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First the MDGs (Millenium Development Goals) and now the SDGs (Sustainable Development Goals)….all for a better tomorrow! In 2000, the Millennium Development Goalsset targets for the world, to reduce the proportion of poor and hungry by half and childhood mortality by two-thirds in fifteen years. Seeing the success of the MDGs, the UN and the world has decided on the Sustainable Development Goals for the next fifteen years. Copenhagen Consensus had asked the world’s top economists to highlight phenomenal, good, fair and poor targets, weighing up the social, environmental and economic benefits and costs. The United Nations Sustainable Development Goals were officially established in September, this year. Some of the objectives agreed upon by the 193 participating countries of the UN include eliminating poverty &hunger, promoting good health, education, gender equality, addressing climate change etc. Successfully meeting these goals requires a collaborative effort globally, and that’s where multinational companies come into play.

The Corporate Onus

Corporate Social Responsibility (CSR) is already a part of the Corporate culture globally. In India, the Companies Act 2013, has declared CSR activities mandatory for corporations with a net turnover of INR 1,000 crore or more, or a net profit of INR 5 crore or more. It is every corporate citizen’s duty to contribute to society and this is where an active CSR strategy sets some corporations apart from the rest. The establishment of the Companies Act has helped most corporations bring CSR processes into their DNA. The TATAs, Reliance and some of the big players were already practicing it and many others were probably forming their policies, when the Act came into being. The Act has provided an impetus to companies that were in the process and got others thinking, especially those who expect to fall in that bracket very soon. For these companies now is the time to get all their internal processes in place and introduce social responsibility towards all their stakeholders from employees to vendors to consumers. Instead of only monetary contributions, corporations are now taking on a more “hands-on” approach, using their resources to train youth in livelihood programs, employees volunteering to tutor children and some of them employing people with disabilities in their offices to name a few of the ways the corporations are engaging themselves. An important thing to note here is that it’s impossible for one company to be actively involved in all 17 sustainable development goals. Since some of the goals are industry specific, like healthcare, clean water, and sanitation, it makes sense for companies excelling in these particular sectors to focus on the CSR initiatives that tackle issues they’re equipped to handle. The need of the hour is synergy between the Global Goals set by the United Nations and also the activities mandated by the Companies Act in India. Once the companies have their processes in place and have produced a successful model of their CSR which has made a profound impact on people, their communities and their environment, they could then share this with the rest of the world to be replicated globally. References:

• http://www.forbes.com/sites/bobeccles/2015/10/20/un-sustainable-development-goals-good-for-business/
• http://www.theguardian.com/sustainable-business/2015/oct/12/united-nations-sdg-un-global-compact-sustainability-world-business-council
• https://sustainabledevelopment.un.org/

There are few things in this world which complement each other the way sustainability and CSR do. Organisations all over have the world have started to look at simple sustainability measures like waste management to drive home significant annual profits. According to a 2009 study by the Aberdeen group, organisations that can be categorised as ‘best-in-class’ are way ahead of their ‘average’ counterparts when it comes to cutting costs through sustainable measures. With companies following the triple-bottom line method of decision making, environmental sustainability is no longer considered to be a passing fad. Waste management, energy conservation, and reducing paper and water usage have helped organisations improve stakeholder engagement and build their reputation, without compromising on the profits they make. A well executed sustainability strategy helps build a business ecosystem on multiple levels. Let’s take a look at how your company can achieve significant ROIs through sustainability.

More Loyal Stakeholders

The 21st century consumer is extremely well informed. When it comes to making a choice between different brands, most people do a great deal of research before picking up a product. Your customers are acutely aware of environmental issues and the risk we face if we don’t address them. When you implement CSR strategies that focus on conserving the environment, you come across as a responsible organisation which isn’t just concerned about making money. As McGee Young says, they provide a meaningful way to connect with your customers.The chances of a customer buying your product or services improves substantially. Hence more sales results in higher ROI. Even employees are more inclined to work in a company which does a little bit more than just meeting environmental regulations. This results in higher employee retention, which reduces the amount of money you spend to recruit and train new employees. Increased bottom line translates to a higher ROI.

