List – I (Proponent) List – II (Emphasis and Models) (a) Mahatma Gandhi (i) Voluntary commitment by companies to public welfare. (Ethical Model) (b) Jawaharlal Nehru (ii) State ownership and legal requirements determine corporate responsibilities. (Statist Model) (c) Milton Friedmen (iii) Corporate responsibilities limited private owners. (Liberal Model) (d) Edward Freeman (iv) Companies respond to the needs of stakeholders. (Stakeholder Model)
Codes :
Matching Corporate Social Responsibility Models
This question requires matching prominent figures in business ethics and economics with their respective models or emphasis regarding Corporate Social Responsibility (CSR).
CSR Proponents and Their Models
| List – I (Proponent) | List – II (Emphasis and Models) |
|---|---|
| (a) Mahatma Gandhi | (i) Voluntary commitment by companies to public welfare. (Ethical Model) |
| (b) Jawaharlal Nehru | (ii) State ownership and legal requirements determine corporate responsibilities. (Statist Model) |
| (c) Milton Friedman | (iii) Corporate responsibilities limited to private owners. (Liberal Model) |
| (d) Edward Freeman | (iv) Companies respond to the needs of stakeholders. (Stakeholder Model) |
Explanation of Matches
- Mahatma Gandhi advocated for businesses to act ethically and voluntarily contribute to societal well-being, aligning with the Ethical Model.
- Jawaharlal Nehru's perspective favoured state control and legal frameworks to guide corporate actions, reflecting the Statist Model.
- Milton Friedman famously argued that a company's primary responsibility is to its shareholders (private owners) by maximizing profits, fitting the Liberal Model description where responsibilities are limited to owners.
- Edward Freeman is known for the Stakeholder Model, emphasizing that businesses must consider and respond to the needs of all stakeholders, not just shareholders.
Final Matching Code
Based on the analysis, the correct matching of codes is:
(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)
Important Questions from Corporate Social Responsibility (CSR)
What is the minimum prescribed net profit threshold for Companies to be required to undertake Corporate Social Responsibility activities under clause 135 of the Companies Act, 2013?
Which of the following changes was introduced in 2024 under the Companies Act amendments to enhance corporate social responsibility (CSR) transparency in India?
What is the 'Triple Bottom Line Approach' in CSR as mentioned in the passage?
Given below are two statements :
Statement (I): CSR is a holistic and integrated management concept whereby companies integrate their industrial and future objectives with their business objectives.
Statement (II): In this modern digitalized world, business are required to be mindful both in terms of what they are doing and how they are doing.
In the light of the above statements, choose the most appropriate answer from the options given below:
What is the consequence for companies that fail to most the CSR spending requirement as per the new amendments?
