On Corporate Social Responsibility

1. Visiting Corporate CitizensVisiting Corporate Citizens
Sudipto BhattacharyaSudipto Bhattacharya

2. Thoughts from a Global Indian ofThoughts from a Global Indian of
all ages and timesall ages and times
The human world is made one, all the countries areThe human world is made one, all the countries are
losing their distance everyday, their boundaries notlosing their distance everyday, their boundaries not
offering the same resistance as they did in the pastoffering the same resistance as they did in the past
age. Politicians struggle to exploit this great fact andage. Politicians struggle to exploit this great fact and
wrangle about establishing trade relationships. But mywrangle about establishing trade relationships. But my
mission is to urge for a world-wide commerce of heartmission is to urge for a world-wide commerce of heart
and mind, sympathy and understanding and never toand mind, sympathy and understanding and never to
allow this sublime opportunity to be sold in the slaveallow this sublime opportunity to be sold in the slave
markets for the cheap price of individual profits.markets for the cheap price of individual profits.
Rabindranath TagoreRabindranath Tagore
Paris, May 3, 1930Paris, May 3, 1930

3. Five reasons to pay visitFive reasons to pay visit
• The globalization of marketsThe globalization of markets
• The establishment of the knowledge economyThe establishment of the knowledge economy
• The omnipresence of global communicationThe omnipresence of global communication
technologytechnology
• The coalescence of power, responsibility inThe coalescence of power, responsibility in
hands of relatively small number of internationalhands of relatively small number of international
and global corporationsand global corporations
• Need for new social partnerships betweenNeed for new social partnerships between
corporations, states and civil society seekingcorporations, states and civil society seeking
solutions to local and global problemssolutions to local and global problems

4. Addressing the hostAddressing the host
-Corporate citizens or-Corporate citizens or
Organizational citizens?Organizational citizens?
Corporate citizenship applies to allCorporate citizenship applies to all
organizations, and the implicationorganizations, and the implication
that it applies purely to the privatethat it applies purely to the private
sector is misleading.sector is misleading.
We live in a society of organizationsWe live in a society of organizations
and the concept can be renamed asand the concept can be renamed as
organizational citizenshiporganizational citizenship

5. Various Lifestyles ofVarious Lifestyles of
Organizational CitizensOrganizational Citizens
AvoidanceAvoidance
Companies operate inCompanies operate in
areas such as illegalareas such as illegal
drugs, child prostitutiondrugs, child prostitution
and slavery.and slavery.
ComplianceCompliance
Vast majority of legallyVast majority of legally
incorporated companies,incorporated companies,
many are SMEs.many are SMEs.
DiscretionaryDiscretionary
The company that alsoThe company that also
finds it necessary tofinds it necessary to
argue that it ‘does noargue that it ‘does no
harm.’harm.’
Pro-activePro-active
Identifies themselves asIdentifies themselves as
pro-active agents of positivepro-active agents of positive
social change deliveringsocial change delivering
both private profit andboth private profit and
public goods.public goods.

6. Checking the real life ofChecking the real life of
Organizational citizensOrganizational citizens
• In this age ofIn this age of
apparent risingapparent rising
transparency andtransparency and
accountability,accountability,
many companiesmany companies
which wish towhich wish to
prove that theirprove that their
activities do noactivities do no
harm, or that if theyharm, or that if they
do cause harm,do cause harm,
that this is thethat this is the
responsibility of theresponsibility of the
purchaser, not thepurchaser, not the
companycompany
• All sorts ofAll sorts of
activitiesactivities
contribute to acontribute to a
good society basedgood society based
on fundamentalon fundamental
rights and therights and the
delivery of publicdelivery of public
goodsgoods

7. Bones of ContentionsBones of Contentions
• Corporate citizenship has many culturalCorporate citizenship has many cultural
variants as a result of divergentvariants as a result of divergent
capitalisms and much of the current debatecapitalisms and much of the current debate
and literature fails to recognize this realityand literature fails to recognize this reality
• The core values and operating practices ofThe core values and operating practices of
many corporations and other organizationsmany corporations and other organizations
are antithetical to the possibility ofare antithetical to the possibility of
becoming good corporate citizens servingbecoming good corporate citizens serving
the common good. They are selfish, self-the common good. They are selfish, self-
centered and non-altruistic as manycentered and non-altruistic as many
individualsindividuals

