CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPEMENT --- A STEP AHEAD TOWARDS INCLUSIVE GROWTH

Abstract

In the recent past the global economy is experiencing lots of challenges. The developed country’s economy are not picking up the pace of their industrial growth and economic development as per their expectations whereas the developing countries have shown growth and improvement in the pattern of their economic development because of his their visionary approach and implementation of new business strategies for branding their economic image and products in the world market. Both types of these economies will survive in the market in future if they will adopt the strategies and models of SD because it is SD which will ensure the pace of economic and industrial development in these countries. For the development of a particular country, the concept of CSR is presently becoming a very important and relevant approach which can contribute for SD. If the role of CSR is being further made instrumental and its coverage is widened it will certainly contribute for sustainable development and inclusive growth. The incorporation of a business is for the society and has twin objectives of profit maximization and social responsibility .In a democratic and developing country like India the business is an integral part of the society and it can’t be visualised in isolation because the corporate regime, to a great extent, is financially sound and can contribute towards the society significantly. The big houses in India are contributing towards the society by way of their various programmes for the community development and contributing to targeted areas/core sectors like education, health care, rural infrastructural development, agriculture, protection of the environment in collaboration with state and central governments. For this purpose, these countries have established NGO’s, trusts, self-help groups and other agencies for the accomplishment of their CSR. Earlier the contribution towards social responsibility made by the corporation was either on voluntary basis or on philanthropic basis. Therefore, there isa need to build a mechanism which will strengthen the coverage of CSR for the development and growth of our country. In this context, a step ahead towards inclusive growth is necessary either voluntarily or through making necessary acceptable legislation amendments in the existing laws governing corporate world. Consequently, the enactment of new Companies Act 2013, the CSR has become mandatory as per the provisions of the law for all companies who came within the preview and the parameters of the legal framework of the New Companies Act. It is true that the corporate sector can’t be asked by the government to fulfil their CSR commitment to provide funds for all the identified and targeted areas for the growth and development. But by the way of their contribution towards CSR they can provide a further boost to Indian economy by extending CSR contribution, co-operation, participation, involvement in formulation of policy frame work and its implementation by joining hands with the state and central governments. No doubt, if the concept of CSR is implemented in real sense it will definitely contribute for national building and has positive impact on SD which ultimately contributes to the economic development and inclusive growth. To understand the concept of CSR and SD and their impact in inclusive growth, it is necessary to have a debate and discussion for the concrete resolution. The comprehensive understanding of these concepts lies in the conceptual understanding of the various models of CSR and SD along with impact on economic development and inclusive growth. The CSR also comprised of corporate social audit, corporate citizenship, corporate social accountability, corporate social responsiveness and corporate social accounting whereas SD will also include sustainable consumption, green and sustainable procurement and various environmental issues.