A Study on Corporate Social Responsibility: Historical Background and Impact on Organizations & Society

London Journal of Research in Humanities and Social Sciences
Volume | Issue | Compilation
Authored by Prashant Pareek , NA
Classification: For Code: 160899
Keywords: corporate social responsibility, historical and religious context, impact on organizations and society, legal implications.
Language: English

A very simple understanding of the word ‘Corporate Social Responsibility’ (CSR) is that it is a relationship between business organization and the society with which they interact. Under CSR, business organizations voluntarily embark on various development activities for the welfare of the society. However, there are several other benefits attached to CSR activities which give business organizations additional impetus to get involved in such activities. These are the advantages like creation of goodwill, branding, risk minimization, consumer and employee satisfaction, etc. Currently business organizations are involved in CSR activities like, fostering the growth of education, health care, environment protection, rural development, women empowerment, labor welfare, anti-corruption, etc.
This paper tries to explore, through secondary data analysis, about the evolution of Corporate Social Responsibility as an idea and then as a concept which is now mandatory by law for a particular category of organizations. The fundamental aim of this paper is to understand the impact of Corporate Social Responsibility activities on organizations and society. The literature which has been reviewed gives an insight about the religious and historical context about CSR as well as its impact on organizations and various sections of society. This paper is based on secondary data study with relevant literature has been taken into consideration to achieve the objective.

               

A Study on Corporate Social Responsibility:

Historical Background and Impact on Organizations & Society

Prashant Pareek

____________________________________________

  1. ABSTRACT 

A very simple understanding of the word ‘Corporate Social Responsibility’ (CSR) is that it is a relationship between business organization and the society with which they interact. Under CSR, business organizations voluntarily embark on various development activities for the welfare of the society. However, there are several other benefits attached to CSR activities which give business organizations additional impetus to get involved in such activities. These are the advantages like creation of goodwill, branding, risk minimization, consumer and employee satisfaction, etc. Currently business organizations are involved in CSR activities like, fostering the growth of education, health care, environment protection, rural development, women empowerment, labor welfare, anti- corruption, etc.

This paper tries to explore, through secondary data analysis, about the evolution of Corporate Social Responsibility as an idea and then as a concept which is now mandatory by law for a particular category of organizations. The fundamental aim of this paper is to understand the impact of Corporate Social Responsibility activities on organizations and society. The literature which has been reviewed gives an insight about the religious and historical context about CSR as well as its impact on organizations and various sections of society. This paper is based on secondary data study with relevant literature has been taken into consideration to achieve the objective.

Keywords: corporate social responsibility, historical and religious context, impact on organizations and society, legal implications.

Author: Assistant Professor, Marketing Area, Amity Global Business School Ahmedabad, Gujarat, India.

  1. INTRODUCTION

2.1 Historical and Religious Background 

The concept of social responsibility among the business organizations is very old, which is observed to be in existence in ancient Chinese, Egyptians and Sumerians literature. As a matter of fact, it has been discovered that these societies have given equal importance to social welfare activities along with the trade and commercial transactions because they believe business activities should lead towards social upliftment and reduction in power distance[1]. Jesus taught that wealth encourages greed and selfishness and doesn’t lead to true happiness[2].

CSR is a western concept which found its origin in the 19th century. However, the essential features of it can be easily traced back to ancient religious texts also. One such example can be taken from the Rig Veda. There is a particular verse (5-60.6), which says that affluent people in society should share their wealth with poor for social development[3]. Although, we find no religious text ever using the word Corporate Social Responsibility or Corporation, the essence of this concept is very much ingrained in some of their verses. Accordingly to Christian Theology, where “Man as Angel”, serves the social purpose by engaging himself into business activities, whereas “man as devil” could manipulate corporate power and responsibility for self-development which can lead to deprivation of other section of society[4].

Corporate Social Responsibility means organizations objectively avoiding such decisions which can harm society at large or any particular section of society, it is not only about taking or avoiding decision making but also usage of resources by organizations in such a way that social set up does not get affected. Manu Smriti also leads us to one of the most important principle which says that – “A person should never seek to earn or secure wealth through pursuits which are forbidden or illegal or immoral (IV-15)[5]. We find that ancient texts like Manu Smriti talks in detail about the nature of work to be done by persons, including business organizations and states that whatever is good for society is also good for the company in the long run.

