Comparative Analysis of Corporate Social Responsibility Germany, France, India

LLM BATCH: 2018-19
TITLE:
COMPARATIVE ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY:
G ERMANY , F RANCE AND I NDIA
COMPARATIVE LEGAL SYSTEM
PROJECT
SUBMITTED BY:
AMALA HALDER
(2018 /LLM / 001)
SAYAN MUKHERJEE
(2018 / LLM / 029)
FACULTY:
DR. ARUNA SRI LAKSHMI
Associate Professor, National Law University Odisha.
“COMPARATIVE ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY: G E R M A N Y , F R A N C E AND INDIA”
DECLARATION
Date: 30.10.2018
“We hereby declare that the work reported in this project, entitled
“Comparative Analysis of Corporate Social Responsibility: Germany, France and
India” submitted at National Law University, Odisha is an outcome of our bonafide
work, carried out under the supervision of Dr. Aruna Sri Lakshmi. We have duly
acknowledged all the sources from which the ideas and extracts have been taken. To
the best of our understanding, the project is free from any plagiarism issue.”
----------------------------------------
AMALA HALDER
National Law University Odisha
(2018 / LLM / 001)
-----------------------------------------
SAYAN MUKHERJEE
National Law University Odisha
(2018 / LLM / 029)
Comparative Legal System 1|Page

TABLE OF ABBREVIATIONS
CSR: Corporate Social Responsibility
EDH: Entreprises pour les Droits de l’Homme
ILO: International Labour Organization
NRE: Nouvelles Regulations Economiques
SRI: Socially Responsible Investment

TABLE OF CONTENTS
DECLARATION ............................................................................................................... 1
Table of Abbreviations .................................................................................................. 2
Table of Contents ........................................................................................................... 3
1. Introduction ................................................................................................................ 4
2. Social Responsibility of Businesses in Germany, France And India......................... 7
3. Policy And Legislation ............................................................................................ 11
4. Key Drivers Of CSR ................................................................................................ 15
5. Public Awareness ..................................................................................................... 17
6. Environment ............................................................................................................. 19
7. Human Rights .......................................................................................................... 23
8. Community Engagement ......................................................................................... 27
9. Main Challenges ...................................................................................................... 29
10. Conclusion and Discussion .................................................................................... 32
11. Bibliography .......................................................................................................... 33

1. INTRODUCTION
1.1. Background
It is a distant past, when business entities were only considered to be profit

making units. Now, the outlook towards companies has taken a paradigm shift. No
longer, businesses merely buy and sell products or services without considering their
business environment. Only as late as in 1970s, the term “Corporate Social
Responsibility” came into the ordinary parlance.1 This can be marked contemporary
to the development of the “stakeholders’ theory” in corporate jurisprudence.
As a business corporation grows, the impact of its activities affects not only
the company’s shareholders, but also, to the various other stakeholders. A company
must work towards its objectives in an economically and environmentally feasible and
sustainable society for its long-term operation. CSR refers to the social responsibility
of business entities which may extend to charity, promoting greener environment,
uplifting infrastructure of priority sectors, etc. The ideology behind this concept is that
of “give and take”. On performance of CSR activities, the company is giving
something to the society in consideration of the profit-making opportunity as provided
by the society to the company.
The international guidelines like UN Guiding Principles on Business and

Human Rights, OECD Guidelines for Multinational Enterprises and The
International Labour Organization (ILO) paves the way for the policy makers to
frame CSR regulations in different jurisdictions as per the specific need of that
society.2 The present paper will delve into the CSR regime of Germany, France and
India to analyze the rising trend of CSR with respect to both the interest of the
enterprise and the society.
1.2. Research Methodology
In light of the present research paper, a combination of different research

methods has been adopted. Primarily, as the title suggests, the paper undertakes a
comparative analysis with historical restatement of German, French and Indian
1
Wayne Visser, 'The Future Of CSR: Towards Transformative CSR, Or CSR 2.0' [2012] SSRN
Electronic Journal.
2
'Strategic CSR - Europe Vs. U.S.' (Strategiccsr-sage.blogspot.com) <http://strategiccsr-
sage.blogspot.com/2012/11/strategic-csr-europe-vs-us.html> accessed 27 October 2018.

regime with regards to the perception of social responsibility of business entities. For
this, both primary and secondary sources of information have been utilized to
understand the CSR policies of the given jurisdictions. A doctrinal method has been
adopted to review the legal frameworks regulating CSR in the given countries. This
has been done by studying various case laws, documents available at public forum,
various scholarly articles, books, newspaper reporting available in both offline and
internet databases. Further, the paper undertakes to make a qualitative analysis and
upholds the perspective of different countries towards CSR and its significance.
1.3. Research Objectives

• To compare and contrast the various policies and legal frameworks
governing CSR in Germane, France and India.
• To identify the driving forces which initiated the growth of CSR
policies in these jurisdictions.
• To understand the significance of CSR with respect to public
awareness, environment and human right issues.
• To mark the main problems faced by companies in the given
jurisdictions in respect of CSR and its effectual execution.
• To facilitate comparative analysis of the said jurisdictions and suggest
the way forward for India.
1.4. Research Questions
• What is the primary legal framework which regulates CSR in
Germany, France and India?
• What are the reasons for the rise in trend of CSR in the given
jurisdictions?
• What are the main challenges faced by the corporations while
execution of CSR policies in the said countries?
• What future policy makers of India should consider in respect of the
social responsibilities of business entities?
1.5. Limitation
The paper deals with a comparison of the CSR regime in Germany, France and
India. However, analyzing case study of CSR in the given jurisdictions could not be
conducted for want of time and space in the present paper. Moreover, for budgetary

issues, the paper also could not delve into statistical data analysis of different
variables affecting CSR and its effectual execution in the said jurisdictions.

