Post-Independence India

Post-independence,India struggled to stand on her own feet through indigenous manufacturing and
creation of jobs. Industries were termed as “Temples of Modern India.” The
colonial hangover left an indelible impression on the minds of the policy
makers. The brush with capitalism and free market in the pre-independence era
had fomented a sense of disbelief towards private business enterprise. Social
and economic reconstruction had to be undertaken. Two schools of thought
emerged. The Gandhian school sought to motivate industrialists to voluntarily
participate in programs of institution building. The Nehruvian school stressed
on laying out a governmental recommendations and regulations so as to control
corporate behavior.

The credit for integrating social responsibility with the conscience of business goes
principally to business leaders like JRD Tata, Ramakrishna Bajaj, Arvind
Mafatlal and Kasturbhai Lalbhai. As champions of free enterprise, they feared
that irresponsible behavior by the business community would lead the government
to encroach on their freedom. They felt that the business community is an
essential ingredient of the democratic society and it has a duty not only to
create wealth but also to promote the ethical and social goals of the
community. Unless it fulfills both these functions, it will not be able to
ensure its own survival.