Manu Smriti also clears the dilemma that whether companies should involve themselves in CSR activities or not by stating in its text that; some people declare that acquiring wealth alone will do well for any human society, There are others who declare that fulfillment of human desires and the acquirement of wealth are better and, after all individuals have to fulfill their desires and desires are never-ending. There are others who declare that Dharma or Righteous code of conduct is sufficient and, there are also others who say that acquisition of wealth alone is sufficient. But the correct one among them is the one who maintains the balance between earning wealth and the righteous code of conduct. Fulfillment of desires to earn wealth should be in conformation with Dharma and, wealth which contravenes Dharma should be rejected. (CH-II-224 and CH-IV-176)[6]. Therefore, as per the above text, Manu Smriti states that companies should ensure that they are not just thoughtful about profit but they should also take care of the means used to earn that profit. Wealth earned by violations of principle of drama is not a good wealth and should be rejected. Thus, the above text signifies the importance of CSR in the working of any business organization.

We can also find consistent stress on the principle of CSR in Islam as well. In the Quran and other Islam texts we will not find the mention of the word like a corporation or a corporate. Islam talks about responsibility in general and to be followed by every person following Islam including corporations. Islam lays down the code of ethics for business corporations and businesses peoples, Fair Trade, fulfilling covenants, and free competition are few important essentials to be followed by the corporations during business[7]. Below are a few principles which deal with CSR with Islam-

Zakah (AL Zakah) is one of the five fundamental pillars of Islam, and its observance distinguishes true believers from mere nominal Muslims according to Quran[8]. According to the principle of Zakah, when a Muslim has enough to cover the essential needs for himself and his family over a year, he is in possession of the Nisab (Taman 2011, p.488). If he has assets more than what he is obliged to give, then he is obliged to pay Zakah on the excess. The importance that God has placed on Zakah in the Quran demonstrates how strongly Islam is associated with CSR. Even the corporations are also expected to pay Zakah[9]. Zakah is due on the passage of every one lunar year. Al Zakah is almost similar to the concept of the mandatory CSR contribution but the only difference is of guiding force, for later the guiding force is of a legal nature and for Al Zakah the guiding force is religious in nature.

If we go further, we also find that the CSR is also promoted by the concept of Sadaqah. According to Quran Sadaqah can be defined as small daily acts of charity. Allah encourages every Islamic follower to give Sadaqah[10] and there is no amount fixed for Sadaqah. The money raised for Al Zakah and Sadaqah is used to feed poor, donate clothes and other activities. A large amount of money raised from AL Zakah is used to manage Madrasa which provide free education to millions of Students (Blanchard)[11].

Moving to Hindu religious texts, if we refer to Vedic literatures, we find the notable mention of important terms like ‘Sarvalokahitam’ which means ‘well-being of stakeholders’. This shows the importance of stakeholders for any person including any artificial body like corporations.

Kautilya in Arthasastra also mentioned that happiness cannot be obtained by wealth and profit alone but only by doing things rightly and doing right things, i.e., sukhasyamulam dharma[12]. Kautilya also suggested that a leader (king) should have no self-interest, happiness and joy for himself. His satisfaction lies in the welfare (happiness) of his people. The similar advice is also referenced in Shanti Parva of the Mahabharata, wherein the public interest (welfare) is to be accorded precedence over the leader’s interest[13]. So, if we look at business organisations as a leader or a king, then they are supposed to help others and should engage themselves in welfare of the society.  

Muniapan and Dass in their research study on Vedic CSR tinted a related progress of CSR in the ancient India. Early framework of CSR was based on religious virtues and values, such as honesty, love, truthfulness and trust (Muniapan 2011)14. Such values were found central in the golden rule constructed by Immanuel Kant’s Categorical Imperative. It has also been argued that this golden rule can be taken into consideration to make companies understand their accountability towards stakeholders and society implicitly. It also suggests that those who are not practicing such values are considered to be unethical in their approach (Muniapan 2011).

Thiruvalluvar in Tamil Nadu who wrote the Thirukkural– a classic Tamil Sangam literature around 2nd century B.C., highlights uniqueness of socially responsible organizations. Thiruvalluvar says: the ruler who administers justice and harbors his people will be considered of supreme quality;   He further adds:

“In the modern context of business, we would like to see organizational leaders setting such examples for the societal and global well being. Such leadership actions will not only promote CSR but also GSR (Global Social Responsibility) or USR (University Social Responsibility)[14]”. - Dr. Balakrishnan Muniapan

In nutshell, the Vedanta concept of “dharma” and “karma” provides an inside-out approach to CSR.  According to old saying, one should save his wealth against future calamity and not to think “what fear has a rich man of calamity?" because “when riches begin to forsake one even the accumulated stock dwindles away[15]”.

