CORPORATE SOCIAL IRRESPONSIBILITY IN INDIAAnkit Dabral
This document discusses corporate social responsibility (CSR) in India, including its origins, meaning, and current practices. It provides an overview of CSR provisions in the Companies Act of 2013, which mandates that companies meeting certain criteria must spend 2% of their net profits on CSR activities listed in Schedule VII, such as poverty alleviation, education, and environmental protection. Non-compliance requires companies to provide reasons. The draft rules clarify that CSR activities must benefit India and cannot include activities for employees. An estimated 6,000 companies will need to undertake CSR projects to comply with the new law, potentially amounting to 20,000 crore INR in commitments. For small and medium enterprises just meeting the profit criteria, engaging in CSR may
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
1. Corporate social responsibility in India is evolving from a focus on business philanthropy to broader activities integrated into core business strategy, in response to legal/regulatory pressures and public opinion.
2. CSR frameworks include the triple bottom line of economic, social and environmental responsibilities. Carroll's pyramid also outlines CSR as including economic, legal, ethical, and philanthropic responsibilities.
3. For developing countries like India, CSR focuses more on philanthropic responsibilities due to cultural and economic factors. The government regulates CSR through laws requiring companies to spend on social projects.
CSR Contribution made by selected Indian Manufacturing Multinational Companiesijtsrd
"The concept of CSR has gained lot of significance lately. But in India, complying provisions of CSR becomes mandatory after introduction of CSR policy in Indian Companies Act, 2013 for the companies who fulfill the certain criteria as mentioned. The rationale behind CSR is to embrace the responsibility for companies’ action and encouraging the positive impact through its activities on environment, healthcare, livelihood, rural development, education and so on. The present study has made an attempt to understand the CSR policy initiatives made by four major companies in India. All the data collected and used for research work is secondary in nature like official websites and reports published by companies, magazines, journals and other reference books. The purpose of this paper is to know the contribution made by four top Indian manufacturing MNC and analyze the same. These companies are drawn from ‘The CSR Journal Miss. Charuta P. Kulkarni ""CSR Contribution made by selected Indian Manufacturing Multinational Companies"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Fostering Innovation, Integration and Inclusion Through Interdisciplinary Practices in Management , March 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23055.pdf
Paper URL: https://www.ijtsrd.com/management/strategic-management/23055/csr-contribution-made-by-selected-indian-manufacturing-multinational-companies/miss-charuta-p-kulkarni"
Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
The document discusses India's new amendment making CSR activities mandatory for large companies. It will require companies with over Rs. 500 crore net worth or Rs. 1,000 crore turnover to spend 2% of their average net profits over three years on CSR initiatives. This is expected to contribute around Rs. 20,000 crore to help address issues like illiteracy, lack of sanitation, and poverty in India. While initially compulsory, the policy aims to benefit communities and incentivize companies to invest in sustainable development practices that consider social and environmental impacts. It may also help companies attract employees and gain trust and goodwill from local stakeholders impacted by their operations.
This document discusses corporate social responsibility (CSR) and the evolution of CSR practices in India, particularly for banks and other corporations. It provides details on the history and phases of CSR in India, the legal requirements for CSR under the Companies Act 2013, common CSR activities undertaken in India, and the Reserve Bank of India's guidelines on CSR for banks. The key points are that CSR has evolved from voluntary charity to an integral part of business operations, the Companies Act 2013 mandates CSR spending for large companies, and banks undertake CSR activities focused on financial inclusion, priority sector lending, and rural development.
This brief ppt is based on the provisions of sec 135 of Indian companies act 2013 as applicable towards CSR Corporate Social Responsibility on Companies in India.
CORPORATE SOCIAL IRRESPONSIBILITY IN INDIAAnkit Dabral
This document discusses corporate social responsibility (CSR) in India, including its origins, meaning, and current practices. It provides an overview of CSR provisions in the Companies Act of 2013, which mandates that companies meeting certain criteria must spend 2% of their net profits on CSR activities listed in Schedule VII, such as poverty alleviation, education, and environmental protection. Non-compliance requires companies to provide reasons. The draft rules clarify that CSR activities must benefit India and cannot include activities for employees. An estimated 6,000 companies will need to undertake CSR projects to comply with the new law, potentially amounting to 20,000 crore INR in commitments. For small and medium enterprises just meeting the profit criteria, engaging in CSR may
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a company’s CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
1. Corporate social responsibility in India is evolving from a focus on business philanthropy to broader activities integrated into core business strategy, in response to legal/regulatory pressures and public opinion.
2. CSR frameworks include the triple bottom line of economic, social and environmental responsibilities. Carroll's pyramid also outlines CSR as including economic, legal, ethical, and philanthropic responsibilities.
3. For developing countries like India, CSR focuses more on philanthropic responsibilities due to cultural and economic factors. The government regulates CSR through laws requiring companies to spend on social projects.
CSR Contribution made by selected Indian Manufacturing Multinational Companiesijtsrd
"The concept of CSR has gained lot of significance lately. But in India, complying provisions of CSR becomes mandatory after introduction of CSR policy in Indian Companies Act, 2013 for the companies who fulfill the certain criteria as mentioned. The rationale behind CSR is to embrace the responsibility for companies’ action and encouraging the positive impact through its activities on environment, healthcare, livelihood, rural development, education and so on. The present study has made an attempt to understand the CSR policy initiatives made by four major companies in India. All the data collected and used for research work is secondary in nature like official websites and reports published by companies, magazines, journals and other reference books. The purpose of this paper is to know the contribution made by four top Indian manufacturing MNC and analyze the same. These companies are drawn from ‘The CSR Journal Miss. Charuta P. Kulkarni ""CSR Contribution made by selected Indian Manufacturing Multinational Companies"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Fostering Innovation, Integration and Inclusion Through Interdisciplinary Practices in Management , March 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23055.pdf
Paper URL: https://www.ijtsrd.com/management/strategic-management/23055/csr-contribution-made-by-selected-indian-manufacturing-multinational-companies/miss-charuta-p-kulkarni"
Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
The document discusses India's new amendment making CSR activities mandatory for large companies. It will require companies with over Rs. 500 crore net worth or Rs. 1,000 crore turnover to spend 2% of their average net profits over three years on CSR initiatives. This is expected to contribute around Rs. 20,000 crore to help address issues like illiteracy, lack of sanitation, and poverty in India. While initially compulsory, the policy aims to benefit communities and incentivize companies to invest in sustainable development practices that consider social and environmental impacts. It may also help companies attract employees and gain trust and goodwill from local stakeholders impacted by their operations.
