Where CSR is state responsibility

IIPM BUSINESS & ECONOMY
Consumers being taken for a ride has become a regular habit for companies (see box on right). There is virtually no food product in India that is not contaminated by pesticides and other harmful chemicals. The real solution is to enact effective laws & ensure they’re implemented in letter & in spirit. For the last three years, Indian policy makers have been working at their own elephantine pace to enact such a law. In the first week of August, the Rajya Sabha did pass the Food Safety & Standards Bill, 2005. Yet, even this might not prove sufficient to deter a company with deep pockets from running rings around the Indian consumer. Hailing the new law as a land mark, the Food Processing Minister, Subodh Kant Sahay, remarks, “The new Food Bill has a provision for consumers to lodge complaints... Action will be taken against manufacturers if the complaints are found valid.” The penalty: A fine ranging from Rs.1 lakh to Rs.7 lakh. But then, how much of hurt would a Rs.7 lakh fine cause to a company that can pay millions of rupees to celebrities like Aamir Khan to endorse its products & then spend hundreds of millions more in advertising?

Many senior level managers who spoke to B&E pointed out that the problem in India has never been a shortage of laws, but the right mechanism to enforce those laws. And all agreed that the only possible way for making companies like Coke and Pepsi listen to the wake up call is when the Indian consumers decide to vote with their wallets.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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