This document discusses perspectives on corporate social responsibility (CSR) in India. It provides background on the evolution of CSR and philanthropy in India, influenced by Gandhian principles. The new Companies Act of 2013 mandates CSR spending for companies. The document then discusses challenges companies face in implementing CSR, such as balancing social and environmental goals with profit motives. It also examines the role of NGOs and how companies partner with credible organizations for CSR activities focused on issues like education, health, and sustainability.

1. Cross Sectoral Perspectives
Sharing experiences and lessons learnt
Jayant Bhojia
NID
February 2015

2. List of workplaces
– Profit making Sector
• Neerja Int.
• Deepak Woolen Mills
• Non profit making sector
– SURE, Barmer
– UNNATI, Ahmedabad
• CSR
– TCSRD, Mithapur
• Part time and Freelancing
• List the kind of projects undertaken as a freelancer (selected
ones shared with interesting stories/pictures/craft articles)

3. WORK STYLE
Profit Making Non Profit Making Self employed
 Dictated by the
senior level
management and
sustainability /
profitability of the
business plans;
 High expectation in
the form of skills
and performance
within a stipulated
time period
 Formal systems of
induction and
training integrated
into work profile
 Often participatory in
nature, dependent on the
needs and requirements of
the programme participants
(communities or issues of
engagement)
 Lot of hand holding support
provided in achieving
results
 Systems of induction and
capacity building is not well
defined and
structured/fixed. Often
dependent on the nature of
project at hand and
availability of time
 Dependent on
client follow up
and personal
standards of
quality

4. WORK STRUCTURE
 Hierarchical and
well-structured
organogram
 Work output is
mostly quantified.
 Often loosely built
organizational
structure, with
little focus on
hierarchy in
positions and
work
responsibilities
 Work outcome is
usually not
quantified and
evaluated
qualitatively.
 High expectations
of clients
regarding
deliverables
within the
stipulated time;
 Multi-tasking skills
required to cater
to the diverse
needs of the
range of clients;
No hand holding
support
 Work is evaluated
as per the
mutually decided
specific
deliverables

5. WORK SECURITY
 Governed by
decisions / actions
of the top
management/
Board of
Directors, macro-
economic
framework of the
country and
changes in the
international
scenario, political
stability and vision
of the existing
governments.
 Largely dependent of
projects at hand and donor
priorities.
 Also dependent on
compatibility of the NGOs
vis-à-vis the existing
government and political
environment,
 Nature of leadership and
vision building of the NGO,
 Adaptability and
forethought of the NGO
Directors/ leaders leading
to re-alignment of work
priorities as per the
changing scenario and
emerging challenges
 Good systems of
governance leading to
accountability and
transparency
 Dependent on
specialization, special
skill sets, personal
behavioral traits,
commitment, dedication
in undertaking
assignmentsetc.
 Quality and consistency
in deliverables,
 Extentof networking,
appropriate showcasing
of work undertaken,
Seeking and cashing on
the right opportunities
 A good track record
 Accountability and high
sense of responsibility
 Cost effectiveness
 Self-promotion

6. WORK CULTURE
 Guided by well-
developed, formal
and strictly monitored
work schedules and
plans
 Well-structured
communication
protocols and
feedback
mechanisms
 May be exploitative,
calculative and
manipulative to suit
the profit making
interests of few
 Relaxed / informal
work environment
 At times, the plans
are ad hoc,
depending upon the
nature of work
 Some are led by
participatory
planning,
implementation and
monitoring schedules
 May be
accommodative and
democratic
 May be hypocritical,
exploitative and
manipulative
 Dependent on self-
set and self-
monitored standards
 May be relaxed or
structured (varies
from person to
person)
 Family support and
back up
 Depends on self:
May be well
coordinated and
planned
 May be ad-hoc,
unpredictable, casual
in approach and
random

7. WORK PERFORMANCE REVIEW
 Results oriented
performance
tracking
 Process and
outcome oriented
performance
tracking
 Repeat donors
 Client specific
performance
tracking by self
and
 List of repeat
clients or
references (by
word of mouth)

8. SUSTAINABILITY
 Dependent on
corporate deals
and agreements
 Dependent on
exit policies and
community
engagement and
well-designed
phase out plans
 Decentralized
planning and
ownership issues
are important in
ensuring
sustainability of
programmes
 Multi-tasking;
 Skill building;
 Adaptability
 Strong financial
back up and
buffer time

