Corporate Social Responsibility (CSR) often sounds like some new theory in the corporate world but it is not new at all. It has emerged from the Vedic period or we can say from the time when Kings used to rule the country. However, its responsibility and its importance in India are still mystified.
The core agenda of CSR
As it has already been discussed, CSR is not new in India. Its outlook may keep on changing from time to time but its core agenda remains constant. Years ago, the agenda revolved around the creation of an economically wealthy society and today also, it focuses on the same.
Indian Corporate World and the Concept of Privatization
Since India is acquainted with the concepts of liberalization and globalization, the meaning of ‘corporate’ has totally changed. The Indian market started growing rapidly in various fields since this time. The business was inclined towards privatization and government companies also started looking for a transfer to private. The authoring power of companies changed. Rather than a wholly-owned firm, there are various shareholders and stakeholders that get involved at various levels of the business. There are both positive and negative changes with the introduction of privatization.
Evolution of Corporate Social Responsibility in India
The evolution of CSR hit when the Indian corporate sector needed a change in the various forms of corporate society. The main aim of bringing Corporate Social Responsibility in India was to bring a positive flow of activities in the corporate sector and between the people dealing in it and also to provide a positive environment to work that improves business productivity. CSR also links the public and private sectors in a way that the corporate world can work for social issues at the state and country levels. There are various Public Sector Enterprises that are working on various social issues. This linkup of private and public enterprises can be definitely foreseen as a boon to India.
How the Scope of Corporate Social Responsibility Evolved in India?
There is four-phase of the evolution of Corporate Social Responsibility in India which include:
The first phase
It was the time of ancient India or we can say it was the time around the first revolution in India. At that time, people were more concerned about society. Charity was done at the highest level, religion and values were everything for a family. There were merchants who would exchange goods from other people in return for food grains or something else. The deeds done at this level were for the general welfare of the whole society.
The second phase
This phase started when the freedom struggle was at its peak. At that time, Indian trade was overruled by the British. Mahatma Gandhi and other freedom fighters’ non-cooperation movement and the making of their own Indian salt and khaddar clothes boosted the confidence of Indian traders who started thinking of working and mutually helping others survive in this tough time.
The third phase
The third phase started after 1947 and carried on till the early ’80s. At that time, Public Sector Undertakings were at the boom. They were ruling the Indian corporate world. Privatization was there but it was growing at a very slow rate. Various public sector enterprises were started by the government. However, talking about CSR was not a very high note and still needed to be improved.
The fourth phase
This was the phase of liberalization and globalization. The private sector was becoming very strong and even Indian Companies were adopting CSR in order to gain success at the international level because markets in the West are more concerned about the rights of their labour.
CSR has revolutionized the era and business economy of the country over the past three decades and still holds great scope for profitability when heading in the same direction.