2.2 Corporate Social Responsibility in 20th Century

Due to the removal of trade barriers and restrictions on foreign investment, last few decades have seen a huge growth of FDI, especially in the developing countries. We have witnessed a great change in the number of the Multinational Corporation since 1970. When there were only 7,000 Multinational corporations (MNCs), by 1994 there were around 37,000 MNCs with over 200,000 globally spread affiliates[16]. Involvement of multinational companies in different countries added the advancements in technology and communication had played a significant role in reducing the cost of investment in entire world particularly in developing countries which are known for economical labor, easily available raw materials and other available natural resources. Many business entities of other states try to exploit these conditions which are vital for flourishing their business. The companies often faces a dilemma regarding whether to maximize profits or take up social responsibility while making corporate decisions regarding production, distribution of services.

The increase in the number of MNC’s and their power posed a great challenge for the states and its peoples. It is also seen as a major threat to human rights causes. MNCs are sometimes more financially influential than national economies. Some notable examples are Royal Dutch/Shell Group Oil Company whose annual sale is close to twice more than New Zealand’s gross domestic product (‘GDP’). Similarly, annual sales of the British tobacco company, BAT Industries, are almost equivalent to the GDP of Hungary. The German electronics goods maker, Siemens AG, has annual sales that surpass the combined GDP of Chile, Costa Rica and Ecuador. Another example can be Mitsubishi and General Motors whose annual sales are more than double the GDP of Hong Kong or Israel[17].

N. Eberstadt in his article, What history tells about Corporate Social Responsibility (1978) published in Business and Society Review, states that CSR had undergone various stages and he classifies its historical evolution into the classical, medieval[18], mercantile[19], industrial[20] and corporate[21] periods[22] (Sheikh 1996).  

During the period of 1920-1970 as observed by Hay and Gray, there were three historical phases between 1920-1970 in which, CSR saw its gradual development. The highlight of the phase one was sole aim of the business to maximize profits. This behavior ends up in 1920s. Phase two was the development of the concept of ‘trusteeship management’ which emerged in 1920s and 1930s.  According to this, business corporation acknowledged by their actions that money is important for the business organization but  so are people, satisfying needs of the society is better goal than just minting money[23]. The main attribute of Phase three was ‘quality of life management’. According to this, economic objectives are not the sole objective of business organizations[24].The world started talking about the one per cent clubs in UK (1986) and US (1970) with a main aim to make a significant contribution to the local communities in which they operate[25]. The next decades (1980s) forced the business organization to be more socially responsible due to the economic recession., There was a thought shift in this period which states that the primary responsibility of any business organization is too ensure that they behave as a good corporate citizen and should not only care about the shareholders but also about the other stakeholders like employees, customers, suppliers, general public, environment etc.[26]

In 20th century CSR has been seen as philanthropy, charity, and social-giving. But in late 20th century, the CSR concept was shaped in the form of a model to do sustainable business[27]. Most companies had taken up topics of their respective interests and started investing in them. We also find a notable emphasis on elementary education in this period.

2.3 The Companies Act, 2013 (Section 135 on Corporate Social Responsibility)[28]

  1. Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
  2. The Board's report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.
  3. The Corporate Social Responsibility Committee shall,—
  1. formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;
  2. recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
  3. Monitor the Corporate Social Responsibility Policy of the company from time to time.
  1. The Board of every company referred to in sub-section (1) shall,—
  2. after taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose contents of such Policy in its report and also place it on the company's website, if any, in such manner as may be prescribed; and
  3. ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company.
  1. The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy:

Provided that the company shall give preference to the local area and areas around it

Where it operates, for spending the amount earmarked for Corporate Social responsibility activities:

Provided further that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.

Explanation —for the purposes of this section “average net profit” shall be calculated in accordance with the provisions of section 198.

