“People are going to want, and be able, to find out about
the citizenship of a brand, whether it is doing the right things
socially, economically and environmentally.” – Mike Clasper, President of Business Development, Proctor and Gamble (Europe)
A recent significant change in India's “Companies Bill” is the inclusion of Mandatory CSR for companies beyond a threshold limit. Immediately, there has been lot of gripe and grouse about the Government's “dictatorial” move which challenges the basic tenets of free and fair trade. It is felt that CSR clashes with the purpose of “for-profit” organizations. In 1970, Milton Freidman had written an elaborate article in this regard titled “The Social Responsibility of Business is to Increase its Profit”. However, that was the 70s and today we are in the 21st century.
“People are going to want, and be able, to find out about the citizenship of a brand, whether it is doing the right things socially, economically and environmentally.” – Mike Clasper, President of Business Development, Proctor and Gamble (Europe)
Owing
to the widespread reach of information technology and communication
systems, impact of social media and increasing globalization, businesses
can no longer survive on good products/ services or strong balance
sheet. The stakeholders are more informed, sensitive and conscious than
ever before. And these stakeholders are your customers, suppliers,
bankers, financers, shareholders, enforcement agencies. They are
reading, listening, viewing and systematically filing away the
information in their subconscious mind.
How is that of importance to you as a business owner? It impacts their attitude and behavior towards the company. The consumer buying behavior largely comprises of emotional factors that are intangible. How they perceive a company and its products depends a lot on the overall image of the company and the general perception. These ideas and perception drive their buying decisions. The lenders and suppliers are similarly affected by what the company actually stands for and not just its ability to repay. Increasing attention to business value and responsibility towards the nurturing environment (in which the business thrives) is a positively evolving trend in the business circles. The focus is on long-term sustainability of vision and operations.
Though the term CSR is widely used, many business owners and people in general do not bother to truly understand its relevance and consequence. We need to put the concept of CSR into perspective. Intelligent companies are looking into CSR as tool for corporate strategy reinforcement, as an investment and long-term vision and commitment instead of just another compliance matter. They are ensuring that the money spent for discharging CSR serves both the parties – the giver (company) and the receiver (society). The true purpose of companies is to run profitably and increase the shareholder value. It is time owners understood that CSR is not a drain of resources but a better investment than spending on a 30 second slot of TV advertisement showing their detergent and tooth paste. Tata Group and its CSR activities are legend in India. There are lives of many people across the country that has been touched by Tata's activities in one way or the other. Tata Steel was the recipient of CNBC Asia's prestigious Corporate Social Responsibility Award for the company's outstanding CSR model. Taj group of hotels concentrates on education and employability as the key areas of its corporate sustainability efforts across India.
Sowing information to reap a better harvest' is about the innovative project pioneered by Tata Chemicals Limited. TCL's extension services, brought to farmers through the Tata Kisan Sansars, remote-sensing technology to analyse soil, information about crop health, pest attacks and coverage of various crops predicting the final output. This helps farmers adapt quickly to changing conditions. The result: healthier crops, higher yields and enhanced incomes for farmers.
Procter and Gamble has espoused many such initiatives and creating a positive image amongst their prospects and customers. In India, they are focused on education – the solution to our quest for progress.
Visit SMEWORLD.ORG to read the entire article.
A recent significant change in India's “Companies Bill” is the inclusion of Mandatory CSR for companies beyond a threshold limit. Immediately, there has been lot of gripe and grouse about the Government's “dictatorial” move which challenges the basic tenets of free and fair trade. It is felt that CSR clashes with the purpose of “for-profit” organizations. In 1970, Milton Freidman had written an elaborate article in this regard titled “The Social Responsibility of Business is to Increase its Profit”. However, that was the 70s and today we are in the 21st century.
“People are going to want, and be able, to find out about the citizenship of a brand, whether it is doing the right things socially, economically and environmentally.” – Mike Clasper, President of Business Development, Proctor and Gamble (Europe)
Owing
to the widespread reach of information technology and communication
systems, impact of social media and increasing globalization, businesses
can no longer survive on good products/ services or strong balance
sheet. The stakeholders are more informed, sensitive and conscious than
ever before. And these stakeholders are your customers, suppliers,
bankers, financers, shareholders, enforcement agencies. They are
reading, listening, viewing and systematically filing away the
information in their subconscious mind.How is that of importance to you as a business owner? It impacts their attitude and behavior towards the company. The consumer buying behavior largely comprises of emotional factors that are intangible. How they perceive a company and its products depends a lot on the overall image of the company and the general perception. These ideas and perception drive their buying decisions. The lenders and suppliers are similarly affected by what the company actually stands for and not just its ability to repay. Increasing attention to business value and responsibility towards the nurturing environment (in which the business thrives) is a positively evolving trend in the business circles. The focus is on long-term sustainability of vision and operations.
Though the term CSR is widely used, many business owners and people in general do not bother to truly understand its relevance and consequence. We need to put the concept of CSR into perspective. Intelligent companies are looking into CSR as tool for corporate strategy reinforcement, as an investment and long-term vision and commitment instead of just another compliance matter. They are ensuring that the money spent for discharging CSR serves both the parties – the giver (company) and the receiver (society). The true purpose of companies is to run profitably and increase the shareholder value. It is time owners understood that CSR is not a drain of resources but a better investment than spending on a 30 second slot of TV advertisement showing their detergent and tooth paste. Tata Group and its CSR activities are legend in India. There are lives of many people across the country that has been touched by Tata's activities in one way or the other. Tata Steel was the recipient of CNBC Asia's prestigious Corporate Social Responsibility Award for the company's outstanding CSR model. Taj group of hotels concentrates on education and employability as the key areas of its corporate sustainability efforts across India.
Sowing information to reap a better harvest' is about the innovative project pioneered by Tata Chemicals Limited. TCL's extension services, brought to farmers through the Tata Kisan Sansars, remote-sensing technology to analyse soil, information about crop health, pest attacks and coverage of various crops predicting the final output. This helps farmers adapt quickly to changing conditions. The result: healthier crops, higher yields and enhanced incomes for farmers.
Procter and Gamble has espoused many such initiatives and creating a positive image amongst their prospects and customers. In India, they are focused on education – the solution to our quest for progress.
Visit SMEWORLD.ORG to read the entire article.
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