CSR or Philanthrophy?

According to a recent pilot survey by CII in Tamil Nadu, ( see Express Buzz 13^th Jan) only 40 per cent of the companies practice CSR initiatives. The pilot survey, highlighted that a majority of the companies did not take CSR seriously and those who did, did it only with a philanthropic frame of mind. The pilot survey also revealed that more than 50 per cent of the companies made their employee welfare activities as part of their CSR initiative, not really contributing to an outside community or its development.

While companies in India have started taking tentative steps in the CSR direction, apparently there is a long way to go. Historically, Indian companies had always strong philanthropic activities mostly targeting their employees and their families. However, if CSR has to truly become the soul and DNA of a company, then it has to break away from employee welfare mindset and encompass sustainable development.

Indian enterprises should realize that a sound corporate strategy is actually profitable to the company.