also shape a proactive behaviour
towards the health services. 140

138
Bharti AIRTEL, Airtel annual report-2020-2021,available at-https://www.airtel.in/airtel-annual-report-2018-
19/csr.php,( last visited- Jul 19, 2022)
139
Id.
140
Supra note 119
86
6..2.5 RELIANCE INDUSTRIES LIMITED

Reliance Industries Limited is a global conglomerate headquartered in Mumbai, India.

Energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles are
among its diverse businesses. The companies’ initiatives have touched the lives of over 5.77
crores people across India .in the FY2021-2022 the company spent around 813 crores on a
number of CSR initiatives. RIL holds a deep conviction in CSR that transcends all operations
and also business. Reliance has not only focused on profit making but in transforming the
society at large. RIL encompasses a broad range of activities, it implies not only protecting
the health and ensuring the well-being and security of its employees but that of the local
communities in which it operates. In a larger perspective, such kind of endeavours is taking
the companies towards social institution building for sustainability and building a strong and
vibrant India.141

Key initiatives

 Education:

Evolving the lives through imparting education and building a large rich pool of human
resources for the country, RIL has developed a network of 11 schools around there
manufacturing units. These schools promote education among children of the underprivileged.
To attract the children to attend the school and foster a love for education and knowledge among
them, several initiatives are launched from time to time. like providing books, kits, food, shoes,
stationary etc.

 Reliance Dhirubhai Ambani Protsahan Scheme: its a novel step towards encouraging
the meritorious students of underprivileged families pursue higher education so far it
has enabled 900 students to gain access to quality education, unburdened by any
financial constraints .142

 Dhirubhai Ambani International School: these schools recognize the imperatives of

imparting a world class educational experience to the children by preparing them for

141
Reliance Industries Limited, CSR Annual Reports 2020-2021,available at: https://www.ril.com/ar2017-18/report-
on-csr.html, (last visited-Jul 19 ,2022)
142
Id.
87
 global citizenship. The students of the schools work with NGO’s like Advitya Akansha
, Pratham , Aseema, Muktangan for the education of the underprivileged kids .

 Healthcare:

RIL in partnership with the Gujarat government has created a society named as the
‘dahej Health & welfare Society to run a 50 bed hospital for secondary level healthcare
facilities at Dahej .It has invested in the society and takes care of all the daily expenses
as well. the hospitals to provide free treatment to BPL families. it also provides outdoor
medical service and organise health awareness camps to the nearby communities

 Project Bal Kalyan : the objective of this initiative is to provide nutritional

support to the children affected with HIV and supplying them with nutritive
kits.143

 Blood donation camps; the company near its manufacturing plants also the
facilities of blood donation.

 Reliance Drishti : its an initiative launched in partnership with the national

association for the blinds .the project helped in 10,000 free cornea procedures
for the underprivileged. It seeks to enable children to empathise with the need
of the visually impaired by raising awareness by organising painting
competition for the children’s and many such programs also.144

Various other fields where the company has invested include:

a. Environment

b. Safety

c. Disaster relief

d. Heritage conservation

143
Supra note 119
144
Id.
88
6.2.6 JUBILANT LIFE SCIENCE LIMITED

This year, Jubilant Life Sciences Limited has secured a place in top 10 companies for CSR against
its last year’s 23rd position. Jubilant Life Sciences conducts majority of its CSR initiatives through
Jubilant Bhartia Foundation. The company’s CSR interventions are reaching out to over 6.5 Lacs
populations in 240 villages through multiple social development projects in the realm of health,
education livelihood and social entrepreneurship.

The programs include School digitalisation program, improving the quality of education through
programs like Khushiyon ki Pathshala (teacher’s training on value-based education) and Muskaan
Fellowship (building capacity of youths to impart value-based education in the community);
Swasthya Prahari and Arogya initiatives to promote health-seeking behaviour in the community;
Livelihood initiatives like Samridhhi (SHG & micro-enterprise Promotion) and Jubifarm
(Sustainable Agriculture programme) to strengthen the financial capacity of the community
especially women; JBF with the Schwab Foundation recognise & award exceptional individuals in
Social Business.

