Page 1 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1136
Corporate Social Responsibilities: Issues And Challenges
SUMAN KUNDU
Assistant Professor, Faculty of Commerce,
I.B. (PG) College, Panipat
ABSTRACT
The Companies Act, 1956 is replaced with The Companies Act, 2013 and 'Corporate Social
Responsibilities' (CSR) has been made mandatory for a particular class of companies. Corporate
social responsibility is a process in which all companies come together as one and take part in
the welfare of the society. It is often referred to as business responsibility and an organization’s
action on environmental, ethical, social and economic issues. New legal mandates were imposed
to ensure equal employment opportunities, product safety, worker safety, and environmental
protection. Companies with high CSR standards are able to demonstrate their responsibilities to
the stock holders, employees, customers, and the general public.
As per United Nations and the European Commission, Corporate Social Responsibility (CSR)
leads to triple bottom-line: profits, protection of environment and fight for social justice.
Economist and philosopher Adam Smith suggested that the needs and desires of society could
best be met by the free interaction of individuals and organizations in the marketplace. However,
it is still in nascent stage in India. A recent survey reveals that 79 percent of Americans prefer to
buy products of companies that actively engage in corporate social responsibility events.
In this connection Indian business world should go beyond their economic and legal obligations
to establish mutual trust and accept responsibilities related to the betterment of society. The
papers discuss the role of corporate social responsibility. Paper also underlines the major
issues/challenges faced by Indian firms, and suggests remedial measures for effective
implementation of CSR initiatives.
Key words: Corporate, Social, Issues, Challenges, Remedial Measures, Responsibility
Page 2 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1137
1. INTRODUCTION
The significance of CSR emerged considerably in the last decade and is becoming an
increasingly important activity to businesses nationally and internationally. Over the time, CSR
stretched to both social and economic interests and also broadened to cover social as well as
economic interests. Companies now become more transparent in accounting and other activities
due to pressure from the various interest groups of the society. It is mandatory for companies to
behave in ethical and responsible manner towards the various interest groups of the society and
environment. Companies started incorporating their CSR projects in their annual reports also.
CSR is the gateway for understanding a number of firm-related and societal issues and
responding to them as per their business strategy. On the other hand, there is a universal and
prominent view on protecting the environment and the various interest groups of the society. As
globalization accelerates and large companies serve as global providers and have progressively
recognized the benefits of providing CSR programs in their various locations. CSR activities are
now being undertaken throughout the globe. Budding economies like India have also witnessed a
number of firms actively engaged in CSR activities, and the Ministry of Corporate Affairs has
also come up with guidelines for firms to follow.
In core it is all about structuring sustainable businesses, which require healthy economies,
markets and communities. The key drivers for CSR are progressive self-interest, Social
investment, transparency, trust and increased public expectations of business.
2. OBJECTIVES OF THE STUDY
The main objectives of this study are to study the status of CSR in India and the issues and
challenges faced by CSR in India.
3. RESEARCH METHODOLOGY
This research paper is an attempt of exploratory research, based on the secondary data sourced
from journals, magazines, articles and media reports. Looking into the objectives of the study the
research design employed for the study is descriptive research design. This research design was
adopted to have greater accuracy and in depth analysis of the research study. Secondary data
Page 3 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1138
have comprehensively used for the study. Information from different news articles, Books and
Web sources are used which are recorded and enumerated.
4. CURRENT AFFAIR OF CSR IN INDIA (JULY 10, 2012 BY INDIA BRIEFING)
4.1 TATA GROUP
Tata Group in India has a range of CSR projects, most of which are community improvement
programs. For example, it is a leading provider of maternal and child health services, family
planning, and has provided 98 percent immunization in Jamshedpur. The company also endorses
sports as a way of life. It has established a football academy, archery academy, and promotes
sports among employees. It offers healthcare services all over the country with programs like
rural health development.
Tata Group also has an organized relief program in case of natural disasters, including long-term
treatment and rebuilding efforts. It did laudable work during the Gujarat earthquakes and Orissa
floods. It also supports education, with over 500 schools, and also is a benefactor of the arts and
culture. It has done abundant work in improving the environment and local populations around
its industries
4.2 INFOSYS
Infosys is aggressively involved in a variety of community growth programs. In 1996, the
company created the Infosys Foundation as a not-for-profit trust to which it contributes up to 1
percent of profits after tax every year. Moreover, the Education and Research Department at
Infosys also works with employee volunteers on community development projects.
The management team at Infosys continues to set examples in the area of corporate citizenship
and has involved itself vigorously in key national bodies. They have taken initiatives to work in
the areas of research and education, community service, rural outreach programs, employment,
healthcare.
4.3 MAHINDRA & MAHINDRA
At Mahindra & Mahindra, The K. C. Mahindra Education Trust was established in 1953 with the
purpose of promoting education. Its vision is to renovate the lives of people in India through
education and financial assistance across age groups and across income strata. The K. C.
