'Proposed Framework for Government of India to Effectively Monitor Mandatory CSR Initiatives of Public Sector Enterprises in India'

Abstract

India had a rich history of 'Philanthropy', but over the time along with the changes in macro-economic environment, concept of social development gradually changed. In the years following economic liberalization, India witnessed rapid economic growth and thus, a new era of CSR in India began. Today, Corporate Social Responsibility (CSR) has embedded into corporate activities in the form of synchronizing their business activities with society, environment and thus ensure good governance practices and corporate ethics. The skewness of private sector CSR activities is a thought provoking idea which seeks more government role in CSR activities. In 2010, Department of Public Enterprise (DPE), Government of India introduced 'mandatory' CSR policies for 249 Central Public Sector Enterprises (CPSEs). Transition from voluntary to mandatory CSR activities is proving difficult for many. As a result, an effective framework is required to ensure the success of 'mandatory' CSR initiatives. Hence, a framework is proposed to DPE for effective management of CSR activities in 249 CPSEs. This paper also debates should CPSEs be doing mandatory CSR.