CSR, Sustainability, Ethics & Governance Series Editors: Samuel O. Idowu · René Schmidpeter Nayan Mitra René Schmidpeter E ditors Corporate Social Responsibility in India Cases and Developments After the Legal Mandate CSR, Sustainability, Ethics & Governance Serieseditors SamuelO.Idowu,LondonMetropolitanUniversity,UnitedKingdom Rene´ Schmidpeter,CologneBusinessSchool,Germany More information about this series at http://www.springer.com/series/11565 Nayan Mitra (cid:129) Rene´ Schmidpeter Editors Corporate Social Responsibility in India Cases and Developments After the Legal Mandate Editors NayanMitra Rene´Schmidpeter DevelopmentalConsultant CologneBusinessSchool Kolkata,WestBengal Cologne,Germany India ISSN2196-7075 ISSN2196-7083 (electronic) CSR,Sustainability,Ethics&Governance ISBN978-3-319-41780-6 ISBN978-3-319-41781-3 (eBook) DOI10.1007/978-3-319-41781-3 LibraryofCongressControlNumber:2016951844 ©SpringerInternationalPublishingSwitzerland2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAGSwitzerland Foreword Thisbookon“CorporateSocialResponsibilityInIndia—CasesAndDevelopments After The Legal Mandate” comes at an excellent time in the socio-economic journey of India. The country is at a moment of transition in many ways as it comes to terms with its place in the world as a vibrant young nation with the potentialtochartitsownpath.CorporateSocialResponsibility(CSR)isthebridge between economic and social progress, and the recent developments in the sector markthecomingofageofIndia.Thesectorhasgrownintermsofbothimpactand rangeaspartofcorporateengagementinsocialdevelopmentandthatisapartofthe journey described in this book. The recent legislation on CSR in India brings a sense of order and organisation to corporate investments in social good while enabling a lever that could direct these efforts towards national imperatives, or, towardsscale,andcertainlytowardsgreaterefficiencyandimpact.Thistransition to a systemic approach to corporate social responsibility is documented in this excellent book. It uses the new legal mandate as a peg to mark the transition and showcasesamulti-stakeholderapproachtobringouttheeffectsofthemandateon theholisticenvironment. I congratulate the editors, Mrs. Nayan Mitra and Dr. Rene´ Schmidpeter, for doing a fabulous job on this book. They have succeeded in bringing together policymakers,consultants,corporates,andacademicianswhonotonlycomefrom different perspectives and experiences but also have distinct roles in shaping the future of CSR going forward. The book seamlessly integrates their views and insights into understanding the legal mandate, its requirements, challenges and the way forward in an eclectic mix of analytical chapters and case studies. The authorscollectivelybuildapicturethatreflectsthecomplexspacestobenegotiated in CSR that will determine both the scope and impact of the corporate world in social progress. This is by no means certain and certainly not predicated by the legislation alone. The chapters in the book reflect the stakeholders and forces at playinthisarena. This is indeed a first of its kind book and marks a watershed in the journey of CSR.Itisanextremelyimportantcontributiontothebodyofknowledgeinthearea v vi Foreword of CSR and Corporate Governance in emerging economics that is driven by a completely different set of Challenges, opportunities and requirements from that of developed economies. CSR in India has evolved from a long tradition of philanthropyfrombusinessandhasreflectedthechangesintheeconomicorienta- tionofthenation.Thus,atrackingofCSRebbsandflowsalsogivesdeeperinsights into the socio-economic situation. For decades, CSR had receded to personal spaces, re-emerging as corporates began to find firmer foothold in a growing economy. The CSR journey is one of self-discovery and growth, and this very important book marks a critical milestone in this where the legislation acknowl- edges the deep and meaningful influence and seeks to nudge stakeholders to recalibrate for deeper impact. This book brings to the fore all of these issues and sets the stage for the interplay of