XVII Annual International Seminar Proceedings; January, 2016 ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 105 INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT: STEP TOWARDS REAL INFRASTRUCTURE AND ECONOMIC DEVELOPMENT Mr. Hitesh Borana Student DES Navalmal Firodia Law College Fergusson College Campus, Pune – 411004 Abstract Purpose – Theoretically, much have been done to make Indian corporate aware of social responsibility, sustainable development and Governance as an important segment of their business activity and ultimately economic development but very little has been achieved as yet. The main aim of this research paper is to analyze how the corporate social responsibility activities and sustainable development can be integrate with each other in the overall development of infrastructure and economy and ultimately the social upliftment. The research paper elucidate practical complications and implementation of CSR and Sustainable development from legislations like companies act, income tax and accounting treatment point of view. Design/methodology/approach – A survey instrument comprising CSR and sustainable development term was developed which is based on concept of overall developmental approach. Through personal survey and interactions, data was collected from corporate, academicians, consultants and other professionals and experts, which is randomly selected. Findings – The research proposes to use qualitative research tools to empirically support the arguments of this research paper that successful companies in India do value social responsibility and Sustainable development. Research limitations/implications – The accuracy of the analysis is dependent upon the availability and accessibility of information and data collected from selected sources. Practical implications – The results of this study would help corporate, government authorities and ultimately society at large to understand the integrated terms of CSR and sustainable development, to facilitate its adoption and implementations.
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XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 105
INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABLE DEVELOPMENT: STEP TOWARDS REAL
INFRASTRUCTURE AND ECONOMIC DEVELOPMENT
Mr. Hitesh Borana
Student
DES Navalmal Firodia Law College
Fergusson College Campus, Pune – 411004
Abstract
Purpose – Theoretically, much have been done to make Indian corporate aware of social
responsibility, sustainable development and Governance as an important segment of their
business activity and ultimately economic development but very little has been achieved as yet.
The main aim of this research paper is to analyze how the corporate social responsibility
activities and sustainable development can be integrate with each other in the overall
development of infrastructure and economy and ultimately the social upliftment. The research
paper elucidate practical complications and implementation of CSR and Sustainable
development from legislations like companies act, income tax and accounting treatment point of
view.
Design/methodology/approach – A survey instrument comprising CSR and sustainable
development term was developed which is based on concept of overall developmental approach.
Through personal survey and interactions, data was collected from corporate, academicians,
consultants and other professionals and experts, which is randomly selected.
Findings – The research proposes to use qualitative research tools to empirically support the
arguments of this research paper that successful companies in India do value social responsibility
and Sustainable development.
Research limitations/implications – The accuracy of the analysis is dependent upon the
availability and accessibility of information and data collected from selected sources.
Practical implications – The results of this study would help corporate, government authorities
and ultimately society at large to understand the integrated terms of CSR and sustainable
development, to facilitate its adoption and implementations.
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 106
Originality/value – This study is probably considered as one of the most important and
systematic to determine the environment of CSR and Sustainable Development approach in
Indian Corporate scenario. It offers a significant and beneficial source of information to
Corporate, Government Authorities and other stakeholders.
Keywords – Corporate Social Responsibility, Sustainable Development, Governance,
Infrastructure and Economic Development
Paper type – Research Paper
INTRODUCTION
In recent years, the discussion about corporate social responsibility and sustainable development
has been main focus of corporations around the world. In context of change and globalization,
business enterprises are increasingly asked to pursue their objective paying attention to the needs
of the stakeholders whose well-being depends on the way enterprises manage their core
activities. In the competitive world, corporate are struggling with a new responsibility, which is
to meet the needs of the present generation without compromising the ability of the next
generations to meet their own needs. Organizations are being called upon to take responsibility
for the ways their operations impact on the societies at large. Even the organizations worldwide
are adopting vision and mission statements and their governance activities related to corporate
social responsibility (CSR) and sustainable development
Generally, the conception of CSR involves several matters related to a company‟s behavior in its
social environment beyond the exclusively economic realm with which companies are
traditionally associated with the social responsibility concept. CSR involves addressing the legal,
ethical, commercial and other society‟s expectations and making decisions that fairly balance the
claims of all key stakeholders. It is understood to be the key way a company achieves an
integration of economic, environmental and social imperatives while at the same time addressing
shareholder and stakeholder expectations, on a voluntary basis. Sustainable Development is
considered as broad concept that balances the need for economic growth with environment
protection and social equity. Sustainable development when incorporated by the organization is
called corporate sustainability and it contains, like sustainable development, all three pillars:
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 107
economic, ecological and social which is similar to CSR concept of today‟s time. Section 135 of
Companies Act, 2013 and Schedule VII of the Act and Companies (Corporate Social
Responsibility) Rules 2014 deals with the provisions of Corporate Social Responsibility. The
government has mandated the CSR provisions for companies who fall under the CSR
applicability criteria under the Act. That is the reason many corporate spread across India are
now deeply involved in CSR which is now mandatory. Companies have to spend the amount
towards CSR activities provided in the Schedule VII of the Act. It implies some kind of
commitment, through corporate policies and action.
Over the last decades, Sustainability has become very popular in modern economies at the
corporate level. In today‟s scenario, the sustainability has strengthened the relationship between
the Sustainable Development and CSR. After a long deliberations and researches on the CSR and
Sustainable Development, today it can be said that the CSR and Sustainable Development are
side of same coin. The role of both the concept is pivotal in current scenario which has a core
impact on the social development, environment sustainability, infrastructure development and
economic growth through various dimensions of both the terms.
