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As posted earlier, there has been some recent reports in various Indian newspapers about different initiatives from state governments in relation to corporate social responsibility. Last time we examined a draft document prepared by the Gujarat state government, that held the idea of the state government getting involved in directing initiatives for corporate social responsibility to help overcome the scattered nature currently faced when private businesses individually go out into the community and do CSR and other ethical activities without any overall direction.
In the state of Karnataka, the state government seems to be taking things a step further by unveiling a draft mandatory policy for corporate social responsibility. Jobs connected to such a policy in the field of CSR would undoubtedly increase, if it was to be made law. N N Upadhaya, president of Bangalore Chamber of Industries and Commerce is quoted saying “It is a matter of giving back to society to compensate for what the company has taken. There is an element of social justice. If CSR becomes mandatory, every corporate entity must adopt it with absolute sincerity”.
The creation of the policy seems to have been provoked by some corporations not providing adequate facilities to their own employees. For example, some truck drivers were not provided adequate toilet facilities. In a smart move, instead of the government insisting that the companies provide toilet facilities just for there own employees, the idea is that the company would build a toilet facility that would be public in nature so that it benefits the employees of the company and the surrounding community at the same time.
So two main themes can be drawn from this recent development in Karnataka.
- Having corporate social responsibility as a mandatory requirement that businesses must undertake.
– If businesses are forced to undertake CSR, then it’s probable that at least some corporations will begrudgingly find ways to shirk this requirement with as little effort as possible.
– Companies that voluntarily undertake corporate social responsibility activities says something in its own right about the companies that do contribute to society in the absence of a mandatory policy.
- The idea of businesses investing in essential services that allow them to conduct their day-to-day operations, but at the time of making this investment, with a little creative thinking, could they spend a little extra and build the infrastructure or service with the larger community in mind.
– For example, What about a company that builds (or rents) a new corporate office and allows a not for profit charity to use some space for its needs? It may be more efficient than donating money to a charity so that they can pay their rent.
– Or, a company only needs some jobs filled part-time. A marketing person may only be needed part-time, but the corporation may hire them full time, and donate the left over hours to some corporate social responsibility jobs.
Technorati Tags: Corporate Social Responsibility, Corporate Social Responsibility News, India