3.4 Push Factor for Organization to Become More Socially Responsible

CSR is the responsibility of the business towards society at any given point of time, but the most pertinent question that arises is whether business corporations should have any responsibility towards the society. To find an answer to this, it is very important to understand why a business organization should get involved in CSR practices. We are generally of the view that business organizations strive hard for profit gains and scarcely care about the consequences of their action. For making profits, the corporations has to pay due considerations to the market demand which is mostly controlled by the consumer. Therefore, any negative move or business decisions taken by a corporation can portray a negative image of the company and its brand resulting in serious implications on the demand of the products in the market. So, nowadays the policy decisions made by the companies do not only take into considerations the interest of shareholders but also that of its various stakeholders.

According to a global survey in 2002 by Ernst & Young, 94 per cent of companies believe that the development of a CSR strategy can bring actual business benefits. Senior executives from top 147 companies in a range of industry sectors in Europe, North America, and Australia were interviewed for this survey. The research suggested that organizational CSR programs influence 70 percent of all consumer purchasing decisions[29].

There are various push factors which force business organization to get involved in CSR activities few important ones have been discussed below.

  • Ethical Considerations: Religion and Philosophy play a significant role in the development of human value and behavior attributes which has a major impact on businesses. Researchers also suggest that the encouragement of religious predicament in business which can lead to benefits in terms of creativity, honesty and trust, personal fulfillment, and commitment, which will ultimately lead to increase in business performance in the long run. CSR activities are sometimes forced or pushed by the religious sentiments and religious texts. One of the examples can be a principle of Zakah in Islam etc. Importance of Dharma is also an eternal part of all religion. According to it, persons following the path of Dharma will remain close to god. Thus, ethical considerations are no doubt one of the push factors for a company to get involved in CSR activities.
  • Employee Motivation: Employee motivation is the level of energy, commitment and creativity that the companies’ workers bring to their   jobs[30]. CSR activities also motivate the employees to be more faithful and committed to their company[31]. Employees with high motivation level have much improved productivity.
  • Risk Management or Risk reduction: Business organizations are under a constant risk if they become part of any activity which is anti-social. We have seen that many a time’s court also imposes exemplary damages to the tune of millions and millions on business organizations violating the rights of stakeholders. We find that when a company is involved in CSR activities the risk of the downfall of the company and its share value decreases. Therefore, CSR has a very significant role in reducing business risks and preventing negative sentiments about the product and the brand.
  • Reduction in Operating Costs leading to Higher Productivity and Quality: Although it is well accepted that CSR initiatives help in reducing operating cost, their arguments from both the sides. Few corporate think that CSR activities need extra cost and increase the overall cost. The other line of thought says that CSR initiatives help in reducing operational costs significantly e.g., many initiatives intended at improving environmental performance such as reduction in pollution that would contribute to global climate change. If we look from a larger perspective, we will find that CSR helps in reduction of cost in almost all the domains. For example, providing elementary education to people through CSR activities will help in the progress of the quality of the lives of the employees at a much affordable price.
  • Reduced Regulatory Oversight: Companies which demonstrate good CSR practices also get favorable treatment from the government with respect to regulatory compliances. Such business organizations also get greater leeway to work in their own way without many restrictions from the government. In most of the cases, such business organizations are subjected to fewer inspections and following rules and regulations, and sometimes they may also be given preference when applying for official working permits and other forms of governmental permission[32]. Reducing regulatory oversight also increases productivity and improves the marketing and distribution channels.
  • Effect on Consumer Demand: CSR activities have a direct impact on the consumer demands for any product. Whenever a company shows that they are not concerned about the CSR and welfare of the stakeholders, they meet with a difference in purchasing decision by the consumers. An example can be that of soft drink market which blew in the year 2003 and 2004 due to the presence of residual of pesticide in them. After such findings, even when the costs were reduced, the sale of the product fell sharply. A number of research proved that there were residues of pesticides in soft drinks in India.
  • Research conducted by (Business in the community) BITC and Research International in 2003 observed that 86% of consumers agree that when price and quality of goods and services is identical, they will buy the product of the company which spends money in CSR activity, whereas 61% agree that they would change the retail outlet for the above mentioned reasons and 86% of consumers agree that they have a more positive image of a company if they see that the company is doing something to make the world a better place to live[33]. In 1993, research conducted by MORI showed that 73% of UK consumers preferred to buy environmentally and socially, friendly goods supplied by the business organization.

