Social Responsibility Project Report Submitted in requirement for the award of the Degree of Bachelor of Business administration of Christ University
Submitted By : Niharika Jain
Reg. No. 1011557
Deepak Matwani
Reg. No. 1011515
Ayushman Barua
Reg. No. 1011513
Under the guidance of
Dr. Leena James
Department of Management Studies CHRIST UNIVERSITY Bangalore 2010 ± 2011 1
DECLARATION
I
declare that this report titled, ³Social Responsibility Project ´,is a record of
bonafide project work carried carried out by me under the supervision of Dr. Leena James, James, Class Co-Ordinator,
II
Semester BBA BBA Section-A Department Department of Management Studies, Studies,
Christ University, Bangalore.
I
further declare that this has not n ot previously formed the basis of the award of any
degree, diploma or other similar simil ar title of recognition.
Place:________________________ Date:_________________________
2
Niharika Jain
1011557
Deepak Matwani
1011515
Ayushman Barua
1011513
DECLARATION
I
declare that this report titled, ³Social Responsibility Project ´,is a record of
bonafide project work carried carried out by me under the supervision of Dr. Leena James, James, Class Co-Ordinator,
II
Semester BBA BBA Section-A Department Department of Management Studies, Studies,
Christ University, Bangalore.
I
further declare that this has not n ot previously formed the basis of the award of any
degree, diploma or other similar simil ar title of recognition.
Place:________________________ Date:_________________________
2
Niharika Jain
1011557
Deepak Matwani
1011515
Ayushman Barua
1011513
CERTIFICATE
3
CERTIFICATE
4
CERTIFICATE
5
GUIDE CERTIFICATE
This is to certify that this report titled ³Social Responsibility Project´, submitted to Christ University in partial fulfillment of the requirement for the award of the Degree of Bachelor of Business Management, is a record of the original work carried out by
Niharika Jain, Deepa Matwani and Ayushman Barua under my guidance and
supervision.
Place: Bangalore Date: Dr. Leena James
6
ACKNOWLEDGEMENT
We
would like to express our sincere gratitude to all those who have been helpful
in the preparation of this project report.
We
wish to express our deep gratitude
especially to our Class Co-Cordinator Dr. Leena James , for her skillful measures and her guidance throughout . We
would like to thank Dr. (Fr). Thomas .C. Mathew, Vice Chancellor and Dr. Jain
Mathew, HOD, for their encouragement and the chance which they gave us to explore the sorrows we never bothered about. We
are deeply grateful to Mr.
, Project Director and secretary of
, Bangalore, for the Co-operation extended by his team for us to help connect with the purpose of Social Responsibility and assembling the requisite information and also for giving us exposure to the children there. Last but not the least , we would like to thank
our Parents and Friends for
their constant help and support, their suggestions , compliments and comments which has guided us through this report and made us see the world in a more practical manner . Without
everyone¶s participation , this project would not have been executed.
THANK YOU !!
7
INDEX
Table of Content
Pg. Nos.
Introduction y
y
Introduction Introduction
to the SRP
9
to the NGO
Literature review y
Articles on CSR and their reviews
Activities y
Report of daily activities in the NGO
16
Learning Outcome y
y
Personal Experiences Objectives achieved/Recommendations
Bibliography
8
35
45
SOCIAL RESPONS IBILITY Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. (Kaliski, 2001) For instance if a company is proactive and follows the United States Environmental Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. ³A significant element of current thinking about privacy, however, stresses "self-regulation" rather than market or government mechanisms for protecting personal information´ (Swire , 1997) Most rules and regulations are formed due to public outcry, if there is not outcry there often will be limited regulation. Critics argue that Corporate social responsibility (CSR) distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations (Carpenter, Bauer, & Erdogan, 2009).
Emerging status of social responsibility Social responsibility as a non-binding, or soft law principle has received some normative status in relation to private and public corporations in the United Nations Educational, Social and Cultural Organization (UNESCO) Universal Declaration on 9
Bioethics and Human Rights developed by the UNESCO International Bioethics Committee particularly in relation to child and maternal welfare.(Faunce and Nasu 2009) The International Organization for Standardization (ISO) is developing an international standard to provide guidelines for adopting and disseminating social responsibility: ISO 26000 - Social Responsibility. Due for publication in 2010, this standard will "encourage voluntary commitment to social responsibility and will lead to common guidance on concepts, definitions and methods of evaluation." ( ISO, 2009) The standard describes itself as a guide for dialogue and language, not a constraining or certifiable management standard.
Social Responsibility ± Doing the Right Thing
Smart business decisions are not just a matter of counting up short-term dollars and cents. Wise decision-makers look down the road at the impact today¶s choices will have tomorrow: on people, on the community, and on the opinions of customers.
