Corporate Social Responsibility in Insurance Sector in India

Abstract

"We make a living by what we get, but we make a life by what we give."- Winston Churchill

It is becoming increasingly important for companies to be good corporate citizens. Society has started to demand it and more so in the globalized economy. CSR is a method viewed to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all others members of the public sphere who may also be considered as stakeholders. The interests of these stakeholders are vast, and insurers should focus on those that are affected by, or align with, their business operations.

There are many potential benefits an insurer can earn such as superior reputation in the market. They can increase engagement and loyalty among staff while reducing turnover rates. CSR can also increase long-term sustainability and profitability by shaping the market's competitive environment and the community as a whole. Ultimately, it will result in insurers becoming more attractive to investors, who are increasingly concerned about CSR and corporate governance.

The present paper makes an attempt to understand the importance of CSR in insurance sector, evaluate the role of IRDA in regulating CSR in insurance sector and also tries to examine the various CSR initiatives undertaken by leading Insurance companies in India. The data is largely obtained from secondary sources i.e. from annual reports of insurance companies, journals and websites. It is imperative from the study that though insurance companies have realized the importance of CSR and there is a paradigm shift to triple bottom line approach where the emphasis is not only on profits but also on planet and people from single bottom line i.e. profitability. CSR initiatives not only help the organization but also the economy towards sustainable development. The concept of CSR should not be merely a statement of intent or promise made by some insurance companies but it should be effectively operational. IRDA should make it mandatory to publish CSR report annually in their financial statements for effective implementation of CSR policies.