Corporate Social Responsibility: Understanding the Legal Framework and Philanthropic Indian Companies

Author(s):  
Farhina Sardar Khan ◽  
Syed Shahid Mazhar

Business and conglomerates have never been an isolated entity as the entrepreneurs or the businessmen have always maintained a consistency in the internal and external management and also properly follow-up the movement that use to take place in the external business environment such as consumers, communities, stakeholders, shareholders, and by-laws. Gradually, with the passage of time in last three decades the changes that took place in the Indian cultural norms of corporations had brought forward the concept of corporate social responsibility (CSR) referring to bring about overall positive impact of corporations on the communities, societies, and environments in which they operate. The term CSR became popular in the 1960s and narrowly construed. It had remained a term used indiscriminately by many to cover legal and moral responsibility but in the present scenario, it has been used in a broader way. CSR promotes a vision of business accountability to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and the wellbeing of employees, the community, civil society in general, customers, employees, investors, suppliers, and activist organizations both now and in the future. This article is exclusively based on secondary data and presents an in-depth conceptual framework of the CSR, major provisions and guidelines encrypted by the Ministry of Corporate Affairs, Government of India. Further, the fundamental principle, core elements and its role in nation development are discussed briefl y for the better understanding of the reader.

2020 ◽  
Vol 17 (4) ◽  
pp. 33-43
Author(s):  
M. V. Bikeeva

Purpose of the study. The research materials continue the author's series of articles devoted to the problems of the stakeholder approach. The social responsibility of business acts as a launching pad for fruitful cooperation and interaction between business structures and authorities. The concept of corporate social responsibility is very dynamic, characterized by constant transformation, change and enrichment with new ideas. So, if in the middle of the XX century it developed rather slowly, not finding a response in the business environment, then in the XXI century it is “preached” as the main business philosophy by most of the advanced countries. At the same time, a characteristic feature of existing scientific approaches is the emphasis on technocratic and economic positions and the complete absence of approaches based on the relationship between business and stakeholders. However, such approaches from the author's point of view are insufficient for the entire range of requirements imposed by the external and internal environment on modern business. The ambiguity of the interpretation of the concept under study made it possible to state the complexity of this category and its multidimensional nature. In this regard, there is a need for a comprehensive statistical assessment of the degree of business socialization and the choice of appropriate tools for this.Materials and methods. The statistical assessment of the degree of business social responsibility is based on local criteria, combined into five blocks. The presented system of criteria characterizes the activities of the business taking into account the requirements of the stakeholders. At the same time, the list of criteria can be adjusted when socio-economic trends and problems of society change. The information base of the study was the annual and financial reports of regional enterprises, the results of expert assessments. The hierarchy analysis method and the graphical polygon (radar) method were used as a tool for assessing the degree of business socialization.Results. The article concretizes the concept of social and economic responsibility of business. The author's approach covers the idea of a responsible partnership based on the interaction of business with a wide range of interested groups involved in active and passive forms of participation in its operations. The variety of interests of stakeholders representing various subjects of market interaction emphasizes the multi-criteria nature of the category of “social and economic responsibility of business”. Statistical tools are fully capable of providing an assessment of the entire spectrum of signs of corporate social responsibility. The integral indicator of the degree of social responsibility, built on the basis of the hierarchy analysis method, made it possible to distinguish four degrees of business socialization: low, moderate, noticeable and high. For each degree of socialization, characteristic features are determined. The results of the study showed that as the degree of social responsibility grows, business performance indicators increase and its well-being in the long term depends on the coordination of the interests of key participants in corporate relations. An integral assessment of the degree of business socialization was carried out according to twenty-six local criteria. As a result of calculating the private and local ranks of the values of the corresponding criteria, fifteen polygons of the degree of socialization of the regional business were built, included in the sample. The results obtained make it possible to ascertain the existence of a high degree of heterogeneity of regional enterprises in terms of the investigated integral indicator. The leaders in terms of social responsibility are JSC “Teplichnoye”, OJSC “Mordovcement”, OJSC “Elektrovypryamitel”, OJSC “Lato”. Outsiders include OJSC Cheese-Making Plant “Ichalkovsky”, Ltd “Lisma”, OJSC “Stankostroitel”, OJSC “RubEx”. Among the features of regional enterprises, one can single out the heterogeneity in the distribution of indicators along the radial straight lines. JSC “Teplichnoye” is characterized by sharp fluctuations in rank values, which is most active in interaction with consumers, its own personnel, but also stands out as one of the smallest values of the block associated with relationships with business partners. A similar situation is observed among outsider enterprises. The proposed methodology can be used as a tool for a comprehensive study of existing trends in the practice of socially responsible business behavior, characteristics of the results achieved, as well as identifying problem areas that focus additional attention.