How ASQ is involved: ASQ was awarded the administration of the U.S. Technical Advisory Group (TAG) on Social Responsibility by the American National Standards Institute. The U.S. TAG is the U.S. member of an international working group chartered with developing an International Standard on Social Responsibility. ASQ¶s involvement is a direct extension of its existing leadership role in standards development. Social responsibility is in direct alignment with aspects of ASQ¶s long-term objective to serve as stewards of the quality movement by ensuring that ASQ activities provide increased value to society and our members.
What does ASQ mean by ³social responsibility´ : ASQ believes that being ³socially responsible´ means that people and organizations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organizations and governments
10
have a positive impact on development, business and society with a positive contribution to bottom-line results.
Why is social responsibility important«« In
recent years many consumers have been upset by widely publicized examples of fraud by executives and harmful products produced by some companies. As a result consumers have become more conscious of whom they are doing business with and which products they should buy. Many companies who are looking for long-term profitability are looking for ways to become more socially responsible. Likewise, the International Organization for Standardization ( ISO) states: ³In the wake of increasing globalization, we have become increasingly conscious not only of what we buy, but also how the goods and services we buy have been produced. Environmentally harmful production, child labor, dangerous working environments and other inhumane conditions are examples of issues being brought into the open. All companies and organizations aiming at long-term profitability and credibility are starting to realize that they must act in accordance with norms of right and wrong.´
Why should organizations get involved : People and organizations don't often understand the value of participation in standards activities in the beginning, but once involved, they see great benefits. Some of the benefits include:
Competitive Intelligence: As a member of the TAG, your company will see the drafts and related documents before the general public has access as well as have access to information about the standard throughout the development lifecycle. At meetings, experts give updates about both the U.S. and international viewpoints on social responsibility.
Networking: You are expected to do internal networking, in order to gather your company's input into the standard. Members of the TAG cross all sectors of the economy, and represent large, medium and small organizations. TAG members are from government (e.g. NIST, Port Houston Authority, etc.), large companies (e.g. ExxonMobil, Caterpillar, Hewlett Packard, etc.), organizations (SAI, ANAB, BBB, etc.) and many others. Working with representatives from these 11
organizations provides opportunities to make new contacts and understand how different organizations do business.
Skills Development: TAG members are hard-working. If you want to become involved, they will assist you in understanding standards development. Members continually perfect their skills related to completing complex, technical work, with a diverse group of people, in a limited amount of time. By reviewing the standard at each stage, you will understand the fine detail of the technical content. General discussions will give you an opportunity to become savvy about ways in which organizations interpret and will use the standard. During the in-person meetings, people present to small and large groups. Because members meet in-person fairly infrequently, you will build your skills in writing, communicating, and working in virtual teams.
Prestige: Being an insider in the standards development process is an impressive role that will be appreciated by your company, your clients and your competitors. Having your organization intimately involved with this international standard development highlights your company's position in the global economy and showcases the expertise your company brings to the table .
12
CORPORATE SOCIAL RESPONSIBILITY
µ
The most beautiful things in the world cannot be seen or even touched. They must be felt with the heart.¶ - Hellen Keller
Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model.
Ideally,
CSR policy would function as a built-in, self-regulating mechanism
whereby business would monitor and ensure its adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honouring of a triple bottom line: People, Planet, Profit. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others yet argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Corporate Social Responsibility has been redefined throughout the years. However, it essentially is titled to aid to an organization's mission as well as a guide to what the company stands for and will uphold to its consumers.
13
CSR BY DIFFERENT COMPANIES Every company now believe that corporate social responsibility is very important.
It
doesn¶t only help the employees, customers, stakeholders, etc. But the company too.A few companies and there social activities are listed below:
Wipro:
Wipro
Cares is an initiative by the
Wiproites,
their family members and friends
to contribute in the areas of education, community and social development.
Wipro
Cares
philosophy is to utilize the collective wisdom of volunteers to bring long term benefits and satisfaction to the community, as we believe that providing funds alone will not help the
community.
This is a unique corporate experiment to channelise the contributions of the matched by
Wipro,
society, Wipro
Wiproites
and the desires of Wiproites to make meaningful contributions to on
a
continuous
basis.
Cares contributes through two pronged strategy: providing rehabilitation to
survivors of natural calamities and enhancing learning abilities of children from the under privileged sections of the society.
Tata: CSR has been part of the Tata Group ever since the days of Jamshetji Tata. Even while he was busy setting up textile ventures, he always thought of his workers' welfare and requirements of the country. From granting scholarships for further studies abroad in 1892 to supporting Gandhiji's campaign for racial equality in South Africa to giving the country its first science centre, hospital and atomic research centre to providing relief and rehabilitation to natural disaster affected places. Over the years, the Tata philosophy to 'Give back what you get' has been followed by all their enterprises across
India.
As result every year, the Tata Group's contribution to
society has been phenomenal. In the fiscal year 2004 Tata Steel alone spent Rs 4 5 crore on social services.