2. SOCIAL RESPONSIBILITY OF BUSINESSES IN GERMANY,

FRANCE AND INDIA
The wider connotation of CSR in Germany, France and India is to be

understood before delving into the deeper issues relating to the social responsibilities
of business corporations. Country-wise understanding of CSR has been attempted
below.
FRANCE:
The word “social” in the term “Corporate Social Responsibility” creates a

theoretical problem in French. The term “social” in French has a narrower meaning
and is restricted for the societal dimension of sustainable growth. The three
dimensions of this idea are-
• Economic productivity
• Societal equality
• Control of resources
The above dimensions are not covered within the ambit of the word social in
French language. The linguistic problem leads to the confusion as to the connotation
of “Social Responsibility”.3 Some thinkers even rationalize that the word for a three-
fold restriction to the meaning of CSR:
- First, the Trade Unions negate the idea of one-sided private sector standards
ought to govern social aspect of a corporation.
- Secondly, companies fear to have new obligations in areas that they believe to
be restricted.
- Thirdly, The Government fails to accept principles historically laid down to
regulate CSR.
Thus, it would perhaps be more appropriate to comprehend the term societal in

a systematic vision combining the three factors of social responsibilities being
environmental, economic and social.
3
'France's Commitment To Corporate Social Responsibility (CSR)' (France Diplomatie :: Ministry for
Europe and Foreign Affairs) <https://www.diplomatie.gouv.fr/en/french-foreign-policy/economic-
diplomacy-foreign-trade/corporate-social-responsibility/> accessed 27 October 2018.

The French concepts of these three factors are based upon two basic
principles:-
1. Significance of public standards of labor laws.

2. Historical social dialogue carried out in negotiation between social allies having
no privileges involved.
The hierarchical concept of hard law and soft law in French Jurisprudence has
fundamental potential to regulate CSR in the French democratic model.4 France, in
one hand has a strong political structure and on the other a significant legal
framework in the various facets to regulate CSR.
GERMANY:
Since a long time, Germany was the ideal county which delivered not only the
best quality of product but also ensure healthy working environment and employee
satisfaction. The involvement of employees in social services and the conservation of
environment was an integral part of German work culture. The main moto of
Germany has been “doing well by doing good” and the companies tried to inculcate
the same vision in their own day to day business.5 However, the terminology “CSR”
had no mention in the vocabulary in German language, still the practices of social
responsibility were wide spread and it was done as a duty and not an obligation.
In recent times, a few problems started surfacing in the working of big

corporations which cannot be overlooked. The Volkswagen, and Deutsche Bank
scandals prove beyond reasonable doubt that there have been fallacies in matters of
business ethics. Pessimistic approach has been reflected in the recent comparative
studies which reflect Germany is a lower-footing. The reasons can be attributed to
many factors but only a few can be enumerated below:
1. Termination from jobs due to the wake of the breakdown in the economy of
East Germany.
4
Anna-Lena Kühn, Markus Stiglbauer and Janina Heel, 'DOES MANDATORY CSR REPORTING
LEAD TO HIGHER CSR TRANSPARENCY? THE CASE OF FRANCE' (2014) 11 Corporate
Ownership and Control.
5
Stefan Müller, 'STAKEHOLDER EXPECTATIONS ON CSR MANAGEMENT AND CURRENT
REGULATORY DEVELOPMENTS IN EUROPE AND GERMANY' (2015) 12 Corporate Ownership
and Control.

2. The competition in the international market is forcing companies to meet their

demands and give away with ethics when a crisis arises.
3. The standards of business are not set by the nationals but are determined by
international players through negotiations, this leads to erosion of ethics which
were inherent to the national actors.
Germany suffers from many problems as does every economy, but their
desperation to meet the global competition leads to a situation where they think ethics
to be lower in the priority list. The need of CSR remains quite evident in Germany as
the state machinery fails to provide every such facility, economic or social that the
community wants from it. The term CSR thus emerged as a savior building
relationship between corporation’s liability and community’s needs. The European
Union in 2001 played a very important role in bringing the attention of the nation
towards the necessity of CSR.
The German framework of CSR introduces a paradigm shift by including and

emphasizing upon stakeholders and not merely shareholders. This is far from the
misinterpreted and biased focus placed upon the shareholders. In Germany employees
play a part in the management. Germans term this as “co-determination”6. This is in
sharp contrast to the US. The Germans have a Co-determination Act which applies to
companies having more than 200 employees not considering if it is a public or private
limited corporation. A company which falls under the Co-determination Act must
adopt a two-tiered model in its management.
INDIA:
In India the trend in CSR has a deeply embedded philanthropic root. The
emergence and development of CSR in India can be categorized into 4 preliminary
stages. The stages are mentioned below
- 1850 to 1914: this was the time of corporate philanthropy, big

business entities took it as their social responsibility to serve the society by
establishing trusts and institutions like schools, universities and health care
units.
6
Paul Davies and Klaus Hopt, 'Corporate Boards In Europe—Accountability And Convergence' (2013)
61 American Journal of Comparative Law.

- 1914 to 1960: One of the most unique stages of CSR when the
emotions of freedom struggle drove businesses into supporting the swadeshi
movement through their contribution. In this period, the businessmen were
motivated to give a helping hand to various igniting social and political causes
that was in line with the freedom struggle and which directly helped the
movement against the British in India.
- 1960-1980s: The emergence of India as a socialist nation was on the
rise and thus the participation of companies in CSR was on the decline. This
can very well be termed as the period of “license raj” where the corporations
had to procure several kinds of licenses from the State for any kind of
expansion in their business activity. As it was the time of socialism it can very
well be understood that the main driving force of development was the State.
- 1990-2013: During this phase and until recently we find that CSR
has become a strategic investment for companies to interact with the society as
well as spread the name of their business among the public. MNCs grabbed on
the opportunity of undertaking CSR so that they can reach the population even
more and expand their market.7 However, among all these the Companies Act
2013 marks the emergence of a whole new era of CSR in India.
- 2013 – Present: The current scenario of the Indian Corporate regime
showcases a whole new statutory mandate on the social responsibility of
businesses having required turnover. The Companies Act 2013 and the rules
thereunder make CSR a unique feature in corporate jurisprudence of India.
Presently, CSR with all its charm and glory makes headlines and in turn plays
a vital part in valuation of corporate goodwill
This paper merely attempts to do a comparative evaluation of CSR policies in

France, Germany and India.
7
Clayton Fonceca, 'Critical Appraisal Of CSR Activities In India' (2012) 4 IOSR Journal of
Humanities and Social Science.
Comparative Legal System 10 | P a g e

