Seeing the potential of the project BAPLC share holders seek long term benefits and have also accepted that the approach for development should meet the need for corporate social responsibility. (CSR). Over the years the concept of CSR has graduated from that of philanthropy to greater involvement of corporate in communities and now is considered as a corporate-community partnership for sustained growth and development. This has also been institutionalised internationally through the Global Compact and in the European Union through the White Paper on CSR. CSR has thus emerged as a universally accepted norm of social responsibility for corporate. It has a number of components which are discussed in succeeding paragraphs.
Universalisation of the principles of CSR and corporate governance crystallized during the World Economic Forum on 31 January 1999, when the United Nation's Secretary-General Kofi Annan asked business leaders to join the international initiative led by the UN known as the Global Compact. This was slated to bring together the companies, UN agencies, labor and civil society to support universal principles with reference to environmental and social issues. Formal launching of the Global Compact took place in New York on 26 July 2000. ...
These principles are as given below:-
(a) Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence;
(b) Business should make sure they are not complicit in human rights abuses.
(c) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
(d) Businesses should uphold the elimination of all forms of forced and compulsory labour
(e) Businesses should uphold the effective abolition of child labour.
(f) Businesses should uphold the elimination of discrimination in respect of employment and occupation.
(g) Businesses should support a precautionary approach to environmental challenges.
(h) Businesses should undertake initiatives to promote greater environmental responsibility
(i) Businesses should encourage the development and diffusion of environmentally friendly technologies
(j) Businesses should work against corruption in all its forms, including extortion and bribery. (Unglobal : 2006)
The underlying principle of corporate governance related CSR is that the companies should undertake additional social responsibilities voluntarily which go beyond the regulatory frame work for good conduct of business and relate to the issues of social development, environmental protection, respect for fundamental rights of employees as well as the local population and adopt a policy of open governance. Thus society is an important stake holder in the company. This approach provides a unique opportunity for dialogue and management of change particularly in the present setting where BAPLC is establishing a new project in an area where local resistance is anticipated.
The concept has support