Developing Ethical and CSR Standards in Indian Corporate Sector: A Conceptual Analysis

The rapid globalisation of the Indian economy has heightened the importance of issues relating to ethics and corporate social responsibility (CSR). This paper attempts to explore the possibility for businesses to take action on these issues through CSR programmes, moving beyond risk mitigation toward proactively solving social problems critical to the business. This paper argues that if the macro-economy is under-performing due to unethical practices, an ineffective system and inaction of government, there is a likelihood that the contributions of businesses to societal welfare could fail to achieve the desired outcomes. Hence, there is an urgent need for formulation of ethical and moral standards to assist the establishment of good governance through which CSR would be the driving force.