Mr. Siddharth Shubham, B.B.A LL.B (Hons.), Symbiosis Law School, Pune
ABSTRACT
Family owned businesses are the important pillars of many economies around the world. Also these businesses contribute a major part to employment creation and they ensure that they provide good services and products to the consumers. A family business is mainly owned, controlled or operated by members of family only and it can be a company, partnership firm or any other form of business. There are many multinational business which was started as a family business and has been successfully grown and currently they are multinational brands. Most of these multinational businesses were founded as family business either as proprietary concern, Hindu Undivided Family or partnership. These businesses also have some strength and weaknesses. However these businesses has to face many challenges because of increasing growth and globalization. The study attempts to analyse the challenges and capture the stages of transformation and restructuring over the years in India.
These are some family businesses in India which are grown developed; Reliance which was founded by Dhirubhai Ambani, now this company rules the Indian Industry. Now his sons, Mukesh Ambani and Anil Ambani took the company to new heights, despite the disputes which resulted in division.
Wipro which was started in 1945 by Mohammed Hasham Premji as an enterprise to extract cooking oil is now one of the most successful family business in India.
The Godrej which is the oldest enterprise in India is now known in all Indian household. This company was started in 1897 with Ardeshir Godrej.
The research paper will be focusing on corporate governance and its importance. Although there are many aspects under Corporative Governance, this research paper will specifically deal with Corporate Social Responsibility. As we see that the concept of Corporate Social Responsibility has gained significance in recent years as well as this paper will elaborate upon the relationship between CSR and Corporate Governance and the major factors which plays a direct role in the establishment of this relationship. As the focus on CSR is growing, the attitude of businesses in India as well as all over the world has changed. This present study attempts to focus on the concept of CSR in Family Owned businesses, its implementation and benefits of CSR in Family Owned Business and its importance. After a detailed analysis, the paper concludes by stating that CSR has a bright future in India, and that its importance will continue to grow even more so, given the growing importance of CSR around the world, as well as India's own recognition that it requires CSR to achieve long-term sustainability in the global economy.