This document discusses corporate social responsibility (CSR) and the evolution of CSR practices in India, particularly for banks and other corporations. It provides details on the history and phases of CSR in India, the legal requirements for CSR under the Companies Act 2013, common CSR activities undertaken in India, and the Reserve Bank of India's guidelines on CSR for banks. The key points are that CSR has evolved from voluntary charity to an integral part of business operations, the Companies Act 2013 mandates CSR spending for large companies, and banks undertake CSR activities focused on financial inclusion, priority sector lending, and rural development.
This brief ppt is based on the provisions of sec 135 of Indian companies act 2013 as applicable towards CSR Corporate Social Responsibility on Companies in India.
The Companies Bill 2012 was passed in the Lok Sabha on 18 December 2012. The bill seeks to consolidate and improve corporate governance and further strengthen the regulations for the corporates. One of the noticeable features of the bill is introduction of the most debated concept of Corporate Social Responsibility (CSR). The attached presentation by Ms Gayatri Subramanian, Program Coordinator - CSR & Corporate Governance, Indian Institute of Corporate Affairs, New Delhi, presents a clear picture on the new CSR Bill.
This document provides an overview and comparative study of Corporate Social Responsibility (CSR) initiatives in the power generation and distribution sector of India. It analyzes CSR activities and budgets of five major public sector undertakings in the power sector: National Thermal Power Corporation, National Hydroelectric Power Corporation, Power Grid Corporation of India, Power Finance Corporation, and Rural Electrification Corporation. The study finds that while CSR spending and activities have increased, initiatives lack focus, expertise, coordination, transparency and impact assessment. It recommends extensive documentation, collaboration with experts and stakeholders, use of media, and flagship projects to improve CSR practices in the power sector.
This document discusses corporate social responsibility provisions in the new Companies Act 2013 in India. It provides an introduction to CSR and the history of the Companies Bill. The key CSR provisions in the new Act require companies meeting certain net worth, turnover or profit criteria to form a CSR committee of at least 3 directors. The committee is responsible for formulating a CSR policy and monitoring CSR activities, which must include initiatives related to poverty reduction, education, environment and other social issues. Companies are also required to spend 2% of their average net profit from the past three years on CSR activities focused on local communities. The goal of these CSR requirements is to promote goodwill for companies and ultimately support the growth of their businesses.
The document discusses the key aspects of corporate social responsibility (CSR) requirements for companies according to the Companies Act 2013 in India. It defines CSR and outlines the applicability to companies with a net worth of 500 crore rupees or more, turnover of 1000 crore rupees or more, or net profit of 5 crore rupees or more. It specifies that applicable companies must spend 2% of their average net profits of the previous three years on CSR activities related to issues like poverty, education, healthcare, environment and more.
Concept of Corporate social responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion
This document summarizes an empirical study on corporate social responsibility (CSR) of commercial banks in central Tamil Nadu, India. The study analyzed CSR activities of 6 commercial banks through interviews with 150 branch managers. It found that banks primarily focused on education and healthcare CSR activities. Most banks allocated at least Rs. 5 lakh annually for CSR. The study found no significant associations between bank type, location, or age and number of CSR activities conducted. It concluded that while banks in the region are conducting CSR activities beyond regulatory requirements, they could further improve CSR performance to meet community needs and expectations.
Companies Act 2013 Key Aspects Related to Corporate Social ResponsibilityAnil Chawla
Corporate Social Responsibility or CSR is a statutory liability for some companies in India under Companies Act 2013. This presentation discusses the legal aspects related to CSR. It is of interest to corporate houses as well as legal professionals.
Bangladesh is one of the world’s poorest countries. That’s why the CSR activities is very much important of this country in different areas.
There are so many company or industries are present in the country which contributes a lot of donation in different areas and private bank is one of them and the contribution by commercial banks to CSR activities is very significant in different areas such as:
health sector,
education sector,
disaster management,
Sports,
We at Shah Consultancy Services provide Consultancy in the ares of income tax, service tax, sales tax, Trust, Wills, family arrangements, corporate accounting, restructuring, Company Law and Secretarial matters, Tax planning and many more service
A Study on Linkage between Corporate Social Responsibility and Return on Net ...iosrjce
The purpose of the present paper is to study the linkage of CSR initiatives taken by the Indian
companies and its impact on their RONW. For this purpose, various financial parameters have been used like
Return on net worth, profit before tax and earning per share. Researchers have taken a sample of 5 private
companies namely Tata Steel Company, RIL, Mahindra & Mahindra, Infosys and Larsen and Toubro to
examine the relationship between corporate social responsibility and RONR by considering their financial
statement of five years (from March 2010 to March 2014). The logic behind to take such samples is that these
are big private key players with respect to Indian business. After getting all the data, an analysis on the
relationship between CSR and other financial parameters like EPS, PBT and RONR are tested by Regression
analysis and ANOVA. Irrespective of this general outcome, the current study depicts evidence that there is a
insignificant relationship between CSR and Return on Net Worth (RONR) in case of these companies.
