Review of HRM, Vol. 4, No. 1 October 2015 11 Role of HR in Augmenting CSR Practices in Family-run Businesses in India Ruchi Tewari & Ekta Sharma Ahmedabad University, Ahmedabad E-mail: ruchi.tewari@ahduni.edu.in, ekta.sharma@ahduni.edu.in Abstract This paper examines the evolving role of Human Resource (HR) in family run small and medium enterprises (SMEs) where business has culturally held a welfare perspective and supporting employees and community is integral to business practice without an understanding of what professionally run business describes as Corporate Social Responsibility (CSR). Case study approach has been used to bring out the perspectives of entrepreneurs and owners of SMEs who hold a welfare approach to business and have been practicing it with benevolence. Data for the case study has been gathered through semi- structured interview and open-ended questionnaire. The study reveals that HR can play a crucial role in formalizing the CSR as evident from the case studies. The best practices which the paper brings out can be used by micro organizations which are moving up the revenue ladder and by other SMEs which are still in the process of structuring their CSR processes. Keywords: CSR, Family-run Businesses, India Introduction Corporate Social Responsibility (CSR) in India is not an alien term as the practice of business with a welfare approach has been integral to indigenous entrepreneurial activities. In fact, CSR is socially and culturally intertwined in organizational practices and fare far better as compared to their western counterparts (Tewari and Dave, 2012, Sundar, 2000). Charitable streak is more pronounced in family-run traditional businesses. Business enterprises in India largely comprise of micro, small and medium enterprises (MSMEs) which are family run and managed by owners themselves. MSMEs contribute 7% to India’s GDP and constitute 90% of the industrial units in the country and also contribute to about 35% of India’s exports (Pandey, 2007). As compared to large corporate enterprises, MSMEs contribute more extensively as they have a share of 40% in terms of volume, 80% in terms of employment, 60% in terms of exports and 92% in terms of number of enterprises. (OECD, n. d). However, this engine of growth and development faces tough competition from the larger and bigger firms which are increasing in number in India and adding to their might. Globalization in 1991, opened doors of the Indian economy to the organizations across the world and as a result several large multi-national companies (MNCs) set up their offices and operations in the country. They brought along business practices which were prevalent in their home countries and other countries globally, CSR being one of them. While Indian businesses traditionally supported charitable initiatives and community development projects, there was a marked difference in conceptual understanding of CSR in India and other western countries. In the west, CSR is construed as high impact initiative aimed at empowering the communities