Business Ethics and Corporate Governance, Second Edition

INDIA ON THE ETHICAL/CSR MATRIX

There is a difference in approach towards CSR in India vis-a-vis the developed nations. Companies in India exert considerable influence on the government to shape favourable business policies and have regulatory frameworks in place. But barring a few—Bajaj, Godrej, Tata, Infosys, Dr Reddy’s Labs, etc. most companies do not seem to display a social conscience.

But every year, Indian companies are putting in more money in community activities. There are several reasons for this—one, it is an ideal tool for building ‘reputation capital’. Second, it stems from the concept of optimization of profits as against maximization of profits.

A number of recent surveys have been conducted in India to understand what CSR means ...