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Sharma, Manoj K; Agarwal, Punam; Ketola, Tarja
Management of environmental quality, 01/2009, Letnik: 20, Številka: 3Journal Article
Purpose - The purpose of this paper is to highlight how fast the divide between the good corporate governance (CG) and corporate social responsibility (CSR) is declining. The concepts covered under CG and the areas covered under CSR are no longer distinctive. Both the philosophies advocate doing good and disclosing the good done.Design methodology approach - The study does a brief survey of Indian mythology to make its point clear that Indian philosophy is positive and it inculcates positive values in Indians, which influence their socially responsible behaviour. The study further analyses the annual reports of 50 Indian private corporate houses to show the extent of CG and CSR undertaken by them. The information is shown in the tabular form or in statement form, both are included for the purpose of the study.Findings - In India, the CG practices are mandatory as per the clause 49 of the listing agreement of Securities and Exchange Board of India (SEBI) for all the companies listed on recognized stock exchanges of India. However; there are two parts of disclosure - mandatory and non-mandatory. In so far as mandatory requirements are concerned, 100 per cent compliance exists. But with regard to non-mandatory requirements the results are quite disheartening. Similarly, when the study analyzed the annual reports to examine the extent of corporate responsibility disclosure the results are equally discouraging for reasons discuss below in the introduction part of the paper.Originality value - The study has revealed certain awakening facts, which will serve as a useful guide for policy formulation in relation to Indian corporate sector.
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