14
Different Tata companies have been actively involved in various social work. Like Tata Consultancy Services runs an adult literacy programme, Titan has employed 169 disabled people in blue collar workforce at Hosur, Telco is fighting against Leprosy at Jamshedpur, Tata Chemicals runs a rural development programme at Okhamandal and Babrala, Tata Tea's education programme and Tata Relief Committee (TRC) which works to provide relief at disaster affected areas.
INDIVIDUAL SOCIAL RESPONSIBILITY Just as it is said that work begins at home the same way before entering the business world and practicing corporate social responsibility we need to believe in
Individual
Social Responsibility. Socially responsible individuals show ³community-mindedness´ in their responses to school, local, national, and global issues and events. This attitude is the basis of a functioning and flourishing democratic society. It helps in the following spheres: Contributing to the classroom and school community y
sharing responsibility for their social and physical environment
y
participating and contributing to the class and to small groups
Solving problem in peaceful ways y
managing conflict appropriately, including presenting views and arguments respectfully, and considering others¶ views
15
y
y
using effective problem-solving steps and strategies
Valuing diversity and diversifying human rights y
treating others fairly and respectfully; showing a sense of ethics
y
recognizing and defending human rights
Exercising democratic rights and responsibilities y
knowing and acting on rights and responsibilities (local, national,global)
y
articulating and working toward a preferred future for the community, nation, and planet²a sense of idealism
BBA STUDENTS FOR SOCIAL RESPONSIBILITY
y
Christ College is a ³Nurturing ground for an individual¶s holistic development to make effective contribution to the society in a dynamic environment.´
y
The above stated mission statement of Christ College tries to inculcate its students with holistic and social development in today¶s changing global world. This Social Responsibility Project has enlightened
us with social responsibility and ethics. Every one amongst us has put hard work in this project to know the importance of social service in life.
y
In
course of this project we worked at
learnt about the functioning of a Non Government Organization working for development of
the
children from all sections of society who are mentally and
physically challenged .
16
and
y
We
also are very grateful to the members of the trust and the other volonteers
who helped inculcate the spirit of social responsibility within us. This whole project was a knowledgeable and a memorable experience.
ARTICLES
ON
CSR
Five ways for a head of CSR to break in a new CEO An Article from Business Respect, Issue Number 171, dated 9 Nov 2010 By Mallen Baker Marc Bolland, the new chief executive of leading UK sustainability champion Marks & Spencer, launched his new strategy today. In so doing, he reversed certain things that had been started by his predecessor, Stuart Rose. Certain sub-brands. Positioning in regard to foreign expansion. One thing he didn't change, he mentioned pretty much in passing, was the company's commitment to Plan A - its sustainability programme. Every new CEO comes into the job with the intention to be a new broom, making their mark early as someone that can lead the business to greater heights. How does a head of sustainability or CSR ensure that the company's commitment to social responsibility is a beneficiary, not a casualty, of such a clean sweep? Of course, a lot depends on the character and conviction of the person concerned. If they come in believing that CSR is a communist plot to force businesses to sell their shareholders short - well, at best you're reorientating your approach to play the long game. At worst, time to dust off the resume. Conversely, if you suddenly find you've acquired a committed and convinced champion, the following action points become easier. A LOT easier. Here are some thoughts. 1. It begins before the new guy arrives. Very rarely is a new CEO going to slam on all the brakes and believe that the way forward is to completely reinvent the organisation. Even when a company's systems are seriously broken, the CEO is going to be looking out for what works that they can build upon. Make sure that one of the things they see is that commitment to sustainability. 17
So maybe the old CEO didn't see sustainability in a strategic way. Maybe the vision for how the company will be successful in the future doesn't quite match the scale of the challenges you know actually lie ahead. But at least you should be planting seeds in each of the business units, trying to get them to recognise and move on their most immediate issues. If, when the new CEO arrives they look across the business and see good things happening in all departments on sustainability, they might just be open to the argument that since it is such a widespread corporate asset - one way forward might just be to utilise it better. And show what's being done more effectively to the customer. And, of course, if it's an internal appointment that director currently at the head of the company's fastest growing product line might just become the new CEO. So begin the work of winning over all the top executives BEFORE they get to the top job. It will be much easier than starting from scratch at the same time as everyone else is queueing up for some face time with them.
2. Know your leader - find the areas of common cause
New leaders don't emerge as a blank slate onto which anything could be written. They have a history - a record of achievement (and a certain amount of political gameplaying) that ultimately took them to the top slot. As soon as you know who the new boss is going to be, you need to find out a little bit about their track record. Were they involved with dealing with CSR issues in their previous role? If yes, which ones? What was their style in that role? How did they work with their team? What were they trying to achieve? Leaders usually go to a new company and do pretty much what they did at their previous company that they believed worked. It may not be identical, but it will be similar. The aim is to find the point of strongest agreement, so that when you are first briefing your new broom on what you do, you can make it sound effective from the beginning.