3. POLICY AND LEGISLATION
To locate the policies and relevant laws governing CSR in the given
jurisdictions a thorough understanding of the corporate sector is necessary. The
corporate responsibility towards the society and the need for regulation of such social
actions is different in different jurisdictions. The same can be further explained as
under.
FRANCE:
The policy and regulations of France regarding CSR is more of a modernised
approach in ensuring an economy which is contemporary, and it was passed in 2001.
The current legislative framework mandates companies which are listed to report the
social as well as environmental effects of their decisions and actions by means of
Article 116 of “Nouvelles Regulations Economiques” (NRE). An empirical research
conducted by OREE and EpE upon the implementation reflected that even though
NRE had many shortcomings, it had triggered reporting of non-financial information.
The main driving force behind the reporting of such information lies in the fact that
there is threat of legal steps and also a chance of losing brand value by questions
posed by various stake holders.8
After the “Grenelle De I’environment1”, a recommendation for improved
fusion of environmental, societal, as well as governance measures in management of
assets, it was also proposed that NRE law must extend to both public companies as
well as those companies which are not listed but have 500 plus employees, even
though they require data reporting with relation to perimeters which are international.
The details of implementing this new legislation are presently discussed with the
representatives of the Government. The other regulatory steps involve the update on
regulation relating to corporate pension schemes through NRE, the signing of a
charter on responsible investing by various French organisations in the month of July
2009, as well as guidelines of transparency and labelling initiatives.
Another major subject of French legislative framework is the subject of
diversity as various laws recommend companies to enter into contracts with trade
unions based on equality of gender. In the recent times a statute proposed to bring
down the salary difference between male workers and female workers. Similarly, a
8
Supra, 4.

6% reservation was mandated for disabled persons in companies which had more than
20 workers.
GERMANY:
There has been no specific legislation relating to CSR in Germany. The
responsibility to regulate CSR has been delegated to the Ministry of Employment and
Social Affairs. The 2009 government of Germany constituted a multi-stakeholder
forum which recommended a national action plan for CSR.9 Mostly operating as a
voluntary organ of a company, CSR in Germany involves sustainable reporting and
the annual reports are published by the corporations. However, there have been a few
regulatory measures in form of policies and tax deduction.
The taxation system of Germany encourages the involvement of society
constituting private citizens and companies by giving them concession in tax. This
gives them an incentive as the money spent on CSR activity can be readjusted from
the tax duties reduced by the Government. However, it was just an announcement
which was debated and criticized all throughout Germany and thus it is yet to become
legislation. The debate brought to light the phenomenon that CSR activities were
undertaken by companies to reduce their risk and to obtain a license for operation in a
society. So, reduction of tax burden was not a priority for them.
CSR in Germany has its origin the significant ecological debates and issues. Even
today the importance of Ecological sector cannot be denied. The recent trend suggests
that CSR has gained prominence as a social issue in German economy. The reason for
the escalating prominence of CSR in Germany can be attributed to the initiatives
taken by the Federal Government to encourage CSR. They can be listed as follows:
1. A Commission for “Future of Civil Engagement” was formed in the year
1999. The main focus of this committee was to involve the active participation
of civil actors in development of society.
2. “The National Network for Civil Society” which is funded by the Federal
Ministry of Family Affairs, Senior Citizen, Women and Youth (BBE) is a web
linking organizations which are non-profit with the stakeholders i.e., the
society, companies and the community institutions. The organization aims at
increase civil involvement and providing organizational framework for it.
9
'CSR - CSR Policies In Germany' (www.bmas.de, 2018) <https://www.csr-in-
deutschland.de/EN/Policies/CSR-national/CSR-Policies-in-Germany/csr-policies-in-germany.html>
accessed 27 October 2018.

3. The German Parliament also founded the “German Council for Sustainable
Development”. This council promoted the objective of sustainability.
INDIA:
Companies Act 2013 has come in the place of Companies Act 1956. It has
come into force from April 2014. Section 135 of the Companies Act 2013 mandates
companies based on their profit or net worth to spend at least 2% of the average of
their net profit before deduction of tax in undertaking CSR activities. But this
mandatory provision will apply onto those corporation which have at least net worth
of five hundred crore or a one thousand crore turn over or a five-crore net profit.
Whether it is a holding company or a subsidiary it is immaterial for its applicability of
the legislation. Schedule VII of Companies Act 2013 specifically provides the
demarcation about what type of expenditure are to be termed as CSR expenditure. The
Categorisation of CSR expenditure and activities undertaken do put obligations under
the companies for describing their CSR plan. As per the provisions of the legislation,
each and every expenditure for CSR must have an approval made by the Board who
are forming the CSR committee. It must be noted that any one-time positive event like
organising marathons, festivals and undertaking sponsorship programmes do not
constitute a CSR expenditure. The Act mandates that all the CSR activities should be
conducted within the country and not outside. Every company fulfilling the criteria
for net profit as mentioned in the statute is required to form a committee for CSR
which should have independent directors. The work of the committee would be to
formulate a CSR activity programme. The body would be a watchdog to analyse
whether all the requirements of the statute are being followed by the company policy
or not. Coming to the statute again the Schedule VII of the Act specifies those
activities that can be termed as CSR. “The Activities are enlisted below:
i. eradicating extreme hunger and poverty;
ii. promotion of education;
iii. promoting gender equality and empowering women;
iv. reducing child mortality and improving maternal health;
v. combating human immunodeficiency virus, acquired immune
deficiency syndrome, malaria and other diseases;
vi. ensuring environmental sustainability;

vii. employment enhancing vocational skills;
viii. social business projects;
ix. contribution to the Prime Minister's National Relief Fund or
any other fund set up by the Central Government or the State
Governments for socio-economic development and relief and
funds for the welfare of the Scheduled Castes, the Scheduled
Tribes, other backward classes, minorities and women; and
x. such other matters as may be prescribed.”10
India is adequate on papers in terms of policy and legislation, but the

infrastructure of the country defeats the purpose.
10
Schedule VII of the Companies Act 2013.

