Corporate Social Responsibilities (CSR)

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society . The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large. About how a company manages its business process to produce an overall positive impact on society.
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Meaning of CSR
Conducting business in an ethical way and in the interests of the wider community Responding positively to emerging societal priorities and expectations A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community
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WHY CG?
If the founder of the company was allowed to design and implement a corporate charter he likes. He may not clearly address the issues faced by other shareholders and thus conjure inefficient rules. An externality may be defined as a good generated as the result of an economic activity, whose benefits or costs do not accrue directly to the parties involved in the activity. ID alone cannot play an effective role in isolation despite their commitment to ethical practices. They cannot stop a decision that is detrimental to the members individually, but if they act collectively, then they can act prudently before arriving at any such decision.

Contd
Concentration of greater financial power and authority in a lesser number of individuals. Violations of foreign exchange rules and regulations.

Large scale diversion of funds to associate companies and risky ventures. Unfocussed business decisions leading to losses. Preferential allotment of shares to promoters at low prices,

Exploited the weaknesses in the Accounting Standards to inflate profits and understate liabilities.

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The increasing number of scams, disordered politics, culture and linguistic divide and discouraging attitudes of government toward investments tarnish Indias corporate image at the world stage. The 2G scam and the Nira Radia tapes have washed the image of India as it includes every single constituency the business world, government, politicians and media. The Satyam Computer Services financial scandal .This has put a big question on the role of quality of corporate governance, role of auditors and the regulatory bodies of India. loan-for-bribe' scam reveals that real estate giants like Adani Group, Lavasa & officials of public sector banks like Central Bank of India, Bank of India Punjab National and a top official of the LIC Housing Finance were involved in the scam.