Extremely Low Initial Investment

You don’t need to pump in huge amounts of money to gain more from your sustainability programs. If they’re designed well enough, you could see a tremendous reduction in recurring expenditure along with a sizeable increase in return. For example, Staples has executed a number of sustainable projects that are directly tied to their operations. They replaced a lot of their existing products with those made out of at least 30% recycled content, completely phased out PVC from all their products, and started using paper made from 80% sugarcane waste in their offices. They’ve also reduced their energy usage by 15% square foot along with using green sources for 20% of their total power consumption. How much capital do you think they’ve spent on all this? Zero. Its not too difficult to see the higher ROI here.

Prepping For The Future

A lot of people are apprehensive about spending time and money on sustainability. Many are still unclear about the long-term results from a financial standpoint. Sustainable projects are essential to help your company adapt to the present and prepare for a future where traditional resources are most likely to be scarce and expensive. Setting up sustainable practices now will ensure that your organisation is capable of dealing with rising energy costs and unavailability of raw material in the future. For example, setting up biogas plants effectively eliminates almost all of your organic wastes, and can be used to produce fuel for generators which conventionally use fossil fuel like diesel or kerosene. Remember, to sustain your business, you need to sustain the environment around it. And the ROI is the Bonus.

Combining environmental sustainability and business is a procedure that has mystified companies for years. Obstacles like miscommunication between finance and sustainability teams have hindered many companies’ past efforts to comply with green practices. Tying together an effective business plan that incorporates the two requires a lot of planning. Here are a few ways that companies can keep their environmental footprint in check while still turning a fat profit.

Budget With The Environment In Mind

Back in 2004, Johnson and Johnson had a greenhouse gas reduction target that they were unable to meet. That’s when they decided to invest $40 million a year to cut down on emissions. The initial investment was massive, but eventually they cut away a huge chunk of their operating expenses by using solar photovoltaics instead of conventional energy. This also allowed them to predict the returns they would get from such an investment—while funds allocated to regular energy sources tended to fluctuate, solar energy didn’t require any additional investment once the panels were installed. To date, they’ve reduced greenhouse gas emissions by 138,000 metric tons, saving the equivalent of the electricity consumed by 21,000 US households! And guess what? They still achieved a return of 19% on their investment! Factoring sustainability costs into the yearly budget can help companies determine expenses and plan out their operations. That way, they won’t have to compromise on income.

Give The Sustainability Officer More Control

Akzo Nobel, a global paints and coating company, decided to give their Chief Sustainability Officer some power over the budget. So every budgetary request exceeding $5 million had to be run by him and the Finance Controller before approval. That way, he could check whether the request complied with the environmental rules laid down by the company. He was allowed to reject requests that lacked an explanation of why sustainability practices were not considered. These sorts of tactics can be adopted by companies who wish to engage their sustainability teams early on in a new project. It also helps to prevent budget requests that don’t factor in environmental concerns.

Drop Hurdle Rates

Products that are designed to be more friendly to the environment are usually very expensive to create. To tackle this, USP, a company that transports cars and automobiles, eased the minimum return requirement on some of their cars. These machines consumed less fuel and, as a result, cut fuel costs. By doing this, USP stuck to their environmental plans and were able to factor the reduced revenue into their budgets. By lowering the bar for minimum returns on eco-friendly products, companies can give more importance to their environmental performance, and still allocate funds appropriately. Include External Processes When companies draw up a plan for environmental sustainability, they need to take all their dealings into consideration. This means looking at the entire corporate value chain and making sure that it’s aligned with the goals of the firm. For example, Natura asks its suppliers for a sustainability report, to give them a better understanding of Natura’s work culture. This helps the suppliers comprehend how the business, economy, environment, and society are impacted by their actions. That way they can tweak their processes to optimise management systems. Natura checks the environmental impact of the suppliers before choosing one that’s fit for the job. Host a fundraising event. All cause-driven programs are excellent for your image and public relations. It feels good to support something that is meaningful and far reaching. Adopt a green cause and do an annual fundraising event. There are all sorts of campaigns you can participate in, from planting trees to raising funds for social causes, for education, for healthcare, Find one that’s close to your heart and involve your employees. Let this be part of employee engagement activity. Recycle outside the box. In addition to recycling everything that can be recycled, think green when buying or replacing items. Consider purchasing used or vintage office furniture instead of brand new pieces. You can find great deals on barely used office furniture at both online or off line stores. Need new computers, laptops? Think if a refurbished solution will suffice. Most computers, even older ones will do the job for most of us. Any it comes at a fraction of the cost. A smooth flow between business and sustainability may seem like a daunting task, but it’s essential. Without it, companies will be unable to satisfy their environmental duties while still earning a sizeable income.