In the FY 2020-21 the company spent Rs. 5.83 crores on its CSR programs.

6.2.7 UPL Ltd.

UPL is a global provider of agricultural products and solutions. The company spent Rs. 100 crores
on CSR in India, of which Rs. 75 crore was donated to the PM CARES Fund to fight the pandemic.
In 2020-21, the CSR team undertook several initiatives around the country to meet development
needs of diverse communities. UPL is supporting TYCIA Foundation for providing better education
as part of Project Pace at Pratapgarh and Sultanpur. In this initiative, along with development of basic
infrastructure, 100 students’ education will be supported by UPL. The company has installed 120
solar lights in Barmer- Rajasthan and 95 solar lights in Singhbara and Morena in Madhya Pradesh 145.

UPL is supporting the Gandhian Village Project in Palitana of Bhavnagar district where a multi-
purpose community hall was built for the use of villagers. It is identifying new talent across various
sports in Muzaffarpur by organizing sporting events and providing/supporting basic training
infrastructure for the sportspersons. Project “Asptal” is a mobile medical unit which has been

145
UPL Limited, UPL CSR Annual Report 2020-2021 Agilis Innpvare ,available at-https://www.upl-
ltd.com/downloads/UPL_CSR_Annual_Report_2020_2021_(LR).pdf, (last visited-Jul 20,2022)
89
providing primary medical services at the doorstep of villagers in 5 districts of Himachal Pradesh
since 2019-20. More than 3 lakh OPDs have been conducted so far.

To ensure that children in the surrounding region are nurtured to become responsible and
compassionate citizens of the country, UPL has established Gnyan Dham Vapi Charitable Trust
which is a voluntary organization managing multiple educational institutes. Sandra Shroff Gnyan
Dham School in Vapi (Gujarat) was established more than 5 decades ago. It has been working to
facilitate all round development of children in the early stages of life. The school is one of the 1st
English medium CBSE schools of the region, catering to the educational needs of the local
population. Shroff’s Rotary Institute of Chemical Technology (SRICT), Vataria, Ankleshwar stands
tall in South Gujarat. Established and managed by UPL, the institute has been instrumental in
providing quality manpower to the growing industries in the region. It is the 1st 5S certified and
QCFI (Quality Circle Forum of India) approved institute of India.146

Sandra Shroff ROFEL College of Nursing, Vapi (SSRCN) prepares professionally competent nurses
who can deliver zero-deficit nursing care to patients. The institute believes that nurses should be
partners with physicians and other health professionals in redesigning healthcare. SSRCN launched
two government programmes – National Service Scheme (NSS) and Bridge Course Certificate in
Community Health which was completed by 40 students, thus supporting the government in its efforts
to take primary health to the remotest corners of the country. The UPL Center for Agriculture
Excellence was inaugurated on 30th April, 2017 in Nahuli. The center organizes residential training
programmes (free of charge) for farmers and agriculture students from across India.

UPL Niyojaniy is a joint partnership between Center for Entrepreneurship Development (CED), the
Gujarat Industries Development Corporation (GIDC) and S.R Shroff Aajivika Trust (promoted and
managed by UPL for imparting employable skills to the youth). 4 skill development centres (known
as UPL Niyojaniy Kendra) are operational in Ankleshwar, Dahej, Halol and Vapi. These centres
focus on providing industry specific skills to youth to undertake fabrication, chemical, electrical etc.
work at factory floors.

The CSR initiative named Udyamita, has reached women in the remotest corners of Ankleshwar,
Jhagadia, Vapi and Dahej. Through information dissemination drives, training programmes, exposure
visits and mentoring, the team has been successful in inculcating the spirit of entrepreneurship

146
Id.
90
amongst women. 6 micro- enterprises have been formed as a result and women members are
successfully operating the same and getting gainful employment, even during the pandemic.