9. RETURNS AND EMPLOYEE WELFARE
 Often well paid
 Provision of
increments and
promotions
 Separate, well defined
HR departments
 Time and skills are
bought by the
‘haves’”- Finally, the
professionals work for
making some very
very rich and some
very very poor. Whilst
, they themselves toil
hard to provide
themselves and their
families, a ‘good’
quality of life
 You may be torn
between leading a
real life and craving
for an ideal life
 Often less and disproportionately paid
 Payment is not linked with amount of
work undertaken
 Salaries are dependent on projects at
hand and cash flow in the organization
 Lot of hope, satisfaction may be
received from the nature of work;
people may cherish the respect and
love showered by the communities
may be earned
 You have the power to change the
world; at least bring a difference in
lives of some
 Conversely, idealists may also meet
with disillusionment
 The family members and friends may
not approve of the kind of work you
do, your nature of engagement and
the monetary returns
 They may not be able to identify with
your ideals and values
 You may run the risk of being a mis-fit
in social circles
 Depends upon the
competitiveness of the
markets
 Employee welfare is
linked with family support
and back up support
 Lot of ‘me’ time;
 Can spend quality time
with family and friends
 Can set ones’ own pace
of work
 Can be ones’ own task
master
 Can plan for the ‘untied’
time to devote in self-
development and or
pursuing hobbies / area
of personal interests
(Doing what you love)
 Setting up personal
goals and preferences
 Rule your own life
 Ruin your own life

10. Corporate Social Responsibility (CSR)
• In August 2013, the Indian parliament passed the
Indian Companies Act, 2013 (the "New Act"), which
has replaced the Companies Act of 1956.
• The New Act has made significant changes affecting
company formation, administration and governance.
• The response of the corporate sector to the mandate
for CSR has been uneven.
• While the practice of CSR is not new to companies in
India, this Act does bring more companies into the fold
and is expected to increase the quantum of spending in
the social sector.

11. DEFINING CSR
• CSR is generally understood as being the way through which a
company achieves a balance of economic, environmental and social
imperatives.
• CSR is a strategic business management concept, and is different
from charity, sponsorships or philanthropy.
• Even though the latter can also make a valuable contribution to
poverty reduction, will directly enhance the reputation of a
company and strengthen its brand, the concept of CSR goes beyond
that. CSR is holistic in approach and integrated with the core
business strategy for addressing social and environmental impacts
of businesses.
• CSR needs to address the well-being of all stakeholders and not just
the company’s shareholders
• This leads to long term sustainable and meaningful impact of
industrial sector towards social development

12. Genesis of Indian Philanthropy
• Philanthropy is seen in different ways in the country.
• One of the popular perspectives is that which upholds
the Gandhian principle of ‘Trusteeship’ wherein the
people are trustees and not owners of the wealth,
knowledge and skills and are obliged to use it for social
good.
• The corporate leaders such as GD Birla and Jamnalal
Bajaj later adopted the same.
• During First World War, businessmen like GD Birla,
Kasturbhai Lalbhai, made huge profits and reinvested
them in setting up new industries.

13. • During 1850’s the cotton trade brought enormous
wealth in the city of Bombay.
• A small part of this wealth was utilized for fair
trade and the returns were directed to
improvement of the city.
• The then Governor Bartle Frere, had desired to
leave a beautiful and clean city behind. Part of
the wealth was donated by merchants for
construction of public buildings like hospitals,
libraries, and training institutes.
• For higher education, few merchants established
institutions for higher education

14. • The Marwari community has significantly
contributed to philanthropy, the notable being
the Birla family at the foremost.
• In Indian cities, the Birla temples have become
major landmarks.
• Apart from famous Birla Mandir, the
Laxminarayan Mandir in Delhi was built in 1938.
• The Birla family have contributed towards
establishment of finest institutions of technology,
medicine and education (Telegraph, Dec 2007).
• The involvement of the Birla’s in the nationalist
movement, especially G.D. Birla’s closeness to
Mahatma Gandhi is well known

15. • GD Birla, also called as the Marwari Magnate, invested
his First World War time profit into jute industry to
break Scottish jute monopoly and had succeeded. His
philanthropic activities became legendary and he was a
prominent donor to the freedom movement. They built
one of the India’s finest complexes of higher education
‘Birla Institute of Technology and Sciences’ at Pilani.
• GD Birla fought for the rights of untouchables in India
being the president of Harijan Sevak Sangh.
• A hospital providing advanced treatment and
remarkably 80% bed being free in the city of Bombay is
one of the best in the state.
• The Birla Park constructed in 1923 and the then
residence of Birla family was later converted into
industrial museum and was gifted to the government.

16. • Like GD Birla, Kasturbhai Lalbhai, a Jain businessman from
Gujarat also became popular as philanthropic legendary.
• He was founder of Indian chemical Industry. He also found
opportunity of cotton famine during First World War and
the skyrocketed textile demand led to huge profits.
• With this war time profit he set 7 textiles mills and
became largest textile producer in India. In 1952, March
he set up a new chemical plant in Shimla called “Atul”. He
had trained and employed the local illiterate villager and
provided them with compact housing spaces
• The Tata’s are among the most prominent philanthropists
in India. The Tata memorial hospital and the Tata Institute
of fundamental research were set up in 1941 and 1945
respectively

17. CSR roots in Gujarat
• Gujarat is one of the most industrialized states in India with
the corporate sector and private sector owners having a
considerable political and financial clout in the state.
• The other common practice is that business houses sponsor
village rehabilitation in the post disaster period wherein
they support with relief and rehabilitation materials.
• Gujarat’s long tradition of thoughtful and better managed
charity funds find presence in the FICCI, established by
Gandhiji in 1927.
• While the main focus of FICCI is to enhance business
opportunities of the members, it has set up a South Asia
Regional Forum to address issues like climate change and
business opportunities.