3. Identify
the quick wins that can pay benefits INSIDE the business
No CEO is going to be approving bold and ambitious new plans or ideas in that early period, especially if it involves product or customer (unless they're ideas that are tried and tested in their last role). But equally, you need to be able to show that this is a key element that needs to be factored into those discussions. So your short term objectives are two-fold. First, show that you can provide the CEO with some easy wins internally because of the company's sustainability programme. If you can show how much the firm's employees value its commitment to sustainability, 18
and have something that is nearing fruition, then getting the CEO to launch / champion something is a great thing to be able to offer. Secondly, whilst giving early wins and earning some space in the diary for that first 100 days, you should be outlining how momentum is gaining ground so much across the company but that this could be a much greater asset with the customer than it currently is.
4. Understand that it's not just about logic and strategy If
business decisions were primarily logical and focused on which strategy made best sense for a particular company in a certain market - well, no new CEO would change a thing. Because the strategy that had been set
would be the right one. But of course new CEOs change strategy pretty universally. It is about choice and preference, and - let's be honest - a host of other things that are not necessarily rational in a purely business sense. A new CEO wants to build an effective business, because that's what will define the ultimate judgement on performance. But they might also want things that make them look or feel powerful, or compassionate, or clever. They will want things that show they are decisive and in control, or open and listening. They will want to feel welcomed and supported, even if their official position is that it's not important to them. Great salesmen have understood for decades that you don't sell a product or service to a company, you sell it
to an individual who happens to be the buyer. If they like you, if they feel you're there to make them look good to their boss, or to their extended peer group, they are more likely to buy from you.
5.
Get the customers on side in selling to the CEO
Ideally,
when you know that a change is approaching - but certainly very soon after it has taken place - get some smart customer research that looks at attitudes relating to the most pertinent issues to your products and brand. If you can show that customers expect certain standards from you - that they believe 19
you are socially responsible and that makes them more loyal or, in the unfortunate case that's not what they say, why they feel disloyal - then you have a powerful tool. Show why it is a benefit to the business to understand its customers as citizens, not just as consumers. Highlight some of the risk areas where a social responsibility issue might lead customers to turn away. Highlight the opportunity areas where you can build of more lasting, solid relationship with customers by meeting them on their values, not just their material wants.
REVIEW Every new CEO comes into the job with the intention to be a new broom , making their MARK , but their views on CSR is whats beneficiary or their casualty is whats important : 1. Every CEO will not start from scratch in a new business , even if the organization is a sick unit . he would rather build up on the strong parts . 2. Every leader will have a track record of their achievement ; find those and his work experience related to CSR in his history . 3. Identify
the quick returns. Show the new CEO the feasibility of new ideas with respect to CSR. Show your worth within the first 100 days .
4. Understand that everthing is just not about strategy and logic. You need to be effective , powerful and influential. Thus define their commitment to CSR. 5.
Get the customers on side in selling to the CEO. If the customers believe they are loyal to you and that you are socially responsible , it¶s the most powerful tool .
Integrated Reporting - The gulf between theory and practice An Article from Business Respect, Issue Number 170, dated 21 Oct 2010 By Mallen Baker The growing profile around integrated reporting is a good thing. It will take us into places on sustainability reporting we probably wouldn't have gotten to otherwise. But there's some wishful thinking going on that probably won't be part of the reality.
Let's just recap. We currently have financial reporting. captures (an incomplete picture) it captures well.
20
Well
established. Clear audience. Clear set of rules. For what it
And we have CSR / Sustainability reporting. Newly arrived and evolving. Multiple audiences. Vaguely expressed and debatable rules. It captures something important, but not yet well enough. And now we have a move for integrated reporting. Bringing the two together. Now the smarter commentators are making clear even at this early stage that it is not enough simply to bring the two documents together. That's not the point. It's
about joining up the information given to help people understand the company. Investors need to know about all the non-financial aspects that affect the long term prospects for the company. If they understand these things, it will
help them to interpret the figures better. It will help them to make informed predictions about future performance. And that's the holy grail. But it's also about helping give other stakeholders a clear picture about the whole company. And that's the tricky bit, because ideally these communications will take the form that those stakeholders can use - not the form of a one-off annual report with lots of numbers in it. Therefore, the advocates of integrated reporting urge tailored communications aimed at the needs of specific stakeholders. Reporting should be seen as an ongoing communication process, not just a one-off once, or even four times, per year. I agree with these advocates. If I work with any company on reporting (and I won't work with many) then it is because they want to look seriously at how they communicate with - particularly direct - stakeholders. But I don't believe that's the way it's going to happen. Why? Because it takes a lot more time and focus. It takes real empathy and creativity. It requires you to know what the message is for employees, what for customers, what for suppliers, what for local communities. It is like doing four reports in four different languages whereas before you did one in your own language. And those stakeholders are not demanding that you do it. Just like nobody was asking for an iPhone until they saw one. You have to see it first to know that you want it. More likely, it will happen exactly the way we're all saying it shouldn't. Companies will just merge reports. The good ones might produce a short brochure aimed at other stakeholders, but they will focus on one-off reports, and they will bring them together. That will still be a good thing. I do see this situation as preferable to the current status quo. Reports that pretend to address the needs of all stakeholders are not sustainable because they are always vulnerable to the charge that they are launched into a vacuum of indifference. Of course, there is still everything to play for. Standards get shaped by what people do, not by what theorists imagine. The early wave of companies embracing integrated reporting will largely have the ability to define it. That is the opportunity and responsibility.
