Corporate citizenship is becoming an imperative of good business in today’s world. This
paper first defines the term corporate citizenship, and then provides a detailed review of
the literature on the subject, both in the international and Indian contexts. The paper then
provides a holistic view of the corporate citizenship practices of Tata Steel, which is a shining
example for corporate citizenship in India.
Business organizations can play an important role in the growth,
development and welfare of the society. According to late J R D Tata, the
doyen of Indian Industry, “industrial enterprise, whether in private or public
sector can do much within their means to improve the conditions of life of the
surrounding population, relieve distress where it exists, help find work of the
unemployed and extend a helping hand to those who need it” (Tata, 1992).
Following the collapse of Enron, corporate citizenship has become more
important than ever, with companies under increasing scrutiny from friends and
foes alike. Managers who believe they can continue to manage by a single
measure—shareholder value—are likely to find themselves under challenge. Our
complex world calls for a redefinition of corporate success to mean service to a
variety of stakeholders.
With a specific reference to the Indian situation, Tata (1992) finally comments,
“in a poor country like ours, however, in which so many people are economically
deprived and oppressed, the social obligations of organized business and
industry as I conceive them must go beyond the accepted duties of making a
good product, selling at a fair price, paying fair wages, providing good working
conditions to labor and paying taxes in full. I have, therefore, long believed that
those in Indian Industries who have the adequate means and resources should
consider it a part of the social obligations to contribute in some suitable form to
the progress and welfare of the community”.
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