"Today Corporate Social Responsibility (CSR) has become a popular initiative for corporates. But how ingrained and embedded is it in the business or the corporate? Many years ago Tata's vision was to build a world-class city to house their workers even as they built the first Indian owned steel plant in the middle of nowhere. And so Jamshedpur was born and continues to run as a model city, sustainable because it is embedded in the business.

Over the last few years, corporate social responsibility (CSR) has assumed centre stage with an increasing number of companies focusing on it in a bid to enhance their image as credible corporate citizens. This was relatively easy prior to the financial crisis when companies were making record profits, and needed to show a humane side. The real challenge, however , lies now when the going is tough and profits need to be ploughed back into business. It is at times like these, when every penny is being watched, when businesses are required to re-invest every rupee back in the business that the management, board of directors and investors are likely to question the reason behind spends that they term unnecessary. So how important is CSR"

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The author is the group general manager and country head, HSBC India