REVIEW The growing profile around integrated reporting is a good thing , but not everything is going to be real. Its not easy to mix the 2 documents , that is , FINANCIAL REPORTING and CSR . Its not just about the reports , its about joining up the rinformation to help people understand a company better. The companie¶s target is the stakeholders and they will only realize that these INTEGRATED reports exist if they SEE it . 21
But atleast they will get the idea what they are dealing with . reports like these are not sustainable , because they are proposing INDIFFERENCE directly. But still standards get set by what people do and not by what theorists imagine. Thus this integrated reporting can definitely be a responsibility and opportunity in the near future .
Reply to the Case Against CSR - The Latest Version An Article from Business Respect, Issue Number 169, dated 26 Aug 2010 By Mallen Baker The Wall Street Journal recently carried a piece by Aneel Karnani, associate professor of strategy at the University of Michigan's Stephen M Ross School of Business. Karnani was the author some years ago of a thoughtful and trenchant critique of the 'Fortune at the Bottom of the Pyramid' work of CK Prahalad, which I wrote about at the time. Now he has turned his attention to an attack against corporate social responsibility generally. Unlike his previous critique, the CSR arguments draw upon well-trod ground. The summary goes something like this. * Executives owe a single duty in their jobs - to maximise returns for shareholders. * Where the interests of company and society are aligned, then maximising profits can work to the benefit of society. But it isn't CSR. * Where the interests of company and society are opposed, then executives have no business looking to the benefit of society, because it's against the interest of their shareholders. * It is the job of governments to worry about society. They should introduce the laws, taxes and other incentives to make sure that companies can operate without having to worry about such things. This line of argument is simply the most recent expression of the rationale that goes back to Milton Friedman. It has the illusion of being based on mathematical certainty - where there is no such thing - and carries a value judgement that we have a duty to question. First, the maths. People that argue that the duty of CEOs is to maximise profits for shareholders imply that it is possible to know in advance how this is to be done. At the very least, they carry the implication that it is all about the cash - and any dilemma or problem can be resolved by calculating how it will impact the bottom line in the short term. You would think that - post financial crisis, post BP oil spill - nobody would use such arguments with a straight face. But never underestimate the resilience of old ideas even in the face of new realities. How does one make profits? By and large by providing goods and services that customers want and prefer, with the agreement of society. The best CEOs describe this task in terms of getting the right people and looking after them, finding the best products that meet customer needs in new ways, and doing so in a way that governments, their employees and customers feel good about in terms of the impact on society. That is not the only way to make short term profits, of course. And that is the point. There is a choice. Auto makers in the US for years fended off legislation to improve energy efficiency standards, and were supported in so doing because of customer indifference to fuel efficiency during a time of cheap oil. Companies in other countries - notably Japan - took a different approach. Rather than ONLY asking 'what does the customer want today?' - which they did, of course - they also asked where society, and the science of climate change, was taking us into the future. They created the vehicles that would begin to meet those needs before the customer had actually got there. 22
Had US companies had more of a care to the environmental impact of the vehicles they might have survived in better shape. As it is, they went to the brink. The fact is that businesses only do well so long as they provide things that people want. Those that see opportunities to make their products serve their customers well and benefit society will generally do well if they execute effectively. Profit maximisation as a strategy has been historically poor in actually delivering profit. Ask the banks. So much for the maths. The other aspect is to do with values. The argument that says that the role of the executive is to maximise profits regardless of the consequences depends upon a view of business as standing apart from society. This is just not true, and neither should it be. Businesses will do well in a healthy society, with a thriving economy and a robust natural environment. These are life support systems for the business, they are not unnecessary distractions. Few businesses will thrive as little islands of prosperity alone in a sea of deprivation. This is why, through history, businesses have often supported education. They understood easily and intuitively that if people were generally better educated, it would pay dividends for them when they were recruiting into the workforce. Such things, according to Karnani, are best left to governments. So, on that basis, those companies like Anglo American who gave AIDS support to their workforce, their families and local communities at a time when the South African government was officially in denial about the disease - these companies were going beyond their brief. And when Hurricane Katrina ripped through New Orleans, Wal-Mart should have sat on its hands and nursed its profits, not mobilised its logistical network to the benefit of the country on the basis that it had a better position to do so than did the federal government. Such a position is to deny that companies are a part of society, and that therefore they have no role as corporate citizens. Without being silly about it, it is time to challenge the absence