8. Different Ethical Views onDifferent Ethical Views on
Social ResponsibilitySocial Responsibility
Communist ViewCommunist View
Advocates an imposition ofAdvocates an imposition of
social responsibilitiessocial responsibilities
through legislation or forcethrough legislation or force
Capitalist ViewCapitalist View
Business should not haveBusiness should not have
any responsibility beyondany responsibility beyond
obeying certain legalobeying certain legal
codes in achieving itscodes in achieving its
goalsgoalsPragmatic ViewPragmatic View
First caters, thenFirst caters, then
anticipates and finallyanticipates and finally
creates new publiccreates new public
expectations by setting andexpectations by setting and
Trusteeship ViewTrusteeship View
Enjoy the wealth byEnjoy the wealth by
renouncing it. Earn yourrenouncing it. Earn your
wealth but understandwealth but understand
that it belongs to thethat it belongs to the

9. Corporate Social ResponsibilitiesCorporate Social Responsibilities
towards different groupstowards different groups
Consumers andConsumers and
CommunityCommunity
Employees andEmployees and
WorkersWorkers
Shareholders andShareholders and
other businessesother businesses
StateState

10. Realizing corporate citizenshipRealizing corporate citizenship
• Good governanceGood governance
• Stakeholder managementStakeholder management
• Political and social awarenessPolitical and social awareness
• Responsible supply chain managementResponsible supply chain management
• Human rightsHuman rights
• Business ethicsBusiness ethics
• Pollution preventionPollution prevention
• Product stewardship and clean technologyProduct stewardship and clean technology

11. Institutionalizing corporateInstitutionalizing corporate
citizenship – individual levelcitizenship – individual level
• Provide training on citizenship issues,Provide training on citizenship issues,
tailored to employees’ needs in the worktailored to employees’ needs in the work
and management environmentand management environment
• Use action learning techniques that allowUse action learning techniques that allow
for shared experience and reflection onfor shared experience and reflection on
learninglearning
• Develop recruitment procedures to buildDevelop recruitment procedures to build
and enhance in-house knowledge andand enhance in-house knowledge and
competence of citizenship concernscompetence of citizenship concerns
• Expand performance targets, targets,Expand performance targets, targets,
rewards and incentives beyond traditionalrewards and incentives beyond traditional
markers of achievementmarkers of achievement

12. Institutionalizing corporateInstitutionalizing corporate
citizenship – firm levelcitizenship – firm level
• Encourage empowerment of the individualEncourage empowerment of the individual
through participatory decision makingthrough participatory decision making
• Generate a clear vision for company withGenerate a clear vision for company with
well-articulated underlying values. Invitewell-articulated underlying values. Invite
comments and communicate responses tocomments and communicate responses to
encourage commitment and loyaltyencourage commitment and loyalty
• Share information across organizationalShare information across organizational
levels to create trust and removelevels to create trust and remove
hierarchical barriershierarchical barriers
• Use teams and work across functions, toUse teams and work across functions, to
share ideas and stimulate creativityshare ideas and stimulate creativity

13. Institutionalizing corporateInstitutionalizing corporate
citizenship – inter-firm levelcitizenship – inter-firm level
• Engage with industry associations toEngage with industry associations to
debate the issues and develop appropriatedebate the issues and develop appropriate
codes and standardscodes and standards
• Participate in business forums that raiseParticipate in business forums that raise
awareness, educate and provide training inawareness, educate and provide training in
the area of corporate citizenshipthe area of corporate citizenship
• Contribute to cross-sector citizenshipContribute to cross-sector citizenship
initiatives that involve civil society groupsinitiatives that involve civil society groups
and governmentand government
• Work along supply chain with contractorsWork along supply chain with contractors
and suppliers to develop and changeand suppliers to develop and change
practicespractices

14. Developing Performance Indicators –Developing Performance Indicators –
Social AuditSocial Audit
 Comparing data with organization’s socialComparing data with organization’s social
policies and standardspolicies and standards
 Data checking of the cost of socialData checking of the cost of social
programs and relating data to budgets,programs and relating data to budgets,
available resources, company objectives,available resources, company objectives,
etc.etc.
 Information and response monitoring toInformation and response monitoring to
external groups which makes demands onexternal groups which makes demands on
the organizationthe organization
 Process audit of the business to evaluateProcess audit of the business to evaluate
satisfaction level of various in-processsatisfaction level of various in-process
stakeholdersstakeholders

