• Trends in CSR programme development• Strategies to promote CSR
Trends in CSR ProgrammeDevelopment• CSR programme trends have developed overtime changing with the changing conditionsand directions in the business world– Branding– Core competency fit– Partnerships– Socially Anchored Strategy
Branding• Branding & signature programmes are verypopular• Developing a brand name helps companies toposition and advertise their values in public• Ex. TOI : lends its name for mobilizing funds tohelp NGOs
Core Competency Fit -- I• CSR initiatives that deliberately tie with theircore competencies ( product , human resourcesand equipments)• Companies may volunteer to lend these &contribute to community development– Ex. Ballarpur Paper Industries have a social forestryprogramme.
Core Competency Fit -- II• Providing material aid to NGOs forestablishing a base for wider relationships– Eg. TCS, Thermax providing their old computersto municipal schools for fostering computerliteracy.
• Why should Corporates enter into CrossSector partnerships ?
Why Partnerships• Voluntary Sector– Skills in the areas of mobilizing & motivatingvolunteers, networking , advocacy and campaigning• Business contact with NGOs– Learning community development skills– Development & Implementation of CSR programmesby involving other stakeholders– Extremely beneficial for those who are involved in it• Eg. Excel Industries & MMC : Waste management
Basis of Partnerships• Mutual recognition of skills and resources thateach sector can contribute• A win-win situation to all those who areinvolved
• How can stakeholders contribute in a crosssector partnership?
Partnerships For Corporates• Able to contribute to the– Financial profits– Provide a positive environment for growth– Increase the corporate value from the shareholderspoint of view– Contribute to the societal value
Partnerships For Government &Civil Society Organizations• In improving its governance by providingspecific interventions in managerial andtechnical areas• To civil society organization it shouldstrengthen its functioning and ability tocreate an impact
Forms of Partnerships• Cash donations from corporates to struggling communityorganization helps to attract further support– The Infosys Foundation• Grants to socially & physically challenged children for education.• partnered with various NGOs & local government in strengtheningrural development activities and infrastructure– Cadbury India : funds a street children project focusing oneducation– Ranbaxy has contributed for community health care programmes
Partnerships• Equal players– Pratham : A triangular partnership between the government,corporate sector and citizen to achieve universalization of primaryeducation.– Catalytic role in improving primary education in Mumbai– Developing low-cost mass replicable innovative models to addressexisting problems in the area of education– Motivating teachers & parents– Studying the current system to make it more effective.• Some Business partners of Pratham– ICICI,IDBI, British airways, BEST and Mahindra’s
• Issue/cause specific partnerships– Ex. Mahindra & Mahindra : encouraging educationat all levels: has partnered with various NGOs inboth rural & urban areas to further the cause ofeducation
Partnerships• Cause related partnership– Companies adopting this view feel that a socialattribute added to the products influencesconsumers brand behaviour which results inincreased sales
Cause related partnership• P&G , Hygiene & Health Care India : project DRISHTI – 1stever Sight Restoration Corporate project in association withNAB• OPEN MIND with UNICEF : support & educate workingchildren• These initiatives are support by their brand. Part of the saleof the products is contributed towards these initiatives
Activating active citizenship andexchange of skills• HLL deputes management trainees to NGOs tosensitize them to the rural ethos, markets &culture• OTIS elevators motivates its employees to workwith mentally challenged .• Tata Group of Companies encourages itsemployees to participate in communitydevelopment activities
SOCIALLY ANCHOREDCOMPETENCIES MODEL• Integrates Corporate Social Responsibility andCompetitive Strategy• Discusses how companies may use core competencies todrive CSR initiatives and achieve significant competitiveadvantage• By integrating SACs in their CSR operations, companiesare able to develop new and improved products andservices for the society, more efficient productionprocesses and strong reputation and brand identity.
CSR MISALIGNMENTINEXPERIENCED /INAPPROPRIATECSR STAFFCSR MGMTSTRUCTURE ISOLATEDFROM BUSINESSLIMITED ORRESTRICTEDCSR BUDGETMISALIGNMENT BETWEEN BUSINESS ANDSOCIAL RESPONSIBILITY STRATEGIES AND FUNCTIONSIMPACT DILUTED DUETO LIMITED BUDGETALLOCATION TOMANY CHARITIESCORE COMPETENCIESAND BUSINESS ASSETSNOT FULLY USEDDECISIONS THATDAMAGEREPUTATIONMINIMAL OR NEGATIVE SOCIAL AND BUSINESSIMPACT OF CSR PROGRAMSCAUSESPROBLEMCONSEQUENCES
COMPARING SACPROGRAMCOMPONENTSTRADITIONAL CSRPROGRAM MODELSAC INFLUENCED CSRPROGRAM MODELGOALS Focuses on social impact thatis often not measuredDesigned to deliver social andbusiness impact that is measuredand attributed to the projectSTRATEGIES Vary from project to project.Tend not to take advantage ofcompany’s skills.Built on core competencies.Includes skills from the companyas well as its partners.BENEFICIARIES Are broadly defined. Usually,constituents of the partnerorganisation.Targeted towards stakeholdersstrategically linked to thecompany and its businesses.RESOURCE MIX Mix of cash grants andproduct donations.Sometimes, emplyeevolunteerism.Creative mix of cash, product,people and other assets thatleverage the maximum impact.MANAGEMENT CSR staff approves projects.Maintains a reportingrelationship with partners.Cross functional managementteams that participate in design,overseeing and evaluation.
