Email or Customer ID. Forgot password? Old Password. New Password. Password Changed Successfully Your password has been changed. Returning user. Request Username Can't sign in? Forgot your username? Enter your email address below and we will send you your username. Importantly, managers at all levels need a better understanding of CSR and sustainable development. Since most projects are in rural areas, understanding of rural issues and sustainability is very important.
Corporate Social Responsibility and International Development: Is Business the Solution?
Finally, such a large scale exercise in CSR should have a knowledge management mechanism to learn from the achievements and mistakes of the early years. I discuss the implication of the findings on India and other emerging economies many of which are struggling to balance growth and inclusive development. I conclude that the mandatory CSR guidelines for Indian public sector has the potential of achieving sustainable development only if early action is taken on the identified areas. Contudo, esse desenvolvimento previsto pode impactar negativamente as bases sociais e ambientais da economia nacional.
Hay que desarrollar mecanismos institucionales para verificar que los proyectos de RSC son efectivos. Es importante que los gestores a todos los niveles entiendan mejor la RSC y el desarrollo sostenible. Such growth will come from rapid industrialization.
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India's economic growth has not translated to inclusive development for a large part of its population. The country is currently in the process of balancing its economic ambition with development that is sustainable and inclusive. The objective of these new regulations is to use market economy to finance and achieve development. This paper is based on the PSU guidelines and it aims to look at the lessons learnt two years after implementation started.
It explores the role of business in sustainable development, effectiveness of compulsory regulations in bringing SD and mechanisms required even if these new regulatory regime is to succeed. Thus, the objective of this paper is to: 1. The paper is arranged in the following sections. The first section provides a background of the new regulations mandating CSR for Indian companies. The methodology is discussed in the third section followed by finding and analyses. The concluding sections summarize the findings, discuss their implication for all stakeholders, including other BRIC economies and identifies possible future research pathways.
India's discourse on sustainable development has been marked by acute poverty as well as high inequality in distribution of goods and services. More than five decades back, the Prime Minister Indira Gandhi stressed at the UN Conference on Human Environment, that poverty is inextricably linked to environmental issues in developing countries and one cannot be solved without solving the other.
In , the same concern is voiced by India's Prime Minister, Dr. Manmohan Singh as "India aims to attain growth and poverty alleviation in a sustainable manner factoring in the needs of people, especially the poor" 1. India's poor are affected by hunger, malnutrition, illiteracy and poor access to common land and water. Conventional economic development like large scale industrialization leads to loss of land as well as traditional occupation putting particular stress on women and children. For example, heavy industrial usage of water leads to ground water depletion causing scarcity of drinking water.
Thus lack of sustainable water usage policy in industrial belts creates pressure among vulnerable groups like women and children who miss out on their education.
Corporate Social Responsibility and International Development : Michael Hopkins :
Without literacy and education, the future generation is cut off from many development programmes and opportunities. It is important to understand this inter relation of these factors e. Indian companies spend on education, health and infrastructure as part of their CSR even though not much evidence exists whether such interventions actually make a difference RAY, This presents a huge opportunity, financial and otherwise, to link CSR to sustainable development in India.
India needs to find ways for financing development of its people in terms of poverty, education and health among others. International development assistance has not matched the rhetoric of Rio Conference and economic uncertainty has further slowed down aid from developed countries. Clean Development Mechanism CDM has not lived up to its expectation as an alternative financing mechanism. Some cases show that CDM is perpetuating global warming instead of curbing it 3.
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It is probably this dilemma of SD financing and an increasing failure of governances that has led to formulation of a host of policies related to SD, Climate Change and CSR in the last years in India. The new CSR policies are discussed in detail in the following section. However, whether private investment in sustainable community development can match development assistance both in matter and in spirit needs to be seen.
It is not only the quantum of grant that matters but also how it is spent. Development professionals with their international experience can take advantage from the learning curve and can provide more targeted and efficient interventions compared to hundreds of corporations scattered across the country and working without any co-ordinate effort.
Thus compulsory CSR expenditure has its own limitations. On the other hand assistance provided by European and American foundations often come with conditions. While there is a requirement of alternative and greener power sources, effort to switch to, for example, nuclear power with foreign assistance came under heavy criticism 4. It is in this context, the governments' effort to engage corporate sector needs to be seen. Financing may well hold the key the SD in India and combining and optimizing public private resources could be the way forward.
Using mandatory CSR can thus be seen as an innovative way to finance development. Whether such developments could be termed or deemed as SD remains to be seen. Next, in its circular dated 9th April, , the Ministry of Heavy Industries and Public Enterprises released the 'Guidelines on corporate social responsibility for central public sector enterprises', seen as a continuation of its earlier CSR voluntary guideline, but making CSR expenditure mandatory.
The content is divided into planning, implementation, 'research, documentation, advocacy, promotion and development', funding, baseline survey and monitoring. It links CSR with sustainable development and sustainable competitive advantage though the guideline does not elaborate on their meanings and possible pathways for such linkage.
