*Original Question “Corporate Social Responsibility
(CSR) is the Trend and hence ideally we should
adopt it. But it seems we can very well do without
doing it. We are confused. What should we do?”
*The Correct Question - “We need to understand the
underlying principles behind those and then build
models and understand their implications. Only
after which should we take decisions in an informed
and rational fashion. Allow me!!!”
2. Inclusion (of any kind)
5. Green & Sustainability
6. Open Source & Open Business Models
7. Regulations and Compliance
8. Corporate Social Responsibility (CSR)
* They all have a lot of things in common… while on the face of it they all
seem very different in their own way…
* Answer this – Get two middle school boys and ask them to shoot a Football
goal from 25-40 meters (depending on their age)…. Pull one of the 2 boys
to the side and tell him one of two things (i) we will let you shoot from 10
meters and won’t tell the other boy about it, or (ii) lets just enter in the
register that you successfully did it without you even trying, we won’t tell
the other boy about it. While the other boy actually takes the 40 meter
goal attempt without any knowledge of us scheming with the other boy
and he will never find out…
* Now think!!!
* The only reason and again THE ONLY REASON someone would say he will
play fair cetris paribus is …. “I’m better than this… I can do it on my own…
I’m capable… I have self respect”
* That’s the First and the Only thing happening in the Second Boy’s mind…..
All other Social Aspects and Peer Effects come later and are external
* Now look at the Ten things on the previous slide again…
* With high probability we can say – People who violate those 10 points on the earlier
slide ARE LOSERS!!!! (In an ideal world definition)
* People who play by the rules are normally…
* Very Accomplished and more Capable
* More Efficient, Intelligent, Social, Productive…
* Think more than others
* Are more Rational
* People who breaks the rules and constructs
* Have Winning at ANY COST as their Prime Focus
* Would probably not survive if the Rules and the Constructs of the Game/Life were
somehow 100% enforced perfectly (In a magical world or when God himself did it for our
* But that’s not all …. There is another category of people who violate such constructs…
* The ones who want to IMPROVE THE SYSTEM… and they are Our Knights In Shining Armor
because – There is a Glitch in the Matrix Somewhere!!!
* But those are not the subject of this presentation
* Idealists would tell you – THE ONLY WAY TO SUCCEED IS TO IMPLEMENT THE MODERN
* But that’s not really true in an absolute sense…
* All those 10 points…
* Add huge amounts of Complexity to your Organization
* Add a huge Overhead and Cost to Operations (contrary to Popular Urban Myth there is no
concrete ROI to the organization in the near term and they are very very costly to
* They can change the economics of the Game and drive you bankrupt…
* They require a huge cultural change in your organization and a huge shift to Bottom Up
Empowerment & Hierarchies
* The CFO will never be very happy because there never will be a justifiable ROI
* But it gives you a Purpose…. And in the medium to long term – ANY REASONABLE PURPOSE
is way too Super Optimal than anything else…
* It converts your Organization into a Social, Respected, Admired… Entity!!! & a Brand!!!
* Make Success more difficult…. But the good part is you are up for the Challenge and will
* It shifts the power from Managers to Leaders… (So that might be Good! In most cases)
* Un-Regulated or Lesser Regulated space’s see more action
* There is No ROI!!!! ROI for the Modern Agenda is a Myth! Quit searching for it in desperation!!! Its about Purpose!!!
And Being Better Than The Rest!!! PERIOD!!!!
* If Business is a Game then you need to first Really Master The Entry Level Easy Game before you make the rules
harder and way more stricter by Implementing the Modern Agenda in an all out way… that’s why its mostly the OLD
TIMERS who rush to adopt The Modern Agenda!!!
* Contrary to what you & Idealists would like to believe everything else being equal a majority of customers will go
with Violaters primarily based on Cost and Value offered to them Immediately…. Answer this – How price sensitive
are your Customers and how High are your Profit Margins (which will take a Dip in the short term)?... There – you
have the answer!!!
* Only and Only in the Long Run do “MOST” Customers start appreciating The Modern Agenda and choosing your
products and services over others and sometimes even at a Price Premium!!! But if you are a startup you might not
survive that long
* It Will hit your bottomline!!! Unless you are into Gold Mining!!!! Atleast in the Short->Medium term… Be prepared
* You will most probably fail, and will succeed only and only if you become really really good @ THE NEW GAME!!!
While the rest of the World plays THE OLDER EASIER GAME!!!
* If you are in a Commodity Space then this is the Second Set of Differentiation and Competency (The first one being
– Learning, Unlearning & Relearning)
* Admit it or not Sadly in todays world The Modern Agenda has no Correlation With Success!!! Cetris paribus… Unlike
The Moral Of The Story’s From Bedtime Fairy Tales!!! Which btw happen to happen in a Crystal Perfect World
where the Good Always Wins and The Bad Guys Always Always Lose and Everyone Lives Happily Ever After!!!
* The Modern Agenda has no “DIRECT” ROI
* Quit searching for ROI…..
* Anyone who says the Modern Agenda has a direct financial ROI is
* Its about Purpose!!!
* Purpose is way more Super Optimal than anything else
* The Modern Agenda has a secondary effect – it drives efficiency,
motivation, capability, innovation….
* And its all about the Secondary Effects!!!!
* If you pay lip service to the Modern Agenda you don’t gain any secondary
benefits but you incur all the costs… => You Lose!!!!
* Start with the easier game (Unregulated… focus on money) … and adopt
the modern agenda slowly and progressively and get tough and then win
the tougher game
* Only the best of the best adopt the modern agenda