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Before the Companies Act, 2013, Indian business houses such as the Tatas and Birlas built schools, temples and hospitals out of the founders' sense of moral duty. Which phase of CSR evolution in India does this best describe?

This describes the philanthropic phase of CSR in India, where industrial families gave voluntarily to build schools, hospitals and temples from moral or religious duty. It was not a legal obligation, which only arrived with the Companies Act, 2013 and its CSR provisions.

  1. AStatutory mandatory CSR phase
  2. BPhilanthropic or charity-driven phaseCorrect
  3. CStakeholder-driven regulatory phase
  4. DSustainability reporting phase

Explanation

Early Indian CSR was driven by the voluntary, paternalistic and religious motives of industrialists, which is the philanthropic phase. It was not legally mandated, so the statutory phase is wrong.

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