UPL has partnered with Nature Club Surat and forest department to preserve the wildlife of Dang
Forest and avoid man-animal conflict in the region, which was on the rise. The forest which was
inhabited by many herbivores and carnivores saw a sharp decline in its animal life. The few remaining
leopards attack the human population and their domesticated animals for their survival. To avoid
such incidents the project has started to breed Deers and Ungulates for soft release in the wild forests.
Planting trees has been a regular activity of UPL and Advanta Seeds. Last year Advanta Seeds in
India planted over 3000 fruit trees. The fruit trees offset environmental impacts, provide nutrition
and a healthy, clean environment for the community to enjoy. The team also ensured seedling survival
by erecting tree guards and carefully nurturing them until the sapling matures into a tree. 147

UPL has been working towards conservation of the Sarus crane which is categorized as vulnerable
on the IUCN’s (International Union for Conservation of Nature) Red List. Sarus crane (Grus antigone
antigone) is a resident species and is known to use wetlands and agriculture fields. Since the bird is
totally dependent on human approach for its survival and coexistence, they have been following a
participatory mechanism involving farmers and other stakeholders for their conservation in Kheda
district of Gujarat. Rural Sarus Protection Groups (RSPGs) have been formed, comprising farmers
and youth who have voluntarily decided to contribute towards Sarus conservation.

The company’s programmes addressing national development needs are collectively known as
“United Bharat” in India. Narmada district which falls in the southern part of Gujarat in India, has
been chosen as an Aspirational District. UPL has joined hands with the government machinery in
achieving this target. A holistic development approach is being followed with focus on making
agriculture self – sustainable and profitable.148

UPL is supporting Friends of Tribal Society to run and manage “One Teacher Schools” (OTS)
popularly called “Ekal Vidyalayan” an institution established at the village level to provide holistic
learning opportunities to tribal and rural children. These centres of learning are established with the
support of the Gram Samiti and are managed by them to enhance self-reliability at the local level.

147
Supra note 119
148
Id.
91
6.2.8 Dr. REDDY’S LABORATORIES’

Dr. Reddy’s Laboratories is an Indian multinational pharma company based out of Hyderabad. It
spent more than the prescribed amount on corporate social responsibility this year. While the
prescribed CSR spend for FY2021 was Rs. 34.1 crores, the pharma company spent Rs. 36.08 crores.

Dr. Reddy’s Laboratories is focusing on specific CSR initiatives that support social development.
The implementation of these programmes is carried out through various partner organizations. They
work primarily in the areas of education, livelihood and health. Pudami neighbourhood schools and
English primaries aim to make available quality English medium education to children from
underprivileged sections. 14910 Pudami schools are educating over 4,103 students. Out of these 4,103
students enrolled in FY2021, 1,942 students were reached through online classes. Kallam Anji Reddy
Vidyalaya (KARV), a model Pudami School caters to 2,178 students. Out of these students, 1,742
students were reached through online classes this year. Kallam Anji Reddy Vocational Junior College
(KAR-VJR) was established in 2003, trains 10th class passed students in two-year vocational courses.
The college offers courses such as computer science, computer graphics animation, accounting and
taxation and medical lab technician. The college’s strength in FY2021 was 705 students were
enrolled, out of which 309 students were covered through online classes.

School Improvement Programme (SIP) is implemented in 229 government schools covering 66,543
students, across seven districts of Andhra Pradesh and Telangana. Through SIP, CSR of Dr. Reddy’s
provides remedial learning, computer skills, science education through mobile science labs, basic
amenities such as safe water and sanitation. SIP also provides scholarships for meritorious students
to pursue higher education.

The Community Health Intervention Programme (CHIP) covers 145 villages of Srikakulam, and
Vizianagaram districts. This project was started in partnership with the NICE foundation to provide
primary and preventive care at the doorstep, to a large segment of rural population that do not have
access to safe and reliable healthcare in the region. In FY2021, they reached out to a population of
1.93 lakhs.

