In contemporary world, corporate sector’s contribution in generating wealth and employment is increasing. In doing so, they are bringing in unprecedented onslaught on the climate, environmental sustainability and living conditions of human beings. In this background, do you find that Corporate Social Responsibility (CSR) is efficient and sufficient enough to fulfil the social roles and responsibilities needed in the corporate world for which the CSR is mandated? Critically examine. UPSC IAS Mains 2022 General Studies (Paper – 4)
Globally, the corporate sector is the main contributor in GDP and employment generation. However, it does have Negative Externalities such as pollution, Global warming and Climate Change, in formalization of workforce.
In this backdrop, although Corporate Social Responsibility (CSR) focusing on Ensuring environmental sustainability, skill development, empowering women, etc have been very beneficial to society (e.g., Tata’s Project MANSI, Mahindra’s Nanhi Kali.), yet this alone is not sufficient enough to fulfil the social responsibilities needed in the corporate world:
Issues and concerns:
- Post-Mortem Approach: for e.g., a company earning profit by damaging environment and later on uses some percentage of profit to plant trees; this is not a sustainable practice. Company should shift to green ways of generating profit at first place.
- Poor Intent: purpose is many a times merely to build the brand image, not a sense of responsibility.
- Only medium and large corporate houses are involved in CSR activities,
- Responsible growth and an adherence to the tenets of sustainability in all business operations is the way out.
Thus, need of hour is to move beyond corporate social responsibility to corporate social accountability, track the progress of interventions, share best practices, also the ideal of sustainable and compassionate capitalism as put forward by Narayan Murthy.
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