Business Originates
and Flourishes from within the Community thus making it Eminent to Give Back
with Interest & Gratitude to the Community.
Manjul Thapliyal
The Most Turnaround Trend in Indian
Industrial CSR was the Paradigm Shift from Philanthropy towards Stakeholders
active participation in shouldering Community Responsibility and Social Upgradtion.
CSR in India has undergone a sea change today
and moved ahead simply from Charity and Donations. It is drawing nearer to
community development in a more structured manner. Transversely in Vast Business
Structures across the country, companies
have realized that transparent dialogue and trustworthy involvement can help in
promoting business standards and thus organizations need reliable pointers to
promote CSR. The journey has started yet more miles to go in order to have
mutual benefits all at Three levels-
Company, Community & Environment.
Having
a inside view of CSR perspective at pre and post Independent India, Mahatma Gandhi
addressed the accomplished Business houses as Pillars of Trust holding the Wealth
of the People .This was referred this time and again by him to remind them that they have to serve a
larger social purpose through their industrial wealth in independent India
having seen them playing some prominent part on discourse of economic issues
during pre independence. Jawaharlal Nehru’s post independence socialist era saw
loads of encouragement to the private sector, along with mammoth gains for
strengthening the public sector for serving the social sectors. Whereas Indira
Gandhi’s regime saw more radical policies of License Raj influencing
nationalization and influenced by embracing state regulations. To avoid the
state influenced regulations in economic affairs policies, private
industrialist resorted to implementing wide scale corporate beneficial
initiatives to reflect the role of private monetary strengths in alleviating
the backward social sector and contributions towards socio developments of the
nation. The license Raj was dismantled by Rajiv Gandhi and Narshimha Rao due to
impending crisis looking for liberalized economic reforms. These led to
prevailing of free economy in the nation and increase in multinationals
entering India and emergence of large global business entities. This also led
to fundamental changes in the social role and responsibility of the Corporate’s
in nation building efforts at the ground level, leading to a paradigm shift in
their attitude towards embracing CSR in global context. Up till 1990’s the
concept of shouldering social responsibilities was limited to charity or
philanthropy. The entire social initiates were projected as forms of charity to
reflect the virtues of the organization. large Business Houses like Modi’s, Tata’s, Birla’s & Singhania’s setup Trust’s
to grant financial & economic benefits in recognition to worthy causes and outstanding
efforts. Hordes of Hospitals, Industrial Townships, Schools & Academic Institutions
were setup showcasing their Philanthropic efforts.
There
was fundamental paradigm shift post liberalization from the philanthropy model
being followed to the new stakeholder shouldering responsibility model in their
CSR initiatives. These organizations social involvement underwent a sea change
from charity and reliance towards fostering partnerships and empowerment. The
spotlight in the stakeholder model focusing on employees, customers and
shareholders here was on community based upliftment efforts. Organizations
are recognizing the human rights,
environmental regulations, business values & ethics, corporate inputs&
governance and community growth issues and are being accountable and subjected to be measured
against its Triple Bottom line (Financial, Social and Environmental
Performance) against their earlier Financial capacities. This shift has
resulted due to some strategic business thinking on the part of organizations
who started recognizing the value of
reputation capital in context to community and market place for
retaining sustainable markets. Also it became a necessity to adhere to eco
social stability in order to uphold the free market economy. Corporate
governance became the new mantra in the era of globalization in which
transparency, accountability and social and environmental initiatives became
the key aspects. Also there were multiple benefits of adhering to this model
and strengthening CSR as in enhanced customer loyalty & sales,
productivity, brand image & value, retention of employees, investors and
support from local communities. All this led to improved financial performances
which reflected in better social implications& environmental awareness
also. When large transnational organizations started entering here, the
initiation towards comprehensive CSR policies also started taking shape; their
success showcased a rub off effect on the Indian companies as well. So
competing with the global markets also made it mandatory for them to comply
with entry level certification norms for responsible corporate practices like SA 8000, AA 100 and ISO 14000 and other
compliance norms for CSR formulated by OECD and UN GLOBAL COMPACT AGENCIES.
Working
norms at ground level have also undergone a radical change with this
industrial shift towards stakeholder centric view and the government is also taking
an active part in its grooming and implementation. In respect to CSR measures in
the last decade, we have seen a marked increase in organizations commitment
towards effectiveness, accountability and efficiency as a whole.The focus has
been on people centric initiatives and community & environmental
development projects and their products and services have had a marked
difference towards the targeted audiences. Perceptible changes can be seen in
hosting innovative social schemes in the area of environment protection, rural,
health and educational development. Also notable is support generated for
protection of cultural, artistic heritage and disaster, relief management
initiatives. Expertise of Manpower, Products and services apart from financial backing
is needed for these Projects & Initiatives to be successfully implemented and
so professionals are being sought to undertake these CSR Project in both Urban and
Rural areas. Sustainable development schemes can be seen initiated like Fodder
Preservation, Water Recycling, Child
& Adult Literacy, Selling of High Value Cocktail of Drugs to Reduce Cost,
First-Aid Vans, Mobile Hospitals, Computer Training labs, Cyclone &
Earthquake Resistant Houses, Water Treatment,
Organic Farming, Afforestation
etc. Though lots of work is being done to integrate CSR initiatives into
organizations core practices, there is yet loads to be achieved and innovation
and technology has to play a major role. For main stream projects stricter
accountable & sustainable norms have to be formulated by the government
agencies with proper bench marking which is a necessity and here cross sectoral
programs can also play a crucial role.. So the right way to go ahead is, short
listing some relevant projects among the projected after the needed
verifications. Then the planning, coordination, implementation and reporting
part begins with proper supervision from all ends to ensure the success of the
initiatives.