4. KEY DRIVERS OF CSR
The main implications of this chapter are those driving forces that impose
upon the corporations an implied duty to undertake social actions.
FRANCE:
In France the causes of emergence of CSR is multifarious. Though it is very
difficult in categorizing them into watertight compartments still globalization,
exposure to foreign companies, scrutiny of various stake holders (media, society,
journalist, NGOs, etc.) and financial crisis are few of the driving forces of CSR in
France. Another major cause of the rise of CSR is the launch of new ISO 26000,
along with the development of French “Socially Responsible Investment” (SRI)
system of market.
GERMANY:
The driving forces of CSR in Germany are plenty; however, there are some
which are more persuasive than the others. They can be categorized into public actors
and semi-public actors. The public actors are already discussed in the segment of
Legislation and Policy. The semi-public actors include bodies like “German Business
Ethics Network”, falling within “European Business Ethics Network” and institutes
like “Centre for Business Ethics” created under it. These bodies encourage the
maintenance of CSR and ensure that corporations perform their duty towards the
sustainable development of the society as well as the environment. Several other
networks like “Business in Partnership with Youth” perform a very vital function of
encouraging Germany’s CSR scenario. Initiatives like “Initiative for me, for us, for all
of us” are peculiar to Germany and they encourage the active participation of citizens
and enterprises towards the development of the society. The application of the
guidelines given by the NGOs like Confederation of German Employer’s
Associations, play major role in pushing the wheel of CSR activities in Germany.
INDIA:
The rise in the CSR activities in India owes its development to the following
factors:
1. The change in expectations of the society: The social outlook towards
companies has gone through a major paradigm shift. Earlier companies were
perceived as profit making entities driven by market forces. But with the

gradual development of the concept of sustainability it is now expected of a

company to be responsible towards the society both for the benefit of their
business as well as for building relationships with various stakeholders.
2. The rise in prosperity of business: The spending capacity of various
consumers in both developed as well as developing countries is on the rise due
to the availability of disposable income. So, it is possible for them to spend on
products available in the market. This in turn increases the capacity of a
corporation to expand its business and earn even more profits. The increase in
profits allows a corporation to spend on CSR which otherwise for them would
not have been a feasible option.
3. Globalization: Today we live in the era of globalized economy where any
action taken by the corporation is exposed to the scrutiny of the entire world
be it by means of social media or the conventional media. Thus, as a matter of
strategy, companies prefer to build their rapport with the society and the
various stakeholders.

5. PUBLIC AWARENESS
CSR activities of corporations are often widely promoted and reported in

various medias. This has its own implications. Usually, companies advertise their
CSR activities in order to earn goodwill and public reliance. This in turn stabilises the
position of the company in the corporate sector of the country. Various public
awareness issues in the given jurisdictions are explained below.
FRANCE:
Inspite of various cross border summits, scientific researches and escalating

figures of natural disasters indicate that the general people are becoming more and
more familiar with the development of the aspects of climate change, but, a lot is still
to be done to ensure public awareness regarding the sector, the awareness of
politicians, corporations and consumers is also a vital part which is often ignored. The
conception of sustainable development is often exposed to a lot of ambiguity,
confusion and misinterpretation even in big companies and among the state
machinery. Inspite of the above problems there still remains a primordial focus on
issues of environment and the price of social challenges that are to be paid which are
in need of innovative business strategies as well as green inventions.
GERMANY:
There is no specific research in the German context yet public awareness in

sustainability and CSR related issues cannot be overlooked. Public awareness can
only be created by way of publishing and reporting of the activities of CSR by
individual corporations to the community. The main reason for corporations to
publicise their CSR activity is to be recognised and awarded for the same. In those
enterprises which are medium sized, the reporting of the CSR activities is done in a
systematic and structured way. This kind of reporting helps spreading the goodwill of
the corporation and also upholding their image in public. Thus, the various
stakeholders are made aware of CSR activities. Apart from that several NGOs and
media houses play a vital role in ensuring that they are aware of their rights of
obtaining benefits from CSR activities.
INDIA:

The growing integration of CSR with the aspects of social development and
the aspects of upliftment of human rights is a result of growth in mass media, activism
of Non-Governmental Organisations, government initiatives and public opinion. This
created tremendous pressure on the MNCs and forced them to evaluate their business
dealings as well as internal management techniques. It made them reflect a behaviour
which is morally sound and socially responsible. This not only added on to their brand
value but also pushed them forward in the part of sustainable development.11 Several
economic activities through the years have made India an ideal destination for foreign
investment. With the emergence of globalisation, the standards of accountability of
corporations have also undergone a sea of change and the awareness regarding CSR
has in turn been on the rise.
11
CSR in international law written by Ilias Bantekas.

6. ENVIRONMENT
It is in fashion that corporations often delve into CSR activities which seeks to
promote sustainability of the Environment. However, the same has multifarious facets
which need to be calmly comprehended with respect of Germany, France and India.
FRANCE:
The minimisation of CO2 emission remains a major challenge in France. As

per the general observation, the emission would exceed Kyoto benchmark by 10%.
This might happen for various reasons including construction of buildings and
maintenance of transport facility. The climate plan is aimed at formulating measures
to conserve 54 million tonnes of Carbon dioxide which is likely to reverse the current
trend.
The French policy regarding energy is four pronged. It focuses on contributing

to the fuel independence and ensuring supplies of fuel sources, developing
environmental conservation, and taking various other steps to curb greenhouse effect
and ensure fuel prices to be competitive. For this, the French Government undertakes
many initiatives such as fiscal measures, improved tax credit, mandating energy label
in a building, etc., these regulations made by the Government compel the corporations
to expand their scope of CSR to include environmental protection as well as
development.
GERMANY:
The government of Germany in April 2002 undertook the first National

Sustainable Strategy accompanied by a set of sustainable indices. The National
Sustainable Strategy is reviewed from time to time. The most important challenge in
CSR is the climate change. Energy sector uses cost cutting factor as an essential
means of combating climate change. In the present date public awareness of issues
relating to climate change and environment is of much significance. The broader
public opinion formed for future climate scenarios adopt the variables having aim to
mitigate the environmental challenges.

INDIA:
The main objective of sustainable development is to facilitate the standard of

human life, living within the capacity of the environment to support such existence.
The need of sustainable development has been realised by researchers since long, but
in recent times corporations have also started to understand this concept not only as a
duty but also as an obligation conferred upon them by means of statute. Herein lies
the significance of CSR, where most corporations abide by environmental regulations
just to escape the clutches of law, CSR give a corporation an opportunity to rethink
their policies and activities with a perspective of concern. Great achievements,
discoveries and inventions have made human life easy but complex at the same time.
The life has enhanced so has our ease of living it but during the rapid growth the
environment had taken a back seat. Within a short span of 200 years, we were so busy
in focusing on “development” that we forgot that we also need to “sustain”. Thus, the
need for sustainable development struck us.
It is very complex to define the term sustainable development as we never

realise how much harm and activity is causing to the environment and what activities
can be undertaken to undo such harm. The Brundtland Report has a comprehensive
definition of sustainable development where it is defined to be “sustainable
development is a development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.12 In the last
few years the concept of sustainable development has gained its importance not only
in policies but also in politics. The violations in environmental standards have been
rising as a global concern and is a part of political debate and discussion in countries
having both developed and developing economies. The Stockholm Declaration
mentions that “the Natural Resources of the Earth, including the air, water, lands,
flora and fauna and especially representative samples of natural ecosystems must be
safeguarded for the benefit of present and future generations through careful planning
or management, as appropriate.”13 The aim of sustainable development cannot be
reached without the contribution of the government or to put it clearly, state actors.
12
United Nation Commission of Environment and development, our common future: towards
sustainable development, report of the world commission on environment and development, UN Doc.
A/RES/42/187 (1987) (THE COMMISSION WAS HEADED BY Gro Haelen Brundtland, the then PM
of Norway)
13
Stockholm declaration

