Six Indian companies - Mahindra & Mahindra, Tata Tea, NTPC, ONGC, and MSPL - are the recipients of the Businessworld FICCI-SEDF CSR (Corporate Social Responsibility) Award 2007.
Finance Minister P. Chidambaram, who gave away the awards on May 16, exhorted industry leaders to desist from non-competitive and cartel-type behavior and sustain growth through good governance and politics.
The finance minister also urged the captains of trade and industry to provide employment to 100,000 differently-abled people, for which the government will cover the ESI (Employee State Insurance) and EPF (Employee Provident Fund) bill for the first three years.
Management, boards of directors, and employees of companies must be driven by a refined social conscience and social responsibility, not by short-term gains, Chidambaram said.
According to Harshpati Singhania, Senior Vice President of FICCI, the CSR award holds great significance for all, especially the corporate sector, as it recognizes the work of businesses in enhancing the well-being of society at large.
"With the concept of CSR becoming more relevant and focused, we realize that companies operating in both global and domestic markets are increasingly required to incorporate social, economic, and environmental concerns into their business practices while enhancing shareholders' value and considering stakeholders' interests," he said.
"The business decision-making in an increasing number of companies is now linked to ethical values, compliance with legal requirements, and respect for people, communities, and the environment. Many companies are discovering that aligning CSR activities closely with business objectives is beneficial for their operations," he added.
According to P.M. Sinha, President of FICCI-SEDF and Co-Chairperson of the FICCI Committee on CSR & Community Development, the general understanding of CSR in India is still deeply rooted in the concept of philanthropy.
"However," Sinha said, "on a broader scale, philanthropy constitutes only a small part of CSR."
"CSR is gradually evolving from a mere philosophy to a compelling business case for the Indian industry. Over the years, the nature of business involvement with social causes has shifted significantly. It has progressed from charity and dependence to empowerment and partnership. This shift is crucial not only for business growth but also for achieving 'inclusive growth' in the country," he added.