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Abstract for 18th Thinkers & Writers Forum

Is CSR a plausible mechanism of complementing state in achieving

MDGs?
The famous Tryst with Destiny speech delivered by Nehru was a moment of
celebrating freedom. Though the state became sovereign but are the people intrinsically
free? If yes, then what justifies the fact that India is recognized more for its illiteracy,
poverty and sufferings? Despite innumerable developmental initiatives what explains
the fact that citizens dont have access to basic services like food, health and
livelihoods? Although the welfare state has travelled a long way to ensure several rights
to citizens viz. right to education; food; programmes on health (NRHM); livelihoods
(MNREGA) still more needs to be done. The current paradigm of development requires
lesser government and more governance and inclusive growth. For this objective to be
fulfilled, apart from state initiatives, need exists for corporates to join hands and expand
their responsibilities beyond just the principal-agent.
Generally corporates are associated with profit maximization and the target has been
stockholders, not stakeholders. Though economic growth is essential, the advancement
of human capability, according to Amartya Sen, is a prerequisite for enhancement of
human freedom and wellbeing which further promotes and sustains higher levels of
economic growth. Of late, corporates are trying to enter into other domains and
focussing on broader societal context. This shift has given rise to discussions on CSR,
defined as an organisations commitment to society and environment within which it
operates. CSR is both an opportunity and an important requirement for corporates to be
engaged in wider nation-building efforts.
Although no one doubts the foundational role that the state is supposed to play,
especially in health and education due to huge information asymmetry, but
simultaneously private players also need to take the onus. CSR should not just be seen
as an instrumental effort rather an ethical orientation that essentially calls for

Abstract for 18th Thinkers & Writers Forum

introspection. It shouldnt be seen as mere charity but as the corporates responsibility

towards the stakeholders, whose life and environment is affected directly or indirectly.
Although CSR is considered to be a recent and western development but in India it has
been implicitly present in the trusteeship principle of Mahatma Gandhi. He wanted
capitalists to act as trustees of their property and conduct themselves in socially
responsible way. Corporates are realising that their reputation is intrinsically connected
with how well they consider socio-economic issues. Further corporates should not follow
a gap-filling approach rather the global community has come forward to synchronize
their efforts towards broader social issues. Global interconnectedness could be gauged
from the fact that during United Nations Millennium Summit there was recognition to
come up with a set of goals to address the socio-economic inequity and environmental
vulnerability. It came up with a blueprint of development called Millennium Development
Goals (MDGs). Eight in number but they broadly could be categorized into four, health;
education; eradicating poverty and sustainable environment.
The rationale of this paper is to explore the trajectory of CSR in India and analyse the
work which corporates have been doing. The paper explores whether there is
consonance between the types of work which they do and MDGs. Moreover the paper
throws light on the latest developments on legislative front i.e. Companies (Amendment)
Act, 2013. It seeks to anticipate the type of work which the corporations were doing preamendment and what possible changes would be introduced post-amendment.

Abstract for 18th Thinkers & Writers Forum

Authors
1. Swayamshree Mishra(Research Officer-CGG)
Email: swayamshree@gmail.com
Phone No: 08500862664
2. Tejbir Singh Soni(Knowledge Manager-CGG)
Email: soni.tejbir@gmail.com
Phone No: 09703758408
Address
Centre for Good Governance,
Dr MCR HRD IAP,
Road No. 25 Jubilee Hills,
Hyderabad 500033
Andhra Pradesh