Bombay textile mills: exploring CSR roots in colonial India

The purpose of this paper is to re-examine the Bombay textile mills of the late nineteenth and early twentieth centuries to provide an account of the roots of business–society relationship in India and contribute to postcolonial perspectives on corporate social responsibility (CSR). This search is premised on the understanding that India has embarked on industrialisation from a set of productive relations that differ from European feudalism.

The data for this study have been obtained from published works on Bombay Textile Mills such as Chandavarkar (1994, 2008), Morris (1965), Wolcott (2008) and Clark (1999) and some Annual Reports of Bombay Mill Owners Association. Further Kydd (1920) has been used for history of factory legislation in India.

Evidence suggests that practices in mills were informed by notions of custom and fairness, which resulted in flexible hours, socially acceptable wage outcomes and work sharing. Individual reputations built through use of discretion within networks of patronage spanned both workplace and neighbourhood, interlinking the social, ethical, political and economic lives of owners, jobbers and workers. Jobbers’ authority was earned in return for providing support to a production process, mirroring Birla’s (2009) “layered sovereignty” differing markedly from delegated managerial authority. Workers’ share in surplus value was important along with autonomy, both of which were negotiated through customary networks and protest.

The paper suggests that a postcolonial approach to CSR implies an expansive notion of responsibility that goes beyond a Western focus on wages to encompass worker autonomy and countervailing power. Postcolonial accounts of CSR history can only be understood as emerging from a triadic interaction of imperial interest, subordinated native business and native societal relationships. This contrasts with conventional approaches that look at CSR’s emergence simply as a process internal to that society. Account of Indian CSR trajectory is in part a journey of native business from responsible practices to a messy tessellation of legal exploitation and illegal customary concerns.

The findings of this paper suggest that it is possible that customary practices of care and concern might still be surviving in Indian business even if only in the illegal and informal realm. Thus CSR programs in the Indian context might be useful to bring to centre stage these customary practices.

This study documents the evolution of business–society relations in a post-colonial context and shows how they are different from the Western trajectory.