• http://www.wri.org/blog/2013/04/4-lessons-environmental-sustainability-every-corporation-should-learn
• http://www.wri.org/blog/2013/03/finding-money-how-businesses-can-fund-environmental-sustainability-projects
• https://www.globalreporting.org/resourcelibrary/natura-interview-silvana-soriano.pdf
• http://www.inc.com/marla-tabaka/8-ways-green-your-company.html
• http://www.forbes.com/sites/kateharrison/2013/02/07/10-ways-to-green-your-business-and-save-money/

What if waste, as we know, totally disappears from the face of the earth? If you, at this very moment, try to find the exact definition of Corporate Social Responsibility there’s a high probability that you would be confused. It’s a highly flexible concept, that evolves differently changes from time to time and from company to company. The basic concept of CSR took birth in the mid-20th century. Since then it has been established as standard aspect of most successful companies, becoming more in vogue as a best practice in the last decade. According to Vardaan, CSR is a very basic and a fundamental business process which ensures that the Corporate engages in a responsible manner with its stakeholders (stakeholder and not only the shareholders) India has lots of socio-economic challenges to be dealt with. By making CSR mandatory for certain categories of specified companies.The government has made the top businesses in the country responsible for their country’s development. According to estimates the CSR spend in India amounts to a cash flow of over INR 100 billion per annum. When an amount in this magnum is put into good use, it is bound to accelerate the development of a society. CSR, today, can be performed in any of the sectors like education, healthcare, environmental, humanitarian crises, and many more. In this piece, lets focus on the environmental sector that deals especially with waste management.

In Green We Believe

The Swachh Bharat Campaign initiated by the Prime Minister has brought with it a fair share of enthusiasm from the citizens. With options like collection, segregation, and disposal of waste, raising campaigns on waste management, constructing clean toilets for the public who don’t have access to them, and many, waste management has a vast scope for improvement. Many companies opt for waste management as a part of their CSR regime and because of that the competition is really high. Having an innovative and unique approach to this, will help you bring your company into the limelight and help instil trust amidst your current customers and prospective ones. Most of the company have an independent department that is in-charge of CSR. If you are new to CSR, taking the help of local organizations to aid you in your CSR work is a great way to go ahead. If you are a SME, then pooling in your resources with couple of other SMEs will help you make a valuable contribution.

ROI, Myth Or Possibility?

Return on investment is a by-product of consistent efforts and disciplined approach towards CSR. Though it is generally defined as financial gain, it can also be measured in terms of brand equity you gain. It can be a relative vector, often immeasurable, but one that helps you realize an aspect of success. With waste management, you have an option of playing the game up close. You can consciously put in efforts to reduce waste generation, reuse materials, and recycle sustainable materials. Though the ROI isn’t direct or immediate, you will reap in the benefits in the future. Small changes to carefully monitor your resources and consumptions will help you downsize your budget. Campaigning about your sustainability stories amidst the consumers is bound to generate interest and raise your value among both stakeholders and consumers. If going traditional in your philanthropy work isn’t your cup of tea, waste management might just be the right way to go. Make your employees environmentally literate by creating engaging programs that teach them core lessons and tricks to tackle these issues. Turn every waste as an opportunity to lead you into a better and cleaner world. Can you use the waste generated as an opportunity to look at a business opportunity, a backward of a forward integration perhaps. Green your company today, for a greener tomorrow. image: http://thumbs.dreamstime.com/z/green-ideas-tree-head-concept-human-brain-icons-recycling-illustration-layered-easy-manipulation-custom-coloring-32692896.jpg