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to become more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core business operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to be more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
Present Scenario of Corporate Social Responsibilities in BangladeshMasum Hussain
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
It is mandatory for companies to conform to the legal responsibilities as they are prescribed by law. So, organizations have no alternative but to comply with the basic law of the land. On the other hand, Ethical responsibilities of corporations are taken as additional responsibilities going beyond legal compliance and profit making and include those that firms believe are the right things to do. Ethical responsibility originates from humanistic, religious and moral orientation of corporations. The voluntary responsibilities to the society refer to the discretionary nature of obligations rooted in the altruistic principles which are not required by law. The motivation for such sense of responsibilities arises from the reciprocal obligation of giving back to the society in exchange of profit and power that companies receive from society. This school of thought gave rise to CSR which is seen as continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, local community, and society at all, including the environment. Even though Bangladesh is one of the world’s poorest countries, CSR activities in Bangladesh have risen significantly in importance. It is believed that the interest in CSR initiatives in Bangladesh has been fueled by MNCs’ global activities.
An empirical investigation of managerial perceptions in indian organisations ...Dr. Madhu Verma
This document summarizes a research study that investigated the perceptions of CSR managers in Indian organizations towards corporate social responsibility after it became mandatory in India through legislation in 2013. The study involved surveying 163 CSR managers from 250 large Indian companies using questionnaires and interviews. The findings revealed that Indian organizations have embraced CSR and see it as important for community welfare and sustainability. While some still view CSR as costly, most managers recognized potential benefits like improved brand image and reputation. The study concluded there has been a shift from a traditional philanthropic view of CSR to more modern views that integrate CSR into business strategy to generate long-term value. However, the study was limited by only surveying CSR managers and not considering other potential influences on perceptions.
Corporate social responsibility in Companies ACT 2013Vishwas Swamy
The document outlines the Corporate Social Responsibility (CSR) requirements for companies in India according to Chapter IX, Section 135 of the Companies Act of 2013. It defines CSR as how companies integrate social and environmental concerns into their operations and interactions with stakeholders. It requires companies meeting certain net worth, turnover, or profit thresholds to spend 2% of their average net profits of the previous three years on CSR activities. Eligible companies must form a CSR committee and develop a CSR policy specifying planned activities. The policy and an annual report detailing CSR efforts and expenditures must be disclosed publicly.
Corporate Social Responsibility (CSR) has been a topic of attention in the recent years. The extent of CSR activities in the context of Bangladesh is not well studied. CSR activities are not just philanthropic activities of a company, it is more than that. CSR is performing responsibilities towards all concerned parties of the company including customers, employees, suppliers, environment and to the society. This study is focused on the CSR practices and CSR disclosures of Bangladeshi companies from engineering and textiles industry. The major area of research have been to sort out the trend of CSR practices and any specific trend prevailing in the selected industries. To conduct the study a CSR disclosures checklist was prepared and DSE listed companies’ annual reports from 2009 to 2014 in engineering and textiles industry were taken into consideration. The study has found that companies’ CSR disclosure rate is higher when the disclosures are mandatory while the disclosure rate in lower when companies are not bound to disclose about CSR activities. The study reveals that the overall CSR practices in Bangladesh as evidenced from engineering and textiles industry is not satisfactory.
This document discusses corporate social responsibility (CSR) in India. It provides background on CSR, defining it as companies managing business processes to have an overall positive social impact. CSR was first discussed academically in the 1950s and is now mandatory for large companies in India under the Companies Act of 2013. The document outlines drivers and significance of CSR, as well as challenges in implementation, such as building local capacity and lack of transparency. It provides a checklist for evaluating CSR programs and concludes that while the Companies Act is a step forward, clear guidelines and transparency are still needed for CSR to be fully realized in India.
This document discusses CSR legislation in India according to Section 135 of the Companies Act 2013. It mandates that companies meeting certain profit thresholds must spend 2% of their average net profits of the previous three years on CSR activities focused on areas like poverty alleviation, education, gender equality, healthcare, environment sustainability and others. Companies are required to form a CSR committee to devise and monitor CSR strategies. While there are no penalties for failing to spend on CSR, companies can be fined for failing to report on CSR activities or explain why spending was not done. The top CSR performing companies in India are also mentioned.
The Companies Bill 2012 was passed in the Lok Sabha on 18 December 2012. The bill seeks to consolidate and improve corporate governance and further strengthen the regulations for the corporates. One of the noticeable features of the bill is introduction of the most debated concept of Corporate Social Responsibility (CSR). The attached presentation by Ms Gayatri Subramanian, Program Coordinator - CSR & Corporate Governance, Indian Institute of Corporate Affairs, New Delhi, presents a clear picture on the new CSR Bill.
This document provides an overview and comparative study of Corporate Social Responsibility (CSR) initiatives in the power generation and distribution sector of India. It analyzes CSR activities and budgets of five major public sector undertakings in the power sector: National Thermal Power Corporation, National Hydroelectric Power Corporation, Power Grid Corporation of India, Power Finance Corporation, and Rural Electrification Corporation. The study finds that while CSR spending and activities have increased, initiatives lack focus, expertise, coordination, transparency and impact assessment. It recommends extensive documentation, collaboration with experts and stakeholders, use of media, and flagship projects to improve CSR practices in the power sector.
This document discusses corporate social responsibility provisions in the new Companies Act 2013 in India. It provides an introduction to CSR and the history of the Companies Bill. The key CSR provisions in the new Act require companies meeting certain net worth, turnover or profit criteria to form a CSR committee of at least 3 directors. The committee is responsible for formulating a CSR policy and monitoring CSR activities, which must include initiatives related to poverty reduction, education, environment and other social issues. Companies are also required to spend 2% of their average net profit from the past three years on CSR activities focused on local communities. The goal of these CSR requirements is to promote goodwill for companies and ultimately support the growth of their businesses.
