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CORPORATE SOCIAL RESPONSIBILITY: A PRE-REQUISITE FOR CORPORATE SUSTAINABILITY
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Author(s):
DR. SHASHI KANT SINGH , MRS. POOJA
Vol - 6, Issue- 1 ,
Page(s) : 7 - 16
(2015 )
DOI : https://doi.org/10.32804/IRJMST
Abstract
Although there are various challenges (like, lack of community participation, non-transparency, non-availability of well-organized NGO and clear cut CSR guidelines, lack of consensus on implementing CSR issues etc.), corporate social responsibility (now “CSR”) has become a sine-qua-non for sustainable corporate development. Since CSR and corporate sustainability are so closely intertwined, it can be said that corporate social responsibility and sustainability is a company’s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical. The existing challenges and conflicts vis-à-vis harmony with the embryonic as well as mature enough international and national legal set up and guidelines (including Companies Act, 2013) have been appropriately discussed in the instant paper towards progressive realization of corporate social responsibility in the era of liberalization, privatization, globalization and sustainable corporate development.
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- . See, Brundtland Commission Report, 1987. Sustainable development is a balancing development that satisfies the needs of the present generation and at the same time ensures that the resources of future generations are not jeopardized.
- . Corporate sustainability refers to the role that companies can play in meeting the agenda of sustainable development and entails a balanced approach to economic progress, social progress and environmental stewardship.
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- . Advantages of legislation: (a) It would help to avoid the excessive exploitation of labour, bribery and corruption. (2) Companies would know what is expected of them, thereby promoting a level playing field. (3) Many aspects of CSR behaviour are good for business (such as reputation, human resources, branding and making it easier to locate in new communities) and legislation could help to improve profitability, growth and sustainability. (4) Some areas, such as downsizing, could help to redress the balance between companies and their employees. (5) Rogue companies would find it more difficult to compete through lower standards. The wider community would benefit as companies reach out to the key issue of underdevelopment around the world. Disadvantages of legislation: (1) Additional bureaucracy, with rising costs for observance. (2) Operation costs could rise above those required for continued profitability and sustainability. (3) Critics say that the CSR of companies is simply to make a profit, and legislation would increase the vocalization of these concerns. (4) Reporting criteria vary by company, sector and country, and they are in constant evolution.
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