Thus, sustainable development should be made a part of the “Public Policy”, the
implementation of these policies would include scrutiny by the government agencies,
and this will force companies and corporations to reflect upon not only their profits
but also the implications of their actions on the general environment. The policies of
the environmental standards should be made a part of the statutes so that they have an
authoritative value of their own. However due to corruption and the unwillingness of
the private entities more often it is observed that the rules and regulations are violated,
and they cannot deliver upto their original intent.
The news and TV along with social media are often filled with instances of big
MNCs indulging into CSR activities which are environmentally inclined. From
planting trees to providing solar panels it includes every measure one can think off,
but the activities are only the superficial covering to cover up the grave and serious
violations that a corporation carries out. Be it the case of the Chernobyl Disaster or
the Bhopal Gas Leak, companies remain unaffected of the threat they pose to the
society unless they are brought into scrutiny and there is loss of business caused to
their corporation. It is difficult to find any manufacturing unit which is non-polluting
and any business activity which does not harm the balance of the environment. So, it
is fair and wise enough to place the burden of conserving the environment and taking
steps towards a greener planet on the corporations.
Corporate Social Responsibility means the relationship between companies

and their various stakeholders, environment can be considered as a stakeholder also.
By definition, CSR implies the interaction amongst corporation and the society, it also
includes various responsibilities that are an integral part of this relationship.14 Going
by the definition we infer that the corporations not only have a relationship with the
environment by also should carry out their obligation towards the same. It is a
common observation that profit making is a primary goal of every corporation and
CSR activities are guided in such a way so that the corporations do not get caught in
the compliance related to regulations and it remains to be just a mechanical duty to
escape the clutches of law.15 Thus the larger concern of environment often escapes
14
David Chandler and William B Werther, Strategic Corporate Social Responsibility (2006).
15
Marianne M. Jennings and Stephen Happel, 'The Post-Enron Era For Stakeholder Theory: A New
Look At Corporate Governance And The Coase Theorem Lessons From Enron: A Symposium On
Corporate Governance 54 Mercer Law Review 2002-2003' (Heinonline.org, 2003)

any kind of CSR activity. There is also a rising concern regarding environment never
being considered to be a stakeholder but if we closely look into the “stakeholder
theory” then we can easily see that the definition of stakeholders has been broadened
to include any such bearers of risk arising out of the activities of the firm. 16 The
theories hold a view that the companies should and must perform their duties towards
the environment. However, these theories have been taken seriously and thus
environment still remains a majorly overlooked phenomenon when it comes to
performing the CSR activities.
The concern remains that the understanding of the two theories – ‘Corporate
Social Responsibilities’ and ‘Corporate Environment Responsibilities’ the concept
of environmental duties is often mixed with those of economic and social duties.
Thus, the focus upon environment is often not so much and it remains an area where
corporations do not pay a heed.17 The most widely granted meaning of environment in
CSR remains the human environment not close to the natural environment. This has
led to a lot of ambiguity.18
For the aim of sustainable development to be fulfilled it is extremely crucial

for it to include the involvement of big corporations and private bodies i.e., non-state
actors. The problem remains that the companies are not bound to fulfil the obligations
towards the environment.
The thought conveyed by the issues and concerns raised remains that
environment cannot be treated as a unique entity and we cannot shy away from the
fact that everyone is accountable to the environment. The damage has already been
done and the task of shifting the blame has been on for several decades. Thankfully,
many companies now have welcomed the CSR policies aimed at environmental
development. However, inspite of all the constructive actions the main concern is the
willingness of corporations to go beyond economic gains and serve the largest
stakeholder, i.e., Nature.
<https://heinonline.org/HOL/LandingPage?handle=hein.journals/mercer54&div=38&page=> accessed
11 October 2018.
16
Subrata Bobby Banerjee, Corporate Social Responsibility : The Good, The Bad, And The
Ugly(Edward Elgar 2007).
17
Subrata Bobby Banerjee, Corporate Social Responsibility : The Good, The Bad, And The
Ugly(Edward Elgar 2007). 186-7
18
ID

7. HUMAN RIGHTS
One of the primordial objectives of CSR is to ensure that Human Rights are
not violated in the process of business of any corporation for any reason whatsoever.
The corporations should also ensure that human rights are not only safeguarded but
also get enhanced through their activities. The role of human rights as an integral part
of CSR is explained hereinafter.
FRANCE AND GERMANY:
The reason for placing France and Germany together is solely because both of
them fall under the European Union [EU] and for discussion of human rights, the
EU’s framework for the Corporate Social Responsibility is indispensable. Thus, both
the countries are brought under the vicinity of European Union in the light of CSR
policies of Human Rights. The issue of Human Rights has been dealt by the European
Commission’s Green Paper on CSR of 2001. And it states that, “binding rules ensure
minimum standards applicable to all, while codes of conduct and other voluntary
initiatives can only compliment these and promote higher standards for those who
subscribe to them.”19However, CSR is perceived as something which is voluntary in
nature, the Commission brings under its purview the role played by public authorities.
The main contribution of German and French approach is to enhance the pre-existing
activities through the provision of a systematic framework which aims at promoting
the quality and integrity of Corporate Social Responsibility and related practices, by
way of developing broad principles, tools and initiating best practice and promoting
innovative ideas which are not only helpful, but also cost effective. The European
Commission knows and believes that CSR in the field of human rights “can result in
better performance and can generate more profits and growth.”20
In the vision of the EU, is that CSR is widely promoted by ensuring that
customers and investors are taking the company’s human rights’ records into account.
The Green Paper was successful in its objective to launch a debate and was at the
receiving end of a huge number of positive reactions from different stake holders as
well as public authorities. However, NGOs still stress upon the fact that a purely
19
Commission Green Paper ON Promoting a European Framework for Corporate Social Responsibiltiy,
COM(2001) 366 final (July 18, 2001).
20
Id. at 8