The document discusses the key aspects of corporate social responsibility (CSR) requirements for companies according to the Companies Act 2013 in India. It defines CSR and outlines the applicability to companies with a net worth of 500 crore rupees or more, turnover of 1000 crore rupees or more, or net profit of 5 crore rupees or more. It specifies that applicable companies must spend 2% of their average net profits of the previous three years on CSR activities related to issues like poverty, education, healthcare, environment and more.
Concept of Corporate social responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion
This document summarizes an empirical study on corporate social responsibility (CSR) of commercial banks in central Tamil Nadu, India. The study analyzed CSR activities of 6 commercial banks through interviews with 150 branch managers. It found that banks primarily focused on education and healthcare CSR activities. Most banks allocated at least Rs. 5 lakh annually for CSR. The study found no significant associations between bank type, location, or age and number of CSR activities conducted. It concluded that while banks in the region are conducting CSR activities beyond regulatory requirements, they could further improve CSR performance to meet community needs and expectations.
Companies Act 2013 Key Aspects Related to Corporate Social ResponsibilityAnil Chawla
Corporate Social Responsibility or CSR is a statutory liability for some companies in India under Companies Act 2013. This presentation discusses the legal aspects related to CSR. It is of interest to corporate houses as well as legal professionals.
Bangladesh is one of the world’s poorest countries. That’s why the CSR activities is very much important of this country in different areas.
There are so many company or industries are present in the country which contributes a lot of donation in different areas and private bank is one of them and the contribution by commercial banks to CSR activities is very significant in different areas such as:
health sector,
education sector,
disaster management,
Sports,
We at Shah Consultancy Services provide Consultancy in the ares of income tax, service tax, sales tax, Trust, Wills, family arrangements, corporate accounting, restructuring, Company Law and Secretarial matters, Tax planning and many more service
A Study on Linkage between Corporate Social Responsibility and Return on Net ...iosrjce
The purpose of the present paper is to study the linkage of CSR initiatives taken by the Indian
companies and its impact on their RONW. For this purpose, various financial parameters have been used like
Return on net worth, profit before tax and earning per share. Researchers have taken a sample of 5 private
companies namely Tata Steel Company, RIL, Mahindra & Mahindra, Infosys and Larsen and Toubro to
examine the relationship between corporate social responsibility and RONR by considering their financial
statement of five years (from March 2010 to March 2014). The logic behind to take such samples is that these
are big private key players with respect to Indian business. After getting all the data, an analysis on the
relationship between CSR and other financial parameters like EPS, PBT and RONR are tested by Regression
analysis and ANOVA. Irrespective of this general outcome, the current study depicts evidence that there is a
insignificant relationship between CSR and Return on Net Worth (RONR) in case of these companies.
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to become more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core business operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
This document provides an overview of corporate social responsibility (CSR) in India, including:
- CSR has traditionally been seen as philanthropic in India but is evolving to be more strategic and linked to business objectives.
- The Companies Act, 2013 introduces CSR requirements for companies and defines eligible CSR activities.
- CSR is broader than just community development and should address stakeholder impacts and integrate social, environmental and economic concerns into core operations.
- A robust CSR program can help companies gain a social license to operate from communities, attract and retain employees, and improve reputation and brand.
Present Scenario of Corporate Social Responsibilities in BangladeshMasum Hussain
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
It is mandatory for companies to conform to the legal responsibilities as they are prescribed by law. So, organizations have no alternative but to comply with the basic law of the land. On the other hand, Ethical responsibilities of corporations are taken as additional responsibilities going beyond legal compliance and profit making and include those that firms believe are the right things to do. Ethical responsibility originates from humanistic, religious and moral orientation of corporations. The voluntary responsibilities to the society refer to the discretionary nature of obligations rooted in the altruistic principles which are not required by law. The motivation for such sense of responsibilities arises from the reciprocal obligation of giving back to the society in exchange of profit and power that companies receive from society. This school of thought gave rise to CSR which is seen as continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, local community, and society at all, including the environment. Even though Bangladesh is one of the world’s poorest countries, CSR activities in Bangladesh have risen significantly in importance. It is believed that the interest in CSR initiatives in Bangladesh has been fueled by MNCs’ global activities.
An empirical investigation of managerial perceptions in indian organisations ...Dr. Madhu Verma
This document summarizes a research study that investigated the perceptions of CSR managers in Indian organizations towards corporate social responsibility after it became mandatory in India through legislation in 2013. The study involved surveying 163 CSR managers from 250 large Indian companies using questionnaires and interviews. The findings revealed that Indian organizations have embraced CSR and see it as important for community welfare and sustainability. While some still view CSR as costly, most managers recognized potential benefits like improved brand image and reputation. The study concluded there has been a shift from a traditional philanthropic view of CSR to more modern views that integrate CSR into business strategy to generate long-term value. However, the study was limited by only surveying CSR managers and not considering other potential influences on perceptions.
Corporate social responsibility in Companies ACT 2013Vishwas Swamy
The document outlines the Corporate Social Responsibility (CSR) requirements for companies in India according to Chapter IX, Section 135 of the Companies Act of 2013. It defines CSR as how companies integrate social and environmental concerns into their operations and interactions with stakeholders. It requires companies meeting certain net worth, turnover, or profit thresholds to spend 2% of their average net profits of the previous three years on CSR activities. Eligible companies must form a CSR committee and develop a CSR policy specifying planned activities. The policy and an annual report detailing CSR efforts and expenditures must be disclosed publicly.
