Abstract:
South Asian businesses have made major changes to their corporate social responsibility (CSR) practices which show different approaches between their theoretical frameworks and their actual business operations. Rapid industrialization brings together social, economic and environmental issues in the region. This study compares the CSR model in Bangladesh and India based on their philosophical and legal systems, operational mechanisms and results of their voluntary and mandatory models. The research uses stakeholder theory together with institutional theory and Carroll’s CSR Pyramid framework for analysis. The Bangladesh’s CSR mostly voluntary and market-driven model which is shaped by interactions with civil society and global supply chain pressure whereas India’s statutory CSR framework, mandated by the Section 135 of the Companies Act, 2013 and rules frame under this. The investigation uses qualitative methods to study official government documents together with peer-reviewed journal articles and regulatory documents. The findings reveal that voluntary CSR framework of Bangladesh encourage adaptability, creativity, sector-specific practices, especially in banking and ready-made garments. However, the current system faces three major challenges viz. insufficient disclosure practices, insufficient accountability measures and the potential for companies to make false environmental claims known as greenwashing. But India’s CSR framework is based statutory rules, coercive, and spending on CSR predictable. The system of CSR in India encounters three main obstacles which stem from regulatory requirements that force companies to act in certain ways and from unbalanced regional distribution and from inadequate systems to measure their effects. A combined approach that merges mandatory disclosure, strategic focus, and regulatory incentives may enhance CSR effectiveness in both the countries. The paper also provides essential data about business responsibility practices, enables policymakers to craft policies through methods for constructing national CSR frameworks that support worldwide sustainable development targets.