voluntary perspective to CSR is not adequate and that voluntary promises should not
be perceived as a substitute to the Law or Regulation. Instead, NGOs proposed a
fusion of both voluntary as well as legal instruments. It is often seen in Europe that
the corporations and the employer’s organization agree in consensus with the
commission’s explanation that CSR involves activity that go beyond the legal
periphery of legal compliance. They very clearly favour a voluntary perspective to the
CSR policy which according to them is a more efficient way to uplift better corporate
practices than those ensured by stringent governmental rules and regulations. The
unique factor about Germany and France remains that it projects a fusion between
voluntary CSR activities promoted by the commission as well as CSR enabling
legislation. However, the following paragraphs mentions in brief about the CSR
scenario in human rights in Germany and France.
Several NGOs show active participation in matters of Human Rights. The aim
of initiatives like Enterprises pour les Droits de l’Homme (EDH) is to enhance works
led by the entrepreneurs on human rights and to inculcate them into the French
culture. France has a stakeholder-oriented system.21
CSR in Germany is much debated for not involving human rights

prospectively into their essential feature. The issue of growing sustainable supply
chain has given leverage to human rights in CSR.
INDIA:
It goes without saying that CSR has gained popularity recently, but many
writers openly disagree to the part paid by the corporations in the development of the
society both economically as well as qualitatively. But, however, several efforts made
by the United Nations, World Bank and the guidelines of OECD have contributed to
the growing popularity of CSR.22
The contribution of the International Labour Organization has led to the rising
focus on human and labour rights. There is not a hint of doubt in the fact by now that
CSR is a very broad field, but human rights do constitute a major part of CSR in
21
Anna Triponel, business & human rights law: diverging trends in the us and France, 23 Am. U. INT’
L L. Rev.855, 875-877 (2008).
22
Peter Madsen, 'Professionals, Business Practitioners And Prudential Justice' (2008)
<https://www.researchgate.net/publication/265143321_Professionals_Business_Practitioners_and_Pru
dential_Justice> accessed 11 October 2018.

India. CSR in Human rights include providing for decent wage and giving them
humane and just working conditions. Ensuring provisions of education for all also
involves a part of human rights. Thus, it is uncalled for if any company aims at
making profits at the cost of humans. In India though the history of CSR is tainted by
violations of Human rights the two major cases in this respect are:-
1. Bhopal Gas Tragedy: It is the most widely cited case when it

comes to violation of human rights by private corporations. In the deadly night
of 1984 December, the escape of methyl isocyanate from a leaked gas tank in
the pesticide factory of union carbide led to the spread of the toxic gas all
through Bhopal killing almost 3000 residents in the short term and 20,000 in
the long term.23 A mere compensation of 470 million dollars was given as
settlement amount and the American executives with the barbaric act. 24 The
sufferers of the disaster were dragged to the court for settlement of claims.
According to a report, “30% of claims for injuries have been rejected…
around 16,000 claims [remained] outstanding, and most of the successful
applicants received minimal amount of compensation”.25 The Bhopal gas issue
pinpointed the problem of lack of accountability of big corporations and how
they never hesitate to overlook human rights concerns and the implications of
their actions.
2. Dabhol Plant Case: About 10 years after Bhopal incident in 1993,

Enron entered into a contract with the Maharashtra Govt. to build a power-
plant which was worth multimillion dollars in a place called Dabhol. It is
considered to be the largest investment in India at that time which was
foreign.26 Maharashtra made a contract with the partners of Enron and Enron
itself but kept the dealing secret as the situation of the Power created an
emergency across the state. When the people became aware of the deal, they
23
Adrienne Margolis, Prioritizing profit over people, 64 (1) INTER’N BAR NEWS 23 (2010).
24
'Union Carbide, Chronology, Bhopal Information Centre' (Bhopal.com) <http://www.bhopal.com/>
accessed 11 October 2018
25
'Clouds Of Injustice: Bhopal Disaster 20 Years On 4' (Amnesty.org, 2002)
<https://www.amnesty.org/en/documents/ASA20/015/2004/en/> accessed 11 October 2018.
26
Jeswald W. Salacuse, 'Renegotiating International Project Agreements' (2001) 1319 FORDHAM
INT'L L. J., 1343-47.

termed the project to be neo-colonial.27 They vehemently opposed it. The

outrage led to the project being renegotiated and as a result the foreigners gave
threat to pull out of other projects in India. Enron used local police to protect
the site of the project. Heavy violation of Human Rights committed to stop the
protest against Enron. Women were “dragged naked out in the streets” even
though they were pregnant.28 The public were beaten, and no regards were
shown by them. The United States Company had to declare itself to be
bankrupt in 2001 during the pendency of the law suit that was brought against
them. Following the disaster of both Enron and Bhopal the western companies
have become more cautious in their dealings with India as it poses political
and financial risk. Various companies like P&G, Coca Cola and IBM
undertake CSR initiatives to make good the relationship between the
corporation and the society.
27
Amy Chua, 'World On Fire: How Exporting Free Market Democracy Breeds Ethnic Hatred And
Global Instability' (2003) 41 Choice Reviews Online.
28
'Human Rights Watch, Enron: History of Human Rights Abuse in India' (2002)
<https://www.hrw.org/news/2002/01/23/enron-history-human-rights-abuse-india> accessed 11 October
2018.

8. COMMUNITY ENGAGEMENT
Community Engagement implies what the corporations undertake to do as a

part of their social responsibility in order to serve the needs of the community and
promoting the notion of welfare state in an economy. The relevant jurisdictions in this
respect are studied and enumerated below.
FRANCE:
Until recently the private companies and non-profit sectors were regarded as
opposites of each other. However, with the emergence of CSR, private firms and
NPOs have built a relationship of faith and trust where both contribute constructively
towards the welfare of the community. The support provided by the companies maybe
financial support or support through human resource. NPOs can become partners and
active players in companies emerging CSR responsibilities by becoming partners and
contributing innovatively.
GERMANY:
Traditionally one of the most important arenas where German Companies

contain themselves is community engagement. The level of mutual-cooperation
between the communities depends upon the situation. So in Germany, case to case
difference is evident for want of any standardised procedure for community
engagement.
INDIA:
With the advent of liberalization in the Indian economy a paradigm shift from
philanthropy model to multi-stakeholder pattern made the companies to concentrate
upon community engagement and development within the ambit of CSR. Large multi-
National Companies like the IBM, Microsoft and others operating within Indian
Territory uplifted and developed the regime of community-based CSR in India. In the
long run the future prospect in society can be aimed to be realised for satisfaction of
stakeholders both private and public. The responsibility of every business towards its
workers, stakeholders, customers and most importantly the community at large was
declared to be the social responsibility of every corporation by the Indian Prime
Minister Lal Bahadur Shastri in 1965.