forces that will determine the future of CSR in India. Iwishthemallthebest.Happyreading. IndianInstituteofCorporateAffairs(IICA) BhaskarChatterjee Gurgaon,Haryana India Preface and Acknowledgement India’s recent initiative in framing the Corporate Social Responsibility (CSR) mandate in the Companies Act, 2013, for certain Corporations is an effort to formally acknowledge and respect the symbiotic relationship between business andsociety. TheprincipleofCSR has been embedded intheIndiansocietyforcenturiesin the guise of philanthropy. Every region of India has anecdotes of legendary businessmen ortraders,who have contributed tothe welfare ofthe society signif- icantly.Inthepost-liberalisation(1991)period,theIndustrieshavegrowninscale and matured in terms of Corporate Management on multiple dimensions. Global- isation has further added fuel to the situation. Indiscriminate exploitation on all fronts—social, economical and environmental for profit maximisation—became thetrend.Andso,overtheyears,CSRreceivedlessandlessattention,whichledto a situation where it became necessary for the Government to provide a formal mandate for the businesses to follow. This is for the good of both business and societysincetheyarealsoinseparablyintertwinedwitheachother,evenmoreso,in a country like India, where the pressure on resources such as water is extremely high and therefore no stakeholder should feel short-changed regarding the alloca- tionofsuchresources. Fairness has been a deeply ingrained principle of Indian social order for the millennium.TheCSRmandateisabeckonerofthisfairnessinthemoderncontext. This compendium attempts to present the various dimensions and viewpoints frompolicymakers,consultants,advisors,academiciansandpractitionersregarding India’s CSR mandate in the Companies Act, 2013. It is a current and credible treatiseonthesubject.WehopethattheBookwilltriggerthoughtsanddiscussion andaddnewideas.Allofthatiswelcomebothforthecontributiontoknowledgeon CSRandforharnessinginclusivenessinnewIndia. We heartily thank Springer International Publishing for providing us this plat- form to share and contribute on this dynamic issue; Series Editor for Springer’s CSR, Sustainability, Ethics and Governance books, Dr. Samuel O. Idowu for his encouragementandsupport;SenioreditorofSpringer,Mr.ChristianRauscher,who vii viii PrefaceandAcknowledgement wasalwaystheretoguideandadviseus;ourvaluableauthors,whohavetakentime out from their very busy schedule to voice/pen their ideas, analysis, research, concerns, recommendations and forecasts to disseminate to the world on the movementcalledCSR inIndia;and,tosaytheleast,ourimmediateandextended family members and friends who have always stood by us when we chased our passionofCSR! Happyreading. We wouldlove tohear from you. Please feel free towrite tous at the contacts givenbelow. NayanMitra([email protected]) Rene´ Schmidpeter([email protected]) Kolkata,India NayanMitra Cologne,Germany Rene´ Schmidpeter Contents TheWhy,WhatandHowoftheCSRMandate:TheIndiaStory. . . . . 1 NayanMitraandRene´ Schmidpeter PartI CSRMandateandItsImplications TheGenesisoftheCSRMandateinIndia:Demystifyingthe ‘ChatterjeeModel’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 BhaskarChatterjeeandNayanMitra CSRinIndia—BetweenTradition,CulturalInfluence,Social Structure,andEconomicGrowth:AStatusQuoAnalysison CSREngagementinIndiaandaCriticalEvaluationofthe NewCSRLaw. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Rene´ Rueth ImpactofCSRonEducationSector. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 MeetaSengupta PoliticalCSRinIndia:AnalysisofIndianParticipantsintheUnited NationsGlobalCompactinthePreandPostMandatePeriod. . . . . . . . 51 VikrantShirodkar PartII CSRMandateandItsImplementation CSRImplementation:HowItIsDoneinIndia. . . . . . . . . . . . . . . . . . . 71 BhaskarChatterjeeandNayanMitra TimetoThinkFresh:InnovativeModels;MassImpactSolutions. . . . . 79 SridharIyer ITCLimited’sMissionSunehraKal:TwoDecadesofTransforming LivesandLandscapes. . . .. . . . . .. . . . .. . . . . .. . . . .. . . . . .. . . . . .. 97 AsheshAmbasta ix