8. A Values Based Perspective on Corporate Social Responsibility,

Abstract

Corporate social responsibility (CSR), as a field of study, began to garner serious scholarly attention since the 1970s. There are broadly two schools of thoughts relating to the efficacy of CSR. The first one, asserted by Milton Friedman (1970), is that the only obligation of a business is to increase profits—not to assist the welfare of developing nations. Friedman argues that to the extent companies engage in CSR they are taxing the shareholders and spending their money without their consent and thus are being irresponsible. Scholars arguing against Friedman’s framework highlight several flaws in his reasoning and view CSR as a viable strategy to increase profits, or at the very least, to mitigate the social risk inherent in any business investment. They urge companies to consider both the social and financial impacts of their decisions. While this debate on the necessity of CSR is still going on around the world, in India the question of whether companies should engage in CSR activities is a moot one now. With the Government of India making CSR mandatory, whether companies like it or not they have to engage in it. The important question now is what CSR means and what it implies for whom. This book attempts to answer these questions and provide fresh perspectives on CSR.