3.5   Core Focus Area of CSR Activities

There are many areas in which business organizations takes the CSR activities like labor welfare, employment, rural development, health care, providing shelter, education, vocational training etc. The two thrust areas in which maximum number of business organizations takes up CSR activities are environment and education. And both education and protection of environment help business organizations attain their long term goal of doing sustainable business. Business organizations are providing scholarships, midday meal, vocational training, technical education, etc. which help them build a trust within the consumers and local people.

  1. RESEARCH METHODOLOGY

4.1 Research Objective

  • To review the historical context of Corporate Social Responsibility
  • To understand the impact of CSR on Organizations
  • To understand the impact of CSR on Society
  • To ethically justify CSR by relating it to the old religious texts
  • To clarify the push factor for business organizations to take-up CSR practices.

4.2 Research Design

This research is exploratory research as it is completely based on secondary data. The reason for using exploratory research design is to dissect the problem into sub-problem and to gain insight of the topic. Relevant literature has been reviewed to achieve the above mentioned objectives.

4.3 Data Collection Sources

This research is based on comprehensive study of sources which are primarily books, annual reports, journals, news paper articles, circulars & web resources, etc.

4.4 Scope of the Study

The scope of the study is limited to the features of CSR and its historical backgrounds, push and pulls factors which force a corporate entity to take-up CSR practices, various dimensions in which CSR activities can be undertaken, and the implications of making CSR activities mandatory.

4.5 Limitations of the study

  • The research is based on secondary data analysis. Thus, the limitation of secondary data study is evident.
  • This study is focusing only on one dimension of CSR i.e. impact of CSR on organizations and society, other dimensions are briefly touched upon.
  • This study is outcome oriented study rather than process oriented.

V.   KEY FINDINGS

There is no clear definition of CSR given by the government. However, there are nine principles where areas like development, human rights and inclusive growth have been highlighted.

  1. The Companies Act 2013 needs clear guidelines and rules on how to allocate the mandatory 2 % for CSR activities spending. Allocation of CSR should be on the basis of amount of money company has made rather than they spend it.
  2. The purity of engaging in socially responsible causes gets diluted when it is being forced by policy makers, and becomes a burden on organizations in the form of taxes on their profits.
  3. Even there are examples of such organizations which are engaged into CSR activities even before the enforcement of Law.
  4. The Companies Act makes the biggest blunder of ignoring the sustainability aspect and trying to list activities which the corporate should take up to spend their mandatory 2% on CSR.
  5. It is also important to note that the companies identify the right areas to engage in CSR activities, where it actually serve the purpose of making this practice mandatory for a particular category of corporations. (right area means those sections of society who are actually in need of uplift or development)
  6. All religious scriptures talk about CSR in good faith. Thus, organizations of present day should not engage themselves in CSR practices just for the fulfillment of legal requirement.
  1. CONCLUSION

The concepts of CSR have shown its significant presence in the old religious text of almost of all the religions. There are many occasions when the concept of CSR has been mentioned in those texts, though in subtle or indirect manner. However, there is no where we can find that the word corporation, company, corporate social responsibility is explicitly mentioned. We find that the main development of the concept of CSR took place in the 19th century and the concept gradually started to become consolidated and clearer. Later on, the concept started flourishing as a corporate strategy with the idea, ‘doing good to do well’. After 1990, we find that the concept of CSR took full shape as a business strategy and a mode of sustainable business.

Religious texts don’t perceive CSR as an obligation or as a tool for business gain. One of the objectives of The Companies Act 2013 which mandates spending on CSR activities for a particular category of organizations is to increase the number of organizations for performing socially responsible activities. Now, since a law has been enforced it becomes a responsibility of various stakeholders like policy makers, researchers, academicians, social institutions and corporate that they should perceive it as a tool to create a culture wherein organizations consider CSR as one of the functions like other functions.

We cannot confine CSR activities within a few heads but the above mentioned core focus areas are the major areas in which CSR activities are done. Environment, labor welfare, rural empowerment, employment generation, education are just a few of these areas. There are lot of other activities in which companies make an effort to make this world a better place to live. And whenever we see the annual reports of different companies we find that during CSR disclosure the activity which appears prominently is education and almost all big companies do something or the other in the field of education. A few are involved in elementary education projects; others are involved in fault education; vocational training grants etc. are some other activities taken up by companies in the field of education. So after going through this part of the chapter the major core focus area of CSR activities taken up by companies are well understood.

