Trade relations between the European Union and India are moving from strength to strength. Increased trade and investment will raise living standards; but it should also help bring about positive social changes in India and Europe. 

Gone, in other words, are the days when business had only one goal: to make money. Today, business is under pressure, from both stakeholders and the wider community, to adopt responsible business practices.

In Europe, an intense debate is underway on how companies can better meet social and environmental standards both at home and abroad. It was launched by the European Commission's policy paper on corporate social responsibility (CSR), published last year. There is further debate on what these standards should be and what rules the EU should put in place to ensure compliance. 

As the EU searches for ways to meet its commitment to sustainable development, India too faces the challenge of marrying economic development with social and environmental responsibility. 
Indian has a long tradition of closely involving businesses in social and welfare issues. From as early as the 1850s the founders of many of the dynastic enterprises became active in social development in order to develop the country. During the 1930s, Mahatma Gandhi advocated that industry was the temple of modern India and had a strong role to play in human progress. As the country's economy marches forward, it is necessary that this tradition is continued. 

However, corporate social responsibility is still to find its place on the official EU-India political and business agenda. 

The EU-India Network for Corporate Social Responsibility acts as a forum for exchange of information, experiences and best practices between European and Indian companies on corporate responsibility. It also aims to make CSR an integral part of EU-India relations.

There are several examples of good corporate citizenship that demonstrate corporate responsibility as a diverse set of practices, attitudes and beliefs. A one-size-fits-all approach is doomed to fail, however. Fortunately, companies are beginning to realise that they have to build on and respect the traditions and practices of the country in which they operate. 

In India, companies such as Birla have long been at the forefront of practicing corporate responsibility. The Aditya Birla Centre for Community Initiatives and Rural Development is engaged in hundreds of social projects which range from providing employment schemes for rural youths to reaching out to the physically impaired. 

Even in times of economic downturn, companies such as Mahindra and Mahindra continue to support education without any direct bottom line considerations. The company set up the United World College to provide international education to young students. It also provides primary education to female children living in rural areas and helps those from less privileged homes.

European corporations operating in India are also making a firm commitment to their environmental and social responsibility. Glaxosmithkline, in partnership with the state government of Tamil Nadu and the Ministry of Health embarked on Lymphatic Filariasis Mass Administration Day covering twelve districts earlier this year (2002). The company has helped the State design a massive communication plan to support this mass drug administration.

ABB has ongoing projects in areas such as Environment, Occupational Health & Safety. Coca Cola India is currently in the process of consolidating its corporate responsibility strategy, with education as the main focus of its projects. 

Since 2001, HSBC has been involved in Helping Hands, a pilot volunteer programme in which the bank's employees participate in projects with NGOs. These include Magic Bus, Happy Home, School for the Blind, Doorstep School and Don Bosco Shelter. The Helping Hands programme is being extended to other Indian cities. HSBC staff work with students of Future Hope in Kolkata and Prayas in New Delhi. They run a computer centre and training class for children in Hyderabad.

Unfortunately, numerous excellent and innovative schemes being developed by corporations in India go unnoticed. EU-India CSR has been active in both turning the spotlight on them and acting as a voice from the South in the debate on corporate responsibility in Europe.

Currently, we are in the process of developing the first-ever 'CSR Kit' on India. This kit profiles over 100 companies operating in India and their corporate responsibility initiatives. It also includes a comprehensive list of European and Indian NGO's and civil society organisations which are working in this field. 

Recently, European and Indian business leaders and activists lent their support to this initiative through articles in which they expressed their views on the present state, and future, of corporate responsibility. European Commissioner, Anna Diamantopoulou endorsed our publication containing these articles. She described it as "a valuable contribution to an overall international dialogue on corporate social responsibility". 



About the Author: Navtej Dhillon is Project Co-ordinator for the EU-India Network for Corporate Social Responsibility, based in Brussels. Further information about the Network's activities can be obtained from: EU-India CSR Network, http://www.euindia-csr.org/.