Role of Government

Government is largely responsible for the emergence of the CSR concept. It is only prudent
on the part of the government to lay a framework for responsible corporate
behavior and thus specify a code of conduct on compliance, regulatory and
governance issues.

The Earth Summit 2012 aimed at reconciling economic and environmental goals of the global
community. They saw confluence of government representatives from countries
across the world outlined three objectives.

·      Securing renewed political commitment for sustainable development.

·      Assessing the progress and implementation gaps in meeting previous commitments.

·      Addressing new and emerging challenges.

     Governments have a hug potential to influence corporate behavior especially in under
developed markets like India. Generally, government policies, rules and laws
shape the regulation of businesses. In such markets, governments are required
to regulate businesses to protect the interests of stakeholders are
shareholders. In India, despite increased privatization, government remains a
huge investor, contractor and purchaser of goods and services.