Corporate Social Responsibility (CSR) has been a topic of attention in the recent years. The extent of CSR activities in the context of Bangladesh is not well studied. CSR activities are not just philanthropic activities of a company, it is more than that. CSR is performing responsibilities towards all concerned parties of the company including customers, employees, suppliers, environment and to the society. This study is focused on the CSR practices and CSR disclosures of Bangladeshi companies from engineering and textiles industry. The major area of research have been to sort out the trend of CSR practices and any specific trend prevailing in the selected industries. To conduct the study a CSR disclosures checklist was prepared and DSE listed companies’ annual reports from 2009 to 2014 in engineering and textiles industry were taken into consideration. The study has found that companies’ CSR disclosure rate is higher when the disclosures are mandatory while the disclosure rate in lower when companies are not bound to disclose about CSR activities. The study reveals that the overall CSR practices in Bangladesh as evidenced from engineering and textiles industry is not satisfactory.
This document discusses corporate social responsibility (CSR) in India. It provides background on CSR, defining it as companies managing business processes to have an overall positive social impact. CSR was first discussed academically in the 1950s and is now mandatory for large companies in India under the Companies Act of 2013. The document outlines drivers and significance of CSR, as well as challenges in implementation, such as building local capacity and lack of transparency. It provides a checklist for evaluating CSR programs and concludes that while the Companies Act is a step forward, clear guidelines and transparency are still needed for CSR to be fully realized in India.
This document discusses CSR legislation in India according to Section 135 of the Companies Act 2013. It mandates that companies meeting certain profit thresholds must spend 2% of their average net profits of the previous three years on CSR activities focused on areas like poverty alleviation, education, gender equality, healthcare, environment sustainability and others. Companies are required to form a CSR committee to devise and monitor CSR strategies. While there are no penalties for failing to spend on CSR, companies can be fined for failing to report on CSR activities or explain why spending was not done. The top CSR performing companies in India are also mentioned.
Assessment of CSR Law in Companies Act, 2013 – An Analysis of the Performance...inventionjournals
Introduction: The new law making CSR expenditure and reporting mandatory for certain companies is a new chapter in the Indian corporate world and has provided a necessary boost to the status of companies’ responsibility towards the stakeholders, and transparency and accountability of their actions. Need: The mandatory 2% spending of profits on CSR activities got mixed reaction from corporate executives. To ensure that the enforcement of the law isn’t limited to the term “cheque-book CSR”, regular exploration of the companies’ CSR expenditures and their consequent outcomes is absolutely essential. Objective: The paper aims to assess the outcome of Section 135 of the Companies Act, 2013, in the first year of its implementation among the BSE-SENSEX companies. Research methodology: Secondary sources were utilized for collecting profits and CSR expenditure figures of the selected 30 companies for conducting an ex-post analysis for the year 2014-15. Key findings of the study: Less than 15% of the BSE-SENSEX companies had spent on CSR activities an amount that is equal to or greater than the stipulated 2% of the average profits of the preceding 3 years as per Section 135 of Companies Act, 2013. Implications: Immediate attention of regulatory bodies is desired towards companies failing to dispense the funds earmarked for CSR as stipulated by the law to ensure compliance.
This document summarizes a research article about corporate social responsibility (CSR) in India. It discusses the key concepts and dimensions of CSR including economic, legal, ethical, and philanthropic responsibilities. It also analyzes factors driving CSR practices in Indian companies such as cost management, tax relief, customer demand, and government pressure. The objectives of the research are outlined, and prior literature on defining CSR and examining its challenges is reviewed. Issues and challenges with implementing CSR in India are explored.
This document is a student project on corporate social responsibility in India submitted to Kabul University in 2015. It provides an introduction to CSR, discusses the current state of CSR in India, and analyzes some of the key issues and challenges related to CSR activities in India. Specifically, it notes that while CSR has a long history in India, there is still debate around its definition. It also outlines some of the common approaches Indian corporations use for CSR programs, and discusses whether CSR should be made mandatory through law.
Fiinovation Dnote Xpress, Issue #10, Jan 2015Fiinovation
#DNoteXpress : Culture of CSR
Dear Reader,
We are pleased to share with you that the 10th issue of “DNote Xpress” is out.
To find out what's new in this edition, please click - http://bit.ly/1LjtG2A
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1. 1
A STUDY ON THE EMERGING TRENDS AND CHALLENGES
OF CORPORATE SOCIAL RESPONSIBILITY IN SELECTED
COMPANIES OF HOSPITALITY INDUSTRY: INDIA
Submitted by
SABARI ANAND.M
SUDHARSHAN.E
SHIRLEY EVARITA.A
DEPARTMENT OF MANAGEMENT STUDIES
2. 2
ABSTRACT
This paper elucidates how, the corporate innovate their CSR activities in the era of
corporatism. There is always an extensive debate on CSR policy with the corporate as some of
them think this is futile of spending instead, they would enhance the wealth of the shareholders.
As directed by section 135 of Companies Act 2013, under certain criteria some companies are
obliged to do CSR activities. In this paper we would bring out some of top companies CSR
activities and how they effectively intertwine their business activities. This paper is a purely
based on the secondary data and of descriptive in nature. This paper also speaks about the legal
provision and recent amendment in the companies act 2013 regarding CSR policies. The
following will throw lights on the best CSR policies and the spending of selected companies of
hospitality industry.
KEY WORD:
CSR-Corporate Social Responsibility; Amendment; Hospitality industry, challenges
3. 3
1. INTRODUCTION
In India the Corporate Social Responsibility (CSR) activities are regulated by a piece of
legislation. Section135 of the Companies Act, 2013 mandates companies to create social value
(SV)(public goods) byundertaking CSR activities as per CSR policy adopted by theirBoard in
line with the Schedule VII of the Act. It is well said that CSR is an investment not an expenditure
of the corporate which becomes an integral part of the wealth creation process for the
stakeholders. The corporate become more sustainable or create more economic value (EV) with
the intervention ofinnovative CSR related activities, which enhances trust and credibility after
considering society’s need and finding out the effective ways to fulfil the existing and anticipated
demand of the communities. The good governance and CSR resultsinto better image of the
Company by spending at least 2% ofthe average profit of previous 3 years. As small drops of
water make the mighty ocean, the effective CSR activities of eligible corporate in India would
bring a new dawn of development.The govt. of India has constituted a number of committees
from time to time for developing a framework through which the CSR activities could be
effectively governed and monitored.
