GS4 · 10 marks · 150 words

The mandatory nature of Corporate Social Responsibility goes against the notion of philanthropy. Discuss.

Answered by 7 toppers · CSE 2019–2021

Corporate GovernanceDimensions of EthicsEthics in Private and Public LifeLaw and MoralityEthical Dilemmas in Government

Syllabus: Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance.

How toppers approached it

From all 7 answers · about 170 words · 14% drew a diagram.

Opening

  • A definition71%
  • A date or context14%
  • A constitutional or legal provision14%

Body

  • Points71%
  • Points and prose29%

Close

  • A way forward57%
  • No separate close29%
  • A summary14%

The toppers’ answers

Nupur GoelAIR 11 · CSE 2019 · 175 wordsTheir whole copy

Opening · a constitutional or legal provision

The Indian Companies Act, 2013 gave mandatory status to corporate social responsibility (CSR) in India.

Feature - All the companies having turnover greater than 500 crore will have to divert 2% of net profits towards CSR.

Philosophy of CSR :-

Body · points

  1. Company belongs not to individuals, but to society.
  2. Moral duty to share resources with society.
  3. A mode to say thanks to society & shouldering some responsibility of govt.

But, mandatory nature attacks on the voluntary nature of philanthropy:-

  1. Imposed decision instead of realisation from within.
  2. companies manipulating their profits to escape this provision.
  3. Lack of responsibility in its usage - majority fund going to PM Relief Fund instead of education/health.
  4. Companies also don't have expertise in social sector spending.

Close · a way forward

However this mandatory provision has led to an increase in philanthropic activities in India.

Govt must rope in NGOs, civil society as intermediaries between these companies and the society at large. Only by the optimal utilisation of such resources can we have the foundation of inclusive & sustainable India.

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