© ADR Journals 2016. All Rights Reserved.
Socio-Legal Perspectives and the Concept of CSR
M R Bothra, Trilok Kumar Jain
Abstract
This article looks at changes in the legal requirements regarding CSR in Indian
context. This is a review article which reviews the proposed legal reform.
Different perspectives regarding making CSR mandatory are being discussed
in the light of the discussions of proposals. The focus has shifted from Profit
to People. The whole concept of CSR is based on the fact that the society
provides resources for business and business has to give back to the society
for its inclusive growth. Business goals have to be aligned with the social and
environmental needs for its long term growth. A few corporate houses view
the mandatory spending on CSR activities as an unjustified burden on
corporates and is going to hit their bottom line because of additional spend
of a minimum 2% of the profits on the prescribed CSR activities. There is
criticism over the dictating terms of the legislatures for philanthropic
initiatives of the companies.
Keywords: CSR, Companies act, Legal requirements, Corporate social
responsibility.
Corporate Social Responsibility (CSR) has
become a buzz word today and these three
words have attracted the attention of all
concerned be they Corporates/ Academicians/
Environmentalists/ Researchers/ Politicians/
Bureaucrats and have wide importance and
impact on the society as a whole. The concept
of CSR does not need any introduction. The
Corporate as we all know may be referred to as
an organized business entity which is an
important constituent of the society. Society
means people at large- the provider of all the
requisite resources for business-Man, Material
and Market. Responsibility is the
accountability/ relationship between two.
Thus, CSR is the responsibility of corporates
towards society. Over a period of time there is
a major shift in the style in which the business
is done and the main object of the business
today is not just to make profit. The focus has
shifted from Profit to People. The whole
concept of CSR is based on the fact that the
society provides resources for business and
business has to give back to the society for its
inclusive growth. Business goals have to be
aligned with the social and environmental
needs for its long term growth.
CSR is not new in India. For ages,
entrepreneurs and business persons have tried
to help the society at large through some or
other means in its development. The word was
not CSR, but the spirit was that of CSR. Tata
group always tried to develop the citizens from
the neighboring areas while setting up its
plants, Birla group always tried to set up
residential township before setting up the
plant and machinery, Bajaj group always came
forward to contribute to the national cause.
Entrepreneurs from Rajasthan, Gujarat,
Maharashtra came forward to set up schools