AMENDMENTS IN SECTION 135 OF COMPANIES ACT:
There are various ambiguities in the existing CSR provisions.To bring more clarity in the
existing provisions, Section 135 ofthe Companies Act, 2013 was amended in line with the
uniform approach among the companies.
1. In section 135 of the principle Act,
In sub-section (1),
For the words “any financial year”, the words “the immediately preceding financial year”
shall be substituted;
EXPLANATION:
The important term “any financialyear” used in Section 135(1) is notvery clear. There
could be different assumptions/meaning possible by using the word “any financial year”.The
basic condition of CSR eligibilityis net worth/turnover/net profit.The bone of contention is the
networth/turnover/net profit for theimmediately preceding financialyear or the current financial
year.General circular No.21/2014 dated18.06.2014 clarified that “any financialyear” referred
4. 4
under Section135(1) of the Act read withRule 3(2) of Companies CSR rule,2014, implies ‘any of
the three precedingfinancial year’. There wasa concern that the CSR rules maybe overriding the
2013 Act. The2017 amendment Act replacesthe words “any financial year”with the word “the
immediately preceding financial year”. Nowit is very clear that the applicabilityof CSR
requirement would bedecided only and only for the immediatelypreceding financial year.
2. The following provision shall be inserted, namely: -
“Provided that where a Company is not required to appoint an independent director under
subsection (4) of section149, it shall have in its Corporate Social Responsibility committee two
or more directors
EXPLANATION:
Section 135(1) provides that CSRcommittee of the Board shall consistof three or more
directors, out of which at least one shall be an independentdirector (ID). Rule 5(1) of CSR Policy
Rule 2014 relaxes the requirement of Independent director in the CSR Committeeof non-listed
public Company, Private Company and foreignCompany. The requirement of IDon the CSR
committee was arisingfrom the principal Act, 2013. Lateron, the CSR Policy Rule, 2014 allowsto
have the committee withless than 3 directors without IDand overrides the Companies Act,2013.
There was a great concernthat how rules override the Act.By including the CSR rules
clarificationin the Act itself, the 2017Amendment Act addressed thisconcern and also clarify that
CSRcommittee may be formed withtwo or more directors. This is awelcome provision in the
Act. Afterthe enactment of AmendmentAct, 2017, Rule 5(1) of CSR PolicyRule 2014 would be
non-operationaland have no use among thecompanies.
3. In sub-section (3),
For the words and figure “asspecified in Schedule VII”, thewords and figures “in areas
orsubject, specified in ScheduleVII” shall be substituted;
EXPLANATION:
Schedule VII provides the list of activitiesto be undertaken by the Companyin pursuance of
the CSR policyformulation. Schedule VII focuses onbroad areas and intended to cover awide
range of activities which havebeen further explained to be interpretedliberally vide general
CircularNo. 21/2014 dated June 18, 2014.The word “as specified in ScheduleVII” used earlier,
5. 5
was not reflectingthe correct intention as it narrowsdown or restricts the scope of activities.Now
the drafting error hasbeen corrected through the AmendmentAct, 2017 which provides that
“formulate and recommend to theBoard, a CSR policy which shall indicatethe activities to be
undertakenby the Company in areas or subjectspecified in Schedule VII”. As suchthere is no
change in law.
2. LITERATURE REVIEW
Sharma Swati, Sharma Reshu & Kishor Jugal (2014) has explained in their paper “Emerging
trends in corporate social responsibility in India- a descriptive study” that Corporate Social
Responsibility (CSR), can be portrayed as, the constant commitment by companies towards the
financial and social advancement of networks in which they work. It has been observed that the
areas they choose somewhere relate to their core values. The Findings of the study results that
companies not only concentrate on how they will position their product or how they will sell it
but will also concentrate on their social strategy.
Kadambala Varun Kumar, Chalmeti Prabhat (2016) in their paper “Corporate social
responsibility-emerging trends in India: a descriptive study” notes that with the execution of the
Companies Act of 2013. This paper endeavors to recognize the adjustments in the idea of CSR
and the methodologies and patterns in its usage in India. The examination utilizes auxiliary
information and attempts to concentrate on perceptions of patterns in exercises. The paper holds
the finding that there is an even greater push from consumers, investors and governments for
increased transparency now and companies are gradually disclosing their internal data.
S.Vijayalatha, Dr.G.Brindha (2015) implies in their paper” Emerging Trends and Challenges
in Corporate Social Responsibility- India “ that the present situation corporate social
responsibility(CSR) paying an essential job to be contend with their condition A few
organizations have now enthusiastically taken up to the reason for CSR in nations with rising
economies, in India. The recommendation of the study states that there is a need for creation of
awareness about CSR amongst the general public to make CSR initiatives more effective. This
awareness generation will be preoccupied by numerous stakeholders together with the media to
spotlight the great work done by company homes during this space.
Lakshmi, V. Gowri & Kumar, T. Phaninder (2018) has identified in their study “A study on
corporate social responsibility and emerging trends in India”that the administration of India has
not relegated any expert to arrange the services and other focal specialists for their work on
6. 6
social obligation The endeavors of CSR, in India, have become consistently over the previous
decade. This article endeavors to discover the present scene of CSR advancement in India, as
surveyed by various partners and traditions help organizations translate CSR for better usage and
yielding of results.
Sharma, GSeema (2019) has acknowledged in their paper “Corporate Social Responsibility in
India: An Overview” about the concept of CSR is not new to India. This article discusses the
concept of CSR as understood by Indian businesses in the past, and the changing interpretations
of the concept in the age of globalization and expanding markets. After a detailed analysis, the
article concludes that the future of CSR in India is bright, and that its importance will continue to
grow even further given the increasing importance accorded to CSR world-wide, and India's own
realization that it needs CSR to achieve long-term sustainability in the world economy.
