Corporate Social Responsibility – Issues and Challenges in India

In India companies like TATA and Birla are practicing the Corporate Social Responsibility (CSR) for decades, long before CSR become a popular basis. In spite of having such good glorious examples; In India CSR is in a very much budding stage. A lack of understanding, inadequately trained personnel, coverage, policy etc. further adds to the reach and effectiveness of CSR programs. Large no. of companies are undertaking these activities superficially and promoting/ highlighting the activities in Media. This research paper focuses on the finding & reviewing of the issues and challenges faced by CSR activities in India.

Key Findings

The concept of corporate social responsibility is now firmly rooted on the global business agenda. But in order to move from theory to concrete action, many obstacles need to be overcome. A key challenge facing business is the need for more reliable indicators of progress in the field of CSR, along with the dissemination of CSR strategies. Transparency and dialogue can help to make a business appear more trustworthy, and push up the standards of other organizations at the same time. Some of the positive outcomes that can arise when businesses adopt a policy of social responsibility include:

Company Benefits

  • Improved financial performance;
  • Lower operating costs;
  • Enhanced brand image and reputation;
  • Increased sales and customer loyalty;
  • Greater productivity and quality;
  • More ability to attract and retain employees;
  • Reduced regulatory oversight;
  • Access to capital;
  • Workforce diversity;
  • Product safety and decreased liability.


Benefits to the Community and the General Public

  • Charitable contributions;
  • Employee volunteer programs;
  • Corporate involvement in community education, employment and homelessness programs;
  • Product safety and quality.


Environmental Benefits

  • Greater material recyclability;
  • Better product durability and functionality;
  • Greater use of renewable resources;
  • Integration of environmental management tools into business plans, including life-cycle
  • assessment and costing, environmental management standards, and eco-labeling.

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