4th Wheel April 2011 Newsletter
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Transcript of 4th Wheel April 2011 Newsletter
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8/7/2019 4th Wheel April 2011 Newsletter
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April 2011
A portal to ignite energy and enthusiasm towards CSR
INTRODUCTION TO THE NEWSLETTERThe fact that Corporate Social Responsibility (CSR) has gained tremendous importance cannot be debated.
Owing to globalization and increasing economic power and
influence in society, the business sector has been assigned or gained
a new role in society. There has been an increase in the expectation
from businesses in the role they would play in the betterment of
society.
The United Nations Global Compact, a policy initiative for
corporate entities committed to aligning their businesses with
universally accepted principles in areas such as human rights, labour,
the environment and anti-corruption, and the voluntary guidelines on
Corporate Governance and CSR released by Indias ministry of
corporate affairs in 2009 are two examples of the heightened
importance of CSR nowadays.
There has been a drastic change in the way CSR is perceived. It
is no longer about charity. There has been a shift to profitable and
sustainable business models to combat underdevelopment.
One way has been the use of organizational skills to create a
social impact. For example FedEx Corp., the worlds largest logistics
services company, provides contributions as well as logistics and
transportation support for emergency and disaster relief. Microsoft
Corp. launched Unlimited Potential (UP), a global initiative focused on
imparting technological skills to disadvantaged individuals through
community-based technology and learning centres.
The other wave has been of socio-commercial investments, suchas technology multinational Apple Inc. donating computers to schools,
thereby increasing the usage and appeal of their systems.
Another popular method has been to integrate CSR with a
companys business model, such as in the case of Starbucks Corp.
working with Conservation International, a not-for-profit that seeks to
protect ecosystems and biodiversity in order to ensure human health,
to support farmers in minimizing their impact on the local
environment.
This reflects an increasing understanding among businesses that
they can play a positive role in societies where they operate and invest
and contribute to social and economic development.
Looking at current trends and the heightened sense of
responsibility of business houses, it is essential to get the ball rolling
and ignite enthusiasm and dialogue on CSR. This newsletter aims to
increase awareness of CSR among corporate entities and the masses
and invite views on pressing social ills and problems.
United Nations Global Compact
Never before in history has there been a
greater alignment between the objectives of
the international community and those of the
business world! Common goals, such as
building markets, combating corruption,
safeguarding the environment and ensuring
social inclusion, have resulted inunprecedented partnerships and openness
between business, governments, civil society,
labour and the United Nations.
CREATIVEPHILANTHROPHY
In this issue
Pg 2 -ExplainingCSRPg 3 - Our Influences
Pg 4 - Currentendeavors
Pg 5 - An introduction to
CSR in India
Pg 6 - 4th Wheel
suggests...
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CSR is the continuing commitment by business to contribute to
economic development while improving the quality of life of the
workforce and their families as well as of the community and society
at large.(World Business Council for Sustainable Development)In its broadest sense, CSR refers to the firms consideration of,
and response to, issues beyond the narrow economic, technical, and
legal requirements of the firm to accomplish social benefits along
with the traditional economic gains which the firm seeks (Davis,1973).
CSR basically focuses on what an organisation does that affects
the society in which it exists (Stone, Social issues in business, 1987)
CSR is a commitment to improve community well being through
discretionary business practices and contributions of corporate
resources. (Philip Kotler and Nancy Lee, Corporate Social
Responsibility, 2010)
EDITORS
NOTECorporations have gained
immense clout in theprevailing form of
capitalism. The role of
businesses in facilitating
development has long been
debated. We have
progressed to a society,
where businesses are no
longer based on the sole
motive of profit
maximisation. There has
been an acceptance of the
role they can play in
making the effects of
globalisation and business
operations, positive and
reducing the ill effects
by conscious efforts.
These efforts in a broad
sense are termed as
Corporate Social
Responsibility. CSR is an
evolving concept and is no
longer random charity or
philanthropy but is now
looked as key to business
operations, sustainability
and development.Thisendeavorby thecorporate sector should be
accompanied by appropriate
State assistance, guidance
and regulation. Civil
Society and International
Organisations can also
encourage and make CSR
more effective.