2.1 Research Gap:
It is known from the earlier research papers that most Articles are done on the CSR
policy of the hospitality sector as a whole. In this particular study we wanted to highlight,
analyze and compare the CSR policy that has been followed by two large players of the
hospitality industry in India. Moreover the study will establish a correlation between CSR
expenditure and net profit of the organization.
2.2 Objectives of the study:
1. To analyse and compare the trends of CSR in selected companies of hospitality industry
in India.
2. To identify the major challenges of CSR in hospitality industry of India.
3. To establish any correlation between CSR expenditure and net profit in the current year.
2.3 Research Methodology:
This research paper is descriptive in nature and the study is based on the secondary data. The
secondary data has been collected from the websites of the respective companies, reputed journals
and official government Websites. The article has explained the different CSR areas focused by the
two hotels of hospitality industry which have been picked up randomly .Later analysis of CSR in
hospitality industry has been explained and Challenges of hospitality industry are also explained.
7. 7
3. DATA ANALYSIS &
CORPORATE SOCIAL RESPONSIBILITY OF HOSPITALITY SECTOR
3.1 INDIAN TOBACCO COMPANY LIMITED:
Established in 1910 as the Imperial Tobacco Company of India Limited, the company
was renamed as the Indian Tobacco Company Limited in 1970 and further to I.T.C. Limited in
1974. The periods in the name were removed in September 2001 for the company to be
renamed as ITC Ltd.2005-09, by Boston Consulting Group.
3.2 ITC’S STRATEGIES:
Identifying and evaluating climate change risk for each business.
Reducing the environment impact of our processes, products and services and working
towards creating a positive environmental footprint.
Adopting a low carbon growth path through reduction in specific energy consumption
and enhanced use of renewable energy sources.
Enlarging our carbon positive footprint through increased carbon sequestration by
expanding forestry projects in wastelands.
Working towards minimising waste generations, maximising its reuse and recycling and
using external post-consumer waste as raw material in our units.
1. Water Conservation:
ITC continues to focus on integrated water management including water conservation
including water conservation and harvesting initiatives at its units. These include adopting latest
technologies to reduce fresh water intake and increase reuse and recycling practices, best
practices to achieve zero effluent discharges, rainwater harvesting, etc.
2. Recycling and Waste Management:
ITC has made significant progress in reducing specific waste generation through constant
monitoring and improvement of efficiencies in material utilisation and also in achieving almost
total recycling of waste generated in operations.
3. Significant Air Emission:
In order to continually reduce ITC’s energy footprints green features are integrated in all new
constructions and are also being incorporated in existing hotels, manufacturing units,
warehouses and offices complexes during retrofits.
8. 8
3.3 CSR EXPENDITURE:
CSR expenditure will include all expenditure, direct and indirect, incurred by the
company on CSR plan Moreover, any surplus arising from any CSR programmes shall be used
for CSR. Accordingly, any income arising from CSR programmes will be netted off the CSR
expenditure and such net amount will be reported at CSR expenditure.
CSR details of FY (Rs in ‘000 Cr)
Particular 2016-17 2015-16 2014-15
Average Net Profit 13,763.29 123,00.00 106.00
CSR Prescribed Expenditure 275.27 246.76 212.922
CSR Spent 275.27 249.00 226.95
Local Area Spent 275.96 247.500 214.06
SOURCE: csr.gov.in/CSR/company profile
3.4 INTERPRETATION:
The above table specifies the amount that has been spent by ITC for the period of three
years. It is evident from the table that as the profit of the company increased they have
also increased amount that should be spent on CSR. The allotted CSR amount has been
spent only in the local area.
TAJ GVK Hotels and Resorts Ltd works on small scale when compared to ITC, some of
the areas where TAJ all 66 rooms and cottage-style villas, as well as roads, were situated
in tree-free areas on 108 acres. Cottages were painted with mud paints made on-site and
local tribes were encouraged to revive traditional crafts to and add authentic touches.
Roof tiles were handcrafted from recycled tiles from dismantled homes. Old Recycled
wood was used extensively in Spa and other areas. All lighting throughout the property is
LED and CFL, no halogen or Incandescent fixtures are used. Natural river stones were
used throughout property. Great Care was taken to preserve 250 species of local flora and
the ground is home to a strawberry farm. TAJ has spent the amount allocated by
company’s act 2013 that is 2 % of last three years average net profit. Area of spending is
equal to the prescribed amount as per law.
9. 9
3.5 TAJ GVK HOTELS AND RESORTS LIMITED:
IHCL has championed the cause of skilling less privileged youth in the country since
more than a decade; long before the inception of the CSR mandatory spends under the
Companies Act, 2013 in the country. It’s a known fact how badly Indian youth at the bottom of
the pyramid lack timely guidance & handholding for what they can do post high school to
become employable. Their CSR & Affirmative Action effort has been focused on addressing this
gap. They build capacities of institutions that serve the youth from poor socio-economic
backgrounds & remote hinterlands and run industry relevant vocational training programmes that
benefit such youth who drop out from the traditional educational system.
3.5.1 Employee Volunteering
Volunteering is the primary channel through which CSR & Inclusion initiatives are undertaken
across the board. Year on year, they encourage associates to volunteer for participating in
community development initiatives
3.5.2 CSR Budget
The amounts to be spent by the Company shall be as stipulated under the Act, as amended from
time to time (presently 2% of the average net profits of the Company for the preceding three
financial years) and as approved by the Board. Any surplus arising out of the CSR projects or
programs or activities shall not form part of business profits of the Company.
