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1. INTRODUCTION:
1.1. THE ABC of CSR:
History is the sole witness to the phenomenon of shift in priorities in Business. There was a sudden lateral shift, wherein the focus drastically shifted from profit maximization to welfare of the society. This in terms of various management Gurus was the era of ‘Corporate Social Responsibility.’ CSR can be defined as ‘bringing corporate behaviour up to a level where it is congruent with the prevailing social norms, values, and expectations of performance.’
By Indian Companies Act, 1956, Section(3) (1) a company means a company registered under companies act, like any juristic person company is a legal entity. By this act it acquires a legal status muta mutandis to that of a person, one who is capable of having his own Rights and duties. CSR is nothing but a way to accomplish the fundamental duties prescribed in the constitution of India which a normal legal person is suppose to follow.
According to Berle ‘Company’ is not merely a legal institution rather a device for attainment of socio economic end. In layman’s term Corporate Social Responsibility (CSR) is an obligation rather a mandate that a corporation needs to abide to in order to maintain a perfect equilibrium between the 3Ps i.e. Profit maximization, people’s right, and the planet. Nothing in this world comes for free, CSR is the opportunity cost that the company has to pay in order to exist in this society.
Archie B. Carrol (1979) defines social responsibility as a four step scale. He feels the company apart from economic and legal responsibilities also has ethical responsibilities. Several scholars tried to develop an integrated model to define the perfect structure of CSR, however no one has successfully propounded one.
Modern business organisation is nothing but a hub of socially conscious people who constantly make an effort to align their profitable opportunities and ventures with their social industries and values intact. CSR provides a skeleton of boundary for free market to operate in a responsible manner. It is an undisputed fact that the legal framework of India has empowered the companies to the heights of zenith, but one must never forget with great power comes great responsibility.
To conclude this section, It may be noted that CSR is not a modern discovery and certainly not a discovery that can be accredited to the economically developed nations around the globe. Altogether CSR has travelled a long way, from the lines of philanthropy to a legal mandate; it has incorporated several changes in itself. Hopefully the noble concept of CSR doesn’t disappear midst the urban blight.
1.2. CSR and Natural Disasters: A brief idea
There has been a rapid growth in the facet of CSR for disaster management and combating techniques. India has been customarily susceptible disasters on account of its unique geographical dimension. In view of India’s high vulnerability profile, the recurrent phenomena of a range of geophysical as well as hydro-meteorological hazards impact millions across the country leaving behind a trail of heavy loss of lives, property and livelihoods. Many Areas tend to lose their development gains due to these draconian events. The economic and social losses caused by natural disasters continue to scale year after year as disasters occur with unswerving regularity encircling every possible segment of the nation including the industrial and corporate sector.
Comprehensive risk management activities is an inalienable part of Corporate Social Responsibility. Corporate Sector in order to comply with this obligation has started exploring its precious mine of knowledge in order to obtain paradigms to avoid disasters. The Research and Development team of several companies have actively tried to adopt measures which would mitigate the risk of the disasters. In addition to this, the corporate sector can be a precious source of technical knowledge, as for example in the case of identification and research on technological solutions to prepare for and respond to natural disasters. On the whole, corporate sector has the prospective for fortification of its own safety and protection against natural cataclysm as well as in assisting the community in reducing its vulnerability to the disasters.
2. DISASTER MANAGEMENT AND PARTICIPATION OF THE BUSINESS HOUSES:
2.1. Brief Idea:
Despite of all the debates in the society it is an undisputed fact that Business houses can prove to be of immense significance in disaster management. After all the root of proper business development lies in the well-being of the society. A disaster doesn’t spare any strata of the society. When a disaster strikes, the first thoughts those race to all our mind is the – what is government doing? Where are the NGO? Where are the social support organisations? Business houses take a backseat and come to mind only as a source for fund raising. Unlike what we think and believe There is a lot more to Disaster Management (DM) than just providing monetary support. Many of the business needs like “Proactive support” is applicable in the areas of disaster management also. While government has responsibilities on one side the business also has equal responsibilities if not more to the society in such situations of dire needs. After all the business happens only due to existence of such societies and business needs shoulder its share of responsibilities.
Can business houses contribute more to disaster management that just provide money? Can there be a better proactive role that business houses in India can play in such disaster management situations? A vaccine is nothing but a proactive measure taken to avoid possible damage due to onset of a disease (when disease itself cannot be stopped). This is precisely what each business is trained for and focuses to do – to avoid future pitfalls and protect itself against future uncertainties.
2.2. The Indian Perspective And Role of Companies:
The companies in India have closely weaved philanthropy in their business schedule and most importantly, they never tried shying away from the moral and ethical obligation they have as responsible part of the country. ‘N’ number of example can be quoted from our day to day life where such mega mammoths have come up for help, times when they were needed the most. Gandhi described large business as ‘trusts’ of the ‘wealth of the people’ and thus emphasized on the larger social purpose that industrial wealth should serve in India. Following the same ideology a number of companies have taken the front seat and tried mitigating risk at large. The Companies that have taken a lead are:
- The Birla Group: Birlas have opened the Aditya Birla Centre for Community Initiatives and Rural Development with focus areas of sustainable livelihoods and environmental sustainability. Specific projects include developing and building capacity through Self-help groups, SGSY – dairy, readymade garments, jute project, basket making, aggarbatti (incense sticks) making, bee keeping, durries making, check dam, irrigation, land development, Soil and water conservation, Pasture development, Social forestry/ plantation activities/ nursery, Horticulture, Farmer training etc. The foundation also stresses on infrastructure development by focusing on creation and maintenance of Roads, Dams, Community centers, water channels and culverts.
- The Bajaj Group: JBGVS, a Registered Society and a Trust, is an apolitical and secular organisation which aims to act as a catalyst for rural and urban development. It assists the resident community of the selected villages and areas, in integrated development, making their villages and areas into models of excellence for others to emulate. JBGVS works with the participating rural community in the selected villages to improve their quality of life. Stress is laid on alleviation of poverty, health care, education, empowerment of women & gender justice. JBGVS relies on a participatory approach in implementing all its projects and also that of the local elected bodies like the Gram Panchayat (village council), Co-operative Societies, Self Help Groups, Women and Youth Clubs in decision making. JBGVS works at the grassroots level in 33 villages and hamlets of Khed and Maval Talukas of Pune District and 11 villages of Aurangabad district, Maharashtra. The integrated development activities under implementation include women empowerment, income generation, health programmes, agricultural extension, animal husbandry, watershed development, drinking water schemes, sanitation and education. 5600 families comprising a rural population of about 30,000 people are co-partners in these development activities. An HIV/AIDS Awareness, Prevention and Care Programme called ‘Project JEEVAN’ was launched in September 2004, with the aim of generating awareness about HIV/AIDS, thereby, arrest further spread of disease and help those affected to lead a comfortable life. It covers 33 villages…
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