Corporate Social Responsibility: A Step towards Good Governance | Original Article

ABSTRACT:

In this 21st century of dynamism, corporate social responsibility is a developing field of interest which is gaining popularity worldwide and India is not an exception to it. However, It is not a new concept In India but has evolved with time and is now being streamlined with passing of Companies Act 2013 so that maximum benefit can be achieved by the society as a whole. With the liberalisation of Indian economy in 1990 a major leap has been taken by the corporate regime where it has integrated corporate social responsibility as a sustainable business strategy It is deemed to be a way out to lessen the socio- economic problems prevalent or fanned by industrialisation and other environmental challenges, for a small share of profits is utilised for various welfare activities be it shareholders and other stakeholders. With the mushrooming of companies, it is important to keep a check over its activities, make them responsible enough and to have a sturdy corporate governing regime. A corporate governance focuses on major issues like accountability, transparency and conduct in conformity with the laws however a good corporate governance policy must empower the company to comprehend its corporate objectives, protect not only shareholder rights but multi-stakeholders rights, meet all legal requirements and create transparency for all stakeholders. This paper discusses the concept of corporate social responsibility in Indian context along with highlighting the crossroads between corporate governance and corporate social responsibility. This article further stresses the importance of CSR activities in achieving good governance goals hence making a long term sustainable Indian economy.