The Gap Between Rhetoric and Reality: Corporate Social Responsibility in Action - The Indian Perspective

Posted: 16 Aug 2009

See all articles by Tabrez Ahmad

Tabrez Ahmad

Maulana Azad National Urdu University (MANUU)

Ankush Prasor

KIIT Law School. KIIT University

Arnab Dutta

KIIT Law School, KIIT University

Anjan Mitra

KIIT Law School, KIIT University

Date Written: August 16, 2009

Abstract

The advantages which Corporate Social Responsibility provide is that it builds a positive image and encourages social involvement of employees, which in turn develops a sense of loyalty for the organization. This is well known to everyone that 'Every company harms the environment and people!' Corporate Social Responsibility is thus just about two aspects: The steps taken by a company to neutralize, minimize or offset the harmful effects caused by its processes and product-usage. The further steps a company takes using its resources, core competence, skills, location and funds for the benefit of people and the environment. The companies use the advantages of Corporate Social Responsibility to define the contribution of a company beyond economic value and creating employment, and weigh this contribution against the damage done by the company through its products and processes. The motive for launching CSR can vary between philanthropy and notions of corporate citizenship. In India, over time, the expectations of the public has grown enormously with demands focusing on poverty alleviation, tackling unemployment, fighting inequality or forcing companies to take affirmative action. The perspective of CSR differs from group to group. And this is how the Companies misuses the very concept of Corporate Social Responsibility and in order to create goodwill of the company they just shows the very steps for the benefit of people and the environment but always escapes all those in reality. Modern scenario is no longer based upon the ethics of past, the competitive revolution among the organizations has changed the perception of employees. The technology savvy producers have kept many welfare options in front of the employees, which have attracted employees to work and to adopt the culture. The options which got created by the organizations set a benchmark in front of them to practice the similar for all other organizations. Recent research studies reveal that companies that are perceived by the public to adopt more socially responsible business practices and ethics are more likely to perform financially better than those companies who don’t. The further steps a company takes using its resources, core competence, skills, location and funds for the benefit of people and the environment. But the fact is that as it is an act of charity, majority of the corporations do not feel the need for community participation in the designing or management of such initiatives and people participation, if any, is restricted to limited implementation aspects reducing the efficiency and effectiveness of corporate social responsibility measures at the ground level. In this paper an effort is made to study the gap between the responsibilities which the companies attributes and which it implements, by taking the examples of few of the organisations and their policies in paper and in practice.

Keywords: CSR, Corporate Social Responsibility, Core Competence

Suggested Citation

Ahmad, Tabrez and Prasor, Ankush and Dutta, Arnab and Mitra, Anjan, The Gap Between Rhetoric and Reality: Corporate Social Responsibility in Action - The Indian Perspective (August 16, 2009). Available at SSRN: https://ssrn.com/abstract=1455444

Tabrez Ahmad (Contact Author)

Maulana Azad National Urdu University (MANUU) ( email )

Gachibowli
Hyderabad, IN Telangana 500032
India
+918755929751 (Phone)

HOME PAGE: http://www.manuu.ac.in

Ankush Prasor

KIIT Law School. KIIT University ( email )

PATIA
P.O. KIIT
Bhubaneswar, Orissa 751024
India

HOME PAGE: http://www.kls.ac.in

Arnab Dutta

KIIT Law School, KIIT University ( email )

PATIA
P.O. KIIT
Bhubaneswar, Orissa 751024
India

HOME PAGE: http://www.kls.ac.in

Anjan Mitra

KIIT Law School, KIIT University ( email )

Bhubaneswar -751024
School of Computer Engineering
Bhubaneswar, IN Odisha 751024
India

HOME PAGE: http://www.kls.ac.in

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