OBJECTIVES OF THE STUDY
The objectives of the study are as under:
To study the importance of today‟s Corporate Social Responsibility and Sustainable
Development
To enumerate the various approaches for the promotion and adoption of CSR in various
business sectors and its implementation
To elucidate the impact of the activities of CSR from different legislations point of view
To summarize and to give suggestions for smooth and proper implementations of elements of
integrated CSR and Sustainable Development in India
RESEARCH METHODOLOGY
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 108
The researcher has adopted the doctrinal method in order to study the integration of CSR with
Sustainable Development in Indian context. The research paper is based on the primary data
from personal survey and interactions with academicians, consultants and other professional and
secondary data sourced from journals, magazines, articles and media reports. Looking into
requirements of the objectives of the study the research design employed for the study is of
descriptive type. Available data was extensively used for the study.
CONCEPT OF SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL
RESPONSIBILITY
In today‟s time, Sustainable Development and Corporate Social Responsibility are considered as
the sides of same coin. In contemporary socio-economic scenario the concept of Sustainable
Development and Corporate Social Responsibility has become widely integrated with
competitive business world. The rationale for Sustainable Development and CSR in the business
enterprises has been articulated in a number of ways. In essence, it‟s about building sustainable
business climate with healthy economies, markets and communities. The Conception of
Sustainable Development and CSR play an important role in today‟s competitive corporate
world.
SUSTAINABLE DEVELOPMENT
The concept of 'Sustainable Development' can be traced back as early as in 1972 in the
Stockholm Conference. Actually before that in 1987, the World Commission on Environment
and Development defined „Sustainable Development‟ as an ethical concept and has become the
major definition of 'Sustainable Development' which is a development that meets the needs of
the present without compromising the ability of future generations to meet their own needs. It
basically contains two key concepts; the concepts of “needs”, in particular the essential needs of
the world‟s poor, to which overriding priority should be given; and the idea of limitations
imposed by the state of technology and social organization of the environments ability to meet
present and future needs.
The goals of economic and social development must be defined in terms of sustainability in all
countries developed or developing, market-oriented or centrally planned.” cited in “Our
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 109
Common Future” (World Commission on Environment and Development, 1987). Whereas
Elkington goes more into detail when arguing that companies should not only focus on
enhancing its value through maximizing profit and outcome but concentrate on environmental
and social issues equally. In 1972, United Nations Conference on the Human Environment in
Stockholm in gave birth to the first true notion of sustainable development, which was called
„eco development‟ in those days. It leads to the establishment of many national environmental
protection agencies and the United Nations Environment Programme (UNEP) Further, in the
United Nations Conference on Environment and Development in Rio de Janeiro 1992 and the
World Summit on Sustainable Development, Johannesburg on Sustainable Development 2002
and United Nations Conference on Sustainable Development also known as Rio+20 in Rio de
Janeiro has developed Sustainable Development concept more deeply. Historically, there are
many initiatives in favor of sustainable development. Today, the concept of sustainable
development has been accepted all over the world.
CORPORATE SOCIAL RESPONSIBILITY
Defining corporate social responsibility is one of the major challenges to the field for both the
corporate and academic worlds. Corporate Social Responsibility (CSR) is a management concept
whereby companies integrate social and environmental concerns in their business operations and
interactions with their stakeholders. Traditionally, CSR in India has traditionally been seen as a
philanthropic activity, but latter it goes on developing and was considered as the objective of
Sustainable Development. Corporate Social Responsibility as a concept has existed in India since
ages and plays an important role in a developing country like ours. The organizations have
realized that besides profit making, a corporate must involve in trust building by working upon
its societal relationships and environmental issues. Also, companies which genuinely adopt the
principles of socially responsible behavior are preferred and favored by the society at large, of
which the company forms an integral part i.e. Society. Hence, one can say that CSR is basically
an act of moral, social and business responsibility with the aim to protect, preserve and nurture
human values and promote socio-economic welfare in the society. It is evolved over a period of
time when in the 19th
century, the industrial families like Tata, Birla, Godrej, etc. had an
inclination towards such activities for societies. These giant corporate involved themselves in a
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 110
variety of CSR activities without any legal requirements and view it in the context of building
goodwill, reputation and brand building.
Today, in the global context, CSR is more developed in par with the Sustainable Development.
CSR is generally understood as being the way through which a company achieves a balance of
economic, environmental and social imperatives while at the same time addressing the
expectations of shareholders and stakeholders. It aims to embrace responsibility for corporate
actions and to encourage a positive impact on the environment and stakeholders including
consumers, employees, investors, communities, and others.
In India, Section 135 of the Companies Act, 2013 and Schedule VII of the Act and rules made
thereunder mandate the provisions for CSR for companies registered under the said Act. The
introduction of CSR provision in the Companies Act is a welcome step and all companies which
satisfy the CSR criteria will have to undertake CSR activities under the new CSR regime. This
step will boost much required social projects with some professional management of the private
sector.
DIMENSIONS OF CSR AND SUSTAINABLE DEVELOPMENT
CSR and Sustainable Development have been integrated on the basis of eleven distinct
dimensions and responsibilities of corporate is based this dimensions which will have a core
impact on the real infrastructure and economy. These include Stakeholders, Society, Legal
Compliance, Governance, Economics, Environmental, Practices and Value, Skill development,