The Indian Government has embraced the policy of Corporate Social Responsibility in the Companies Act of 2013. The inclusion of several new policies and and provisions has changed the face of Indian corporates. This is a remarkable choice that has put India in the same league as countries such as Norway, Mauritius, and Sweden, who all have vigorous rules for industries on CSR. The only area where India lags behind is that of CSR for smaller businesses—the Companies Act 2013 does not apply to Small and Medium-sized Enterprises (SME), which happen to be major economic drivers in India. SME CSR work Corporate social responsibility is a concept that is normally associated with large companies and is is seen as a chance to give back to the society. The concept was once used by high-profile companies with enough media attention and money to build and uphold a strong brand image in the public eye. These days CSR initiatives have become important for SMEs as well. To understand why it is necessary for SMEs, it is best to understand the meaning and need for Corporate Social Responsibility. What is CSR? Corporate Social Responsibility generally refers to the obligations that the company has to the society. CSR has no definition as such, but the EU stresses that CSR is a voluntary action and is done as a part of the company beyond the law requirements. A company engaged in CSR purposely include the public interest into the working of the organisation. These organisations have a bottom, line of satisfying people, their profit, and the planet. Why Are SMEs Effective At CSR? India’s economy runs on the tiny, but infinitely numerous, contributions of small and medium-sized enterprises. These SMEs employ over 40% of India’s population and contribute to over 45% of the country’s manufacturing output. SMEs provide millions of jobs even to low-skill level workers. The country has over 1.3 million SMEs, who collectively account for 40% of India’s total exports. Small and medium-sized enterprises usually identify closely with the town or region that they are set up in. They have a wider reach across local communities and are spread over a larger area, thus giving them more grassroots influence than larger enterprises, geographically at least. SMEs can easily adapt to their local settings, have a clear understanding of the problems in the area and have access to local resources, making them highly suitable for CSR work. Companies like Jaipur Rugs Co. Pvt. Ltd. do their bit for the community by conducting Educational programs for illiterate artisans and village community members. They also hold health check camps in villages for the poor and help unemployed artists with jobs. This kind of work is possible as the company intimately knows the problems their locality faces. How To Inject CSR In SMEs SMEs need to understand that CSR does not only involve the spending of money. Instead, it works best when an innate part of the brand. However, to reach that level SMEs must first educate themselves on what corporate social responsibility really means. One way to do this is through UN’s unique UNIDO programmes. They have a Triple Bottom Line (TBL) approach, which is popularly known as the 3 Ps—People, Planet, and Profit—to help companies address sustainable development. It has proven to be a simple learning technique for SMEs in developing countries and help companies with their performance for social, environmental, and economic norms. These programmes also help SMEs understand that profit alone is not enough to make a company successful. Rewards For CSR Work To promote CSR work in SMEs, associations such as ASSOCHAM, Businessworld, and FICCI hold award ceremonies to reward and appreciate these companies. These award ceremonies promote CSR practices within SMEs. Elin Appliances Pvt. Ltd. and Jaipur Rugs Co. Pvt. Ltd., NTTF Industries Pvt. Ltd., Smart Aqua Technologies Pvt. Ltd., and Vajja Technologies Pvt. Ltd. were awarded the SMEs and innovation categories at the Businessworld FICCI- SEDF CSR 2010 Awards. Elin Appliances were also awarded at the ASSOCHAM CSR 2011 Awards for their remarkable “Go Green” campaign, where they planted trees in their locality. They also organised health check-up drives in New Delhi, earning them respect in the community and a good reputation among corporates. India’s growing economy and aspiring middle-class shows that it is time that more SMEs begin to change themselves to do what they can for the society and environment and to make India a better place for the future. SMEs must remember that they can only grow while the society and environment around them are balanced. And CSR activities that help organisations create a positive impact in their locality will help boost their brand equity as well.

“Employees don’t stay with a company because of benefits. It is the long-term relationship-building that attracts people to stay.”- Jeff Swartz, CEO of Timberland A recent survey at Cognizant India, an American IT services company with 200,000 employees in India, revealed that over half of their employees volunteering for CSR initiatives displayed improved workplace performance. The employees believe that being associated with a company that actively participates in CSR is something to be proud of and positively affected their motivation levels and productivity. This is just one of the many cases where organisations achieved increased productivity from their employees as a result of increased CSR activity.

CSR: The New Deciding Factor In Employee Satisfaction

It’s clear in the above example that a company’s role in CSR affects the thought processes of its employees. Offering exemplary salaries, perks, and positions just won’t cut it anymore. Employees want to know how their company is giving back to society, and without this information, they tend toward dissatisfaction. And an increase in employee turnover rates is a direct outcome of this anxiety.

Why It’s So Important

Millennials are in high demand in the job market. They carry the skills, talent, and ideas that will help an organisation evolve and embrace the new age. However, they want something more than just a great job and good pay. They want the 3 Ps.

Pride

Everyone entering the job market looks for a sense of pride in what they do. No one wants to work for a company that’s contriving to destroy the environment, no matter how well they pay. And taking a neutral stance on CSR won’t help either. Employees want to be able to tell people, ‘Hey! You know I work in XYZ?’. And that won’t happen unless the company gives them a reason to boast. Organisations actively involved in CSR activities are filled with motivated employees. Being proud of their organisation also instils a feeling of respect towards it, which translates into higher productivity and greater engagement at work.

