Corporate Social Responsibility In India: Current Landscape, Challenges, And Future Directions

Abstract

Corporate Social Responsibility (CSR) has emerged as a significant aspect of business operations globally, aligning economic objectives with social and environmental concerns. In the Indian context, CSR has evolved from ancient ethical principles to modern legal mandates. This paper examines the historical evolution, present state, challenges, and proposes a way forward for CSR in India. Tracing its roots to ancient scriptures and the Independence movement, CSR gained momentum with the liberalization policies of the 1990s. The Companies Act of 2013 mandated CSR spending, marking a significant shift towards inclusive growth. Presently, CSR encompasses economic, legal, ethical, and philanthropic dimensions, becoming integral to business strategies. Despite progress, several challenges hinder effective CSR implementation. These include a narrow view of CSR, lack of transparency, and alignment with shareholder interests. Green washing and skewed fund distribution further complicate matters. Additionally, issues such as faulty execution, community participation, and strategic planning pose hurdles. To address these challenges, the paper proposes a multifaceted approach. This includes increasing SME involvement, creating public awareness, and fostering long-term visions for CSR activities. Emphasizing rural and urban poverty alleviation, sensitizing youth, and fostering collaborations between corporations and NGOs are also recommended. Furthermore, aligning CSR objectives with sustainable development goals and integrating technology and innovation are crucial steps forward. Ultimately, CSR should be integrated into core business strategies, addressing structural issues for lasting societal impact. By adopting a comprehensive and strategic approach, India can harness the full potential of CSR to drive sustainable development and foster a more equitable society.