Four Models Of Corporate Responsibility

Model Focus Champions

Ethical Voluntary commitment by companies to public welfare M.K Gandhi

Statist

State ownership and legal requirements determine Corporate responsibility Jawaharlal Nehru

Liberal

Corporate responsibilities limited to private owners (shareholders) Milton Friedman

Stakeholder

Companies respond to the needs of stakeholders- customers, employees, communities, etc. R. Edward Freeman

Table 1: The four models of Corporate Responsibility1

Corporate social responsibility (CSR) has gained significant interest among academicians and business organizations in the past decade. Indian organizations hold the practice of CSR under different names such as corporate sustainability, social responsibility, and corporate citizenship.

Do Indian companies sprint CSR programs that are more suited to the current context of the community? What happens when there is a disaster or emergency? Does the organization have flexibility to help and spend its resources when an earthquake or flood hits? A more close issue is when there is political unrest. Can the organization help the needy irrespective of which side of the political tussle they are in? It has been seen that organizations act in their self-interest when such difficult situations arise. Organizations are not neutral and they often take sides for growth and survival; thus they cannot simply say, “We will look the other side when the situation makes our dependence overt.” Some of these decisions become even more difficult when the organization is multinational in nature. Thus again interesting questions are raised: How does an organization decide what to maintain and what not to? Are there clear or unstated principles of what is within bounds and what is not in deciding about the area of spend. If yes, who states such

FICCI and CII work closely in partnership with Government. CII in partnership with UNDP set up India Partnership Forum to promote multi stakeholders approach to CSR. Social Development Council (SDC) set up by CII, ensures corporate participation in social development and provides an institutional base for social activities of the corporate sector.

For the social development, harmony and expansion, PHD Chambers of Commerce and Industry (PHDCCI) has major interventions in family welfare and rural development. Associated Chambers of Commerce and Industry of India (ASSOCHAM) through their members provided drinking water in 110 villages by 1996 on occasion of its platinum Jubilee. Bombay Chambers of Commerce and Industry (BCCI) have been constantly working on issues of populations and civic conditions in Mumbai. Business Council for Sustainable Development (CORE-BCSD) of India is a group of Indian corporate trying jointly and individually to build in sustainable development concepts into their