Purpose

After the initial thrill of a new workplace, most employees tend to wear figurative blinders and routinely carry out their jobs. This is more prevalent at the entry level, where employees may not have much knowledge of how the company operates and what it does with its funds. When employees are exposed to the social work that organisations engage in, they feel a stronger sense of belonging. This is accompanied by enhanced productivity, higher involvement, and increased confidence. Although CSR is not directly tied to a company’s operations, it acts as a lighthouse, guiding employees toward a brighter future. It’s also a great measure of how well a company is performing against its promises; the ideal way to build employee trust.

Progress

People want to enrol in a company that looks promising. And what’s better than being able to use a chunk of your profits to help society? If a company is engaged in CSR initiatives, it means that they can spare the funds to donate. It also implies that they’ve reached a stage of stability, and can focus their attention on issues that may not be directly related to their business. An organisation that’s able to provide services outside of its realm of operations presents an attractive prospect to potential employees. CSR, today, is changing from just a mandatory law to a process that’s vital to an organisation’s health. Companies need to get on board with this, or they’ll miss out on the increased coordination, trust, and productivity that will take them to the next level. References: https://www.marketingmag.com.au/news-c/csr-boosts-employee-attraction-retention-adma-global-forum/ http://www.triplepundit.com/2015/08/sustainability-strategy-can-pivotal-employee-engagement/ http://timesofindia.indiatimes.com/tech/jobs/Oracle-India-introduces-CSR-driven-induction-programme/articleshow/48481872.cms http://www.business-standard.com/article/pti-stories/social-commitment-attracts-best-talent-to-tata-group-rajan-115072600154_1.html http://www.forthephilanthropist.com/services/corporate-social-responsibility.php http://www.csrwire.com/blog/posts/906-stakeholder-vs-shareholder-value-connecting-the-sustainability-dots-with-philips-drexel-university-profits4purpose http://catchafireblog.org/2013/08/15/top-of-mind-10-interesting-articlestrends-in-csr/ http://www.optimy.com/csr-retention-tool-indian-companies-2/

Milton Friedman once remarked that the ‘only social responsibility of a business is to maximise its profits.’ According to his theory, if firms focus on profits, everything else should automatically fall into place. However, he added that a company can only do so by focusing on its stakeholders and providing better products, better working conditions, and following environmental regulations to the dot. It’s almost impossible to ignore the profits vs. purpose debate whenever we talk about CSR. Should a company only be concerned about paying its shareholders a bigger dividend, or, should it follow a more holistic approach and also take into account the environment and communities that it comes into contact with? Over the last decade or so, many organisations in India have changed the way they approach CSR. Gone are the days when CSR was considered nothing more than ‘social tax’. With big companies like Tata and Wipro displaying how easy it is to facilitate organisational growth through CSR, smaller organisations soon followed suit. Now, we even have fierce competition between rival companies to see who runs a better CSR campaign than the other. For example, PepsiCo and Coca-Cola are constantly trying outdo each other when it comes to water conservation and recycling. In fact, PepsiCo even runs a Positive Water Balance initiative which aims at recycling and conserving more water than they utilise.

Valuing Your Employees

Alan Edmans, Professor of Finance at the London School Of Business, gave a very interesting talk on ‘The Social Responsibility Of Business.’ In his talk, he mentions that it’s ‘employee well-being that causes good performance rather than good performance allowing a company to spend on employee well-being.’ He drove his point home when he told his audience how the top 100 companies to work for in America beat their competitors by a profit margin of 2-3% each year, for a period of 26 years! What he was trying to reiterate was that the better a company treats its employees, the more profits it earns. He took the example of Costco, which not only pays their staff almost double the average American wage/hour but also stays closed on days like Christmas and New Year’s Eve, when most of their competitors force their employees to come to work. And despite all this, they still continue to be in the top three wholesale retailers of USA. While their competitors are afraid of facing a loss if they grant employees leave and shut shop on public holidays, Costco realises that a workforce which is motivated and happy is the key to running a successful business. In India, HCL runs a ‘Teach At Office’ program. Realising the importance of its support staff, they hold free classes on basic computer skills and conversational English. To complement these classes, they also hold workshops on basic etiquette, financial management, and health and hygiene.