The goodwill of a firm increases if the corporation satisfies the community

around therefore, the responsibility towards community where the corporation is a
part enables the Firm to develop that community for its own personal interest. This
idea in turn realizes social implications and recognizes obligations having absolute
sustainability. Community engagement of a corporation in India largely remains a
voluntary undertaking. The main Principle behind community engagement lies within
the aspects of management and labour law principles. A beneficial indication for
success of in company’s performance, core competencies and corporate resources can
be indicted with relation to the benefits towards community in CSR. The NTPC and
ONGC were nominated for WBFICCI-SEDF CSR Awards 2007 where NTPC was
awarded second runners up for its community based comprehensive Social
Responsibility policy. JN Tata the founder of Tata Group heralded a wave of CSR in
early 20th Century way before the concept of social responsibility of corporations got
a centre stage in the globalized world. Mr. Tata remarked, “In a free enterprise the
community is not just another stakeholder in the business, but is, in fact, the very
purpose of its existence”29 The subsidiary of Tata Group namely Tata steel included
in 1973 in its Articles of association included social responsibility as its integral part.
Today a superstructure for CSR across Tata Group is framed by Tata Council for
Community Initiative. Sustainability is the main social notion for the group enterprise
undertaking. Though, CSR philanthropy and development of Community remains a
strong facet of Indian Policy. Under the multi-stakeholder approach both community
and corporate stakeholders are the targets for company’s responsibility and requires
sustainable corporate strategy. The concept of “Triple P- people, planet and profit” is
the mantra for development of CSR in India.
29
Oonagh E. Fitzgerald,'12.Case- Titan Industries | Corporate Social Responsibility | Stakeholder
(Corporate)' (Scribd,) <https://www.scribd.com/document/44448544/12-Case-Titan-Industries>
accessed 11 October 2018.

9. MAIN CHALLENGES
Social activities of corporations cannot function in full potential due to

inherent challenges of Corporate Social Responsibility Policies. The primordial issues
which are much debated in the international forums consist three major challenges.
Firstly, the activity undertaken by corporations for their CSR cannot be measured as
there is no standardised index or unit to quantify the degree of CSR activity
undertaken. The lack of measurement has given rise to discriminatory practices which
in turn deprived benefits from the ones who are actually in need for it. Secondly, there
is no set standard of accountability for activities undertaken as CSR by companies.
This results in lack of awareness and makes CSR unproductive. Finally, the cultural
diversity in this globalized world and multifarious stipulations by local laws has
created confusion as to the role of regulators, subjects and the objects of CSR in
whole.
FRANCE:
Every economy has its own set of challenges when it comes to delivering to its
CSR responsibilities. The Challenges faced by France are as follows:
• Small and Medium Enterprises are still unsure of their role and
strategies they are to adopt in the entire CSR scenario.
• It is difficult to involve everyone at every hierarchy of management.
• To bring a sea of change in the approach in the CSR both in a company
as well as in the global perspective.
GERMANY:
Germany, much like any other jurisdiction faces a few challenges in terms of
CSR. However, this paper mentions only a few of them integral to the German
corporations. There is a shortage of responsible chain of suppliers contributing
towards CSR activities. The company’s perspective towards CSR has to improve from
a profit-oriented to a society-oriented approach. The involvement of stakeholders in
creating a shared value is lacking in the German system. German companies are still a
long way to go when it comes to making CSR an integral part of the core business
system. The innovation in the field of corporate services towards CSR is absent. The

CSR activities of Germany are struggling to cope up with issues of environment

which involve grave problems like, imbalance in biodiversity and depletion of
resources.
INDIA:
The CSR regime in India even though being largely successful is not devoid of
inherent challenges. The problems involved in CSR strategies can broadly be
classified into difficulties faced by international companies and national companies.
Firstly, the international MNCs include policy regarding working condition, code of
conduct, and internal structure as prime avenues for compliance.30 Conflicts were
earlier considered to be domestic and restricted to supply regime for international
transactions. This originated from western corporate communities.31 The attitude of
international corporations changes for complying with CSR and ethic codes as
marked by Indian regulators. This new phase in control demands balancing price
competitiveness which is a major threat to corporations.32
Secondly, the national corporate regime in India faces challenge as to lack of

resources both human and infrastructural. Indian companies often lack the structure to
follow up with their CSR policy. They might divert the stipulated sum to few eligible
CSR activities but the same is not optimally utilised nor followed up by the
committees post performance of CSR obligations for lack of manpower. Again, lack
of knowledge of priority sector and research for their upliftment has mitigated the
effect of CSR policies in India.
To sum up the basic challenges faced by CSR in India are listed as follows: -
1. CSR in India has become a mere social compliance which successful corporations
having stipulated turnover or net value as the case maybe has to abide by. The fear
of penalty due to non-compliance has in one hand ensured mandatory CSR
activity but on the other takes away the “Social Responsibility” and “concerned
action” which corporations use to undertake before the statutory mandate. The
30
Linna Palmqvist, 'Corporate Social Responsibility And Development -A Case Study Of The CSR
Strategies Of International Companies In India' (Lup.lub.lu.se, 2007) <https://lup.lub.lu.se/student-
papers/search/publication/1334660> accessed 11 October 2018.
31
ibid.
32
ibid.

actions of a socially responsible company are longer lasting than mere action
undertaken to avoid punishment.
2. Another aspect in the Indian corporate regime is lack of consent in
implementation of the policies. Consent implies the objects of CSR might not
agree to the benefits of the activity or the method of its administration. They
might need other alternative benefits based upon the priorities. Example- X ltd
may undertake to build up higher education unit in a village but the need of the
villagers is that of a health care facility.
3. In India dearth of infrastructure of corporations do no support their over ambitious
policies of CSR. This is a common difficulty faced by the companies even if they
have the intention of undertaking CSR activities which are helpful to the society.
4. The lack of active participation of media in ensuring the corporation’s promises
towards CSR are met is a major cause of failure in CSR compliance.
5. Another major Indian issue in CSR regime is the multi-cultural arrangement of the
society. The various states have their own diversification in needs and prioritise
them in a unique manner. It is very difficult for corporations to divert their R&D
from market economy to facilitate necessary benefits to the various cultural strata
of Indian society.
6. The Indian CSR policy needs to build a contributory structure related to the aim of
civil society strengthening. The corporate process does not feel the necessity to
undertake participant observation as the method of research to bring in the
deprived with the required benefits.
Therefore, the system in India suffers for inherent infrastructural reasons. The
policy makers must be active for that purpose.

