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The development of Corporate Social Responsibility (CSR) in India has evolved through four phases: from philanthropy and charity (1850-1914), influenced by family values, to the trusteeship period (1914-1960) driven by Mahatma Gandhi's ideals. The era of command and control (1960-1990) saw government regulation dominate CSR, while the current phase (1990-present) integrates CSR into corporate strategy, culminating in the 2013 mandate making it a legal requirement. This journey reflects the changing role of businesses in society from voluntary charity to a structured legal obligation.

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5 views3 pages

Document

The development of Corporate Social Responsibility (CSR) in India has evolved through four phases: from philanthropy and charity (1850-1914), influenced by family values, to the trusteeship period (1914-1960) driven by Mahatma Gandhi's ideals. The era of command and control (1960-1990) saw government regulation dominate CSR, while the current phase (1990-present) integrates CSR into corporate strategy, culminating in the 2013 mandate making it a legal requirement. This journey reflects the changing role of businesses in society from voluntary charity to a structured legal obligation.

Uploaded by

sujaldhorawala235
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

The development of Corporate Social Responsibility (CSR) in India is a unique journey that

has evolved from simple charity to a strict legal mandate. For your project, it is best to
present this in four distinct phases, as this aligns perfectly with the ISC Commerce
syllabus.

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Phase 1: Philanthropy & Charity (1850–1914)

Driver: Religion, culture, and family values.

Action: Wealthy merchant families (like the Tatas, Birlas, and Godrejs) shared their wealth
by building temples, rest houses (dharmashalas), and water tanks.

Nature: It was purely voluntary and “cheque-book” philanthropy. During famines or


epidemics, merchants would open their godowns to provide food to the poor.

Key Fact: This phase laid the foundation of industrialization in India with a “social heart.”

Phase 2: Trusteeship Period (1914–1960)

Driver: The Independence Movement and Mahatma Gandhi.

Action: Gandhi introduced the Notion of Trusteeship. He argued that business leaders
should consider themselves “trustees” of the public’s wealth. They were expected to take
only what they needed and use the rest for the upliftment of the common man.

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Impact: Industrialists were pressured to show dedication to the nation. This led to the
establishment of major educational and scientific institutions (like the Indian Institute of
Science).

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Phase 3: The Era of Command & Control (1960–1990)

Driver: Mixed Economy and Public Sector dominance.

Action: Following independence, the government took a leading role in development. The
private sector was heavily regulated with high taxes and licensing rules (the “License Raj”).

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Nature: CSR during this time was mostly about compliance with labor and environmental
laws. The government, not the corporate, was seen as the primary provider of social
welfare.

Phase 4: Global Integration & Mandate (1990–Present)

Driver: Globalization, Liberalization, and the Companies Act, 2013.

Action: In the 1990s, companies began integrating CSR into their “sustainable business
strategy” to compete globally.

The Turning Point: In 2013, India became the first country in the world to make CSR
mandatory under Section 135.

Current State: CSR is now a professionalized department within companies. It is no longer


just “giving back”; it is a legal duty with strict reporting requirements.

Summary Table for Your Project

Phase Main Concept Period Key Influence

I Merchant Charity 1850–1914 Family values & Religion

II Trusteeship 1914–1960 Mahatma Gandhi


III Legal Compliance 1960–1990 Mixed Economy / PSUs

IV Strategic & Mandatory 1990–Present Companies Act, 2013

Pro-Tip: Organizational Stages

If you want to add an extra page on how a modern company develops its CSR, you can
mention these 3 steps:

Compliance: Doing it because the law says so.

Strategic: Doing it to build a better brand image.

Transformative: Doing it to solve a specific social problem (like Tata Steel’s 1000 Schools
project).

Would you like me to generate a diagram or image for these four phases to include in your
project?

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