Giving Back To The Community

It’s not necessary that organisations stick to internal CSR activities to gain profit. ITC Limited, with their varied portfolio, run a variety of CSR projects all over India. They’re one of the pioneers in watershed development and soil conservation in the country. To aid farmers who provide them with raw material, they help in developing agricultural infrastructure like group irrigation wells, sprinkler units and vermicomposting trenches. They also donate Re. 1 from the sale of each of their Classmate series of notebooks towards the education of underprivileged children. So what’s the one thing that’s common between Costco, HCL, and ITC Limited? All three are market leaders in their respective sectors. Costco is among the top 3 retailers in the USA, HCL Technologies is one of the top 20 largest publicly traded companies in India, and ITC is a market leader in the tobacco sector and the largest supplier of stationery and branded food products in India. These three organisations make it quite evident that finding a balance between profit and purpose isn’t hard. No matter how disconnected they may seem, the two don’t need to sit at opposite ends of the scale. Any organisation with a good CSR strategy can easily cater to a societal cause and still derive enough profit to stay ahead of the competition. If you look at the bigger picture, you’ll see that any business will eventually stagnate if it doesn’t seriously consider doing a little bit more than making money. To summarise what you just read, we’ll quote Alan Edmans one last time, ‘Businesses exist to serve a purpose. And by doing so, and only by doing so, will they generate profits in the long run. To reach the land of profit, follow the road of purpose.’

Image References:

• http://www.scholarkart.com/classmate-practical-physics-notebook-hard-bound-176-pages-size-28-x-22-cm.html
• http://michaeldorausch.com/costco-closed-following-holidays/
• http://www.cnet-india.com/CSR.aspx

No matter how big or small an organisation is, choosing the right partners for its CSR projects is always a big deal. This is a decision which can cement your company’s position as a socially active and responsible organisation. And a well-executed CSR strategy can tremendously increase stakeholder engagement and even affect the value of your stocks. A good CSR partnership goes a long way in helping your organisation strike a balance between profit and purpose. Partnering with, or investing in the right NGOs for your CSR activities is as essential as finding investors who bring more to the organisation than just money. Don’t approach CSR with the aim of compliance under the Companies Act, 2013 . Instead, look for an NGO which mirrors the vision, mission and core values of your organisation. Let’s take a look at the things you should keep in mind while selecting NGOs who’ll bring value to your CSR efforts.

1. What Does The NGO Do?

In order to narrow down your search, find out exactly what your potential CSR partners do. The reason behind this is obvious. You want to work with an NGO whose work is as closely linked to your line of business as possible. For example, if you work in the processed food industry, try and find an NGO which works with local agricultural communities. Help them provide social and economic support to farmers, who are the lifeline of the processed food industry. This way you can directly help your primary stakeholders, the people who provide you with raw material.

2. Reputation Matters

As of 2014, India has one registered NGO for every 600 people and just one policeman for every 943 people! However, even with such a high density of NGOs, there are only a few organisations who’ve actually managed to establish themselves as reliable and impactful CSR partners. It’s also important that you choose an NGO which is well respected amongst your employees, investors and customers. This move can potentially lead to a fair increase in stakeholder engagement.

3. Previous Interactions With The Corporate Sector

The easiest way to gauge how well an NGO can support your CSR endeavours is to check their track record with other corporates in the past. See what kind of activities they’ve engaged in and how effective their efforts were. There are many NGOs out there who may have excellent management and processes but may not have any projects which fit into the corporate scenario. On the flip side, there are NGOs who have impeccably structured corporate campaigns but fall flat when it comes to implementing and executing those strategies. If you find an NGO that delivers quality and has a strong work ethic, you could easily set up a long-lasting partnership with them on mutually agreed upon terms.

4. What Does The NGO Offer?

Carefully consider what the NGO will bring to the table when you partner with them. What is the nature of engagement? How experienced is their staff? Are they equipped to provide training or educational resources?

5. What is the Approach of the NGO ?

Ask the NGO if it is open to a partnership model. CSR is always about building partnerships. If the NGO wants only your cheque, you need to ask yourself if this is the right approach. Also it would be great if a shared value approach can be taken. This would enable you to make the maximum impact Find answers to all these questions before signing a deal. A good NGO will be able to seamlessly blend their activities with your CSR concerns. Remember, your money and resources are also being utilised, so make sure that it’s a win-win situation for both parties.

