Corporate Social Responsibility in India mandated through the new CSR rule in the Companies Act, 2013 was expected to provide social and economical sustainability in the country through businesses. Though visibility in terms of change in the society will take some time but there has to be an action plan for the corporate sector which can make a meaningful impact on ground. Here lies the governance issue which cannot be overruled by the mandate.
There are two mediums which need to work proactively to address this issue – Government and Media which have to play specific role in order to provide sustainable development for all.
Role of Government
Government needs to assess and digress information about the needs of the people and its own vision for a prosperous India has to be aligned with Corporate Social Responsibility.
In order to create a balance between economic growth through globalization and equity sharing among the citizens without any biases, the government needs to play a proactive role in regulating businesses. Maintaining this balance is not an easy task, it requires support from stakeholders, employees as well as platforms such as Innovative Financial Advisors Ltd which can bridge the gap between the project proponent and the implementing agencies which are the NGOs. The Companies Act 2013 is a direction from the government for Industries to work for Sustainable growth of Nation through CSR. This liberal approach of the government should be worked out to be advantageous to the society, economy and environment.
Government has to provide support to businesses which ethically and legally follow corporate social responsibility and such businesses should be awarded by providing basic infrastructure, a level playing field for all the players and regulatory public policies which keeps a check on those companies which do not comply with the norms defined for the benefit of the common public. It is the responsibility of the government to provide clear guidance to the established and emerging enterprises about CSR policies. In this way companies which are not able to inculcate CSR in their business model due to various reasons will be encouraged with clear view about norms and policies.
Role of Media
Media is a powerful institution which has the right and moral authority to check social injustice. In a democratic country like India, media has been an independent industry, unregulated by the government in order to be seen as a promoter of free speech. But liberalization has led to the establishment of many media houses funded by giant corporate businesses due to which the efficiency of media has come under a cloud of suspicion.
Any business can use media as a tool for fake publicity; it can also use it to undermine its competition by showing false information to the general public. Media has to play a pivotal role in promoting CSR and also adopt it in order to prove its efficiency in offering a balanced and true opinion. Media companies have to be transparent and self regulated.
Innovative Financial Advisors Pvt Ltd is a platform to address the governance issue as it has been working in the social development sector keeping in mind the needs of the society and aligning them with the social responsibility of the corporate.
Program Manager- Resource