of values behind such a position. We create our own reality. If we want businesses that have values, we can have that. It is our choice, as a society. The law of 'profit maximisation' is not as immutable as the laws of physics. It may not be the primary role of a business to alleviate poverty, as Karnani says, but it benefits business if poverty is minimised. Henry Ford understood this when he paid his workers more, seeing the logic that this would make them able to afford to buy his cars. Of course, that led to the first shareholders' action against Ford in 1919 that disputed his right to pay workers more, because this reduced profits. The case (Dodge vs Ford) was won - and serves as the origin of the logic over profit maximisation in the first place. have seen no shareholders attacks on, for instance, Marks & Spencer for adopting a highly ambitious 'Plan A' programme prompted by climate change. The company's board reviewed Al Gore's presentation on An Inconvenient Truth, and came to the conclusion that business in the next decades would have to evolve radically to meet the new demands that would emerge from our fast-changing world. I
On the one hand, you could say they went far beyond their brief. But they have found a way to make real progress whilst continuing to make profits - indeed many of the things they do add to the profits. But that was not clear before they took the commitment. The commitment came first. They found the way to make it work to the benefit of the business. That is what it means to make a choice. That is corporate social responsibility.
23
REVIEW CSR arguments draw upon well ± trod grounds. 1. Executives owe a single duty ± maximizing returns .
2.Where interests of the company and the society are aligned , then maximizing profits can work to the benefit to the society. But this isn¶t CSR . 3.If
the interests of the company and the society are opposed , then corporate donot give any importance to CSR . 4.It¶s the job of the government to take care of the society , not the corporates. At the end of the day , its actually a choice of the corporate to earn profits through CSR or not because they would care about making profits more than they would care about the society as that¶s (according to them) the government¶s job.
How good companies create bad outcomes in the supply chain An Article from Business Respect, Issue Number 168, dated 2 Aug 2010 By Mallen Baker It
used to be all about blame. Company X uses suppliers that have abusive working conditions, or child labour. They are cynically turning a blind eye to evil practices to benefit their bottom line. The company executives probably never once had a discussion that said "just as well the world doesn't know that our suppliers exploit children. That will help us to deliver extra value to our shareholders". Instead,
they just didn't know - and they didn't know that they were supposed to know.
But the world changes - and in the internet age it has developed a consistent knack for letting you know what you are supposed to know. As a result, plenty of companies began trying to control the ethics within their supply chain. Codes of conduct. Factory audits. All that. After all, they didn't own those factories - now that they understood they couldn't cast off all responsibility for them, they had to find some way of controlling them. And that was right - but it was only the next step on the journey. Increasingly
now many of those companies - and particularly those in the fashion industry - are coming to terms with the realisation that it is industry purchasing practices that create many of the problems. Fashion is an exciting whirlwind of 'the latest thing'. But late decision making (in order to catch the very very latest trend), shorter time demands generally, and changes to orders or cancellations - all these factors make it far more difficult for supplier factories to stay in compliance with ethical codes. Add to that unstable relationships and extreme downward pressure on prices and you have a set of circumstances where the unintended consequence of buying behaviour guarantees non compliance 24
Time and again, it simply means putting the people that make decisions in touch with the consequences of those decisions. It has been too easy in the past for fashion designers and buyers to develop such a one-way focus on the fashion elements to miss the realities of how the clothes then actually get produced. Then there is the process of getting feedback. If you see your suppliers as partners, rather than scoundrels that will rip you off at the first opportunity and must therefore be played off against each other, then you can get better insights into how your own process works. Because the people on the ground know where the problems are better than you do. Levi Strauss again: "When we've asked for feedback from our suppliers, we've discovered that sometimes the best insights actually come from the people working in the factories."
This is why stakeholder engagement is important. It is often overcomplicated. But it is one mechanism for companies better understanding what are the consequences of their decisions. Most people will insist on believing that irresponsible corporate behaviour comes from bad people at the top aiming to make a profit at any cost. But the fashion companies have come to the realisation that many of the best practices help to improve quality and drive down costs, as well as achieving social benefit.
REVIEW The company executives never once discus ³our suppliers exploit children´. They just don¶t know ««. And don¶t know that they were supposed to know. They are cynically turning a blind eye to evil practices to benefit their bottom line. 9 out of 10 times , i rresponsible and unethical behavior comes from bad system design , where perverse incentives are created to do the wrong thing. But the world is changing , and as a result , a lot of companies are taking due interest in CSR « conducting factory audits , etc. to keep their status and be a little bit responsible towards the society .
