Role of Corporate Social Responsibility in Environment Sustainability: The Indian Perspective

INTRODUCTION

There is a lot of misconceptions have been spread out about CSR and sustainable developmentand their relationship. There is no doubt that CSR is very essential for the society and environment. Corporate Social responsibility Has become famous since 1970‘s and the Governments of all countries are doing more efforts for attaining CSR objectives for the social well-being. Besides from the government initiatives the corporate sector canal so plays avital role in CSR development. Business organizations utilize monetary, social, human resource for continuous functioning of business activities and should be responsible for affecting the environment and society. In 2007, former Indian Prime Minister Manmohan Singh said that our business industry must take initiatives for efficient growth of business and act in a responsible way to save the society and natural resources. In today‘s scenario the concept of Corporate Social popular in some last decades; but many scholars don‘t agree with its role in economic sustainable development. Some scholars contented that CSR is a broader term. It is not possible to explain its meaning exactly and very tough to monitor its initiatives. A later google search for concept ― CSR and Sustainable development‖ yielded over more than 20 million hits. The study of CSR is very essential and thousands of companies gain recognitionby adopting CSR policies. Since 26 July, 2000, around 13000 corporate participants, 8000 businesses, 4,000 non-business entities and other stakeholders of 170 countries have joined the United Nation‘s Global Compact. The International Labor Organization, OECD, and World Bank all have done similar efforts with all of its members. In today‘s scenario, CSR has become very popular and many scholars define it in various ways. Some scholars define itas a young and broad field. Traditional corporate law scholar defines: CSR as a method of determining the essential regulations for the development of less- developed- countries. International CSR aims to address the problems caused my MCE‘s activities operating in impoverished countries with insufficient policies. Thomas Donaldson defines CSR is a social and global concept. Many scholars explain CSR in Broader sense. The Government asks companies to review the effects of their business operations on society and the environment. This term is known as ―Triple Bottom Line‖ approach in which business corporations considers all factors (social, environmental, and economic) collectively. This term has gained popularized with the evolution of globalization. Most of the companies criticized by the NGOs for greenwashing their promotional activities and reports to show their activities more eco- friendly. The UN has removed around five thousand companies from their Global Compact due to non- compliance of its regulations. Sustainability means to conserve or protect the natural resources. The World commission on Environment presented an action plan for sustainable development in 1987. Companies are now challenged to develop a blueprint for sustaining economic and environment al prosperity. CSR and sustainable Development are interrelated with each other. Corporate Social Responsibility is a part of sustainable development, all leading companies in India are involved in CSR and sustainable development activities in areas like education, health, poverty eradication, and empowerment of weaker sections of society, decreasing carbon- footprints from environment. Many efforts have been done by Infosys, ITC Group, Indian important role in CSR activities and CSR contribution towards sustainable development and without CSR, sustainable development cannot be attained. The Companies (Amendment) Act, 2019 makes some provisions relating to Corporate Social Responsibility activities. CSR has become mandatory under this new law. Ecological balancing, maintaining environmental sustainability and preservation of natural resources by companies forms an important care of the policy contemplated under section 135 of the Companies(Amendment) Act 2019. Corporates undertake environmentally and socially healthy activities.

