Transcript Slide 1

Corporate Social Responsibility –
Leaving a Legacy
Jolly J Mathews
Outline and Objectives
The New Society is the ‘Knowledge
Society’.............
• To propagate and strengthen ...emotional,
psychological, logical and evolutionary
underpinnings ........
• To take this trend forward....to individual
responsibility
• To contribute to develop a social order....
Key Questions......
In the process of generating wealth through
manufacturing and services, industrial and business
organisations are bound to have social consequences,
social impacts ........
• Should CSR be the sole responsibility of business and
business leaders alone ?
• Would the impact of business – driven CSR initiatives be
sufficient and impactful enough to make the desired
impact in the world
• Should CSR - in letter and spirit be a ‘Bottoms – up’
approach ?
Methodology
Observation, Examination, Inquiry and Interviews to elicit :
- Existing practices across businesses and industries
- Study of background and rationale for the current
practices
- Emerging challenges that threaten the letter, spirit and
purposes
- Evolving trends
The looming shadow of a tragedy.....
 27 years ago, in 1984 a chemical gas leaked from the
Union Carbide plant in Bhopal, India. Often referred to as
the worst industrial disaster in human history, on the
horrific night of December 2nd and 3rd, more than 40 tons
of the deadly gas methyl-isocyanate escaped from the
pesticide factory. Approximately half a million people were
exposed to the gas and 25,000 have died to date as a
result of their exposure. More than 1,20,000 people
continue to suffer from severe health ailments related to
the accident and contamination.
The enduring lessons....
There are important lessons to be learnt from this horrific
tragedy.
 The alignment of business goals and activities with social
concerns acquires special significance in the New
Knowledge Society.
 Social change has become the centre of modern
economy.
 To navigate effectively in the knowledge society, it will be
imperative for the companies to pursue Corporate Social
Responsibility. (CSR) that tightly aligns their economic
and social goals.
Current realities....
 Today society is very different. The role of the state as the
primary provider of social services is well established, at least
in the developed world, while the institutions which used to
underpin the morals of society no longer hold sway.
 This has led to a less certain world, where what constitutes
ethical behavior is less clear and where there is diminishing
trust in institutions to do the right thing. But it is undoubtedly
true that the social context in which business operates at the
opening of the twenty-first century is uncertain, complex and
dynamic.
 As Kofi Annan, past Secretary – General, United Nations and a
prominent architect of CSR initiatives has said, “The poor are
poor not because of too much globalization, but because of too
little.”
Indian Traditions.......
 The TATA Story ....
 And Birla, Mahindra and other enlightened business
houses ......
The Pharma Industry –
The Caring and Curing Dimension
Pharma Industry : Key findings
 CSR activities reach out to a wide array of constituents of
the marginalised sections. More than 70 % of companies
surveyed focus on children, patients, poor persons,
women and disabled in that order.
 NGOs receive the highest (65%) support followed by
company’s own projects (55%). Government programmes
received the least (25%) support from the CSR activities.
 While all companies without exception allocated financial
resources towards CSR activities, some companies (55%)
also devote material/ organisational resources towards
CSR activities.
The Pharma Industry –
The Caring and Curing Dimension (Contd.)
Key findings..................... Continued
 75% of the companies carry out an assessment of the
impact of their CSR activities.
 Majority of the respondents believed that CSR enhances
their competitiveness. Competitiveness largely relates to
image building.
 Companies believe that they earn a fairly high level of
respect from various stakeholders, most from the
employees and the locality.
An illustrative list of Community Related CSR
programmes by pharmaceutical companies:
1. Adoption of 35 villages in rural Haryana for a primary
health care programme through Arpana Research &
Charities Trust.
2. Support to health and human resource organisations in
the communities by grants and company employee
support.
3. Social Welfare schemes and development projects in
neighbouring communities.
4. Adoption of villages for developing models in the region
through support systems for facilities like drinking water.
An illustrative list of Community Related CSR
programmes by pharmaceutical companies: (Contd.)
5. Providing local cultivators with scientific knowledge and
steady income for harvesting herbs.
6. Development of 1919 villages, 11 districts in Rajasthan,
Maharashtra and Uttar Pradesh through a foundation.