3.5.3 Target and Communication Groups
The Company’s target communities shall include rural, less-privileged, school dropout,
differently abled, marginalized youth and women; indigenous artisans, disaster victims and other
such groups associated within their focus areas.
3.5.6 Project Underway
Vocational Skill Development Programs.
Partnerships to Preserve & Promote Indigenous Heritage, Culture, Arts and Handicrafts.
Income-generation and Livelihood Enhancement Programs.
10. 10
3.6 CSR EXPENDITURE
CSR details of FY (Rs in ‘000 Cr)
Particulars 2016-17 2015-16 2014-15
Average Net Profit 7.72 6.95 2.84.
CSR Prescribed Expenditure 0.15 0.139 0.022
CSR Spent 0.15 0.139 0.022
Local Area Spent 0.15 0.00 0.00
SOURCE: csr.gov.in/CSR/company profile
3.7 INTERPRETATION:
Taj GVK Hotels have lower average profit when compared to that of ITC but they have
contributed 2% to the CSR as specified in the companies’ act 2013.They spent their
complete CSR amount of 2016-17 in the local area and in the other two years it is seen
that they spent the CSR amount outside the local area
ITC works on a large scale when compared to Taj GVK Hotels and Resorts, ITC e- Chou
pal has spent more than 4 million on farmers empowerment, 690000 acres of land has
been greened (afforestation), they have spent 11 positive years in recycling solid waste,
ITC uses 43% of power consumption from renewable sources, they have built 23
platinum rated Green Buildings, ITC Hotels are LEED Platinum Certified buildings. For
more than 13 years they have maintained carbon positive footprints.
ITC also has developed watershed over 930000 acres of land. More than 61000 rural
women have benefited. More than 570000 children have been benefited. ITC has spent
the amount allocated for CSR activities in a justifiable manner and have extended their
area of spending by 69 lakhs.
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3.8 The Emerging Challenges faced by the Hospitality Industry
Society expects many things from the corporate sector. Enterprise is being asked to move
beyond the commercial sphere.
Different stake holders place varying demands on organizations. Such demand varies
over time and in different contexts.
The primary expectation centres on wealth creation or profit function of the enterprise.
But this is not the only expectation.
Customer continue to demand products that are safe, reliable and useful, services that are
responsive to the changing needs, and advertising that is honest and informative.
The public at large expects business to help project the physical environment and the
health and safety of all those who are exposed to dangerous technologies or substances.
Issue such as corporate power and corporate compliance, corporate activities and
corporate disclosures of information will continue to concern an increasing number of
people in the community.
The emerging multipurpose corporations will demand multipurpose goals and synergistic
policies that accomplish more than a single goal at time. This compels organizations to
develop new measures of performance. Instead of focusing on the single bottom line of
profits as in the past, organizations are expected to focus attention on multiple bottom
lines-social, environmental, political and ethical-which are all interconnected.
Corporations face difficulty in CSR implementation and in its effectiveness. The main
reason of challenge in practical work was that CSR requires high cost and corporations’
in adequate financial resources to train the staff
It is most commonly understood that the greatest main challenge for implementing and
developing CSR were steady competitive tension, inadequate backing from the
government and other nongovernment organizations beside the huge cost of
implementation
Lack of support from customers and investors was an additional challenge.
Complimenting to these, the core challenge in implementation of CSR was difficulty in
changing traditional business practices to CSR agenda that requires leaders’ great
commitment in managing and in changing their focus and behaviour.
Lack of managers’ expertise and capability to successfully implement desired changes
was also creating challenge in CSR implementation process.
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It is argued that a change is not an easy process and it requires commitment and hard
work to make a desired change.
It became evident that the changes in developed CSR plans means that they are not easy
to administer it and there is also an increasing proof that a basic 14 transformation in the
business model cannot happen without a major dedication by the leadership and an
alteration in the target area and behaviour of leaders.
Considering the changes required for effective CSR implementation, it is crucial to
follow up on how changes could be most actively done. Past researches indicated that it is
not easy to introduce and make change in corporations because of which most of the
instructions and ways of change were unsuccessful in brining needed results. However,
more current research points out that there are other ways of thinking about and coming
to change which is most of the time directs to greater favourable results. Change could be
a linear process and should be done from the upper level of corporations and made
uniformly across all levels in reference to specific plans.
3.9 SUGGESTION TO RECTIFY CSR CHALLENGES IN HOSPITALITY INDUSTRY:
The present chapter presents suggestions to the various services and business enterprises which
fall under both Hospitality Industry and Banking sector to promote better relationships between
these servicesand society in general and the various stakeholders in particular.
The following are the suggestions:
1. Identification of reasons and benefits of practicing Corporate Social Responsibility in
different sectors of business can have a scope for further research along with development of
company ethics programme, integration of business ethics and ethics training to the staff.
2. A study involving other independent variables such as Corporate Reputation, Organizational
Climate, and Sustainability can be undertaken to find out its effect on Corporate Social
Responsibility
3. Further study may focus on identifying and comparing the perception of line managers, staff
managers, and employees on Corporate Social Responsibility practices of the comp
4. Identification of programs and policies to enhance Corporate Social Responsibility practices is
also a relevant area of research.
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5. Companies and organisations should integrate social entrepreneurship into their core culture
by actively channelizing their research and development capabilities in the direction of socially
innovative products and services.
4. CONCLUSION
CSR fetch a very important place in the development scenario of India today and can create as an
alternative tool for sustainable development. The study shows that though the Indian service
industry are making efforts in the CSR areas but still there is a requirement of more emphasis on
CSR. There is a notion among some company is that CSR as an expenditure. There is enough
evidence provided by many scholars and academician that CSR is an investment not expenditure.
We conclude by our paper that CSR policy is something beyond law and regulation, it purely a
sense of concern towards the society in which we are also being a part of it. The future prospects
of the study would be comparison of the service sector with the other industry which are very
close to the customer i,e FMCG etc.
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