LITERATURE REVIEW

This research paper is based on literature review of various national and international publications and articles. There are numerous articles which provide us important information for my research work. The focus of these articles is on CSR Issues and Challenges, CSR Growth, New concepts of Corporate Social Responsibility, and Sustainable Development. In2011, Rahman explored different definitions of CSR. In 1950‘s, CSR was considered as a responsibility towards society. In 1960‘s, it explored the relationship between business corporations and society. During the time 1970- 1990‘s, CSR concept become broader and included some other aspects like ethics, stakeholders in CSR approach. In 21st century, CSR term has become much wider and includes human rights, ecological balancing, environmental protection, labor rights in this approach. Majumdar(2008) definesCSR is the primary objective of any business corporation in this modern time. They examined various CSR models and to find out obstacles in applying these policies in developing countries. They recommended a conceptual framework for successful implementation of CSR policies in various countries. Economical, legal, social, ethical and environmental factors are considered while practicing CSR. In 2016 Prieto-Carron, incorporating some new visions in to CSR study. They discussed about the issues of CSR initiatives, relationship of CSR and sustainable development , new dimensions of CSR. They suggested for the deep study of CSR initiatives in impoverished countries. They also suggested for the collaborative studies on CSR for developing better methods. Nicolae and Sabina(2010) studied various problems of CSR. They discussed various dimensions of CSR. They also define the relationship between CSR and ecological balancing. Saxena(2016) also discussed many issues related to CSR. Evolution of CSRin Dubbink (2014) explained the benefits and detriments of Corporate social responsibility. Rajput(2012) also studied 520 Indian banks to determine the relationship of CSR and economic performance. In 2015, Prathima conduct a survey on 115 companies of different industries and select top ten companies which are involved in CSR activities. In India few companies TATA Group, P&G Group, ITC Ltd, GODREJ Ltd, INFOSYS, WIPRO etc. are contributed towards CSR. Dhawan(2019) discussed the acceptance of Green CSR policies in India. The author also discussed that the Indian companies have started practicing Green HRM policies in their operations. The author also discussed about green selection, green performance appraisal and said if the green CSR policies are applied efficiently and effectively, it will be useful for environment. Carbon footprints can be decreased by making use of green practices in business operations. According to Jennifer A. Zerk, this article explores the implications of CSR developments for international law. This article focuses on three issues: workplace, environmental and consumer safety standards. According to K.S. Ravichandran entitled as ―CSR as means for commercial enterprise to promote sustainable development‖. It explains the philosophy and objectives of CSR emphasizing its social base. United Nations defines, CSR is a triple bottom line approach andmain motive is to earn profit and protect the environment. The World Business Council for sustained development defines that CSR is continuous activity in which business firms behave ethically and making contribution for the sustainable development, improve the quality life of employees and community. Bebbington utilize the concept ―CSR Reporting‖ which shows the relationship between reporting function and organizational function. Therefore, it is very essential to look at CSRmore strategically. Research Objectives In today‘s scenario, business organizations play an important role in Sustainable Developmentactivities and make efforts to meet the needs of the present without affecting the ability of future generations. Organizations asks to apply ethical principles and make contribution on CSR activities to the ways in which they conduct their business. The present study tries to address the following objectives stated as below:

• To understand the efficiency of CSR in Indian and international perspective

• To appraise various aspects related to CSR and sustainability.

• To determine the relationship between CSR

organizations in applying CSR policies in theirbusiness operations.

• To find out the corrective measures to overcome to these complexities.

Research Methodology

• This paper involves research papers and secondary data only which are published and analyzed.

• The information related to CSR Practices are taken from annual reports of banks, companies,articles, research papers and magazines.

CSR Provision in India Section 135, schedule VII of the Companies Act, 2013 related to CSR and sustainable activities. Every company with net worth of Rs. 500 crores, turnover of Rs. 1000 crore and net profit of Rs. 5 crores, are obligatory to follow all CSR provisions. For every CSR eligible company, it is mandatory to constitute a CSR committee. Board of Directors of the company is required to ensure that the company spends 2% of its average net profits of last three years on its CSR activities. As per amendment(2019) in section 135 of Indian company Act 2013, incorporates a new provision in company act. According to new provision, if a company fails to spend the amounton CSR activities, then it is obligatory for the company to transfer the unspent amount to government funds. If a company fails to perform its CSR obligations, the company has to pay the penalty ranges between50,000 – 25,00000 and up to 3 years imprisonment.

