How Forced Philanthropy is Failing to Bridge Corporate and NGO Goals
In 2013, India became the first country in the world to require corporate social responsibility (CSR), which demands companies spend 2% of their net profit on social development. The results of this mandate have been mixed. The forced co-operation between the nation’s largest firms and civil society organizations (CSOs) in pursuit of inclusive and sustainable development is the subject of the latest book by political scientist Nandini Deo.
The CSR mandate implemented a strategy that India hoped would help achieve sustainability goals and stakeholder activism nationally. Established to promote partnerships that will push the country to meet these development objectives, the ruling instead led to forced philanthropy, says Deo, associate professor of political science.
“Nobody wanted it,” she says. “All the businesses immediately protested, ‘Why are you doing this to us? Please tax us instead. We don't want to do this. This is not what we do. Just tax us more. And all the nonprofit organizations, they also said, ‘Please don't do this. The corporations don't know anything about this field and we don't want to work with them. We're fine. Thank you very much.’"
Spotlight Recipient
Nandini Deo
Associate Professor