Corporate Social Responsibility and Trusteeship in Neoliberal Era

Abstract

The past three decades were very significant and challenging in the global history. The major events which have left profound impact on the global politico- economic environment includes the virtual collapse of socialist system, liberalisation, privatisation and globalisation  of economies under the aegis of World Trade Organisation, rise of capitalistic system under the leadership of America and other western countries,  failures of giant corporations around the globe and the recent economic recession. India too could not keep itself away from the changes of global ambience and started the process of economic reform in 1991. With the collapse of socialistic system the main emphasis of world economy and corporate sector shifted from social responsibility to profit maximisation. The present materialistic and socialistic system failed to resolve the governance issues across the world. In such scenario of political deficit, ethical deficit and governance deficit the issues relating to business ethics, corporate culture, corporate social responsibility and good governance were critically examined in the light of changes that has taken place in the neoliberal era. It is observed in the present study that because of the erosion of wisdom, ethics and values, the corporate sector is grappling with the problem of poor governance. It has been concluded in this research work that ethics should be at the core of corporate culture and corporate social responsibility for the realisation of goal of good corporate governance and corporate sustainability, which is not only critical for corporate sector itself but for the economic development as well.