Spotting responsible companies - blink and you might miss it An Article from Business Respect, Issue Number 166, dated 10 May 2010 By Mallen Baker We
have a lot of sophisticated tools out there now for spotting socially responsible companies. We have indices, and awards, and quality standards - you name it. Between them, they look at every management process you can think of, and cover every issue that might affect a company. But what if all that information gets in the way, rather than helps In
his book 'Blink', Malcolm Gladwell tells the story of the statue that didn't look right.
An art dealer sold the J.Paul Getty Museum a marble statue, apparently dating from the sixth century BC. The museum was cautious. It studied whether the statue was stylistically consistent. It tested the material it was made of and ensured it was the correct age. It analysed it using an electron microscope, electron microprobe, mass spectrometry, X-ray diffraction, and X-ray fluorescence.
25
The statue came through with flying colours. It even had a layer of calcite on the surface, which could only appear after thousands of years, showing that it ws genuinely old, not a modern fake. One day, an expert on Greek sculpture Evelyn Harrison was taken to see the statue. As the cloth was removed and she laid eyes on it for the first time, she immediately declared it to be a fake. She couldn't explain why she thought this. Another two experts also proclaimed it to 'feel wrong'. Of course, they were right. So how could it be that all the sophisticated tests had come up positive, but experts that took one look - without being able to explain why - intuitively knew that this was a fake? Because the human brain is very good at coming to subconscious conclusions about complex matters. In the right circumstances, the intuitive 'gut feel' can be more accurate than all the tests you can devise.
REVIEW Human brain is very good at coming to subconscious conclusions. So what if a company has a good environmental policy ? So what if it has visionary products - HYBRID CARS ? B ut thet doesn¶t tell us how well the company will cope with another CSR D ILEMMA «. Like safety and product calls. Even if they win awards and accolades reviewing and comparing companies on responsible and ehical grounds is what will provide sound judgement in the future. But companies still give priority to investors for their decisions , thus rank them. They are just not competent to provide th at degree of certainty .
26
It We
was our first day to the organization. started off at 11:00 a.m. sharp .
We
were introduced to
the children there.
First, they were a little shy to communicate with us. Then the warden gave a helping hand and made them as well as us feel comfortable. We were little hesitant as we did not know the local language, but we were surprised to see that the children knew how to communicate ,very slightly though , in English which made the conversation a little easy . We shook hands with them and shared our profiles . they were using a lot of hand gestures because a few of them couldnot talk and this was something different that the three of us had noticed . They had a very good way of communicating through their hands and other features and their body language said a lot which they couldnot speak .
Around 12:00 noon ± 12:30 p.m., they were called to have their lunch. We saw how the handicapped children were having their food. The ones who were physically challenged in the case of their hands and eyes, they were fed by 27
the sisters there. We asked the sisters if we could feed them . The sisters kindly offered the plate to us to feed them. We could see the smiles on their faces. We could never imagine that doing something so small can bring so much happiness around. We could see the children smiling and having fun. We too were having a lot of fun. They are truly the special children of GOD. After lunch, we played some games with them like ludo, etc. t was already 3:00 p.m., it was their afternoon sleeping time. The children did not feel like sleeping as we were around but they had to go to bed as they were asked to and it was a routine . We decided to stay with them till they would go off to sleep. We were telling them stories so that they could sleep. Around 4:15 p.m. there was a silence in the room and the children were calmly taking their afternoon nap. I
We
thanked the warden for letting us spend such a wonderful children and were waiting for another exciting day ahead .
......................................................... End ««««««««««««««
of
day
time with the
1
Our second day to the organization. We again started at 11:00 a.m. sharp. It was the Christmas so we thought of taking balloons for them. When the children saw us they were delighted and their eyes twinkled for the balloons that we got for them. They were all shouting and all. We also played music for them.
28
That day we did not teach them but were just with them and sharing our thoughts. It was lunch time again so they were called for lunch. It was a special lunch. There were cakes and soft drinks along with the food. After the delicious lunch there was a talent show by the children there. We were surprised to see the talents these children possessed. A girl named Nirmala who was blind, she was the nightingale. Though we did not understand the song as it was a south Indian song, she sang beautifully. There was another boy who was physically challenged by his hands, he was unbelievable. He drew a beautiful scenery with his legs and a piece of chalk on a small black-board. We were shocked to see that boy doing his master-piece. There were many more singing and dancing. We were so glad to have shared such beautiful moments with them and we will always cherish these moments. It was 4:00 p.m. and we thought of moving as the children were tired . They went for their afternoon nap then and we headed towards home.
««««««««««««« End
29
of
day 2 ««««««««««««..