15. TrusteeshipTrusteeship
Indian concept of corporate citizenshipIndian concept of corporate citizenship
““ The money he had alreadyThe money he had already
accumulated was not his, that heaccumulated was not his, that he
was only a channel and that his dutywas only a channel and that his duty
was to do good to the world and thatwas to do good to the world and that
God had given him all his wealth inGod had given him all his wealth in
order that he might have opportunityorder that he might have opportunity
to help and do good to people.”to help and do good to people.”
Without looking at Rockefeller,Without looking at Rockefeller,
Swami Vivekananda told him when he cameSwami Vivekananda told him when he came
to meet him in Americato meet him in America
(Source: Indian Ethos for Management- Swami Jitatmananda,(Source: Indian Ethos for Management- Swami Jitatmananda,
pg.146)pg.146)

16. Outcome of the InteractionOutcome of the Interaction
Rockefeller FoundationRockefeller Foundation
Funding for welfare activities for theFunding for welfare activities for the
underdeveloped countries.underdeveloped countries.
Under the Foundation initiatives, Dr.Under the Foundation initiatives, Dr.
Norman Borlogue made his Noble peace-Norman Borlogue made his Noble peace-
prize winning research in the arid desertsprize winning research in the arid deserts
of Mexico and developed the first drought-of Mexico and developed the first drought-
resistant and disease-resistant wheat inresistant and disease-resistant wheat in
1965, which saved the world population1965, which saved the world population
from the jaws of a sure global famine.from the jaws of a sure global famine.

17. TrusteeshipTrusteeship
Indian concept of corporate citizenshipIndian concept of corporate citizenship
““ There is more to life than theThere is more to life than the
accumulation of money. Money isaccumulation of money. Money is
only a trust in one’s hand. To use itonly a trust in one’s hand. To use it
improperly is a great sin. The bestimproperly is a great sin. The best
way to prepare for the end is to liveway to prepare for the end is to live
for others.”for others.”
In later life admission made byIn later life admission made by
RockefellerRockefeller
(Source: Indian Ethos for Management- Swami Jitatmananda,(Source: Indian Ethos for Management- Swami Jitatmananda,
pg.146)pg.146)

18. Revealing the Indian hostRevealing the Indian host
TISCO is the first industrial organization in India toTISCO is the first industrial organization in India to
have carried out a social audit of its performance inhave carried out a social audit of its performance in
1979, by a committee under the chairmanship of1979, by a committee under the chairmanship of
Justice S.P.Kotval, former chief justice of MumbaiJustice S.P.Kotval, former chief justice of Mumbai
high Court.high Court.
The committee examined social and moralThe committee examined social and moral
responsibilities to the consumers, employees,responsibilities to the consumers, employees,
shareholders, society and the local community.shareholders, society and the local community.
Committee in its report praised TISCO’s socialCommittee in its report praised TISCO’s social
welfare work and made a number of suggestions towelfare work and made a number of suggestions to
improve its program.improve its program.
(Source: Principles of Management ~ Tripathi & Reddy,(Source: Principles of Management ~ Tripathi & Reddy,
TMG, pg. 43)TMG, pg. 43)

19. Unilever : Project - Pasig: River of Life, PhilippinesUnilever : Project - Pasig: River of Life, Philippines
better known as SWIM ( Sustainable Water andbetter known as SWIM ( Sustainable Water and
Integrated Catchments Management)Integrated Catchments Management)
Unilever operated in Philippines since 1927, startedUnilever operated in Philippines since 1927, started
with the Pasig campaign to benefit the wholewith the Pasig campaign to benefit the whole
community near the banks of Pasig through Cleancommunity near the banks of Pasig through Clean
Up, Pollution Prevention, Greening, Advocacy.Up, Pollution Prevention, Greening, Advocacy.
Employees and wider-community pro-activelyEmployees and wider-community pro-actively
support Pasig project to achieve results in thesupport Pasig project to achieve results in the
community and raise environmental consciousnesscommunity and raise environmental consciousness
throughout the companythroughout the company
(Source: Living Corporate Citizenship- strategic routes(Source: Living Corporate Citizenship- strategic routes
to socially responsible business ~ McIntosh,to socially responsible business ~ McIntosh,
Thomas, Leipziger, Coleman, FT P. Hall, pg.275)Thomas, Leipziger, Coleman, FT P. Hall, pg.275)
Revealing the Foreign hostRevealing the Foreign host

20. Bidding AdieuBidding Adieu
The patient listenersThe patient listeners
Blessed are they whose bodies get
destroyed in the service of others
- Swami Vivekananda