10. CONCLUSION AND DISCUSSION
The significance of CSR can be understood in totality from the statement of

Benjamin Franklin, “It takes 20 years to build a reputation and five minutes to ruin it.
If you think about that, you’ll do things differently.” The research objectives set out in
the first chapter of this paper thus stands attained. However, comparing is a mere
make-up for pointing out the road ahead required for development of such vital
subject.
Thus, the reputation of a corporation is at stake if the social duties are not
looked into. The main beneficiary apart from the society is the corporation itself.
However, the socio-legal environment of a nation influences the CSR activities in a
Company to a large extent. There are several parameters which are to be taken into
account in the analysis of CSR and the extent of its success. A few of such influences
and parameters of CSR are enumerated in the comparative analysis undertaken. The
research has exhaustively discussed the policy and legislation prevalent in the
concerned countries, the factors which encourage, public awareness regarding the
phenomenon of CSR. Apart from this the fields widely discussed in CSR like
environment, Human rights and community engagement are discussed to evaluate the
extent of the success or failure of CSR. Lastly, the challenges faced in CSR in all the
countries are also highlighted.

11. BIBLIOGRAPHY
1. 'CSR - CSR Policies In Germany' (www.bmas.de, 2018) <https://www.csr-in-

deutschland.de/EN/Policies/CSR-national/CSR-Policies-in-Germany/csr-
policies-in-germany.html> accessed 27 October 2018
2. Chandler and William, Strategic Corporate Social Responsibility (2006)
3. Davies PK Hopt, 'Corporate Boards In Europe—Accountability And

Convergence' (2013) 61 American Journal of Comparative Law
4. Fonceca C, 'Critical Appraisal Of CSR Activities In India' (2012) 4 IOSR
Journal of Humanities and Social Science
5. Kühn A, M StiglbauerJ Heel, 'DOES MANDATORY CSR REPORTING
LEAD TO HIGHER CSR TRANSPARENCY? THE CASE OF FRANCE'
(2014) 11 Corporate Ownership and Control
6. Müller S, 'STAKEHOLDER EXPECTATIONS ON CSR MANAGEMENT
AND CURRENT REGULATORY DEVELOPMENTS IN EUROPE AND
GERMANY' (2015) 12 Corporate Ownership and Control
7. Palmqvist L., 'Corporate Social Responsibility And Development -A Case
Study Of The CSR Strategies Of International Companies In India'
(Lup.lub.lu.se, 2007) <https://lup.lub.lu.se/student-
papers/search/publication/1334660> accessed 11 October 2018
8. 'Strategic CSR - Europe Vs. U.S.' (Strategiccsr-sage.blogspot.com)
<http://strategiccsr-sage.blogspot.com/2012/11/strategic-csr-europe-vs-
us.html> accessed 27 October 2018
9. Visser W, 'The Future Of CSR: Towards Transformative CSR, Or CSR 2.0'
[2012] SSRN Electronic Journal

Comparative Analysis of Corporate Social Responsibility Germany, France, India

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Comparative Analysis of Corporate Social Responsibility Germany, France, India

Uploaded by

Copyright:

Available Formats

LLM BATCH: 2018-19

COMPARATIVE LEGAL SYSTEM

Comparative Legal System 1|Page

CSR: Corporate Social Responsibility

EDH: Entreprises pour les Droits de l’Homme

ILO: International Labour Organization

NRE: Nouvelles Regulations Economiques

SRI: Socially Responsible Investment

Comparative Legal System 2|Page

Table of Abbreviations .................................................................................................. 2

Table of Contents ........................................................................................................... 3

2. Social Responsibility of Businesses in Germany, France And India......................... 7

3. Policy And Legislation ............................................................................................ 11

4. Key Drivers Of CSR ................................................................................................ 15

5. Public Awareness ..................................................................................................... 17

7. Human Rights .......................................................................................................... 23

8. Community Engagement ......................................................................................... 27

9. Main Challenges ...................................................................................................... 29

10. Conclusion and Discussion .................................................................................... 32

11. Bibliography .......................................................................................................... 33

Comparative Legal System 3|Page

It is a distant past, when business entities were only considered to be profit

The international guidelines like UN Guiding Principles on Business and

1.2. Research Methodology

In light of the present research paper, a combination of different research

Comparative Legal System 4|Page

1.3. Research Objectives

Comparative Legal System 5|Page

Comparative Legal System 6|Page

2. SOCIAL RESPONSIBILITY OF BUSINESSES IN GERMANY,

The wider connotation of CSR in Germany, France and India is to be

The word “social” in the term “Corporate Social Responsibility” creates a

Thus, it would perhaps be more appropriate to comprehend the term societal in

Comparative Legal System 7|Page

1. Significance of public standards of labor laws.

In recent times, a few problems started surfacing in the working of big

Comparative Legal System 8|Page

2. The competition in the international market is forcing companies to meet their

The German framework of CSR introduces a paradigm shift by including and

- 1850 to 1914: this was the time of corporate philanthropy, big

Comparative Legal System 9|Page

This paper merely attempts to do a comparative evaluation of CSR policies in

Comparative Legal System 10 | P a g e

3. POLICY AND LEGISLATION

Comparative Legal System 11 | P a g e

Comparative Legal System 12 | P a g e

ii. promotion of education;

iii. promoting gender equality and empowering women;

iv. reducing child mortality and improving maternal health;

v. combating human immunodeficiency virus, acquired immune

deficiency syndrome, malaria and other diseases;

vi. ensuring environmental sustainability;

vii. employment enhancing vocational skills;

viii. social business projects;

ix. contribution to the Prime Minister's National Relief Fund or

any other fund set up by the Central Government or the State

Governments for socio-economic development and relief and

funds for the welfare of the Scheduled Castes, the Scheduled

Tribes, other backward classes, minorities and women; and

x. such other matters as may be prescribed.”10

India is adequate on papers in terms of policy and legislation, but the

Comparative Legal System 14 | P a g e

4. KEY DRIVERS OF CSR

Comparative Legal System 15 | P a g e