CORPORATE SOCIAL RESPONSIBILITY

The 21st century is characterized by unprecedented challenges and opportunities, arising from globalization, the desire for inclusive development and the imperatives of climate change. Indian business, which  is  today  viewed  globally  as  a  responsible  component  of  the ascendancy of India, is poised now to take on a leadership role in the challenges of our times. It is recognized the world over that integrating social, environmental and ethical responsibilities into the governance of businesses ensures their long term success, competitiveness and sustainability. This approach also reaffirms the view that businesses are an integral part of society, and have a critical and active role to play in the sustenance and improvement of healthy ecosystems, in fostering social  inclusiveness  and  equity,  and  in  upholding  the  essentials  of ethical  practices  and  good  governance.  This  also  makes  business sense  as  companies  with  effective  CSR,  have  image  of  socially responsible companies, achieve sustainable growth in their operations in the long run and their products and services are preferred by the customers.

Indian entrepreneurs and business enterprises have a long tradition of working within the values that have defined our nation's character for millennia. India's ancient wisdom, which is still relevant today, inspires people  to  work  for  the  larger  objective  of  the  well-being  of  all stakeholders.  These  sound  and  all-encompassing  values  are  even more  relevant  in  current  times,  as  organizations  grapple  with  the challenges of modern-day enterprise, the aspirations of stakeholders and of citizens eager to be active participants in economic growth and development.

CSR is not philanthropy and CSR activities are purely voluntary- what companies will like to do beyond any statutory requirement or obligation. To provide companies with guidance in dealing with the abovementioned  expectations,  while  working  closely  within  the framework  of  national  aspirations  and  policies,  following  Voluntary Guidelines for Corporate Social Responsibility have been developed.

While  the  guidelines  have  been  prepared  for  the  Indian  context, enterprises  that  have  a  trans-national  presence  would  benefit  from using these guidelines for their overseas operations as well. Since the guidelines are voluntary and not prepared in the nature of a prescriptive road-map, they are not intended for regulatory or contractual use. While it is expected that more and more companies would make sincere efforts to consider compliance with these Guidelines, there may be genuine reasons for some companies in not being able to adopt them completely. In such a case, it is expected that such companies may inform their stakeholders about the guidelines which the companies have not been able to follow either fully or partially. It is hoped that “India Inc.” would respond to these Guidelines with keen interest.

After  considering the experience of adoption of these guidelines by Indian Corporate Sector and consideration of relevant feedback and other  related  issues,  the  Government  may  initiate  the  exercise  for review of these Guidelines for further improvement after one year.

Source: CORPORATE SOCIAL RESPONSIBILITY VOLUNTARY GUIDELINES 2009, MCA, Govt. of India