REFERENCES

  1. See generally Mriganka Shekhar Dutta & Rashmi Bothra, Striving towards a Green India INC.: A Critically Essay on the Environmental Policies of the Indian Corporations 2 NUJS L. REV. 248 (2009).
  2. Christian Beliefs on Religion, Wealth and Poverty, available at https://www.123helpme. com/view.asp?id=12236
  3. K. M. Mittal, supra note 2.
  4. Subhabrata Bobby Banerjee, Corporate Social Responsibility The Good, The Bad And The Ugly 15 (Edward Elgar Publishing Limited, 2007)
  5. Subhabrata Bobby Banerjee, Corporate Social Responsibility The Good, The Bad And The Ugly 15 (Edward Elgar Publishing Limited, 2007) 
  6. “O, you who believe, do not eat up each others’ properties in vanities, but let there be amongst you traffic and trade by mutual consent, nor kill or destroy yourselves, verily god has been most merciful to you.”-Quran [4:29]
  7. Salma Taman, The Concept of Corporate Social Responsibility in Islamic Law, 21 IND. INT’L & COMP. L. REV. 481 (2011)
  8. Zakah is due on the passage of every one lunar year.Zakah is obligatory after a time span of one lunar year passes with the money in the control of its owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat (A lunar year is approximately 355 days).
  9. According to Quran Sadaqah can be defined as small daily acts of charity.
  10. Christopher M. Blanchard, Islamic Religious Schools, Madrasas: Background, https:// theroadtoemmaus.org/RdLb/33Rlg/Islm/Madrasas.htm
  11. Dr. Balakrishnan Muniapan, The Duty and Action for Corporate Social responsibility from the perspective of Vedanta, https://www. Aibuma.org/proceeedings2011/aibuma2011_submission_45.pdf
  12. Dr. Balakrishnan Muniapan, Kautilya’s Arthashastra and Perspectives on Organizational management, https://www. ccsenet.org/journal/index.php/ass/article/viewFile/2089/1968
  13. Dr. Balakrishnan Muniapan, supra note 34
  14. Sri ChanakyaNiti-Sastra the Political Ethics of Chanakya Pandit, https://philosophy.ru/ library/asiatica/indica/authors/kautilya/chanakya_niti_sastra.html
  15. Dr. Clarence J. Dias, Corporate Human Rights Accountability and the Human Right to Development: the Relevance and Role of Corporate Social Responsibility, 4 NUJS. REV. 495,495 (2011).
  16. Dr. Clarence J. Dias, Corporate Human Rights Accountability and the Human Right to Development: the Relevance and Role of Corporate Social Responsibility, 4 NUJS. 496-97 (2011).
  17. In this period businessman’s positions in Greece was slightly above slaves.
  18. (1000-1500 AD) churches branded profit motive as ‘anti-Christian’ and businessmen were expected to care for their guild members and for the well-being of the community.  They also sponsored municipal improvements such as educate the poor etc.
  19. (1500-1800 AD) Calvinist doctrine advocated profit maximization as the key to business success but still Business which provided outstanding social services to the community were given special privileges in the form of bestowing upon them the status of corporations.
  20. (1800-1920 AD) Laissez Faire economists rejected the proposition that businesses are responsible for the social welfare. This period felt the domination of the economy by business due to significant power and vested in the industrialists due to their wealth. Capturing new colonies by the industrialists was nothing new in this period.
  21. This period includes the present day companies which are perceived as institutions discharging social obligations in society.
  22. Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice 9 (Cavendish, 1996).
  23. Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 8.
  24. Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 11-12.
  25. Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 43.
  26. Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 14.
  27. Ministry of Corporate Affairs. (n.d.). Corporate Social Responsibility. Retrieved December 22, 2016, from www.mca.gov.in: https://www.mca.gov.in/SearchableActs/Section135.htm
  28. Corporate Social Responsibility, ASOCIO Policy Paper (June 2004), available at https://www.asocio.org/policy/corporate%20social%20responsibilty.pdf
  29. Encyclopedia of Business (2nd Ed.) available at, https://www.referenceforbusiness.com/small/Di-Eq/Employee-Motivation.html#b

        


[1] See generally Mriganka Shekhar Dutta & Rashmi Bothra, Striving towards a Green India INC.: A Critically Essay on the Environmental Policies of the Indian Corporations 2 NUJS L. REV. 248 (2009).