“The pharmaceutical industry, being a life – sciences
industry, touches human life at various stages. It leads the
way to a healthier world. Its contribution to reducing infant
mortality, increasing life span and eliminating diseases like
smallpox are well documented. Although its primary
responsibility relates to research and development of newer
and better medicines and vaccines and their ethical
production and distribution, the industry has demonstrated
its concern for social issues.”
The advent of Social Marketing
 ‘Break the language barrier’ says the ad campaign by Idea
Cellular on TV and radio.
 Another advertisement by handsets manufacturer Nokia
encourages people to recycle their mobile phones, “Smart
ban, phone recycle kar,”
 Both the advertisements belong to India’s leading telecom
players. However, instead of selling tariffs or the most
feature – laden handset to consumers they are urging
people to make themselves instrumental in either national
integration or saving the environment.
The advent of Social Marketing (Contd.)
 And it’s not just environmental issues that are getting
highlighted .....Aircel’s recent initiative strives to involve
thoughtfulness among consumers by helping the elderly in old
age homes.
 So what is all this about ? And more than what, we wonder why
all this is being highlighted by marketeers today...... It is putting
people at the heart of policies, communication and delivery to
encourage behavioral change.
 One of the appealing things about Social Marketing is that it is
not a completely new idea. Rather it is an idea whose time has
truly come.
(From : ‘Branding combined with social responsibility’ Anjali Prasad)
The importance of CSR for your business
1. The Internet has rapidly become the tool of choice for
spreading information about companies around the world.
2. The thing every company fears most is becoming the target of
a powerful single-issue campaign group. So, rather than wait
for it to happen, it is better to take pre-emptive action in the
form of environmental product development & labeling, or
engaging in such ideas as codes of conduct and social audits.
3. We have to take cognizance of the new forces in the
consumer market, where the consumer-citizen is
metamorphosing into a citizen-consumer.
4. Cause marketing, development partnerships and
environmental concerns make good business sense
particularly in terms of recycling materials, employee
satisfaction and morale, building up reputational capital and as
a distinctive brand marketing tool.
New stirrings.......
 And now.........there is a fledgling movement from
Corporate Social Responsibility to Continuous Social
Business. In his address at the 83rd Annual General
Meeting of FICCI, Mukesh Ambani called upon Industry
Leaders to move from a model of CSR to a model of
CSB.....
 His inspiration ? “It is amazing how Mahatma Gandhi
brought together the landless farmers of Champaran, the
textile workers of Kanpur and Ahmedabad and the
business leaders of Mumbai and wove their aspirations for
a common cause....”
(From: The Indian Express : 2nd March, 2011)
Importance of CSR.....
CSR is a concept that has huge significance for India given
it’s current social and economic realities and it’s hopes and
dreams for the future. It is therefore critical that :
 Current CSR philosophies and practices should get wider
publicity
 CSR adoption and reporting must be mandatory and a
way of life for all businesses across boundaries of size,
nature, location, and origin.
 CSR initiatives must be graded, recognized and rewarded
appropriately
 CSR as a practical philosophy must be included in the
curriculum of all Business Schools
Epilogue : Painting a new horizon
While giant corporates work their way to find a balance
between commerce and service to humanity..... it is
heartening to see a burgeoning spirit of conscientiousness
and altruism spread among ordinary people and more
encouragingly among the young. This is the true spirit that
will heal the world and leave a legacy .........
Epilogue : Painting a new horizon (Contd.)
 All it took was one wrong turn to change the direction of
his life. Back in 2009, Mulund resident was searching for a
ground where his football club could practise. He reached
Durgawadi a dumping ground.........
 Parvati Pujari a spunky 20 year old football player and
Gaurang Chauhan a 23 year old football coach for an
NGO decided to start a football team for girls in the
Ambedkar Nagar slums........
 Suneeta Singh, fair, petite, bespectacled hair pulled back
sternly into a pony tail, all of 15 year old teaches children
along the Juhu Versova Link Road.....She is the daughter
of a vada pav seller....
 (From: Sunday Mid Day, 27th February, 2011)
Prologue: The Legacy Lake
Devdutt Pattanaik, Author, Speaker, Illustrator, Mythologist
recounts a fable :
 Once upon a time there was a King called
Indradyumna......
 This story draws attention to the notion of legacy...........
 Often leaders plan their legacy. They say, “Let me be
remembered for this or that.” But often, it is the
unintentional consequences of our deeds.......
And may the legacy grow ...........
Thank you !