The Corporate Social Responsibility is an integral part of business today. CSR is very essential for sustainable development and it is combination of green business practices with social development. CSR is also known as welfare approach. The main aim of CSR is to carry out all business obligations along with social responsibilities. CSR making contribution for ecological balancing, environmental protection and also focus on economic success of company. CSR is to make contribution for preserving natural resources and making policies forenvironment protection. There is no uniform definition or approach of CSR that line approach. There is no uniform definition of CSR accepted globally. Different people at different times given different definitions under different situations. Is it philanthropy? is its social work or protecting environment? or is it all of these? The real meaning of CSR is to undertake all actions to maximize the profits of business and attaining sustainable growth. CSR is an important activity which balancing the economic aspects of company with its environmental aspects. World Business Council defines that CSR is a continuous activity in which business firms behave ethically and make contribution for sustainable development, improving the quality life of employees and community. It is a form of corporate self-regulated model. The goal of CSR is to take obligations of its business operation‘s and preserving the natural resources. The Sustainable development is ensuring a better quality for life for everyone. CSR is an essential part of sustainable development. Combining CSR and SD means combining the social, economic, financial activities in such a way that offers business opportunities for businesses and improve the lives of people. The combination of CSR and Sustainable development would build up responsible management approach. Following principles suggests the best combination of CSR and environmental practices for the corporates: Sustainability framework: Developing a sustainability framework to make a perfect combination of social, environmental, and economic activities of corporations in decision- making process. Stakeholders‟ engagement: Give equal importance to all stakeholders. Stakeholders can solve all CSR roadblocks and improve the relationship proactively. Continuous assessment: continuous assessment of products and to create new products continuously can ensure long term improvement. CSR reporting: It is essential to provide latest CSR initiatives information to consumers. Aspects related to CSR and Sustainable development: Corporate Social Responsibility and Sustainable development are interlinked concepts. CSRis an essential part of Sustainable development. CSR includes balancing the business and environmentally responsible business activities in an efficient manner. Sustainable Development includes to perform business activities in a socially responsible manner. Socially responsible firms preserve environmental resources for future generations. The development of more attention to company practices. Companies are operated in an efficient manner that is beneficiary for society and environment, earn favor with core customers in the future also. There is a close relationship between Corporate Social Responsibility and Sustainable Development as the more consumption of resources the less sustainability of the resources. CSR is a combination of environmental, social and ecological values in to a business. This combination is called a triple bottom line model. The Companies can integrate various aspects of CSR in many ways: 1. Improve supply chain system 2. Investment in renewable energy 3. Philanthropic investments 4. Reducing packaging waste 5. Proper and effective utilization of water resources 6. Environmentally conscious consumption 7. Waste Removal 8. Efficient transportation. 9. Proper use of innovative technology The environmental effects of company‘s activities play an important role in financial performance of the company. All efforts of CSR can reduce carbon footprints, improve ecological balancing, and energy consumption. Sustainability and CSR are useful not onlyfor present but also useful for the successful future of business. Relationship between Corporate Social Responsibility and sustainable Development The World Business Council defines that ―CSR is a continuous activity in which business firms behave ethically and make contribution for sustainable development and improving the quality life of employees and community.‖ According to this definition, business corporationshave various responsibilities to make contribution for the development of their employees, the local community and make contribution for sustainable development. In Today‘s scenario, CSR and Sustainable development has become very popular. In developed countries, CSR has taken a strategical way that benefit the employees and society both. This definition covers mainly three dimensions-- stakeholder, social and environmental, and economic. According to European Union Green Paper, ―Sustainable Development is a transparent business activitywhich strengthening the company the company. This makes the sustainable development very challenging for the company to prepare their CSR performance report. Different policies used by different companies in preparing their CSR reports. To determine the relationship between CSR and sustainable development we deeply analyze the documents of United Nations Sustainable conferences. The given figure explains the relationship of CSR and Sustainable Development.

In 2021, top companies of India play an important role in corporate social activities and achieving environmental protection Goals. The top companies also map their business objectives with respect to SDGs. In2021, Godrej Consumer Goods has topped the CSR ranking list in India and Infosys become a star performer.

Top companies for CSR in 2021: Godrej Consumer Products Limited : GCPL spent Rs. 34.08 crores on CSR and Sustainable development initiatives in year 2020-21. Infosys Limited : The company spent Rs. 327.32 crores on its sustainable development activities in year 2020-21.The company has also focus on sustainable business practices and includes the development ofsustainability related initiatives. Wipro Limited : The company implements CSR programs in society through various channels and spent Rs. 251crores on CSR activities. Wipro also supported more than 1,561 projects for human- being, healthcare support and livelihoods. Tata Group : The company undertakes many CSR projects mainly network development, child education,health care and women empowerment programs. ITC Limited : This company focused on CSR activities and also organize e-chopal programs which aims to connect international farmers online to access agricultural products and covers around 40,000farmers. Mahindra & Mahindra : This organization focuses on education programs to help economically and socially weakcommunities. Grasim Industries Limited : Grasim Industries limited has spent Rs. 84.66 crores on CSR activities in the year 2020-21. 2300 + ghars in 11 states and also develops lives of women and children. Tata Power Company Limited : The company spent Rs. 3.45 on CSR activities in 2020-21 and it also categorized its CSRinitiatives into five categories: financial inclusion, education, health , water and livelihood. JSW Steel Limited :The company spent an amount of Rs. 78.32 crores on CSR activities in the year 2020-21. Ultratech Cement : The company focuses on healthcare and family care programs, education, infrastructure andenvironment programs.