Apart
from the private sector the public sector having huge corporations also plays a
crucial role in the societal obligations, like aviation, petroleum, steel,
mining, iron, gas, shipping, power, Transport, banks and other heavy
industries. They also have a long tradition in promoting CSR initiatives and
some of them for example National Thermal Power Corporation (NTPC), Gas
Authority of India Limited (GAIL), Steel Authority of India Limited (SAIL) and Oil
and Natural Gas Commission (ONGC) have made notable contributions. Due to
liberalization policies encouraged by the government many public sector
enterprises have switched from monopolistic approach to free market one in the
era of intensive private competition. Some segments opposing the privatization
of public sector industries argue that considering the extremely vital role
played in the social context by these sectors, the changeover can be a step of
gross gravity. There still needs to be
extensive research by experts on the basis of facts and empirical data’s which
need to be cross examined to go ahead with such decisions. Till now their
journey of dismantling quota and monopolistic regimes and transformation
towards privatization cautiously has been commendable and praiseworthy.
Thus
post liberalization stage has marked a new economic beginning of radical
transformation in the industrial and commercial sectors in terms of CSR and its
sustainability in the country. There is a dual implicated change being seen,
one that has transformed the conceptual definition of CSR and secondly
innovations, creativeness and transparency in its implementation levels. The
concept has truly changed from charity based leanings to joint stakeholder
development approach where the whole community’s well being now plays a integral
role in the success of the organization, society and the country. But the real
revolution has started with the implementation being taken with utmost
seriousness by the companies and government by providing expertise manpower to
its social efforts in addition to the financial backups for the projects. These host of services are
being made flexible to accommodate most of the needs of the target communities.
Today, we see a much larger and wider participative formal approach from people
to enhance the society in contrast to the earlier laidback informal attitude.
The standards and parameters set by the government are higher and the resolve
to achieve them seems to be growing in proportion. Accountability standards
have improved with CSR ratings, certifications, compliances, bench markings and
regulations. While the private sector in comparison to the public sector has a
edge right now but the crucial role played till now by the public sector and
its vitality to the future CSR initiatives is mandatory.
Conscious efforts should be made by the
Country as a whole to participate in CSR activities voluntarily as done globally
and not under pressure from the stakeholder groups. This should be in built and
not pressure driven or taken as a obligation. The law and its enforcements will
only provide temporary relief but inner belief and self consciousness will have
the much needed far reaching effect. The resolve seems to be making progress
with formalization of the CSR structures. As per data, the government apart
from state level schemes is playing its part and spending around Rs 99,000
crore on 33 welfare schemes through around 15 ministries. They are setting a
preset example of their resolve for the private sector as well and the private
sector is responding with all guns blazing and is contributing to three pillars
of CSR namely economic social and ecological viabilities with all sincerity. So
the priority among them is imperatively following the sustainable CSR projects
which cohesively mix their economic, ethical, philanthropic and legal doctrine.
Still the gap is there between advocating and actually participating and there
is a plethora of companies not meeting the said requirements. Lot is being done
and further efforts towards CSR Sustainability needs more and more
strengthening for a improved and vibrant Nation.
Indian
values on social upliftment are well rooted and grounded. Ancient societies use
to also pay social duty or charity though it was not directed as CSR but its
motive was to uplift the needy and help society to grow. Social, wealth, health
and environment issues have cavernous structure in the business history. Since
80’s the revolutionary approach towards industrial welfare and openness for
growth and development raised the mutual understanding of India’s by 1990’s.
Many organizations jointed hands with academic institutions in building
collaborative consensus for building goodwill of the organizations are thus
trying to produce social development. After Independence government tried to
incorporate business organizations by providing subsidies and raising the rural
development but all these efforts very less to document. With the emerging
chance and groomed societies, organizations that were working on human resource
and development were liked and appreciated by societies and they also have deep
affection and trust for them, all these motivated the noble organizations to
work more efficiently towards CSR. The big name that came in lime in India
after Independence towards CSR was J R D Tata, who proliferate the partnership
of industry and business enterprise to work together in bringing harmony and
employability for society. ‘Tata Iron
and Steel Company’ took the first prime initiative by discharging the role
of human welfare and well being by making people aware of the power of SOCIAL
RESPONSIBILITY through undertaking community development initiatives and soon
other corporate’s followed suit.
CSR is becoming an
integral part of Businesses today as organizations have understood that without
considering the community welfare none of the organizations can grow. India
Inc. is now connected to villages and GO LOCAL concepts are coming up with more
synergic attitude and organizations have understood on the holistic
development. With the Current Prime Minister of Rising India Mr. Narendra Modi
Undertaking and Launching the “Make In India” National Program the Indian
Industrial Sector is foresighted to achieve Stupendous Ethical Growth towards Globalization.
Manjul Thapliyal
Principal Consultant
Visions Ahead
www.visionsahead.com
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