Page 1 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 03 I s s ue 07
JUNE 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 435
PUBLIC SECTOR UNDERTAKINGS IN RURAL DEVELOPMENT THROUGH CSR
INITIATIVES
Keshari Nandan Mishra
Associate Professor, Department of History, Pt. D. D. U. Government P.G. College,
Allahabad, Uttar Pradesh, India
Abstract
Rural Development is the main agenda of India’s Development. The reasons for this are- in
spite of rapid urbanization a large section of India’s population still lives in the villages.
Secondly, rural India has lagged behind in development because of many historical factors. In
order to correct the developmental imbalances and to accord due priority to development in
rural areas Ministry of Rural Development has implemented a number of programmes aimed
at sustainable holistic development in rural areas. Since the beginning of independence,
concentrated efforts have been made to raise the living standards of rural masses. Rural
development has become one of the most important factors for the growth of Indian
economy. Several governmental schemes have been launched from time to time for the
development of rural people, and from last few decades corporate sector have also started
taking initiatives for rural development through their CSR practices.
Key Words: Corporate Social Responsibility, Rural Development, Public Sector
Undertakings, Government, Socio-economic Development.
Introduction:
In the last few years, there has also been a paradigm shift in the strategy for Rural
Development with focus on initiatives of Corporate Sector. From the past few decades,
business has been experiencing the utmost scrutiny from the public as well as government
regarding the responsibilities it has to the society in which it resides. It is being increasingly
recognized that progress and welfare of a society is not only the responsibility of the
Government alone, but many more stakeholders need to be involved to attain the
Page 2 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 03 I s s ue 07
JUNE 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 436
development goal (Save the Children Sweden, 2007). As a result of numerous accusations,
such as – little concern for the consumers and society, absence of ethical behaviour,
impassiveness towards the problems of marginalized society and environment etc., levelled
on businesses, the concern about what responsibilities business has to the society had
widened. And these concerns have intensely contributed to the development of the concept
for Corporate Social Responsibility. The corporate sector has a crucial role to play in
ensuring private investment flows to those rural areas that have been left out of the
development process so far and also to work for sustainable development of rural areas in
general.
CSR has become increasingly prominent in the Indian corporate scenario because
organizations have realized that besides growing their businesses it is also essential to build
trustworthy and sustainable relationships with the community at large. This is one of the key
drivers of CSR programs. Another reason stimulating this rapid adoption of CSR is the state
of the Indian society. Though India is one of the fastest growing economies, socio-economic
problems like poverty, illiteracy, lack of healthcare etc. are still ever-present and the
government has limited resources to tackle these challenges. This situation has opened up
several areas for businesses to contribute towards social development.
Corporate Social Responsibility in India:
The origins of CSR in India could be traced back to the days of Kings. According to
Kautilya’s Arthashasthra, ‘‘in the welfare of the people lies the king’s welfare and in their
happiness his happiness’’ (cited in Jose, Bandi, &Mehra, 2003). According to Gupta (2007),
Corporate Philanthropy has been seen as an old tradition in India and since late 1800s
Industrial Welfare initiatives has been put into practices. She describes philanthropy as a
practice of doing well to one’s fellow men and like CSR it does not involve stakeholders’
interaction and responsibility as a focus. Religion and charity have always been linked with
people in India brought up in an environment founded on the belief that giving is good (Jose
et al., 2003).During the pre-Independence era the business leaders of emerging indigenous
industries in India were found deeply rooted in the tradition of philanthropy, which was
Page 3 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
I SSN: 2395-0463
Vol ume 03 I s s ue 07
JUNE 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 437
gradually undergoing metamorphosis into modern day CSR. The leaders of such business
families began to support schools, colleges, hospitals, orphanages and the promotion of art
and culture during 1850 to early 1900 (Mohan, 2001). Companies like Tata Steel (the oldest
and best known Indian steel company, whose founder was more a nation-builder than a
businessman seeking profits) were involved in the practices of removing and tackling many
social problems even before the term CSR formally entered the vocabulary of management
texts (Singh, 2008). However, the last decade of 20th century has witnessed a rapid
revolution from charity and traditional philanthropy towards more direct engagement of
business in mainstream development and concern for deprived groups in the society (Gupta,
2007). This has been driven both internally by corporate will and externally by increased
governmental and public expectations (Mohan, 2001).
Public Sector Undertakings in India and CSR Initiatives:
The public sector has been playing a vital role in the economic development of the country.
In fact the public sector has come to occupy such an important place in our economy that on
its effective performance depends largely the achievement of the country's economic and
social goals. The importance of Public Sector Units (PSUs) in the Indian economy can never
be overemphasized. They account for over 22% of the country’s GDP, around 6% of the total
employment in the organized sector and over 20% of direct and indirect tax collections. A
number of PSUs also serve critical functions of furthering the socio-economic objectives of
the Government and ensuring stability in prices of key product and commodities. The public
sector in India was set up with the objective of achieving inclusive growth aimed at ensuring
equity and justice to the overall community/society. Consequently, CPSEs have been
pioneers in implementing Corporate Social Responsibility (CSR) initiatives towards
community growth and development while achieving their commercial mandate.
The Department of Public Enterprises (DPE), which is the nodal Department for laying down
policies and guidelines concerning Central Public Sector Enterprises (CPSEs), has issued the
Guidelines on Corporate Governance for Central Public Sector Enterprises 2010. These
guidelines are applicable to both listed as well as unlisted public sector enterprises. The
