Corporate social responsibility (CSR) was an alien term for the majority of Indian businesses until a few years back. The ‘term’ became a ‘concept’ over time, yet has remained more alien than not. There are as many interpretations as there are talking and decision-making heads”for some it is philanthropy, for some it is an obligation, for some a taboo, for some an opportunity to market, for some a crisis management tool, and for a handful few, an interesting way of doing business. Hence, CSR in India is at its ‘confusion in the beginning’ stage. It is like one of those foreign ideas that
take time to be understood properly. So it is that only a few businesses – mostly complete foreigners, or influenced by foreign markets, or being run by foreign managers in India – seem to have the right CSR approach. They are the CSR pioneers and are now on their way to becoming sustainable businesses.
Unfortunately, only a handful of these companies exist in India. Rest all, whatever the claim, are actually engaged in philanthropy, cause marketing, or one-off social activities merely as a public relations exercise or a means to earn quick media mileage.
Now, with the government intent on putting in place stringent CSR norms, and consumers becoming resolutely aware and inclined towards responsible businesses, the concept has become a ‘must know and must practice’ code of conduct for all. Yet, missing are the knowledge, the approach, the plan, the people, the idea, and perhaps the clarity of mind.
A few days ago, in an interview with a business publication, the management lead of a prominent lifestyle retail chain claimed that his company has always believed in CSR and that they work towards that as part of their overall progression. When he elaborated on the activities, the gentle managing director with years of hardcore retailing experience must have thought that he sold the idea very well. Yet, unwittingly, he had actually spilled the beans.
This is what he said: ‘One of the key things we have done in the past three years has been celebrating our birthdays and holidays. Every store has its anniversary. We go out to old-age homes or orphanages and entertain the kids or entertain the old-age-home people. Read for them, write for them, play music for them…’
Well, yes, that was the token from a million-dollar retail chain towards CSR.
The gurus of responsibility
In the last couple of years, since the inception of CauseBecause, we have been interacting with several CSR professionals across business verticals and have stumbled upon interesting as well as disappointing truths about the depth of CSR understanding and implementation in the country. Perhaps the most inexplicable aspect is that the newly set-up CSR departments within organizations are headed by non-CSR professionals, only a few of whom can actually hold forth on the concept of ‘sustainable business’.
A rough estimate shows that most CSR heads primarily come from three categories of professional backgrounds – non-government organization, corporate communications, and advertising and marketing. Naturally, their understanding of CSR is majorly influenced by the nature of their former professions. The CSR programme of one of the leading software developing companies is philanthropic in nature because the CSR in-charge there has over 20 years of experience in fundraising for NGOs. And yes, she admits that she does not understand business.
A leading telecom company keeps organizing one-off environment education workshops or blood donation camps because their CSR head is from a corporate communication background. He wants good visuals and the CEO’s quotes in the national dailies.
The CSR department of a large beverage company is headed by a gentleman with hardcore sales and marketing experience. CSR for him is an additional channel of revenue generation. His first question to his CSR team before any activity runs like this: ‘How many bottles of our soft drinks you think will move from the shelves after this activity?’ Another sample: ‘Should the spends for this activity go under marketing budgets or should I write them under charity?’
CSR departments are being set up in almost every large company. Even small-scale enterprises have joined the race to prove that they believe in responsible businesses. There is a sense of the perfunctory to all of it, but that is beside the point. All marketing and advertising agencies now have a ‘CSR guidance’ cell (the guides are not known, though). Some of the leading market research companies have CSR chairs now. The business of CSR consultancy is steadily spreading. Interestingly, when searched online, there is not much difference between the number of property consultants and the number of CSR consultants. More so, financial lawyers and tax consultants and even rural marketers are claiming to have CSR expertise.
Is it that some sort of a CSR boom”like the booms that visited IT and BPO”is waiting to happen? Well, only this ‘ready to hop on to the wagon’ lot would know.
The new Companies Bill that might make spends (two per cent of net profits) towards CSR mandatory could be one of the reasons for this mushrooming of CSR experts all over. All businesses would seek guides, consultants, thinkers, and implementers for their CSR activities. However, with the bill still being discussed in the parliament, all of us may just wait and watch.
The ‘spread CSR knowledge’ business, too, is gaining momentum. In the last two years alone, I have seen banners of at least 20 national-level conferences, seminars, and forums themed around responsible and sustainable businesses. The participants in almost all of these events are the same mid-level to senior-level executives of large corporate houses, which are already recognised for their sustainable businesses. The sponsors of such events can be counted on the fingertips – the list includes a few United Nations affiliates, blue-chip software companies, a few billion-dollar-worth fuel companies, and a sprinkling of coal, iron, and steel giants.
It seems that the sustainable business world is altogether a different ecosystem or an elite club that emerging businesses or traditional Indian businesses are ‘not allowed to’ or are ‘not willing to’
enter. My analyses say that they do not know ‘how to’ enter this club. And the question that I do not have an answer to is how will they ever be allowed to, be willing to, or know how to enter that club.
The positive point at this confusion stage is this: conversations around CSR have begun. The big-budget infrastructure developers are now painting their hoardings green and are SMSing what ‘they think’ are the sustainable building ideas. Coffee, pizza, and burger guys are hiring the disabled, associating with NGOs, and installing energy-efficient equipment. The most polluting chemicals and fuels guys are now claiming to be responsible – they plant trees, create biodiversity parks, and ensure safeguarding of the areas they work in. Information technology giants have formed foundations to train and recruit the underprivileged ones. Proceeds through sales of many FMCG products go to NGOs, while some consumer goods giants are actively engaged in uplifting health and hygiene standards of rural Indians. Healthcare companies have several free services for the poor. Automobile majors are continuously researching upon and producing
more fuel-efficient and environment-friendly vehicles. There are huge ‘green’ and ‘ethical’ claims in full-page ads, and packets of many food, fashion, and lifestyle brands claim ‘organically produced product’, ‘made via eco-friendly processes’, ‘good for health’, ‘we care for our planet’, ‘we are responsible’, and so on.
How can corporate social responsibility, diversity practices, and sustainability translate into strategic development?
How can the right CSR practices help in the overall business growth of an organization”from a large multinational company with a diverse set of products to an informal trader based at some small town in India? How can CSR help in the creation of shared value? Is CSR only meant for stakeholders or for the society as a whole? And does doing what is best for society mean sacrificing profits? Does it really help in a company’s long-term success?
There are many such larger questions that ardent CSR practitioners seek answers to. Soon, many of them will have variously better versions of what CSR is. Until then, we shall appreciate the responsible beginning.
Picture: By Alan Hayball, http://www.ahayball.co.uk Cocktail
Cow – After too much ‘creme de menthe’, the cocktail cow realised it was time to redress the colour balance with some more delightful concoctions.
