Would Mandatory CSR The Panacea for Sustainable Development? Indian Perspectives

Abstract

CSR is the continuous commitment of a company to perform its business ethically and contribute to economic development. In many parts of the world, voluntary CSR guidelines are speedily changing into mandatory CSR reporting requirements. In the same way, the CSR which was voluntarily earlier in India has become mandatory after new Companies Act, 2013. Of course, the main idea of CSR is to direct to sustainable development of the country. The paper makes an attempt to address the practical concerns on whether companies promote sustainable development in their CSR projects by examining social, economic and environmental components of CSR and whether these projects would be the panacea for sustainable development of India. The paper also tries to find out the companies‟ efforts towards sustainable development goals approved by the United Nations. The study was based on secondary data and hence exploratory in nature. The surveys conducted by CSR Outlook, IIMU and NGOBOX were considered for the study. The data were analysed to draw the conclusion. The key areas of CSR projects are health, education, environment, women empowerment and rural development. However, healthcare and education received a significantly higher proportion of spending. The government is encouraging the industry to utilize CSR funds for various schemes from cleaning of the Ganges to health scheme. The companies have given emphasis on green supply chains in recent years. Some conventional energy companies are shifting towards renewable energy. However, there is a slow progress of sustainable development in India. The study helps in understanding the CSR projects conducted by Indian companies and finds out that these CSR projects would be the panacea for sustainable development of India. These projects would also facilitate to some extent in achieving sustainable goals of the United Nations.