Impact of Recession on CSR Practices of Indian Corporates

Corporate responsibility in India has come of age and has become a business in itself. Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of the society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, the community and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. But the current economic downturn will certainly raise concerns around the budgets for CSR activities and the extent to which companies will be inclined to invest in these initiatives. And when budgets are tight and cannot be expanded as per the requirements, one would expect companies to go slow on such activities and projects. It has become a challenge for the companies to remain being `socially responsible' during these difficult competitive times.