Experiences of the Role of Government in promoting Corporate Social Responsibility initiatives in the private sector. Recommendations to the Indian state of Gujarat

Abstract: Interpretations of the term Corporate Social Responsibility are many, but academics have achieved approximate consensus about what it consists of. An issue that started off as an interest- and motive-based activity for businesses is becoming more commonplace and has increased in importance over time. Governments have a role to play in ensuring that corporations behave according to the rules and norms of society; corporations stand to gain from CSR activities due to its social influence and acceptance. Hence governments play an important part in supporting corporate social responsibility initiatives. Governments can legislate, foster, partner with businesses and endorse good practice in order to facilitate the development of corporate social responsibility. The Government of Gujarat, a state in India, is now promoting corporate social responsibility initiatives to foster societal development. The experiences of pioneers and champions amongst governments could be useful to develop better policies for the state. Three such pioneer governments – the UK, Denmark and Sweden – are chosen for analysis of their corporate social responsibility promotional policies, legislation and initiatives. An examination is made of the history, legislation and policy initiatives for each country. After taking important lessons from these countries, they are compared with the existing policy in Gujarat. A comparative and learning based analysis provides a set or recommendations which can be useful in bettering the existing corporate social responsibility policies of the Government of Gujarat.