The Ethical Quandary of CSR

CORPORATE SOCIAL responsibility (CSR) is a noble endeavour, where Indian businesses allocate a portion of their profits to philanthropic activities, ostensibly for the greater good.

- Srinath Sridharan

Of course, amply aided by the formal regulations around it. However, beneath this facade of benevolence lies a complex dilemma that demands thoughtful analysis.

The evolution of CSR in India has been nothing short of remarkable. From its early days, where CSR was often seen as an afterthought or a regulatory obligation, to its current status as a powerful driver of social and environmental change, India has come a long way. The turning point came with the introduction of the Companies Act, 2013, which mandated companies meeting certain criteria to allocate a portion of their profits to CSR initiatives. This legal framework acted as a catalyst, encouraging businesses to think beyond profits and consider their impact on society.

Over the years, Indian corporations have not only embraced CSR as a responsible business practice but have also recognised its potential to create positive change. They have diversified their philanthropic efforts across areas like education, healthcare, environmental conservation, and poverty alleviation. Simultaneously, the concept of Environmental, Social, and Governance (ESG) has gained prominence, further emphasising the need for businesses to integrate sustainability into their core strategies.

Corporate social responsibility, in essence, is a commitment by corporations to prioritise social objectives over pure profit-driven motives. It represents a conscious effort to ensure that business operations do not harm society, nature, or its intricate components. In a global context, this ideal is often easier said than done.