Business bares its heart, dna.sunday, 30 January

The idea of Indian companies going beyond business imperatives to do something for society has undergone remarkable changes over the years.

Time was when companies merely dispensed cash by way of charity to organisations or NGOs engaged in social work. Others promoted activities that were mutually beneficial, to villagers living around a company plant or town as well as to their own employees.

For instance, villagers were encouraged to produce more vegetables or keep cattle for milk, with the company providing the start-up money, the knowledge and the marketing infrastructure that ensured the extra produce got to town.

The villagers were encouraged to take the risk and try their hand at new farming activities because of the assurance of a dependable market and a steady income.

That changed over time to “community outreach”: reaching out to the communities around company plants or offices, and providing amenities that were lacking.

Companies supplemented facilities in schools or hospitals, helped women earn extra income through sponsorship of, say, sewing machines or community centres which, apart from generating income, promoted adult literacy and family welfare activities.

With the growth of environment consciousness in the 1960s, companies felt the need to redeem themselves for some of the damage done. They got involved in forestation, water conservation and similar projects.

The concept of corporate social responsibility (CSR) thus evolved — from philanthropy to a more elaborate concept that encompassed the environment, employee relations, corporate governance and engaging with the community.

The current understanding of CSR also attempts to deploy a company’s core competencies to help address society’s problems.

Examples of this approach abound, and one standout example is TCS, which has used its expertise in information technology to help communities in different parts of India help themselves.

TCS has developed a database for ChildLine, which supports children in distress in 54 centres in India, all using volunteers from among its employees; it has also designed and implemented a ‘computer-based functional literacy’ project, a unique idea that enables adults to learn to read — using low-end computers and a breakthrough software solution — within 30 to 40 hours, over two-three months.

Similarly, NIIT has used its IT expertise for its ‘hole in the wall’ experiment, where children from slums learn to use computers with a touch screen. Cut from the same cloth is ITC’s much-celebrated e-choupals, which help farmers check prices in Indian and global markets before going to the marketplace with their produce.

An important aspect of CSR today is the encouragement given to employees to get involved in tackling social issues. Mother Teresa used to tell admirers eager to offer her money: “I don’t want your money; I want your time.” She ended up getting both.

Some companies make substantial financial commitments to reach out to neglected segments of society. The Mahindra group recently committed itself to providing sophisticated hearing aids for 60 poor and nearly deaf children (they settled for 60 because it was as part of group’s 60th anniversary celebrations).

Besides the cost of the implants (Rs5 lakh-Rs9 lakh each), they have pledged to support the entire process of rehabilitating the children after the implanting procedure.
CSR is no longer a fringe activity that companies engage in to look good.

Effective CSR today is that which relates directly to the giver’s core competencies and offers real value, not just philanthropy. It is no longer considered good for business, but simply good business.

Because when you give back to the society you operate in, you become truly embedded in that society, rather than being perceived as seeking profits alone.

The writer is a media professional with R&PM:Edelman.

dna.sunday January 30