Page 1 of 12

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 1

January 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 283

Role of Csr in Social Development of Our Country

Dr.R.Ramaabaanu ; Mr.R.Murukesh ; Ms.A.Narmatha,

Associate Professor in Commerce, Muthayammal College of Arts and Science,

Rasipuram, Namakkal District.

2-3M.Phil - Research Scholar in Commerce, Muthayammal College of Arts and Science,

Rasipuram, Namakkal District.

Mail Id:corru@muthayammal.in

Mail Id: parkkvanmurukesh@gmail.com ; Mail Id:narmathaharshini97@gmail.com

Abstract

Corporate social responsibility

(CSR) refers to strategies corporations or

firms Conduct their business in a way that is

ethical, society friendly and beneficial to

development of our country. This article

analyses the meaning of CSR based on some

theories available in literature. It is argued

that three theories namely utilitarian,

managerial and relational theories of CSR

supported by works of other scholars in the

area could be used to suggest that CSR

becomes an international concern due to

globalized nature of business that knows no

border. CSR is evolving in its meaning and

practice. The article then discusses the role

of CSR in development of our country

because the very logic of CSR is towards

seeing its impact in socially,

environmentally and economically.

Competencies required by CSR managers

are also analyzed in order to have a better

understanding of the practical

aspects of CSR.

Key Words: Corporate social responsibility,

CSR development,Competencies of CSR

managers, Multinational corporations,

Corporate-society relations.

INTRODUCTION

Today, we live in an age in which

companies, businesses and society are more

connected and interactive than ever before in

the past. Corporations are more aware of

their role towards the society. They are

responsible bodies that feel a sense duty

towards commonwealth and the

environment that comes with a growing

realisation that they, as an integral part of

this society themselves, can contribute to its

upliftment and empower of the entire

Page 2 of 12

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 1

January 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 284

country in turn. consumers and citizens'

campaigns can make all the difference. This

is the foundation thought behind the golden

handshake between tripartite—companies,

society and nation Corporate Social

Responsibility.

CSR is a crucial bridge between

organizations and society and also a means

to create awareness amongst corporates,

NGOs, Civic bodies and government of the

value and importance of social

responsibility to bridge the gap between the

privileged and the disadvantaged of society.

It facilitates and creates the environment

for true good partnership between civil

society and business. More and more

companies and organizations are creating

an interface to encourage industry

commerce and globalisation that can, in

turn, improve the bottom line by social

good.

Corporate Social Responsibility

(CSR) is the soul of every business these

days. It has also become the password to

not only overcome competition but to

ensure sustainable growth. It has been

supported not only by the shareholders but

stakeholders by and large encompassing the

whole community. CSR in truth is the

alignment of business operations with

social values. It takes into account the

interests of stakeholders in the company's

business policies and actions. It focuses on

the social, environmental, and financial

success of a company - the so-called triple

bottom line - with the aim to achieve social

development while achieving business

success. More importantly, CSR is the

point of convergence of various initiatives

aimed at ensuring socio-economic

development of the community which

would be livelihood oriented as a whole in

a credible and sustainable manner. There

does seem to be a glimmer of hope from

the rapidly growing field of CSR and from

the greater involvement of companies in

providing private funds for relief.

The issue of corporate social

responsibility (CSR) has been debated since

the 1950s. Latest analyses by Secchi (2007)

and Lee (2008) reported that the definition

of CSR has been changing in meaning and

practice. The classical view of CSR was

narrowly limited to philanthropy and then

shifted to the emphasis on business-society

relations particularly referring to the

contribution that a corporation or firm

Page 3 of 12

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 1

January 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 285

provided for solving social problems. In the

early twentieth century, social performance

was tied up with market performance. The

pioneer of this view, Oliver Sheldon (1923,

cited in Bichta, 2003), however, encouraged

management to take the initiative in raising

both ethical standards and justice in society

through the ethic of economizing, i.e.

economize the use of resources under the

name of efficient resource mobilization and

usage. By doing so, business creates wealth

in society and provides better standards of

living.

The present-day CSR (also called

corporate responsibility, corporate

citizenship, responsible business and

corporate social opportunity) is a concept

whereby business organizations consider the

interest of society by taking responsibility

for the impact of their activities on

customers, suppliers, employees,

shareholders, communities and other

stakeholders as well as their environment.

This obligation shows that the organizations

have to comply with legislation and

voluntarily take initiatives to improve the

well-being of their employees and their

families as well as for the local community

and society at large.

CSR simply refers to strategies

corporations or firms conduct their business

in a way that is ethical and society friendly.

CSR can involve a range of activities such

as working in partnership with local

communities, socially sensitive investment,

developing relationships with employees,

customers and their families, and involving

in activities for environmental conservation

and sustainability.

THE ECONOMY

After initiating far reaching

economic reforms of deregulation and

liberalization since 1991, India has

undergone a paradigm shift. There have

also been fundamental and irreversible

changes in the economy, government

policies, outlook of business and industry

and in the mindset of Indians in general.

From a shortage economy of food and

foreign exchange India has now become a

surplus one; from an agro based economy it

has emerged as a service oriented one; it is

now a front runner in the emerging

knowledge based new economy; Indian

companies have become globally

competitive and 'Brand India' is getting

global recognition. India has been

recognized as an attractive investment