The term CSR is new in the modern era but its roots are linked to Mauryan history in India where philosophers like Chanakya emphasized on ethical responsibilities while doing business. The best example of this is informal charity by the rich to the poor. The importance of sharing one’s earnings with the underprivileged section of the society has been mentioned in many places in Indian scriptures. We have a deep-rooted sense of sharing and caring.
Religion also played a major role in promoting the concept of CSR. Islam had a law called Zakat, according to which a person should distribute a part of his earnings to the poor as charity. The traders of Hindu religion used to give charity, build temples and night shelters for the poor class. Dharmada was followed in Hinduism, where the manufacturer or seller would take a certain amount from the buyer, which was used for charity. This amount was known as Daan Rashi or Dharmada. Similarly, Sikhs followed Dashant.
Here, we can understand that the history of CSR in India runs parallel to the historical development of India. CSR has evolved in stages such as community engagement, socially responsible production and socially responsible employee relations. Therefore, the history of corporate social responsibility in India can be broadly divided into four stages:
Until 1850, wealthy businessmen used to share their wealth with society by setting up temples or religious institutions. In times of famine, they opened their granaries to the poor and hungry. The attitude towards CSR changed with the advent of colonial rule in 1850. In the pre-independence era, the pioneers or propagandists of industrialization also supported the concept of CSR.
In the 1900s, industrialist houses such as Tata, Birla, Modi, Godrej, Bajaj and Singhania promoted the concept by setting up charitable foundations, educational and healthcare institutions and trusts for community development.
Mahatma Gandhi urged powerful industrialists to share their wealth for the benefit of the underprivileged sections of society. He gave the concept of trusteeship. This concept of trusteeship helped in the socio-economic development of India.
Gandhi ji considered Indian companies and industries as “temples of modern India”. He influenced industrialists and business houses to form trusts for colleges, research and training institutes.
These trusts also worked to promote social reforms like rural development, women empowerment and education.
In the third phase from 1960-1980, CSR was influenced by the emergence of public sector undertakings to ensure fair distribution of wealth. The policy of industrial licensing, high taxes and restrictions on the private sector resulted in corporate malpractices. This led to the creation of laws regarding corporate governance, labor and environmental issues. Still the public sector undertakings were not very successful. Hence, there was a natural shift of expectation from the public sector to the private sector and their active participation in socio-economic development. In 1965, academics, politicians and businessmen set up a national workshop on CSR, where a lot of emphasis was laid on social accountability and transparency.
In the fourth phase since 1980, Indian companies integrated CSR into a sustainable business strategy. The country's economic growth boomed in the 1990s with globalization and economic liberalization, and a partial withdrawal of control and licensing systems. This led to a boom in industrial development, making it possible for companies to contribute more to social responsibility. What started as charity is now understood and accepted as responsibility.
In the current scenario in India, as per the new Companies Act amended in December 2012, it is mandatory for corporates to spend 2% of their average net profit of the previous three financial years on CSR. This is applicable to companies with a turnover of Rs 1000 crore/ PAT Rs 5 crore/ or net worth Rs 500 crore. The new bill replaces the Companies Act 1956 and emphasizes on pushing the agenda of Corporate Social Responsibility.
Chanakya Jan Utthan Foundation wants to assure those reputed corporates that the money given by you to the Foundation will be spent for the upliftment of the exploited, deprived, neglected, uneducated, last person in the line. So that cultural, educational, intellectual concepts can be generated in the society. The Foundation envisions a society where women are safe, every person is healthy and highly skilled. There should be greenery all around on our earth and the scenery should look mesmerizing. The Foundation wants to inform you that whatever amount you give will be under the provisions of Section 12A and 80G of the Indian Income Tax Act, so all the Foundation members request reputed corporates like you to please help as much as possible.