Abstract
Developing prosperous and inclusive societies requires a reformulation of the business-society nexus toward sustainability. This means that all economically motivated behaviors of firms also need to consider their social and environmental impact, and all social and environmental policies their impact on the business sector and the economy. With the Companies Act 2013, the Indian government adopted a legislative approach to reconfigure the business-society nexus. Mandating what has been considered discretionary elicited an extensive academic debate. To study this India-specific political corporate social responsibility (CSR), we employ Content Configuration Analysis on 70 local and international English-language book chapters, research articles, reports, reviews, and expert commentaries published between 2013 and 2019 to develop a typology of the advantages and disadvantages associated with the Companies Act 2013. Among a large number of positions for and against the Act, we find that arguments extolling its advantages concurrently appear as disadvantages in other texts. This paradox is indicative of the difficulties of satisfying stakeholder expectations, as well as the complexities corporate responsibility programs face in India. Nonetheless, CSR as a policy tool allows the Indian government to instrumentalize the growing success of the business sector to address local and national needs and expectations. By systematizing the opportunities and challenges associated with the Companies Act 2013, we show how, similar to China, context and culture influence India’s socioeconomic development trajectory beyond the conventional market economy canon. Our analyses reveal how advantages and disadvantages are frequently connected to multiple stakeholders, including the government, business, and society. We conclude by highlighting the contribution this study makes to the field of political CSR.
Highlights
Most nations have directed their policies towards making business the engine of socioeconomic development and, in response, the private sector has generated heretofore unimaginable growth rates, wealth, and profits
The aim of this study is to contribute to this emerging field by examining political corporate social responsibility (CSR) in India, how the Companies Act 2013 is evaluated by academia
One of the most distinguishing features of the Companies Act 2013 is the clear demarcation of the content and its boundaries of a policy-driven interpretation of CSR, which reveals strong associations with India’s social, economic, and political context and culture
Summary
Most nations have directed their policies towards making business the engine of socioeconomic development and, in response, the private sector has generated heretofore unimaginable growth rates, wealth, and profits. Despite enabling policies and infrastructural support for the burgeoning private sector, many national and regional governments are paralyzed by their debt burdens, lack of revenue streams, mounting civic responsibilities, and growing public discontent and distrust [3]. Over time and with the rise and mobility of corporate power, the reciprocity and interdependence between business and society have weakened. Attributing clear responsibilities between increasingly impoverished and weakened governments, and increasingly wealthy, mobile, and autonomous businesses has become a major challenge [3]. Despite geopolitical shifts that have caused far-reaching global uncertainties over the past decade, India’s economy has remained robust, with steady GDP growth at above 6% [36]. The latest census data indicated that 74% of the rural population earned less than Rs. 5 000 (approximately USD 72) per month, and 24% of the urban population still lived in slums in 2014 [44]
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