The
concept of corporate social responsibility is anything but
new in context of the Indian economy. Though it was earlier
based on the idea that not only companies along with public
policies should take responsibility for social issues; in
more recent approaches, CSR is seen as a concept in which
companies voluntarily integrate social and environmental concerns
into their business operations and into the interaction with
their stakeholders. And one of the primary reasons for this
is ‘survival in a head-to-head competition’. The
outcome of this changed approach is well reflected in the
approximate spend of Rs. 8,700 crores* by Indian companies
– both private and public – on CSR programmes
during
2010-11.
Given India’s long tradition in
this field, its CSR agenda has undergone four prominent transitional
phases. The first phase was predominantly determined by culture,
religion, family tradition and industrialization. The second
phase was dominated by the country’s struggle for independence
and was influenced fundamentally by Gandhi’s theory
of trusteeship. The paradigm of the “mixed economy”
with the emergence of PSUs and ample legislation on labour
and environmental standards affected the third phase of Indian
CSR. In the fourth phase companies and stakeholders began
abandoning traditional philanthropic engagement, and started
integrating CSR into a coherent and sustainable business strategy,
adopting the multi-stakeholder approach.
Against this background, the Indian public
sector has played a very crucial role. The initiatives of
public corporations have been critical in the development
of several backward regions of the country. As per the Industrial
Policy Resolution of 1956, the public sector was created to
help in the rapid economic growth and industrialization of
the country. It aimed to create the necessary infrastructure
for economic development, generate resources for development,
promote redistribution of income and wealth and create employment
opportunities. Initially, the sector struggled to achieve
a balance between employment generation and profitability.
But the economic liberalization of 1991 unleashed the hidden
potential of PSUs, creating global corporations. The public
sector has ever since been instrumental in developing India’s
economic power, keeping it safe from the global economic crisis.
Similarly, at this point when sustainability
and corporate responsibility induced by various changes and
threats has risen, the Indian government in response to this
global trend of adopting policies responsible towards the
society and environment, has rested the primary responsibility
of CSR on the Indian public sector. As a part of this process,
CSR has become mandatory for the public sector and is evaluated
with a percentage weightage. And the PSUs are doing a great
job inZZ taking the multi faceted challenges head on. Starting
from the strategic integration of social and environmental
issues with the business strategy, to skill building required
to plan, implement and monitor CSR programmes, to finally
transform to a triple bottom line culture – the public
sector is managing all of it commendably.
Guidelines in terms of conceptualization,
planning, implementation, research, documentation, advocacy,
promotion, development, funding, baseline survey and its documentation
and monitoring of the impact, have been laid down meticulously,
to match the significance of this agenda of CSR. Since the
guidelines state that the implementation must be done through
specialized agencies instead of the enterprise itself, one
of the biggest challenges faced here by the sector is the
trustworthiness and effectiveness of the implementing agencies.
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The need of
the hour and choice, therefore, for the entire sector gets
limited to organizations/agencies which adhere to transparent,
credible and accountable management processes.
Smile Foundation, for example, is one of the very few development
organizations in India which adheres to the principles of
Good Governance in order to ensure and promote application
of best management practices, compliance of law and adherence
to best possible ethical standards. Starting from the policy
and decision making, to following credibility norms; from
project management and monitoring processes to the audit system;
everything in Smile Foundation undergoes a four tier mechanism
to ensure the impact of investment and accountability in utilization
of funds. And this has been one of the major reasons why Smile
has risen to be one of the most preferred partners for many
leading PSUs for implementation of various development initiatives.
SAIL, GAIL, IndianOil, Hindustan Petroleum, and NSIC are
some of the many public sector bodies which have partnered
with Smile for different development programmes. SAIL for
example has partnered for a mobile hospital for the underprivileged
in Delhi NCR and employability training programme for the
marginalized youth in Kolkata. GAIL again is supporting a
mobile hospital in Delhi NCR and an integrated community development
project in Madhya Pradesh. IndianOil and Hindustan Petroleum
have partnered with Smile for its livelihood initiative. NSIC
has partnered with Smile to implement an integrated community
development project in the slums of Delhi NCR. This integrated
project includes education of children, healthcare of the
community dwellers and empowerment of women and adolescent
girls.
Speaking about NSIC’s partnership with Smile Foundation
Dr. H.P. Kumar – Chairman cum Managing Director, NSIC
states “Working for the development of the less
privileged has always been an important aspect of the way
we function and work. Hence when Smile Foundation approached
us with the concept of having an integrated development project,
we immediately committed our support. With this project we
are not focusing on just one aspect of development but are
trying to address the major needs for sustainable development
of the less privileged in the country. The focus on an all
round and holistic development of the people is what is required
to bring about sustainable development and this is the most
special thing about this project. We are happy to have partnered
with Smile Foundation and hope that with this partnership,
we will be able to achieve our vision of bringing about growth
and development of the less privileged.”
Given the dire need of social and environmental development
in the country and the prevailing ad hoc charity mode, as
expected, it is the public sector that has risen to the occasion.
Aligning itself brilliantly with the very objective of being
set up, the sector is indeed achieving inclusive growth ensuring
equity to the overall community. Having realized the opportunities
developed this way are far more abundant than
the challenges, the sector is aptly living upto its expectations
of scoring high on all the three bottom lines.
*Source of information – The Sunday
Standard |