Corporate Social Responsibility is not just activity but the process. It should be run as a professional management process with a long - term strategy integrating with corporate strategies.

1. BUSINESS MANAGER APRIL 201811
"B
y putting the
industry in this
area, we are
g e n e r a t i n g
e m p l oy m e n t ,
this is the best CSR we are doing".
One of the Industrialists whose
company has the turnover of
around 3 million was referring
CSR to employment generation.
His industry has taken the land
on lease in discounted rates, he
had enjoyed the tax holidays, he
is using natural resources like
water, his industry is polluting
land, air and water and his
definition of CSR was very
limited to employment
generation. He is right according
to his limited perspective but he
has not reflected on the purpose
of his business and CSR.
There were people who even
didn't want to spend small
amount on the CSR before April
2014 where amendment was done
in Companies Act. After the
introduction of mandatory spend
on CSR, companies are forced to
spend on - CSR activities. When you go back in past, India has witnessed
the great industrialist like Tata, Birla who has solid CSR programmes.
They are not doing this just for the compliances.
India has the good background of Gandhian Industrialists. This is
moreover Philanthropic nature. Some Indian Industries are
contributing very well in CSR. India is the country that lay heavy
emphasis on CSR disclosure norms. However, MNCs also have the
strong emphasis on CSR. Industries which are using the sources which
belong to the society and not doing anything on CSR may have to change
their attitude. Government has mandated compulsory 2% of profit
spend on CSR under Companies law (with a turnover of more than 1,000
crores). If we study fundamental principles in CSR, it has three levels.
Level 1 : Compliance :
Most of the organizations focus on the complenace level of CSR.
Industries does this just by compulsion. Sometimes, law demands, local
community demands and companies can't ignore these demand. This is
done mererly for the compliance of laws and obligations under putting
the factory/company in specific areas. Some companies think that they
are using the resources, hence same should be reciprocated. "We are
good company feeling."
Vinod Bidwaik
Director- HR,DSM India Pvt.Ltd.,Pune
Social responsibility :
Profit to purpose
Corporate Social Responsibility is not just activity but the process. It
should be run as a professional management process with a long - term
strategy integrating with corporate strategies.

2. BUSINESS MANAGER APRIL 201812
SOCIAL RESPONSIBILITY : PROFIT TO PURPOSE
Examples of this level are :-
So called employment generation, tree plantations around the area,
health check ups for local community, community service, education
support to local children etc.
Level 2 : Philanthropy :
This is a holly reciprocation of industry voluntarily giving back
something to the society. There are very few organizations that focus on
this. Best example is Tatas and Birlas. These actions are inspired by a
sense of earning good name in market, philanthropy, etc.
Examples of this level are :-
Support in building education facilities, street light in village, solar
equipments, skill development programmes, foundations supporting
health, education, relegious activities etc.
Level 3 : Innovations,value creation and Key business strategy
: profit to purpose
This is linked to the business strategy. There is long terms strategy in
CSR. Lot of innnovative products are offer to the community. This is
based on win-win basis and is based on key business strategy and driver.
It is part of core business strategy. It is broadly adopted by the
managing board. It involes brand, sustainability and "we make the
difference for future generations" feeling. For exapmle companies
manufacturing health products working for educating people on
malnutrition or companies manufacturing toothpaste doing soomething
positive for improving oral hygine in slum areas.
CSR- Three Levels
CSR Intent
To have the better impact on
the community & to get the best
outcome for companies, they
need to work on mainly the
strategy and purpose of their
organization. Fundamentally
they should link the CSR with
their purpose. Companies also
should have the strategy for CSR.
But before that, they should have
the intent of CSR. There are few
companies, who just ask their
employees to stand on the signal
with play cards and preaching to
the other people for following
traffic rules. They make the big
story and ensure that it is
published in the media. I really
don't see much intent in such
initiatives. I see CSR as one of
the employee engagement
initiative as well and their
connect to their own value and
society. Hence, I think CSR
initiative should have impact on
the society and it should be long
term. Employee will not be
fascinated by participating in
march, distributing sweets, or
standing on the signal, they want
more concrete CSR intent of the
company. Our value system is
very strong; we are taught that we
should share some part of our
earning to the society. "If you
give, you get more" is the feeling
behind this. Employees relate
this learning and value system to
their own organization. I have
seen the huge contribution from
employees (without asking) for
Level:1
Compliance
Level:2
Philanthropy
Level:3
Innovations,value
creation and key business
strategy

3. BUSINESS MANAGER APRIL 201813
SOCIAL RESPONSIBILITY : PROFIT TO PURPOSE
such projects. They are ready to
support financially and their
time for such activities. And
believe me this makes them
proud. If you want to see your
employees engaged and want to
give the feeling of pride, just have
a look on your CSR intent and
give them the purpose.
Profit to purpose : At Level 3
On a philosophical level, we
management gurus refer that
purpose and mission are not only
the statements, these are strong
levers for the growth. Profit is the
result of your purpose and
mission. While focusing on this,
organizations have to work first
defining their value system. For
example, the organization may
say that their fundamental value
is sustainability, they have to
define it what actually
sustainability means to their
business and how they can
contribute to the larger purpose
of the organization.
Social responsibly is not just
activity but the long - term
project, you can't expect
immediate results but if your
intent are right, you will see the
result which are sustainable. For this, your management reporting
must be transparent.
In summary
Corporate Social Responsibility is not just activity but the process.
It should be run as a professional management process with a long -
term strategy integrating with corporate strategies.
Organizational purpose should be clear and social responsibility
should be the part of the purpose.
CSR activities may be planned in parallel to the strategy & planning
exercise, looking at every possible opportunity to link and integrate
business plans with the social and environmental concerns
available.
This can be broken down into short - term and medium - term plans,
specifying activities to be undertaken, budgets allocated,
responsibilities and authorities defined, and measurable results
expected.
There should be emphasis on organizational values.
Finally, social responsibility is the key driver in employee
engagement.
Innovative and
promotes
sustainable business
Model
CSR as Value
Creation
CSR as corporate
philanthropy
Fundamental
Strategic and
operational
Impact
Shared Values
Promotes competitiveness and
innovation
Promotes Sustainable business Model
Integrate business into the community
Human Capital Development
Alignment with Business Strategy
Providing Funding &
Skills
Little Strategic &
Operational
Impact
Corporate philanthropy & Sponsorships
Short term benefits
Corporate competencies not fully
utilized
Misalignment between business and CSR
impact
Compliance
Medium to high
strategic impact
Mitigates operational impact
Mitigate operational risks
Supports external relationship
Purpose Impact Benefits
Focus and efforts organizations should have ....
CSR as Risk
Management
Approach : Principles of CSR
Our capacity to endure
Reporting Methods Action affects the
external world
BM
CSR activities may be planned in parallel
to the strategy & planning exercise,
looking at every possible opportunity to
link and integrate business plans
with the social and environmental
concerns available.