An Analysis of Corporate Social Responsibility of Indian Companies

Business organizations have long considered profit as the main goal to be achieved and all the strate­ gic actions were directed towards the same. However their social responsibility is an important issue. With the globalization of the world economy and rapid flow ofinformation, the concept of Corpora­ tion Social Responsibility (CSR) has been gaining importance. Valor (2005) identifies CSR as an umbrella concept. It includes a variety of theories and practices which recognize the social and environmental responsibilityof corporations. The meaning of CSR not only differs from sector to sector, it also differs quite substantially from country to country (Andrew et al, 2008). It is essentially a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment (European Commission, 2001) High performing business shows a strong correlation between CSR activities and stronger performance in terms of profitability and productivity. The World Business Council for Sustainable Development (WBCSD) defines CSR as "the commit­ ment ofbusiness to contribute to sustainable economic development, working employees, their families, the local community and society at large to improve their quality oflife". This description of CSR reflects the general idea of the concept to redefine the relationship between business and society and to emphasize the social and environmental responsibility by corporation acting in the world economy.