1 Abstract for 18th Thinkers & Writers Forum

Is CSR a plausible mechanism of complementing state in achieving

MDG’s?

The famous “Tryst with Destiny” speech delivered by Nehru was a moment of

celebrating freedom. Though the state became sovereign but are the people intrinsically

free? If yes, then what justifies the fact that India is recognized more for its illiteracy,

poverty and sufferings? Despite innumerable developmental initiatives what explains

the fact that citizens don’t have access to basic services like food, health and

livelihoods? Although the welfare state has travelled a long way to ensure several rights

to citizen’s viz. right to education; food; programmes on health (NRHM); livelihoods

(MNREGA) still more needs to be done. The current paradigm of development requires

lesser government and more governance and inclusive growth. For this objective to be

fulfilled, apart from state initiatives, need exists for corporates to join hands and expand

their responsibilities beyond just the principal-agent.

Generally corporates are associated with profit maximization and the target has been

stockholders, not stakeholders. Though economic growth is essential, the advancement

of human capability, according to Amartya Sen, is a prerequisite for enhancement of

human freedom and wellbeing which further promotes and sustains higher levels of

economic growth. Of late, corporates are trying to enter into other domains and

focussing on broader societal context. This shift has given rise to discussions on CSR,

defined as an organisation’s commitment to society and environment within which it

operates. CSR is both an opportunity and an important requirement for corporates to be

engaged in wider nation-building efforts.

Although no one doubts the foundational role that the state is supposed to play,

especially in health and education due to huge information asymmetry, but

simultaneously private players also need to take the onus. CSR should not just be seen

as an instrumental effort rather an ethical orientation that essentially calls for

2 Abstract for 18th Thinkers & Writers Forum

introspection. It shouldn’t be seen as mere charity but as the corporate’s responsibility

towards the stakeholders, whose life and environment is affected directly or indirectly.

Although CSR is considered to be a recent and western development but in India it has

been implicitly present in the trusteeship principle of Mahatma Gandhi. He wanted

capitalists to act as trustees of their property and conduct themselves in socially

responsible way. Corporates are realising that their reputation is intrinsically connected

with how well they consider socio-economic issues. Further corporates should not follow

a gap-filling approach rather the global community has come forward to synchronize

their efforts towards broader social issues. Global interconnectedness could be gauged

from the fact that during United Nations Millennium Summit there was recognition to

come up with a set of goals to address the socio-economic inequity and environmental

vulnerability. It came up with a blueprint of development called Millennium Development

Goals (MDG’s). Eight in number but they broadly could be categorized into four, health;

education; eradicating poverty and sustainable environment.

The rationale of this paper is to explore the trajectory of CSR in India and analyse the

work which corporates have been doing. The paper explores whether there is

consonance between the types of work which they do and MDG’s. Moreover the paper

throws light on the latest developments on legislative front i.e. Companies (Amendment)

Act, 2013. It seeks to anticipate the type of work which the corporations were doing pre-

amendment and what possible changes would be introduced post-amendment.

3 Abstract for 18th Thinkers & Writers Forum

Authors

1. Swayamshree Mishra(Research Officer-CGG)

Email: swayamshree@gmail.com Phone No: 08500862664

2. Tejbir Singh Soni(Knowledge Manager-CGG)

Email: soni.tejbir@gmail.com Phone No: 09703758408

Address

Centre for Good Governance,

Dr MCR HRD IAP,

Road No. 25 Jubilee Hills,

Hyderabad 500033

Andhra Pradesh