Dr. G.Sandhaya Rani and V.Jagdeeswari,Corportae Social Responsibility approach of Dr.Reddy’s Labs :An
149

Analysis,ISSN-2250-1991, VOL- III issue -6,June(2014)

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The livelihood programmes, implemented through Dr. Reddy’s Foundation (DRF), focus on making
the Indian youth employable, enhancing their earning potential. 150

The Grow programme aims at delivering high quality skill training to youth to help them get better
skills and jobs. It particularly focuses on improving ‘core employability’ skills to ensure that the
youth is equipped with appropriate knowledge and skills for his/her profession-of-choice and help to
pursue their career. In FY2021, Grow impacted 371 youth. Grow PwD is a skill development
programme, where differently-abled youth are given training in market-driven skills which enable
them to gain a suitable employment opportunity. In FY2021, Grow PwD impacted 105 youth.
Marking Integrated Transformation for Resourceful Agriculture (MITRA) assists farmers on
technology and methodology in farming. This programme helps them enhance their income by
increasing productivity. In FY2021, MITRA reached out to 30,603 farmers.

6.3 CONCLUSION

From the above analysis, it is evident that CSR is a noble initiative wherein the corporate entities
which reap the benefits of resources available at the society and in return helps to fill the gap of socio-
economic inequality prevalent in the country and address the problems faced by the society at large
and by their reach and power can help in the upliftment of the society.. In most of the countries, CSR
activities considered to be a voluntary obligation by the companies or regulatory in nature. India is
the first country in the world to have a mandatory statutory compliance requirement on CSR
spending, which was incorporated under Section 135 of the Companies Act, 2013 and has come into
effect from 1 April 2014. As a consequence of this, various companies have taken on extensive
projects addressing the socio-economic concerns and other social problems and have supplemented
the government’s efforts of sustainable development and engage the corporate world with the
country’s development.

The economic growth in India is changing tremendously day by day. With 1.3 billion people and the
most populous democracy in the world, India holds wealth in the possession of human and natural
resources. Companies have an important role to play apart from only profit making it must take the
responsibility of giving back to the society by way of activities like imparting free education,
providing healthcare facilities not only to the employees but also to other stakeholders, creating better

150
Id.
93
employment opportunities, giving fair wages, environmental protection, sustainable and holistic
development of community ,skill development initiatives etc.

Today, there have been significant changes made to the CSR concept. It has incorporated social and
environmental concerns into its missions and choices. Companies are very interested in informing
their stakeholders about their CSR efforts. The challenge for the businesses, however, is to develop
a solid and cutting-edge CSR strategy that should deliver high performance in ethical, environmental,
and social areas and satisfy the needs of all stakeholders. To find an effective and long-lasting
solution to the social problems, not just one but all corporations should work to change the current
social issues in India and help in the betterment of the society. Partnerships between businesses,
NGOs, and the government should be encouraged so that they can combine their expertise, strategic
thinking, and manpower.

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 CHAPTER 7

CONCLUSION AND SUGGESTIONS

7.1 CONCLUSION

This inquiry includes a presentation on Corporate Social Responsibility with relevance and
enhancement of the Company's commitment to society. The corporate sector is a critical component
of every country's financial system, and responsible corporations are fully aware of their social duties.
The idea of Corporate Social Responsibility was created in the mid-1970s. CSR is an idea whereby
associations serve the interests of society by assuming liability for the effect of their exercises on
clients, workers, investors, networks, and nature in all parts of their activities. In a nutshell, CSR is
an enterprise's commitment to the general public regarding assistance provided to the general public.
This section likewise talks about the establishment of CSR, where essential significance was given
to the Constitution of India and said that the court's endeavors should extend the scope and ambit of
the critical rights by legal understanding. Law should always progress, adjust to the quickly changing
society, and not fall behind. It is conceded that CSR has experienced numerous stages in India and is
still in its beginning stages.