The CSR guidelines considers sustainable development and triple bottom line based growth as the fundamental objective. It states that CSR would address the problems of climate change, disaster management, and environmental degradation. It encourages generation of scientific evidence to strengthen future guideline through formation of an institutional structure CSR hub , new governance architecture, and compulsory baseline surveys, periodic reporting in standardized formats and focusing on online reporting.
It also provides a long, sample list of possible activities that could be taken up by individual organizations e. The planning portion of the guidelines stresses the need for short, medium and long term CSR plan and the long term CSR plan be aligned with long term business plan. There is a focus to integrate existing project management skills inside organizations to better execute such jobs.
The section on implementation stresses on project based investment, timelines, supplier involvement and relation to Global Compact, a voluntary code of conduct first initiated by the United Nations. The responsibility of restoring ecological damage lies with the company and overall activities should be aligned with government policies and priorities.
Disaster management with the help of public-private partnerships is also seen as a part of CSR. CSR implementing agencies will be experts in their area e. This part of the guideline, addresses a common concern of executives that CSR is a random destination many executives find themselves in. Environmental governance also finds a place in this CSR guideline. The concept of a National CSR hub is mooted in the guidelines. The hub will act as a resource centre for CSR. The funding guidelines stated in the policy have long-term implications in CSR regulations:.
To create quantifiable benchmarks, the policy insists on baseline surveys, "meticulous documentation" and public communication as well as extensive evaluation. Overall the guideline is overarching and ambitious, trying to figure in all the paradigms influencing current debates on sustainability and corporate social responsibility. This would require using resources with care and at the same time ensuring equitable distribution of goods and services among the current generation and across generations. The Millenium Development Goals MDG 7 are seen to address SD through identification of its key challenges and a plan to overcome them: poverty, education, women empowerment, health, and environmental sustainability.
Though it is doubtful whether India can reach any of these goals by the target date of , their existence points to the immediate to-do list for governments, businesses and civil society members. The call for sustainable development has been reinforced and the role of the economy and ecology acknowledged with the concept of 'green economy' 8. It is in this economic context the role of businesses become central to the question of achieving SD. We could see a few broad approaches here. First, taxing businesses for their contribution to global warming e.
Second, an incentive scheme to promote green business likes the Clean Development Mechanism. A third approach, that follows some of the European countries, can now be seen in India-companies are asked to contribute a percentage of their profits towards community development. In all the cases, businesses are asked to share their earning to promote sustainability and hence SD in the long run. The key differences between the first and third Indian approach is the degree of localization of the development effort as well as the issue of capacity building among corporations.
There are many definitions of CSR. For the purpose of this paper, we consider the one given by the EU, one of the pioneers of the concept: "a process to integrate social, environmental, ethical and human rights concerns into their business operations and core strategy in close collaboration with their stakeholders" Literature on CSR spans different definitional constructs, philosophy, marketing impacts, communication aspects, implementation issues, ethics, reporting, policy making as well as industry and country specific writings on these themes.
Governments in developed economies UK, EU and those in developing India ones are now looking at integrating CSR in line with broader governance objectives. CSR is seen to legitimize its overall regulation process as well as public policy framework. Integrating CSR into a new public policy framework by bringing in external networks like organizations has created both flexibility and uncertainty. In the efforts of the state to regulate CSR, Steurer sees the politicization of management, identifying five types of instruments used by government: 'legal, economic, informational, partnering and hybrid' leading to four main consequences: increased awareness, transparency, socially responsible investment and exemplary social leadership.
This in turn has influenced policy formulation in individual countries like France, raising important questions on policy alignment at the meso level DELBARD, In the Spanish context, the tension between compulsory regulations and voluntary guidelines was high. Cuesta, Marta and Carmen argue that the approach of complete reliance on self regulation has failed in Spain.
UK has been one of the pioneers in Europe, setting up a ministerial department of CSR and thus institutionalizing the process of policy and regulation development. However, Deakin and Hobbs finds "managerial resistance to the linking of CSR with internal employee relations. On the whole one can see that the role of government has been changing in relation to CSR. The work of Albareda et al. They note that while governments are similar in developing statements and partnerships, they differ, based on their cultural and political compulsions.
CSR with a specific emphasis on public sector is a relatively under researched area, more so in the context of developing countries.
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Developing countries have a different organizational and social context, raising issues which are more fundamental in nature e. Companies operating in developing countries have a different perception about the sustainability challenges compared to their counterparts in developed countries. Looking at Africa, Dobers and Halme conclude that issues like these first need to be brought within the ambit and purview of CSR, both in public and private sector organizations.
Clements and Bowrey analyze the supply chain CSR disclosures for Australian public sector, noting the lack of an integrated approach in such reportings. Kovaliov and Streimikiene , studying CSR in Lithuanian public sector companies, see four roles of public sector in relation to CSR: defining standards, facilitating engagement, partnering and endorsing projects.
Korner has looked at CSR policy making and governments arguing that from a governance perspective CSR policies lead to more sustainable solutions.
Gautam and Singh looked at top Indian companies to study their CSR practices and found only of them reporting their CSR and that "few companies have a structured and planned approach. Lyssna fritt i 30 dagar! Ange kod: play Du kanske gillar. Spara som favorit. Skickas inom vardagar. Laddas ned direkt.
The business of business is business. So why should corporations be involved in development?