CSR in Business
Preface
We are living at a time when the social context of business is being redefined. A globalised market place without boundaries has emerged, stimulating unparalleled growth. At the same time, this has also resulted in lopsided development where the divide between rich and poor is growing, leading to social conflicts. Another influential change is the growing democratization that is changing the nature of civil society. Larger numbers of the dispossessed and marginalised are asking for space in the agenda of growth and development. Where an all-pervasive media is highlighting the good life, there is the natural demand for it to be made available to those who have no share in it.
Growing civil rights and consumer movements have strengthened this demand for equitable development and a fair sharing of resources and benefits. The environmental debates of the past two decades have amply highlighted the importance of sustainable development. It is now accepted wisdom that sustainability cannot be ensured without combating and overcoming hunger and want.
Business can no longer turn a blind eye to these developments, nor can it blandly state that the business of business is only business. In its own enlightened self-interest, it is essential that business play a proactive and supportive role in the communities to which they belong. Some Indian corporates from earlier days have grasped this reality and have played stellar roles in contributing to community life. In recent years, the growing adherence to the tenets of Corporate Social Responsibility (CSR) is an indication that larger numbers of business houses are joining the movement.
CSR today has grown beyond the earlier concepts of charity, philanthropy and relief measures. Today, it is recognised that CSR can play a vital role in nation building through public-private partnerships. It can usher in regional progress and renewal of lives in towns and villages by generating employment and by contributing to the education and health sectors.
CSR to be meaningful has to reach out to the large majority of our people who are not only without purchasing power, but are fundamentally deprived of basic livelihood. Though business houses realise the importance of the issue, they have to travel the distance from precept to practice, walk the talk.
This guidance document is an attempt to help Cll members get involved in CSR initiatives. We do hope it would set them on the road to a meaningful engagement with the larger world of stakeholders.
A special word of thanks to Mrs Anu Aga, Chairperson, Cll National Committee on Women Empowerment for providing her assistance in bringing out the publication.
Cll would like to place on record its sincere appreciation to Mr Anant G Nadkarni, Chairman, Technical Advisory Group, Cll GSR Networking Forum & Vice President (Group CSR), Tata Council for Community initiatives (TCCI) for providing his guidance and inputs.
Understanding Corporate Social Responsibility in a new paradigm
Felt needs & Requirements
For a long time, businesses have given back to society in different ways. The domain for such outreach was based more on concerns and thoughtfulness to help people. Assisting in relief work, addressing felt-needs or immediate requirements was natural. This still becomes the prime driver for several Companies and of all types and sizes to make the entry point and select CSR initiatives. It is more visible in the form of programs in Health, Primary Education, Child development, Women empowerment, Vocational training and so on.
Mitigating Negative Impact
Some companies are also driven by the fact that they have negative impacts on society and they have to be addressed. These are typically in the areas of hazardous waste management, emission control, effluent treatment or safety at the work place. This is a good way companies could begin from within and extend gradually to communities outside. SMEs in particular get an opportunity to commence their CSR initiatives from here, but certainly go beyond, to address what really happens and impacts across their supply chain.
Extension of Business Competencies
In a more contemporary sense, businesses have realized that problems in the communities are complex, that they need to form partners and make a greater impact. While poverty is a tough problem of our times, it is understood that it can be mitigated in our lifetime. And so these partnerships are focused on development- by governments, development agencies, NGOs and all others who come together in their own specialized roles. And the business community does it by defining what it is best suited to deliver - through its own core competencies. Typically companies and volunteers assume the role of 'teachers' and vocational trainers. A chef could teach bakery items to slum women with the same dexterity as a computer expert could take lessons in software training. Medium and larger companies have a huge role to consciously enlist what expertise and technologies are available and how to channel this through its volunteering / CSR programmes.
Serving the Underprivileged - as a purpose of Business
Business is recently recognized for its power to make a big difference by innovating and reengineering its products and services to reach the large sections of underprivileged people who need to be brought to the first step of the economic ladder. Be it information technology or applications in a set of key technologies to train young people - the purpose is to identify, involve and engage them to participate in the different segments of the supply-chain wherein the corporate sector build symbiotic partnerships with the poor. At a more collective level, they are in a position to work with the government by forging public private partnership, with stated tasks and goals as a more tangible thing to work for, but the overarching purpose is to serve the underprivileged.
Multi-stakeholder & Strategic Alliances - Synchronicity for Development
As the corporate sector travels through the stages mentioned above, it will mature its response mechanisms to take on greater responsibility for society. At a more strategic level when there are really tough problems and challenges to address, and the business has in place robust CSR processes, it is able to develop or participate in what is becoming popular as multi-stakeholder alliances. Recently, a multi-national with a premier UN agency and some corporate houses in India are setting up such an alliance with Government and NGOs to fight child malnutrition in one State and hopefully take it to other States. The Government of India and a State Government with another UN agency and corporate sector partners have taken up a challenge to uplift one of the poorest districts in India.