CSR IN INTERNATIONAL PERSPECTIVE

The United State America was the Cradle of CSR but now CSR has rapidly migrated from United States to international level. The Corporate Social Responsibility system become more and more internationalized day by day. The dimensions discussed in international normslocated in the United Nation Global Compact, United nation conventions and other treaties of WTO,WHO and ILO. This framework encompasses more and more efforts to globalize theCSR through various regulations and guidelines. The United nation Global Compact initiative is working in an effective way to aligning their operations and strategies with ten universally accepted principles in business activities in multiple areas of human right, labor and environment. The participants of UNGC have to follow all the principles and guidelines based on international agreements. The UNGC is not a compliance-based applicable law, onlyparticipants are expected to follow all principles of applicable law. Implementation of CSR Principles in different countries: CSR in Australia: Professional services firms ARUP, GHD, Newmont, The National bank of Australia and the University of Queen‘s land are the top ten CSR players in Australia. The Australian center of CSR respondents performed a survey and revealed that a better leadership is demanding frombusiness industry , the academic sector and government. The experts believes that CSR is going to be must for business entities in the future also. CSR is linked with innovation and the relationship of Corporate social responsibility and Sustainable Development is seen in every area like supply chain, reporting and environment. Now the attitude towards CSR has changed and it plays an important role in sustainable development CSR Practices in the United Kingdom: with the aim of connected the business development with social and environmental issues. For promoting the concept of CSR in the world, the United Kingdom government has taken various initiatives from last decades. Government has to promote CSR in corporate world and society. Some regulations like The Equal Pay act, The Health and safety Act made mandatory by the UK government. In march, 2000, the first CSR minister was appointed in UK. CSR in Canada: The Canadian government promoting CSR strategies in their business practices. In 2009, the government launches his first CSR strategy. The Canadian companies will promote Canadian values and make efforts to help companies in strengthening their CSR policies and increase their profits. CSR in Europe: The European countries promotes CSR practices and encourage business organizations to apply these principles into their routine business practices. The EU renewed its strategy for CSR in 2011, which aims to collaborate European and global approaches of CSR. CSR in China: In today‘s scenario , CSR is fairly practicing in Chinese companies. But 10 years ago, Chinese companies thought that they have no business obligation towards environment and society. Butin 2006, this opinion has been changed and CSR policy has become an important part of Chinese corporate law and all Chinese companies follow CSR policies. Government and businesses will include carbon targets in their policy goals. The top CSR trends in China are as follows- Carbon neutrality target leads to a new development stage Companies compete in the zero-carbon transition movement Common prosperity is to balance efficiency and fairness Worker‘s rights are better protected Modernization of agriculture and rural areas CSR in Japan: Today, social and environmental issues like poverty effective environment protection policies. The Japanese companies now followed OECD principles and CSR policies in their routine business activities. CSR in the United State America: The United State America is worried about societal harm arising from business operations. So, in the matter of protecting the environment , USA authorities have begun to mandate pertinent regulations and compelling organizations to implement CSR policies. The US federal legislation protects the environment from harm through the National Environment Protection Act, and other related environment regulations. These are the soft laws for CSR in United states.

CHALLENGES FACED BY INDIAN FIRMS IN IMPLEMENTATION OF CSR POLICIES IN INDIA

Failure to understand the holistic view of CSR: The CSR has to affect the shareholders of the company, society and environment. It is very important for the business to integrate their business goals with sustainability objectives and clearly define the areasof investment. Lack of Transparency: For implementation of any CSR policy within the organization transparency is an essential condition. But this level of transparency is not sufficient and business firms do not reveal the relevant information. Greenwashing: The level of inequality is very high in India and CSR law does not reducing inequality. This leads to greenwashing. This is most challenging for CSR laws Compliance. Lack of sufficient financial resources: There is a lack of proper infrastructure and lack of financial resources for effective implementation of CSR. Less interest of communities: The social communities show less interest in CSR programs. There is lack of proper efforts undertaken by the government to spread theCSR activities among communities. Faulty execution and Implementation: Companies failed in effective implementation of CSR policies. Absence of proper CSR guidelines: There are no proper guidelines available for CSR in India. It is found that the scale of CSR initiatives depends on the size and profile of business. Narrow perceptions towards CSR Initiatives: Government agencies and private agencies possess narrow perception towards CSR policies in India.

CONCLUSIONS AND SUGGESTIONS

In order to meet our stakeholders‘ expectations, the business firms need to combine their business goals with CSR goals. For the bright future of CSR in India we need to take some important steps and develop the best CSR practices. The business firms need to develop the best CSR policies. Some recommendations are as follows:

• To generate awareness among public about CSR policies and corporate laws.

• To expand partnership among employees, suppliers, customers, government andsociety.

• To expand CSR activities at all levels of business including small, medium andlarge level.

• Attempts should be made for undeveloped urban and rural areas.

• To give awards to those business houses that contributes in CSR activities

• To teach CSR as a subject in schools and colleges and motivate the young generation to face challenges in future.

• Prepare sustainability reports annually and disclose the relevant information aboutsustainable performance of company.

• Innovation models are to be popularized among corporations in these areas. CSR amount should be applied in urban and rural areas very effectively.

REFERENCES

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Associate Professor, SGGCC, University of Delhi