Model Answer
0 min readIntroduction
Social responsibility, encompassing ethical behavior towards society, is enshrined in the Indian Constitution through Directive Principles of State Policy (DPSP) and increasingly emphasized through legislation like the Companies Act, 2013, mandating CSR. India boasts a rich tradition of philanthropy and community involvement. However, despite these formal and informal commitments, a significant gap persists between the rhetoric of social responsibility and its practical implementation. This discrepancy stems from a complex interplay of economic pressures, governance challenges, and deeply ingrained social inequalities, leading many to believe that social responsibility in India remains largely theoretical.
Theoretical Framework & Legal Provisions
India has a robust legal and policy framework promoting social responsibility. The Companies Act, 2013, introduced mandatory CSR spending for companies with a net worth of ₹500 crore or more, allocating 2% of their average net profit to CSR activities. Furthermore, various government schemes like ‘Swachh Bharat Abhiyan’ and ‘Beti Bachao, Beti Padhao’ aim to address social issues and encourage corporate participation. The Constitution, through DPSP (Articles 38-51), also directs the state to promote social justice and welfare.
Practical Shortcomings & Examples
Weak Enforcement & Compliance
Despite the legal mandate, enforcement of CSR provisions remains weak. Many companies engage in ‘CSR washing’ – presenting superficial initiatives to meet compliance requirements without genuine impact. A 2023 report by the Centre for Science and Environment (CSE) highlighted instances of companies diverting CSR funds to non-permissible activities or inflating expenditure claims.
Prioritization of Profit & Ethical Lapses
The pursuit of profit often overshadows social responsibility. Instances of environmental degradation by industries, despite regulations, demonstrate this. For example, the Vedanta Sterlite Copper plant in Thoothukudi, Tamil Nadu, faced closure in 2018 due to severe environmental pollution and protests, highlighting the conflict between economic gains and social well-being. Similarly, the frequent reports of corporate fraud and financial irregularities (e.g., the Punjab National Bank scam, 2018) indicate a lack of ethical commitment.
Social Inequalities & Exclusion
Deep-rooted social inequalities – caste, gender, religion – hinder the effective implementation of social responsibility. CSR initiatives often fail to reach marginalized communities or address systemic discrimination. For instance, studies have shown that CSR spending is disproportionately concentrated in areas with higher literacy rates and better infrastructure, leaving vulnerable populations behind. The National Family Health Survey (NFHS-5, 2019-21) data reveals persistent disparities in health and education outcomes across different social groups, indicating the limitations of top-down approaches to social responsibility.
Lack of Transparency & Accountability
Transparency and accountability in CSR activities are often lacking. Limited public access to information about CSR spending and impact assessment makes it difficult to monitor effectiveness and prevent misuse of funds. While the Ministry of Corporate Affairs (MCA) has introduced a CSR portal, its effectiveness in ensuring transparency remains questionable.
Informal Sector Challenges
The vast informal sector, comprising a significant portion of the Indian economy, operates largely outside the purview of CSR regulations. This sector often faces exploitative labor practices and lacks basic social security benefits, posing a significant challenge to achieving widespread social responsibility.
The Role of Civil Society & Government
Civil society organizations (CSOs) play a crucial role in advocating for social responsibility and holding corporations accountable. However, CSOs often face funding constraints and regulatory hurdles. The government needs to strengthen enforcement mechanisms, promote transparency, and incentivize genuine social impact. Furthermore, fostering a culture of ethical leadership and social consciousness is essential.
Conclusion
While India has made strides in formalizing social responsibility through legislation and policy, its practical implementation remains significantly underdeveloped. The gap between theory and practice is evident in weak enforcement, prioritization of profit, and persistent social inequalities. Bridging this gap requires a multi-pronged approach involving stronger regulatory oversight, increased transparency, ethical leadership, and a genuine commitment to inclusive development. Ultimately, fostering a societal ethos where social responsibility is not merely a compliance requirement but a core value is crucial for achieving sustainable and equitable progress.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.