Study and measurement of corporate social responsibility -An Indian prespective

CSR is a strategic process of mutual commitment between a company and its stakeholders. The concept of CSR helps to understand how to make the process of wealth creation more effective and fair. In defining CSR programs, shareholders and managers should choose those actions that will maximize the welfare of the community by providing the desired goods and services while minimizing financial, social and environmental costs. Corporate social performance should be seen as processes based on voluntary and explicit commitment to accept both economic and social responsibility. Since the triple bottom line including people, planet and profit has become more and more important in the companies of the 21st century, they will have to progressively take into bigger consideration the stakeholders other than the shareholders. Therefore, measuring the performance of a company only from a financial point of view appears to be inconsistent and even dangerous. Designing and implementing a measurement system based not only on financial performance indicators but also on non-financial indicators leads to better strategic management and decision-making process. CSR has come a long way in India. From responsive activities to sustainable initiatives, companies have clearly exhibited their ability to make a significant difference in the society and improve the overall quality of life.