Contribution of CSR Towards Development - The Indian Perspective

Abstract

Over the years the distinct roles of Government and business has become blurred. Promoting development was considered as the prime role of the government. Now it has become clear that development actually takes place when governments don’t intervene. No country has ever achieved development in the absence of economic growth. But for development to be meaningful there has to be social development as well. Poverty continues to be one of the world’s most fundamental and urgent issues and no development is real unless it addresses the poverty. The key to poverty alleviation rests in wealth creation. Business is a core human activity and is at its best when it has clear goals and practical targets. It is about balancing the economic, social and environmental issues over the short and longer-term. Business and industry play a crucial role in the social and economic development of a nation. In the last fifty years focus of the business has resulted in stakeholder management rather than stock holder management. CSR movement recognizes that Corporations are important and powerful players in today’s world. Some of the corporations are more powerful than sovereign states. Development is a complex issue. Business must take full account of the societal expectations. More than classes, it is the masses that really nurture business. The Doctrine of social responsibility assumes that quality is as important as quantity of life. It holds that consequences of business activity extend beyond the production of goods and services. Successful economic regeneration is crucial to reversing the deep rooted problems of the most deprived areas. Real business involvement is essential to turn around deprived neighborhoods and build strong and healthy communities. The development impact of the CSR strategies has been found to have a rather complex character. Demands for transparency, accountability and responsibility have increased. NGOs have a very important role as watchdogs in CSR. The Indian society and industry are considered to have long traditions of engaging in philanthropic activities and participating in community development. Since the economic reforms in 1991, India has gained increasing importance in the world economy. India’s rapid economic growth has not automatically translated into development of the country and improved living conditions for the population. The current relative stability of the Indian economy has proved a lucrative environment for corporate investment and inflow of international capital. Development can have real meaning only when the citizens have the basic rights for good education for their children and have access to health care. The human rights perspective should be integrated in the very core of corporate social responsibility. Above all in a country like India, which has the largest number of poor people in the world, good governance has to mean being pro-poor and gender conscious. It involves improving bureaucratic and political accountability, fighting corruption, promoting people's participation and making effective and efficient use of the nation's resources.