Corporate social responsibility in India

Daniel H.

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Corporate social responsibility in India

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Abstract

Corporations can now have workers in India to execute production within hours via online matchmakers. From administrative responsibilities to executive orders, full-scale solutions have produced a huge infrastructure for inexpensive labor in India for multinational corporations. With businesses saving millions off the backs of cheap labor it becomes important to bring into question workers' rights in India and the footprint being left by this development. Growing concerns about the long-term impact and security for millions of workers is becoming a subject of legal matters with a growing impact on stakeholders.

Hiring foreign workers in the United States requires labor certification from the U.S. Department of Labor, U.S. Citizenship and Immigration Services for a visa if within United States boundaries, and a visa from the Department of State (U.S. Department of Labor). An additional note of interest is presented in the Federal Omnibus Appropriations Act passed through Congress in 2004 that prohibited the use of foreign workers for some government jobs (FY2004).

Introduction
The new politics of the welfare state
Foreign workers
Provisions
Corporate responsibility
Conclusion

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[...] "Corporate Social Responsibility / Human Resource" http://www.ibef.org/india/csr.aspx Kemper, Alison and Roger Martin. “Best Practices in Corporate Social Responsibility”. http://www.qfinance.com/contentFiles/QF02/g1xtn5q6/12/0/best-practices-in- corporate-social-responsibility.pdf Karnani, Aneel G. “Corporate Social Responsibility Does Not Avert the Tragedy of the Commons - Case Study: Coca-Cola India”. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2030268 Keys, Tracey, Thomas W. Malnight, and Kees van der Graaf. “Making the most of corporate social responsibility”. http://www.meerdanvoetbal.nl/data/aandeslag_category_tip/file_1102.pdf Kobayashi-Hillary, Mark. Outsourcing to India: The Offshore Advantage”. Commonwealth Publishing: London MightyLaws.In. [...]

[...] Corporate stakeholders will likely continue to be the primary motivation of business operations. Stock holders, investors, creditors, and consumers will all drive demand at the end of each business quarter. CSR percentage payments may increase, but if a better system is not enforced to fund a better quality of life for India's common citizens, then the entire scheme is doomed to continue to drive a wedge between the classes in India which are already starkly contrasting from business class to lower class. [...]

[...] In addition, the term “captive supplier” is used to describe situations in which workers in India perform like owned properties and work exclusively for their employer in a relationship which does not allow for a work balance that is healthy in some situations (Scott, 2006). One failure of United States Companies is throwing in a typical intellectual property clause assuming the United States law would supersede Indian boundaries (Kobayashi-Hillary, 2010). Job security for employees in India can be troubling in events of short-term assignments which can end without proper notice, chance for replacement work, severance, or long-term welfare from the employer to provide subsistence once a job is complete. The repetition of short-term jobs can create gaps that are difficult to fill. [...]

[...] Corporations are responsible for the fair treatment and wages of their employees. International corporations have exploited the local laws to their favor and avoid the regulations where the corporations are headquartered. Most of the technological equipment and components in our devices are manufactured in China and India where wages and benefits are only a small fraction of what the same labor price would cost. This price savings is perhaps the most attractive tenet for business in India, and thus a desire for both countries involved is to maintain this relationship even if it comes at the expense of the welfare of India as a nation in the long run. [...]

[...] This economic boom has created millions of professional jobs for workers to fill. Payments of CSR funds to not fix the problems felt by the commons of Indian Society (Karnani, 2012). This was witnessed in the tracing of funds paid by Coca- Cola India which failed to have an impact on community development as a whole. The research done by Aneel Karnani strongly pushes for an agency to help correct the challenges faced by the status quo and help provide incentives for correcting the discrepancies in current operations. [...]

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