Viewing Csr As A Business Tool

The findings of a recent survey on corporate involvement in social development in India, conducted by an NGO, Partners in Change (PiC), indicate that 85 per cent of the Indian corporates surveyed felt that companies needed to be socially responsible, 69 per cent were actually involved in some on-going community project and over 97 per cent of the companies that had a policy on corporate social responsibility (CSR) were also acting on it.

On the darker side, the PiC survey shows only 19 per cent of the companies surveyed had a policy on social responsibility and a mere 11 per cent had codified it in writing. Around 90 per cent mentioned only employees, shareholders, suppliers and customers as beneficiaries and not society at large. Many corporates which worked with communities made no distinction between "haves" and "have-nots". Few corporates were doing anything other than making monetary donations.

The study concluded that companies were committed but only within the perspective of employees, suppliers, customers and beneficiaries. Communities were seen as large, amorphous and homogenous entities and that corporate involvement was largely ad hoc.

The survey also found that CSR is not a concept Indian corporates are unfamiliar with, though their activities may not always have borne the CSR tag. For instance, as long back as the 1920s, Tata Steel was engaged in philanthropic activities like maternity benefits, payment of provident fund, working hours etc, on which legislation was later enacted by government.

Today, post-liberalisation, more companies have begun thinking on similar lines. With MNCs focusing on CSR, many Indian corporates now keep aside sums ranging from 0-15 per cent of their profits after tax, for CSR.

With the increasing awareness and significance of CSR, many NGOs have stepped forward to help corporates execute their CSR policies. Partners in Change (PiC) guides corporates to direct their funds efficiently towards CSR policies.

"We believe that business will have an increasing impact on society in the future, especially on the poor and marginalised communities. The impact could be positive or negative. In order to maximise the positive and minimise the negative PiC attempts to critically engage this business sector", says Viraf Mehta, Chief Executive, Partners in Change.

PiC is a not-for-profit organisation that was initiated by ActionAid Worldwide in 1995 with support from what is now, the Department for International Development of the British government.

"PiC guides corporates to develop relations with communities, maintain social relations and acquire community communication skills. We advice corporates on how CSR should be exercised," says Mehta.

PiC takes a donation from the companies that ask for its services, between Rs 50,000