18. Education
• Lalbhais (who established the Ahmedabad Education Society)
• Sakarlal Family: Established the Gujarat University
• Ranchodlal Chotalal: Established the first technical school
• Marfatia Family supported public causes in Surat
• The RIL contributed in setting up an IT institute (DA-IICT) in
Gandhinagar
Health
• Vadilal and Sharda bai hospital were established and are run
by trusts.
Multiple areas
• After Independence, the Sarabhai Family contributed towards
issues of Space research institute, Environment, Education,
Health, Mental Health, Montessori school etc.

19. National Institute of Design (NID)
• On April 7, 1958, the Eames Report presented to Government of
India (GOI)defined the underlying spirit that led to the founding of
NID and beginning of design education in India.
• GOI with the assistance of the Ford Foundation and the Sarabhai
family established the National Institute of Industrial Design, as it
was originally called as an autonomous all-India body in September
1961 at Ahmedabad.
• Gautam Sarabhai and his sister Gira Sarabhai played a major role in
the establishment and early years of NID.
• Gautam Sarabhai sidestepped the accepted wisdom and
conventional method of education . He revived the philosophy of
the Bauhaus design movement which was learning by doing.
• This unique curriculum and revolutionary educational philosophy
remain part of NID to the present day.

20. What is in the New Companies Act 2013?
• The Schedule VII of the Companies Act 2013 suggests
the list of CSR activities to be undertaken by the
companies.
– Eradication of extreme hunger and poverty
– Promotion of education
– Gender equity and women empowerment
– Reducing child mortality and improving maternal health
– Combating HIV-AIDS, malaria and other diseases
– Environmental sustainability
– Social business projects
– Employment enhancing vocational skills
– Contribution to Prime Minister’s relief fund and other such
state and central funds

21. Observations about current CSR activities
• Mode of operation: The companies implement their CSR activities in different ways; through
its own non-profit foundation or through independently registered non-profit organizations,
providing funds to identified NGOs/Government and collaborating or pooling their resources
with other companies.
• Geographical presence: The companies generally prefer to implement programmes or invest
their resources in the geographical areas where their production unit or factory is situated.
• Strengthening the teams: The priority is to serve the staff or employees or offer their
services as compensation to the local communities.
• Mode of Approach: The companies prefer not to confront the local government. Hence,
funds are given to NGOs that have credibility, and those who engage and collaborate with the
local and national government.
• Preferred mode of engagement with NGOs: The companies often face impending pressure
from the government to supply commodities, for e.g., mobile health vans etc., develop
infrastructure, for e.g. community halls and schools etc. and/or extend funds for tangible
deliverables/outputs for e.g building sanitation blocks, undertaking tree plantation etc.
• Influence of National policies: The CSR activities are more often than not influenced by the
national policies (for e.g., Swachhata Mission). The companies often seek support from the
NGOs to engage with the government on their behalf to work on the social development
indicators.

22. CHALLENGES
• Perspectives about CSR: The CSR strategies in the corporate sector may not be
always clearly drawn out and as compelling as their business strategy. The actual
goals of CSR may not align with the profit oriented corporate functions such as
marketing, manufacturing, sales etc. This may lead to investments in short term,
visible and tangible material outputs for example; products, infrastructure
development etc. which might not contribute to significantly improving the social
indicators of the region.
• Commitment to CSR: In some companies, the commitment to CSR has grown more
out of compulsion, following the mandate. Traditionally, CSR is thought to be
synonymous with the value of voluntarism and philanthropy. Hence, the strategies
or approach of the corporate is either that of charity based activity as in ‘doing-to-
feel-good’, which may not address the underlying needs of the marginalized and
vulnerable community. It is often a challenge for the senior management to
prepare CSR plans and engage meaningfully with the society.

23. • Community needs vs. profit making outlook: The corporate heads often find it
difficult to strike a balance between economic & social progress and
environmental sustainability. The profit making motives may lead to degradation
of natural resources for instance, exploitation of ground water or deforestation or
change in land use pattern and so on. The needs of the local communities may be
affected by the profit making goals of the company. In such cases, it is likely that
the CSR representatives face with hostility from the community and/or the
activities undertaken do not respond to the actual community needs related to
health and livelihoods nearby.
• Credibility of NGOs: Companies are generally looking for NGOs with high
credibility to ensure optimum utilization of their capital. It has been observed that
the NGOs are unable to give priority to showcase their field level innovations,
mainly due to lack of capacities /expertise / time. Retention of staff, lack of funds
for capacity building of the staff, lack of adequate systems of monitoring and
evaluating are few of the reasons affecting the credibility of the NGOs.
• Addressing gender inequities: Usually the companies have men in the senior
management levels and decision making boards who may not have the sensitivity
to see the long term impact of gender inequity. For e.g., while creating labor
intensive livelihood opportunities, the fact that this may affect the health and well
being of the communities, especially health and social indicators on women and
children.

24. QUESTIONS PLEASE….
Thanks
Jayant Bhojia
HEAD- design and sourcing
OKHAI
jayantbhojia@gmail.com
09427040957