Image References:

• http://www.slideshare.net/navjyotiindifoundation/global-csr-summit-chandni-taneja
• http://www.indianet.nl/indianews-archive.html
• http://hjmartin-is.com/corporate-responsibility/

On 19th December 2014, a few brilliant minds gathered on-stage to share their insights in the area of social reform. Organized by Vardaan, this seminar dealt chiefly with the topic of embracing social responsibility. The first speaker for the day was Mr. Santosh Hegde, a former Justice of the Indian Supreme Court who had also served as the Solicitor General of the country.

Sharing The Burden Equally

According to the former Justice, today’s society had become obsessed with wealth and power; compassion was no longer a driving motive. He questioned the practicality of a CSR mandate, especially when the government itself was finding it difficult to account for revenues. Justice Hegde then talked about some of the popular Indian scams that had occurred over the years. In the 50s, the government had been cheated out of ₹52 lakhs (approximately ₹50 crore today) in a popular scam. By the 80s, the Bofors scandal had come to light, and it was discovered that funds worth ₹64 crore had been misappropriated. In 2000, two major frauds shook the country—while the Commonwealth Games scam cost the exchequer ₹70,000 crore, the 2G Spectrum scam was estimated to be a whopping ₹1,76,000 crore. He was of the view that the CSR mandate wouldn’t even be necessary if such scams hadn’t occurred. These frauds had occurred because many people had shunned their own responsibilities in the blind pursuit of wealth. In short, each person is responsible for the welfare of another; creating moral liability by forcing companies to donate isn’t the answer to effective societal change.

Re-evaluating CSR Relationships And Objectives

Ms Vandana Mahajan, a popular social activist, was next in line. The CSR mandate, according to her, had brought about a number of positive changes—there was an unprecedented level of interest in the social reform sector and investments were at an all-time high. According to her, as CSR in India was still in its infancy, businesses and non-profits needed to collaborate in a more productive manner. Ms Mahajan also talked about the some of the key social concerns in today’s society from her experience as a reformer. Entrepreneurship, urban safety, women and children’s empowerment, rural livelihood and ecological sustainability were some issues that she touched upon. Ms Mahajan also went into the traditional trust-deficit between non-profits and corporates. She discussed how most corporates chose to work with only those NGOs they could fully understand, leaving out hundreds of other genuinely committed non-profits that could definitely do with some help. “Can we bring in the same seriousness, prestige and pursuit of excellence to realising the goal of social change that we give to the realisation of economic development, profit maximisation and business growth?”.  

Bridging The Gap Between Corporations And Non-Profits

The first person to represent the corporate world at the gathering was Mr Jacob Kurian, a Partner at New Silk Route Advisors. He was of the view that many companies failed to tackle CSR in the right manner. Companies that just wrote out cheques needed to embrace the idea of CSR as an integral part of business. Meaning that they needed to approach each social initiative as they would a business. Social programs needed objectives, both short-term and long-term. Each program needed to be measured for its impact just as a business project would be evaluated for its profitability. On a concluding note, he said that all the stakeholders had to be actively engaged if a social program was to have any chances of success.

Looking Ahead To A Productive Future

The last speaker in the seminar was Mr Thomas Raffa, the Founder and CEO of Raffa Inc., a consulting firm based out of Washington DC. Like Mr Hegde, he thought that forcing companies to pay 2% of their profits wasn’t really going to make things better in the long run. Mr Raffa talked about how Indian non-profits needed to evolve from their highly dependent positions to become sustainable, well-capitalized organizations. According to him, business was an important force in society that could be used effectively for the greater good. He had this to say about real sustainability, “We have to ensure that what we do today to meet our needs will not compromise the ability of our future generations to meet theirs—this is what sustainability is all about” Some of the topics tackled in the seminar include the effectiveness of enforcing CSR, the role of non-profits in the arena of social development and the need for strategically tailored social programs. A few case studies were discussed as well that could be potentially used as guideposts by non-profits striving to make a change. On the whole, the issues discussed in the gathering were of great significance to both corporates and non-profits. A great many truths were propounded at the Vardaan seminar, which offered an engaging deliberation for those who were truly interested in creating effective social change.

References:

• https://www.youtube.com/watch?v=vV0wAdbl05U
• https://www.youtube.com/watch?v=riV1xZNzBNs
• https://www.youtube.com/watch?v=_Afo9jWGyvE
• https://www.youtube.com/watch?v=g0b2mLFAH6k
• http://www.vardaan.co/news.html