Académique Documents
Professionnel Documents
Culture Documents
KSHITIZ KARJEE Third Year Law Student Amity Law School, Delhi Guru Gobind Singh Indraprastha University, Delhi
INTRODUCTION
Corporate social responsibility (CSR) delineates the relationship between business and the larger society CSR can be defined as a concept whereby companies voluntarily decide to respect and protect the interest of a broad range of stakeholders and to contribute to a cleaner environment and a better society through active interaction Corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications. This is sometimes referred to as a triple bottom line approach that considers the economic, social and environmental aspects of corporate activity
NATURE OF CORPORATION
Originally, company has been considered an artificial person But with the advent of organic theory, a company is considered a living organism, is entitled to rights and also liable for duties Law confers personality to the company and strictly speaking personality denotes having rights and duties In India, the Supreme Court has categorically declared that even though company is not a citizen, it can claim the protection of fundamental rights, which are guaranteed under the Constitution of India Now, if a corporate entity enjoys rights, it has to bear certain duties or responsibilities like natural person. Thus, with the change in the nature of a corporation, its role has also changed
SOCIAL RESPONSIBILITY
Social responsibility emphasizes the intimacy of the relationship between the corporation and society Means of production of economy should be so employed that it leads to enhancement of total socio- economic welfare In every society there are social forces which form the basis of social responsibility. These forces are as follows: Social institutions Labour organizations Social consciousness Modern management
DEVELOPMENT OF CSR
Present age is money dominated. Business enterprises are coming up with new strategies to earn more and more profits Globalization led to the opening of the markets and thereby facilitated in cross-border trades. Centralized mode of production has given way to a highly decentralized mode of production which is spread across the world Rules of corporate governance have changed. On one hand, globalization and liberalization have provided a great opportunity for corporations to be globally competitive by expanding their production base and market share. On the other hand, the same situation poses a great challenge to the sustainability and viability of such mega-businesses, particularly in the context of emerging discontent against MNCs across the world
By capping and limiting the unsustainable use of resources, a healthy environment can be sustained Threats to sustainability include climate change (despite improvements in energy efficiency we still burn too much fossil fuel), increasing scarcity of water, loss and fragmentation of biodiversity (deforestation continues apace in the tropics), and buildup of colossal toxic pollutants in the environment The current wave of interest in CSR differs from the past experiences No longer limited to social concerns, SRI now takes environmental issues into account Today, social responsibility is no longer the purview of just a handful of managers concerned with the social or environmental impact of their firms operations. Quite often, it is a part of the overall business strategy
Upsurge in voluntary initiatives associated with codes of conduct, improvements in environmental management systems, improved health and safety standards, etc. Large companies are also participating in so-called multi-stakeholder initiatives and public-private partnerships with NGOs and governmental or multilateral organizations The United Nations has played an important role in promoting partnerships with transnational companies (TNCs) through various arrangements Criticism: Many CSR initiatives amount to green wash and CSR is a genuine attempt on the part of big business to improve social, environmental and human rights conditions but the CSR agenda needs to be broadened and implementation strengthened
It put entire responsibility on government and freed itself from taking any legal obligation saying that it wanted to protect the shareholders interest. At the 2003 annual shareholder meeting, William S Stavropoulos, CEO of Dow Chemicals, stated that the case of disaster had been resolved in court and thus they are not liable for it any further. Having seen the impact of negligence, Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 and Environmental Protection Act, 1986 were enacted Dow being financially sound should have been more responsible towards socio, economic and environmental issues. Hence, for Dow, it was high time to take some positive action and proper CSR approach towards human rights
Corporations are part of the entire society and human rights focus on the dignity and worth of the human beings who compose the society Human rights form part of international law and corporations are bound by those laws that are applicable to non-state parties A current development lies in the area of environmental crimes and humanitarian law In the international arena, human rights are often in a state of flux and satisfactory human rights condition in a country may deteriorate because of an outbreak of civil conflict or some other apocalyptic event. The corporation then has to choose whether to disinvest or risk accusations of collusion with the human rights violators. Very often the corporation may be a supporter of international human rights standards and yet be in a nation where human rights policies are difficult or impossible to implement
ITC LIMITED ITC is engaged in elevating its partnership with the Indian farmer to a new paradigm by leveraging information technology through its trailblazing eChoupal initiative. It is significantly widening its farmer partnerships to embrace a host of value-adding activities viz. creating livelihoods by helping poor tribes make their wastelands productive, investing in rainwater harvesting to bring irrigation to parched dry lands, empowering rural women by helping them evolve into entrepreneurs, and providing infrastructural support to make schools an exciting platform for village children. LARSEN & TOUBRO LIMITED L&T promotes Construction Vocational Training in India by establishing a Construction Skills Training Institute (CSTI) at Manapakkam, Chennai and many other parts which imparts free of cost basic training in farm work, carpentry, masonry, plumbing and sanitary, etc.
The sludge which was disposed in open ground ran along with rain water to the natural water resources. Tests also showed that the water available to the wells was contaminated and unsuitable for consumption Added to these were the findings from the Center for Science and Environment which said that twelve large soft drinks brands manufactured by Coca Cola and its rival Pepsi, sold in and around Delhi, contained a cocktail of pesticide residues including chemicals which can cause cancer and damage the nervous and reproductive system and also reduce the bone mineral density The case clearly shows that emerging markets can respond and protest against the irresponsible behavior of MNCs The case also shows that emerging markets might have loose laws which do not protect interests of local population or laws that are not implemented properly
CONCLUSION
The role of a successful company is to contribute to national wealth, generate employment opportunities, promote e-business and e-commerce, bring transparency in management policies, and provide open communication and a safe working environment India is facing many problems viz. unclear, unpractical and poorly monitored regulations, poor infrastructure, a complicated tax system, and too much bureaucracy Broad frameworks on corporate governance should be developed and followed. And further, penalties for noncompliance should be strictly implemented