Local firms get aware of social duties

Though corporate social responsibility was thought to be limited to MNCs, now many local companies are getting aware of their duties towards society.

Vadodara based Safety Action Group organised a consultative meet on 'Corporate Social Responsibility' (CSR) on Saturday, in association with Development Alternative (DA), a Delhi based non-profit organisation.

"There are numerous reasons for this change in thinking among corporates. Globalisation has played a very significant role in that; companies are expected to be good citizens of the country of incorporation as well of the countries in which they operate. Mere compliance with the law is no longer adequate "" it is what a company does over and above minimum legal requirements that determines how it is perceived by the world," said George Varughese, vice president, DA.

"Overseas buyers are under pressure not to engage in trade with suppliers who do not observe basic CSR norms. The companies that want to expand their wings in national as well as international arena will have to practice the social responsibility," he added.

"Some charitable and philanthropic activities has always been a part of Indian corporate world and were considered a good public relation (PR). But it was never considered an obligation integral to the business," pointed out Varughese.

With the changing times, a company no longer impacts a limited number of stake holders, employees and customers. There are other groups on whom the company makes an impact - its neighbors, the surrounding population, its lenders, its suppliers and even persons who prima facie are far removed from a company's day-to-day operations.

"The CSR is an emerging area for Indians. The industry needs to learn that mere spending for the sake of charity is not desirable. There is a need of systematic effort to put in for the better outcome of the company's philanthropic actions. The training and development programmes are very much essential to educate the management about CSR," said Rajan Gandhi, director, Safety Action Group.