Moreover, the law is likewise experiencing quick changes, particularly in the issues of divulgences
to society. A few driving and forward-looking organizations comprehending their pledge to the
community have just set out on genuine CSR activities. The organizations have effectively done the
nation glad in the comity of countries. They have accepted the difficult task of developing and
uplifting the society by the means and ability they possess. The nature and extent of Corporate Social
Responsibility have changed over the time. The idea of CSR is a generally new one; the expression
has just been in wide use since the 1970s.Despite this, it is likely consistent with the fact that
association have always been driven to operate consciously, despite differences in the financial, legal,
ethical, and voluntary desires which are placed on them. Gandhiji's concept of trusteeship has the
compassionate ground that "bread for all before cakes for a few." The rich man should perceive that
he is a trustee for all the riches that he gathers with the assistance of the individuals from the general
public. From one point of view, stepping back for the few and stepping up for the oppressed millions
is a more rational strategy for achieving equilibrium than exploiting the poor by the wealthy and the
worker by the business class. In modern society, only the possibility of social obligation is not novel.
95
Reserving a portion of one's surplus money for the benefit of the community is neither new nor an
import from the West. The business organization played an important role in historical Indian culture.
Businesses were handled with care and respect and viewed as a tool of social progress and social
upliftment, not simply relative to their philanthropy. Philanthropy was embedded in the lives of most
native businessman organizations that laid the groundwork for the advanced business class, backed
by social and religious ethics that placed beneficent giving high appreciation. Business evolved, and
as financial, political, and social circumstances changed, so did the reaction to societal demands. This
can be summarized as a shift from business philanthropy to corporate citizenship and then to
corporate social responsibility, the end result of all is the social progress and upliftment at the end.

"It is clear that the CSR obligation is a game changer for ensuring that the gains made by corporations
in India can be transferred back to society in a meaningful manner. The government's efforts to keep
the activities permitted under the obligation broad-based are commendable. Moreover, linking the
CSR activities to the SDGs both explicitly and implicitly will ensure that CSR spending aligns with
and augments national priorities. However, several shortcomings are observed in implementing the
CSR regulation, which needs to be resolved proactively to ensure maximum impact on the ground.
Firstly, a shift in mindset from one that focuses on meeting a statutory obligation to one where
companies actively identify and create sustained impact projects aligned to their values. Secondly,
streamlined information on activities that are permitted under the regulation as well as timely
clarifications. Thirdly, the creation of channels for identifying projects on a pan-India basis. This will
help spread the deployment of CSR funds to areas where the maximum impact would be possible. A
welcome step in this regard is the proposal for a 'Social Stock Exchange' by the Securities &
Exchange Board of India. The SSE will allow for more efficient deployment of CSR funding,
verification of project impact, and trading excess CSR spending between companies. Finally, there
is an urgent need to ensure that CSR spending has a multiplier effect on social, economic, and
environmental impact on the ground. This will have to be achieved by measuring outcomes of CSR
spending over time and engaging in activities with larger impact potential."

"COVID-19 pandemic has brought Corporate Social Responsibility to the forefront. Corporates, large
and small, situated in India or abroad, have risen to the occasion and supplemented the government's
efforts by refocusing their CSR activities. The same commitment and initiative attitude is hoped to
extend beyond the pandemic. Invest India, for its part, will work to help corporations looking for
impactful CSR opportunities as part of a larger effort to improve the ease of doing business in India
by strengthening initiatives like the CSR database on the IIG and facilitating knowledge transfer

96
between different stakeholders."

Milton Friedman's famous statement that “the matter of business will be the same old thing"
underlines the view that business interests drive all CSR and is best left to the judgment of a corporate
about what makes a great business. Corporate movement may influence the scope of human rights,
for example, the privilege to clean air, drinking water, better social situations, better opportunities
for the public like jobs, training programs etc. Accordingly, Corporate Social Responsibility implies
the duties of the organizations for the improvement of the earth and the public welfare, and the
upliftment of the general public.