2021 ◽  
Vol 232 ◽  
pp. 01037
Author(s):  
Tri Nurhayati ◽  
Yeni Rosilawati

Apart from having a positive impact on the regional and state economy, coal mining is inseparable from the negative impact that has become the public spotlight. A mining company’s responsibility is not over even though it has finished its operational period. The reclamation and post-mining are the closing stages of the company’s activities. The Istana Kelulut program is a Corporate Social Responsibility (CSR) activity in the form of environment-based community development and is integrated with the post-mining plan. This study aimed to determine community development stages through Kelulut beekeeping in post-mining communities in Balangan Regency, South Kalimantan. This research employed a descriptive qualitative approach and in-depth interview with PT Adaro Indonesia’s CSR managers and beneficiary communities and a study of company documentation as secondary data. The results revealed that community development was carried out through assistance to the community, including training activities to improve beekeeping techniques to make the harvest process more effective. Innovations were also made through the manufacture of automatic honey-suction hoses and artificial nest housings. Throughout 2019, 20 people have joined as Kelulut beekeepers after seeing the Istana Kelulut succeed in developing its colony and increasing beekeepers’ income.


2020 ◽  
Vol 11 (02) ◽  
Author(s):  
Andrianto Andrianto

The application of CSR is related to good corporate governance. The implementation of GCG will have a positive impact on the business environment and increase the confidence of stakeholders, especially investors, to the company. This study aims to find out how the application of CSR is a pillar in the direction of good and healthy corporate governance at PKU Muhammadiyah Hospital in Surabaya. This study uses descriptive qualitative research with data collection techniques conducted by semi-structured interviews and documentation on corporate social responsibility and good corporate governance data. The results showed that the PKU Muhammadiyah Surabaya hospital had implemented a CSR program in accordance with the specified program, but in implementing GCG there were values that had not been maximally implemented (the principles of transparency, responsibility and independence)Keywords: Corporate social responsibility, Good Corporate Governance, Transparency,  Responsibility, Independence. 


2019 ◽  
pp. 407
Author(s):  
Putu Claudia Tamara Putri ◽  
I Gde Ary Wirajaya

The purpose of this research is to find out the form of CSR implementation implemented by the St. Regis Bali Resort and to find out the impact of implementing CSR on hotel financial performance. The type of data used is qualitative data, with primary and secondary data sources. Primary data in the form of interviews, and secondary data in the form of hotel financial statements for several periods before and after conducting CSR. The technique of collecting data is by interview, observation, and documentation. The results of the study show the hotel The St. Regis Bali Resort applies several forms of CSR, namely (1) social sector, (2) environmental field. CSR has a positive impact on financial performance, seen from the increase in the number of sales. Increasing the number of sales, it will affect sales and income which will affect the level of profit. Keywords: Corporate social responsibility, financial performance, CSR.


2018 ◽  
Vol 9 (3) ◽  
pp. 477-492 ◽  
Author(s):  
Emilia Krajnakova ◽  
Valentinas Navickas ◽  
Rima Kontautiene

Research background: Fluctuations in economic activity forced companies to change the traditional methods of organization and management and to search for new tools, knowledge, resources and competences in order to strengthen their positions. This has particularly intensified debates on corporate social responsibility (CSR) not only between business people, but also between pieces of research,  industry leaders and government representatives. The ongoing global ecologic crisis quickened discussions about how the alternation of macroeconomic business environment influences the development of CSR. Purpose of the article: The aim of this paper is to investigate how the changes in macroeconomic business environment influence the development of socially responsible activities in Baltic Countries and Slovakia. Methods: A statistical analysis of secondary data was used in order to reanalyse the data for the purpose of gaining new insights. The objectives of statistical analysis in this paper were twofold: firstly, to identify the challenges in macroeconomic business environment; secondly, to explore the development of socially responsible activities in different countries. The research period covered the years 2006–2016. The choice of this period is determined by data availability. Findings & Value added: The authors found that economic conditions may diversely affect the development of different dimensions of CSR. Even in unfavourable macroeconomic conditions companies continue to be involved in socially responsible actions because of long-run CSR benefits. The analysis is useful at an international level because it justified the development of socially responsible businesses in Estonia, Latvia, Lithuania and Slovakia, and has provided an opportunity to assess the tendencies of CSR development during the different period of economic cycle.


