Boosting Economy with Politically Involved Corporate: A Case of Shine Garments Limited

Abstract

Today, when many are debating whether Corporate SocialResponsibility (CSR) should be a law or not, India stood the firstas a country to have CSR legislation, mandating that companiesgive 2% of their net profits to charitable causes. This is a casethat deals with a unique strategy revolving around the conceptof CSR and its dramatic developments in India. The case isfocusing on Shine Garments Limited and their CSR strategy thatevolved from the existent red-tapeism practised by the panchayat(local body) administration. It was noted that the Panchayat wasincompetent in bringing appropriate developments including water
supply and electricity to the village. The initiative of ShineGarments Limited have gathered representatives from differentfields and disciplines to form an NGO, under the name Twenty20, during the year 2013. Not only that Shine Garments Limitedhas taken the initiative to form an NGO, but also they took thelead for participating in the local body elections to secure 90%of the seats under ‘independent’ banner. The CSR initiative thatthe company had adapted was branded under Total ResponsibilityProgram and is regarded as first instance in the nation where acompany to have a control over the local administration. The
program was successfully implemented during the year 2013 andthe village is earning different benefits under the TotalResponsibility Program of Shine Garments Limited. The case studywill assess the benefits produced through the Corporate SocialResponsibility strategy - for the society and for the company. It is
important to assess whether the case is replicable in similarscenarios. Since 2013, the program has passed through 3 longyears and it could mark significant changes in the society and itsdevelopments. The case will also assess the current state of theprogram.