In the digital world, everyone knows who is doing what and what implications the functioning of a
particular business has on society. Similarly, everybody will support enterprises that contribute to the
advancement of society and serve its interests, but those enterprises that undermine society's interests
will be isolated in the long run.

India, like most developing countries around the world, is struggling to provide necessities to all of
its citizens. With limited resources, the government cannot succeed in uplifting the underprivileged
society, that’s when the corporate houses come into play because of the social and economic reach
they possess. These organizations have a responsibility to the community and its constituents. They
should endeavor to improve the lives of people in society by providing them with necessities.

7.2 SUGGESTIONS

1. A Corporate Social responsibility (CSR) activity which has primarily been a voluntary
contribution by corporate, has now been included in the Companies Act, 2013. There is a
debate as to whether any penal consequences will emanate from failure to spend or an
explanation in the directors' report on the reasons. Therefore, it is only warranted. There may
be reluctance in compliance, especially in the case of companies that are not profitable but
fall under the designated category due to triggering net worth or turnover criteria. It is not
clear what all constitutes CSR activities as the list specified under Schedule VII of the Act
seems like an inclusive list and not exhaustive.

2. CSR activities must be continuously monitored to ensure both their viability and continuation.
Companies are required to engage in CSR activities as a result of the requirement being
incorporated into the Companies Act 2013 itself. For the aforementioned, a plan should be
created and presented to the CECB. Additionally, in order to identify CSR-related issues, it

97
 is important to consider the requirements and needs of the local population as well as those
who were impacted by the project. This can be done by calling a meeting of the village Samitis
that have been established in the area or by submitting proposals during the Gram Sabhas'
sessions.

3. Corporate entities and non-governmental groups should seriously consider combining their
efforts and creating synergies to implement excellent CSR practices, scale up existing
projects, and develop new initiatives to benefit more people. This will have a more significant
effect on how their activities affect the lives of ordinary people

4. CSR culture among corporations must be ensured by a separate legislative provision. The
2013 New Companies Act's requirement could be compared to Small and Medium-Sized
Enterprises (SMEs), which make a significant contribution to both economic growth and
public welfare. Strict oversight is necessary to ensure that the businesses adhere strictly to
Section 135 requirements. When using funds set aside for CSR activities, preference must be
given to the community and areas surrounding a specific company. Based on the nature of the
business, the CSR requirement must be imposed.

5. It is noted that CSR as a subject or discipline should be made mandatory at business schools
and colleges in order to inform students about social and developmental issues and the role
of CSR in assisting corporate houses to strike a wise balance between their business and
societal concerns. A similar approach will enthuse and excite young minds, prepare them to
handle development challenges in the future, and aid them as they look for more inventive
solutions to the needs of the disadvantaged and the needy. It is suggested that business
schools, non-governmental organizations, and corporate experts participate to ensure youth
involvement in public issues.

6. CSR compliance must be enforced at all levels. While requiring this compliance, it is
necessary to distinguish between various types of corporations according to their size, nature,
etc. As a result, other economic legislation, including tax laws, must be fine-tuned.

7. To reduce CSR non-compliance, additional disincentives must be developed in addition to

the penalty for non-compliance. The Government of India's economic laws and programs can
be amended to include cross-checking provisions in order to achieve this.

8. Companies must dedicate at least 3 percent of their budgets to CSR initiatives. Additionally,

98
 the basis for the contribution—average net profit—is inappropriate because the CSR
requirement is equivalent to a social security mandate and must be met regardless of profit.
The focus in India was on charity, which is not CSR, until very recently.

9. There is a need to increase public awareness of CSR in order for CSR projects to be more
successful. Various stakeholders, including the media, can take on this awareness-raising to
demonstrate the work done by business establishments in a region. The public's perception
and attitude toward corporate social responsibility programs will change significantly as a
result of this. This program would inspire other companies to join the league and use their
innovative CSR programs to tackle issues like giving many Indians access to education,
healthcare, and employment opportunities. As a result, the current goal of social
upliftment would be accomplished more successfully.