Author(s):  
Iveta Ubrežiová ◽  
Regína Kurčová ◽  
Jarmila Horváthová

In the 21st century, CSR along with other social issues (such as corporate philanthropy and social enterprise) has become one of the key business trends all over the world. Companies have begun to realize certain commitment to society and its values, and have understood the importance of their contribution into social, environmental and economic issues. Globally, CSR is considered as narrower part of international business ethics and with regard to accession of multinational companies as well as small and medium sized enterprises, and its importance is increasing. Many of those companies perceive CSR as the factor increasing their competitiveness in the business environment. From this point of view, we stated the main goal of submitted article like the evaluation how can we see the corporate social responsibility within its application in business practice. For the evaluation, we used the material, which consists from primary data and secondary data. All data were elaborated by the statistical methods. The main part of this article includes the description of the questionnaire evaluation including tables, graphs and statistical evaluation of our three set research hypotheses. In conclusion, we evaluate the overall results of our practical research and propose recommendations for the future. The research results show how the interviewed people in the company have been evaluated according to the characteristics, benefits, reasons and consideration of CSR.


2016 ◽  
Vol 4 ◽  
pp. 515-519
Author(s):  
Anna Križanová ◽  
Ľubica Gajanová

The last three decades of the twentieth century and the beginning of the twenty-first century were marked by the expansion of managerial ethics and social responsibility of business. Business ceased to be perceived in terms of profit being the sole interest of management, and ethical aspects were stressed more so in connection with the company’s management. Specific managerial ethical initiatives and activities leading from outside and inside the organization constitutes the concept of Corporate Social Responsibility (CSR), which comprises many factors. The aim of this paper is to summarize the positive impact of corporate social responsibility for business activities using secondary data from global surveys and then confirm the importance and benefits of corporate social responsibility for enterprises in the Slovak Republic using primary data.


2019 ◽  
Vol 3 (2) ◽  
pp. 89
Author(s):  
Ibrahim Aliyu Gololo

The issue of CSRD has been recognized as an evolving phenomenon since late 1970’s and it has been given attention in accounting literature with increased pressure from the stakeholders on companies to pay-back to their host communities. This study examines empirically the relationship between corporate social responsibility disclosure and financial performance of quoted cement companies in Nigeria. Secondary data were sourced and used from the quoted Nigerian cement companies annual reports. A Samples of three [3] companies emerged from the  population of five [5] companies using purposive sampling technique method. This study utilizes annual report of ten [10] years period covering [2008-2017] to obtain data for the study. The objective of this study is to examine relationship between CSRD and financial performance of quoted cement companies in Nigeria. Pooled OLS and Random Effect [RE] Panel Estimation analysis methods were used to display and discuss the results using STATA Version 12. The results revealed that corporate social responsibility disclosure have a significant and positive impact on the return on equity and return on capital employed. However, leverage and company size as control variables have a positive significant effects on the financial performance of quoted cement companies in Nigeria. Thus, CSRD is an important component to consider in determining financial performance of companies. The study recommends that quoted cement companies should increase the level of their CSR activities due to its enormous benefits on their financial performance, especially on the ROE and ROCE and Government should set quantum amount of atleast 2.5% on PBT of cement companies for execution of CSR activities to their immediate communities.


2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV


Think India ◽  
2018 ◽  
Vol 21 (3) ◽  
pp. 13-18
Author(s):  
Abhijit Ranjan Das ◽  
Subhadeep Mukherjee

Corporate Social Responsibility (CSR) is not a very new concept, it is an old concept. Earlier, in India it was optional to the company that they may contribute voluntarily towards CSR but after the Companies Act 2013, it was formally introduced in the business environment and was made mandatory for those companies whose net worth and profit cross a threshold limit. They should contribute 2% of the average net profit of just preceding three years profit. This paper primarily focuses on CSR practices of some selected public sector petroleum companies in India. The study has been conducted based on the Annual Reports of seven selected public sector companies. Five years of data on CSR spending from 2009–10 to 2014–15 were examined. Moreover, the pattern of expenses was also examined. Since petroleum companies are giants of the India economy and contribute significantly towards the Gross Domestic Product (GDP) of our country. Thus it is necessary to look into how these companies are contributing towards CSR. An attempt has been made to examine the early impact of Section 135 of the Companies Act.


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