[2] Christian Beliefs on Religion, Wealth and Poverty, available at https://www.123helpme.com/view.asp?id=12236

[3] K. M. Mittal, supra note 2.

[4] Subhabrata Bobby Banerjee, Corporate Social Responsibiliy The Good, The Bad and The Ugly 15 (Edward Elgar Publishing Limited, 2007)

[5] Justice M. Rama Jois, Ancient Indian Law: Eternal Values in Manu Smriti 18(Universal Law Publishing Co. Pvt. Ltd. 2004), CH IV -15

[6] Justice M. Rama Jois, Ancient Indian Law: Eternal Values in Manu Smriti 18(Universal Law Publishing Co. Pvt. Ltd. 2004), CH-II-224 and CH-IV-176

[7] “O, you who believe, do not eat up each others’ properties in vanities, but let there be amongst you traffic and trade by mutual consent, nor kill or destroy yourselves, verily god has been most merciful to you.”-Quran [4:29]

[8] Salma Taman, The Concept of Corporate Social Responsibility in Islamic Law, 21 IND. INT’L & COMP. L. REV. 481 (2011)

[9] Zakah is due on the passage of every one lunar year.Zakah is obligatory after a time span of one lunar year passes with the money in the control of its owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat (A lunar year is approximately 355 days).

[10] According to Quran Sadaqah can be defined as small daily acts of charity.

[11] Christopher M. Blanchard, Islamic Religious Schools, Madrasas: Background, https://theroadtoemmaus.org/RdLb /33Rlg/Islm/Madrasas.htm

[12] Dr. Balakrishnan Muniapan, The Duty and Action for Corporate Social responsibility from the perspective of Vedanta, https://www.Aibuma.org/proceeedings2011/ aibuma2011_submission_45.pdf

[13] Dr. Balakrishnan Muniapan, Kautilya’s Arthashastra and Perspectives on Organisational management, https://www. ccsenet.org/journal/index.php/ass/article/viewFile/2089/1968

[14] Dr. Balakrishnan Muniapan, supra note 34

[15] Sri Chanakya Niti-Sastra the Political Ethics of Chanakya Pandit, https://philosophy.ru/library/asiatica/indica/ authors/kautilya/chanakya_niti_sastra.html

[16] Dr. Clarence J. Dias, Corporate Human Rights Accountability and the Human Right to Development: the Relevance and Role of Corporate Social Responsibility, 4 NUJS. REV. 495,495 (2011).

[17] Dr. Clarence J. Dias, Corporate Human Rights Accountability and the Human Right to Development: the Relevance and Role of Corporate Social Responsibility, 4 NUJS. 496-97 (2011).

[18] (1000-1500 AD) churches branded profit motive as ‘anti-Christian’ and businessmen were expected to care for their guild members and for the well-being of the community. They also sponsored municipal improvements such as educate the poor etc.

[19] (1500-1800 AD) Calvinist doctrine advocated profit maximization as the key to business success but still Business which provided outstanding social services to the community were given special privileges in the form of bestowing upon them the status of corporations.

[20] (1800-1920 AD) Laissez Faire economists rejected the proposition that businesses are responsible for the social welfare. This period felt the domination of the economy by business due to significant power and vested in the industrialists due to their wealth. Capturing new colonies by the industrialists was nothing new in this period.

[21] This period includes the present day companies which are perceived as institutions discharging social obligations in society.

[22] Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice 9 (Cavendish, 1996).

[23] Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 8.

[24] Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 11-12.

[25] Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 43.

[26] Dr. Saleem Sheikh, Corporate Social Responsibilities Law & Practice (Cavendish, 1996) at 14.

[27] Supra note 1, at 397.

[28] Ministry of Corporate Affairs. (n.d.). Corporate Social Responsibility. Retrieved December 22, 2016, from www. mca.gov.in: https://www.mca.gov.in/SearchableActs/ Section135.htm

[29] Corporate Social Responsibility, ASOCIO Policy Paper (June 2004), available at https://www.asocio.org/policy/ corporate%20social%20responsibilty.pdf

[30] Encyclopedia of Business (2nd Ed.) available at, https://www.referenceforbusiness.com/small/Di-Eq/Employee-Motivation.html#b

[31] Supra note 1, at 387

[32] Supra note 1, at 389

[33]  John Hancock, supra note 14, at 111.



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