SAC MODELBUSINESS BENEFITS• Lower costs / waste• Increase Efficiency• Reduce risk• Add Value• New Products• License to operate• ReputationSOCIAL BENEFIT• Vibrant Communities• Strong community relations• Employee well-being and productivityINTEGRATION ANDLEARNING• Team Formation• Goal settings• Experimentation• DisseminationSOCIALLY ANCHORED COMPETENCIES• Competencies appropriate for CSR initiatives• Building blocks for new mind set to deliver valueSTRATEGIC ALLIANCES• NGO• Interest Groups• Government• Other CompaniesIDENTIFICATION OFCORE COMPETENCIES• Skills• Experiences• Abilities• Other Assets• Collective LearningIDENTIFICATION AND ANALYSISOF KEY STAKEHOLDERS• Customers• Investors• Employees• Suppliers• Government• NGOs
Strategies for promoting CSR• Promotion of ‘CSR-friendly’ social dialogue• Rethinking the governance• Enabling the actors to play their role• Promoting the internal as well as externalaspects of CSR• Intensifying the dialogue• Fostering CSR among SMEs• Promoting CSR as a tool to anticipate change
‘CSR-friendly’ social dialogue• Foundation research suggests that CSR can only existin conjunction with a strong social dialogue• It is not easy for the traditional players in socialdialogue to practice CSR• Incorporation of CSR into the agenda of in-housesocial dialogue is still minimal• Many information/consulting procedures ignore it ordeal with it at minimal level
Barriers to CSR friendly social• Decentralized production networks,• Recurrent restructuring ,mergers & acquisitions makesit difficult for company boundaries to coincide withthe boundaries of social dialogue
How can information on CSR be promoted sothat the existing social dialogue can expand toinclude these new dimensions?
Options in Social Dialogue– Dialogue with other stakeholders can bedeveloped in parallel to the social dialogue andbridges built between them with the help of thebinary model of social dialogue– Employees can act as representatives to build thebridge between stakeholder.– Challenge lies in expanding social dialogue withoutweakening the traditional social dialogue
Rethinking the Governance• Governance is designing and implementing rules,processes and practices• In relation to CSR governance is at two levels:– Company and– Society• At the Company level it means taking on board adiversity of stakeholders and multitude of expectations• Taking these considerations &organizing necessaryprocesses and making tradeoffs between the differentexpectations
Rethinking the Governance• However the management receives primary mandatefrom stockholders• Question is whether the executives receive a real‘social mandate’ which allows them to commit to otherstakeholders• Applying CSR may also affect the way governance isexercised in society
Enabling the actors to play their role• Skills & tools are important to allow stakeholders toplay their role properly• Today the acquisition of these skills by stakeholdersand the development of these tools is not sufficientto allow them to act efficiently• Ex.: Civil Society has difficulties in playing its rolebecause– The actors & their expectations are not clearly identified– The members do not have the necessary skills andresources to act properly
Enabling the actors to play their role• Initiatives already existing which can helpactors both inside & outside the companyshould be reinforced• Ex: Helping stakeholders to be morestructured & professional therebyincreasing efficiency– Creating appropriate institutional frameworkswhich permit stakeholders to meet & discussCSR
Promoting the internal as well asexternal aspects of CSR• External aspect of CSR is important and tends to get alot of attention• Internal aspect also important• In an economy of decentralized production andnetworking it is important to look at issues of– Job quality,– health & safety provisions,– Working conditions of employees of subcontracting companiesplay a major role in CSR policies
Intensifying Dialogue• Active dialogue among stakeholders : crucial for successof CSR• Research: Companies have interest of enlarging thefocus to other stakeholder & not just consumers• New way of business: Based on management anddialogue with stakeholders• Trust , transparency, internal & external audit can createand foster successful dialogue & sustainable corporategovernance• Local municipalities and governments have an importantrole to play in facilitating partnerships
Fostering CSR among SMEs• Smaller companies have little knowledge of what is CSR• They do not possess the human & financial resourceswhen it comes to developing tools for reporting CSR• Moreover companies employing subcontractors canhave a strong influence on their suppliers bycompelling them to standardize & label their practicesin the areas of quality, safety and the environment.
Promoting CSR as a tool to anticipatechange• Pro-active, prevention approach to restructuring can bebeneficial to all stakeholders• Practices positioned in advance of restructuring canprepare employees to anticipate & prepare for thecoming change• Relevant prior information & consultation with partiesinvolved are prerequisites for socially successfulrestructuring• It raises the question of how far socially responsiblecompanies should commit themselves to that approachand which priorities could be used in this approach