It was our third day to the organization. We started at 11:00 a.m. sharp. We saw the children in the room. Some were watching the television. Some were listening to the stories and the poems which were recited by the nurses. We came and gave them sweets. Then the warden asked us to teach them mathematics for that day. We called all of them and they were listening to us patiently. We taught them the simple mathematics. After an hour and a half of mathematics and some fun the children were called for lunch. After lunch we were all sitting on the terrace and sun bathing. We were playing marbles with them. We were enjoying so much that we did not even realize how the time had passed. It was 4:00 p.m. already. We were putting the children to bed for their afternoon rest. Then we moved towards home at 4:30 p.m.
««««««««««««.
30
End of day 3 ««««««««««««..
It was our fourth day. We were off at 11:00 a.m. sharp. As usual we were with the children. That day a girl named gita was playing ludo then suddenly by mistake a boy pushed a desk and the desk fell on her foot. It was really bad. She was crying. Her toe was bleeding. They soon took her to the hospital. Abhinav carried her to the van. And then the nurses took her to the hospital. It was really sad. For lunch when they were called. The children happily had the lunch as they were unaware of the depth of the situation which took place in the morning with gita. After lunch we had put the children off to bed and waited for gita to return from the hospital. After half an hour she returned safely and her foot was plastered. We took her to her bed and gave her some food. She was calm and had her food. Then we put her off to bed. We had a conversation with the warden and then she said that she had to take injection and she was crying but everything was fine later on. Then we moved towards home with a silent prayer for gita.
««««««««««««.
31
End of day 4
««««««««««««..
It was the fifth day. As it was the las day, we thought of taking something for the children. We took few comic books and puzzles and chocolates and some clothes that we could manage. That day we took many photographs, unfortunately the camera battery was low of charge so we had to click pictures from the cell phones. They were very excited that we were clicking their pictures. They were excited about the gifts that we got for them. The sweet smiles on their faces were so relieving. That day we had food with them and also fed them. We really enjoyed. That day we tried to spend some quality time with them. That day they did not sleep in the afternoon. We were and enjoying the quality time we spent with them. Indeed, it is cherish it.
a
very
memorable time of our
lives and
all
together
we will always
«««««««««««««. End of day 5 ««««««««««««« 32
OUR
PERSONAL EXPERIENCE
This was our first experience with an organisation like this, and we have had a really amazing and wonderful time. Initially when the Social responsibility project was given to us, it felt like a just another assignment which will take away a major part of our time. But on the first day of working in the NGO itself our opinions totally changed. Reading and playing with the small kids there made me feel a great sense of pleasure. They were so innocent and so dedicated to studying and learning which most of us waste when we get the opportunities . The morals and values instilled in them werevery good . The thing which made us want to teach them was their eagerness to learn and their respect and fondness for anyone who taught them. The kids really touched our hearts. They were always happy learning, and never cribbed about their sorrows which were probably more than anyone present in this room at the moment .
When
a girl was
asked, what¶s the best part about the place , she said that she liked it that whenever she did something wrong she was punished for it because it gave her the feeling that people cared because at home there was no one to see what she is doing and so no one corrected her either. There not only the children but even the volunteers were very friendly and caring. They make you feel at home. The efforts of the nurses were absolutely astonishing. It amazed us to see the people who were handicapped living without any regrets or expectations from the world. They were innocent. They welcomed us as if we were celebrities and made sure that we didn¶t have any problems. To conclude, we would just like to say that this experience will always be remembered. We
learnt a lot of things from the kids PATIENCE being one of the major ones . It made
us realise the importance of helping others and also that we should be grateful for
whatever we have.
33
CONCLUSION Non Governmental Organizations or NGOs perform multifarious jobs for the development of the people and society. They are non-profit voluntary groups organized at the local, national or international level. Non-governmenetal organizations either campaign or advocate sensitive issues, work on capacity building programmes, concentarte on social research, or provide significant networking opportunities. NGOs are not directly involved in the structure of the government but at the same time they cannot work without the support or help from the government. NGOs bring up issues and concerns of the people to
the
In India
government
and
policy
makers.
there are several types of NGOs performing a particular job or jobs. The sectors
have been wide spread across the country especially in rural and remote areas. The types of NGOs in India include volunteer sector, civic society, grassroots organizations, transnational social movement organizations, private voluntary organizations, self-help groups (SSG) and many other related organizations. NGOs cover areas that include welfare of street children, women and old people, youth, slum dwellers, child labourers, sex workers, and landless workers. Every individual should take out some time from their hectic schedule for helping the under privileged people. Working
with this particular NGO has made our eyes open to the world where
everyone is not priveledged. Every child is not as lucky as we are to have 2 eyes , 2 legs , 2 hands , etc. but still they are happy and living their lives with satisfaction . some children are not as clever as we are or not as intelligent . After working here , we can see people struggling and et very innocent to the world beyond their set boundaries. need to appreciate this and move forward keeping in mind that
WE
DIFFERENCE AND HELP THE SOC IETY TO BE A BETTER PLACE TO LIVE IN .
34
We
CAN MAKE A