Sustainable CSR programs mean a cohesive mix of economic, legal, ethical, and philanthropic
tenets. In today's changed business scenario, there is an increased focus on giving back to society
and creating a model which works long-term and is sustainable. The best practices for inclusive
growth must be shared with stakeholders. Getting multinationals to comply with local laws is not
an easy task. Many countries do not have sufficient direct resources for enforcement. Management
practices that evade regulations continue to occur. However, suppliers, companies, and countries
cannot use these difficulties to avoid legal responsibility. Legal compliance will be challenging to
achieve, whether within the context of CSR or not, but extracting legal compliance from CSR has
the advantage of bringing to light various issues that businesses require by law to address.

99
BIBLIOGRAPHY

Statutes

1. The Constitution of India.

2. The Companies Act, 1956. 2008.
3. The Corporate Responsibility for Environment Protection (CREP) 2003.
4. The Corporate Social Responsibility Voluntary Guidelines 2009.

Books

1. Constitutional Law of India. Eight Edition 2008. By: D.D. Basu.

2. Corporate Social Responsibility, Edition 2021. By CA.Kamal Garg.

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4. Ismail & Maimunah, Corporate Social Responsibility and Its role in community development:
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5. Vinayak Patil, Sangeeta Jauhari& Deepti Maheshwari, CSR Activities and its Impact on
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6. Ramandeep Kaur , An Overview of Corporate social Responsibility (CSR) initiatives in India

, VI IJAR , 1131-1136(2018)

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8. Reena Shyam, An Analysis of Corporate Social Responsibility in India, IV IJRG 56 (2016)

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2010. P.1760.

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10. Carroll, A.B. Carroll’s pyramid of CSR: taking another look.,I IJCSR 3 (2016)

11. Dr Surya Bhushan Tiwari and Mr. Dinesh Sharma, Corporate Social Responsibility: Pattern
and Perspective In India, 8 IJOCR 28261[2016]

12. Henry Thacker, The Complete CSR report of Mahnidra and Mahindra Limited, the CSR
journal(2021)

13. Henry Thaker, The ultimate Report on CSR of Infosys Limited, The CSR Journal (2019),

14. Ravindra Kumar , Corporate Social Responsibility( CSR) In India – Issues and Challenges, 1
PJAEE , 285- 294 (2021)

15. Anne Durie, “Legal Requirements for CSR Reporting in the United Kingdom, Denmark and
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ARTICLES

1. Rana N. & U. Majmudar, Gearing Up for Responsible Growth: India’s Top Companies for
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2. T.S. NishaI “Issues and Challenges faced by Corporate Social Responsibility in Community
Development: India Human Resource Development”Journal of Business and Management.

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9. Dr. Shashank Shekhar AND Aasif Naikoo,Women Empowerment and their Empowering
Schemes In India(2019),
10. Ashma Vaidya, The Need For Social Empowerment of Women: An Elephant in The Room
(2020),

REPORTS.

1. Tata motors , Annual CSR Report FY2020-2021,available at-

https://www.tatamotors.com/wp-content/uploads/2021/06/30063751/annual-csr-report-
2020-21.pdf ,(last visited-Jul 14, 2022)

2. Bharti, Airtel, Airtel annual report-2020-2021,Available at-https://www.airtel.in/airtel-

annual-report-2018-19/csr.php,( last visited Jul 13, 2022)

3. Reliance Industries Limited, CSR Annual Reports 2020-2021,Available at:

https://www.ril.com/ar2017-18/report-on-csr.html, (last visited-Jul 16,2022

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 4. UPL Limited, UPL CSR Annual Report 2020-2021 Agilis Innpvare ,available at-
https://www.upl-ltd.com/downloads/UPL_CSR_Annual_Report_2020_2021_(LR).pdf, (last
visited-Jul 18,2022)

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