This introductory issue
introduces the concept to
the reader and attempts to
generate dialogue and
discussion on the subject.
The 4thWheel, a start upthink tank, in operation
since September 2010 uses
this medium to communicate
their beliefs, interests
and on going projects,
hoping the literature
transpires into ideas,
innovations and support
for CSR.
..WHAT IS CSR?
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INFLUENCES According to Bill gates, self interest is just one of twoforces in human nature. The other is caring for others.The book asserts that the genius of capitalism is that it makes self
interest serve the general interest. Philanthropy and government are
supposed to address our caring for others but there is not enough
philanthropic or government money to solve the worlds problems. It is a
dialogue and presents notable articles by professionals who discuss a
reversed system which should use profit incentives where possible. But
even where profits are not possible, there is a market based incentive:
Recognition. Positive recognition is good for a companys reputation,
good for attracting customers and good for attracting employees.
Creative capitalism is a system where incentives for both profits and
recognitions motivate both self interest and caring for others. Under
creative capitalism, governments, businesses and non profits work
together. Bill Gates gives suggestions of corporations donating money
or products and corporations spending money or using technology to
find new markets in poor countries. An apt example is Tiered pricing
wherein a drug company has a valuable patent and charges full
monopoly price in the developed world but lets poor world
manufacturers produce for less than one dollar a dose. Another example
he gives is the Bono (RED campaign) model under which products are
sold with a small percentage of the profits going to worthy causes in the
poor world.
C.K. Prahlad (2005) has stated that The idea that the
private sector can and should be involved in creating
market-based solutions for the worlds poorestconsumers is gaining credibility.
He highlights various case studies, a noteworthy one being,
Jaipur rugs, operating in India and elaborates on how a company can
benefit the poor by connecting them with global markets. Jaipur rugs
makes this connection by building and orchestrating a global supply
chain on a massive scale- one focussed on developing human
capability and skills at the grassroots level, providing steady incomes
for rural men and women in the most depressed parts of India and
connecting them with market of the rich, such as the US. He gives an
example of the cell phone revolution which has demonstrated beyond
doubt that there is a market for world class goods and services if they
can be made at accessible at affordable prices. The cell phone, we can
say, has shown that the Bottom of the pyramid is not just a market but a
source of innovation in business models and applications. It has
transformed the lives of the poor. We can do well and do good
simultaneously. He mentions organisations which help the handicapped
walk, helps subsistence farmers check commodity prices and connect
with the rest of the world. There are banks adapting to the financial
needs of the poor, power companies reaching out to meet energy
needs, and construction companies doing what they can to house the
poor in affordable ways that allow for pride. He also mentions the
chains of stores tailored to understand the needs of the poor and to
make products available to them.
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CSR in rural areas of Gujarat
Business thrives on a prosperous society. India has 638,596 villages. The rural population is
72.2% (Census of India, 2001). These basic facts make it an important task to cater to
contemporary Indias rural population and their quandary.
The private sector has gained importance and plays a critical part in the growth of rural
India. Their role can be looked at in two different ways, one is to bridge the gap left by the
government and the other to increase their markets. For example when a corporate builds a road
in rural India it not only benefits the community as whole but it is also beneficial to the corporate
which can use these roads to deliver their products to the rural market which stands very
important to them as two-thirds of the country's one billion consumers live in rural India, where
almost half of the national income is generated.
In April 2011, we shall initiate a 6 month research project to document CSR activities in
rural Gujarat and the test the impact and the effect it has on the beneficiaries residing in rural
areas. Examples if companies undertaking CSR in rural areas areAdani Foundation, which works
in the rural areas for agriculture, animal husbandry, water conservation, village institution
building, capacity building and amenities to fishermen, L&T's rural development programs which
touches the lives of people in remote villages and isolated communities through comprehensive
packages of medical services to the communities and ACCs contribution to the rebuilding effort
after the 2001 earthquake in Gujarat which was unique.
Gujarat Livelihood Promotion Co. Ltd (GLPCL) signed agreements at the Vibrant Gujarat
forum, with at least 30 firms, including Reliance Retail Ltd, Tata Motors Ltd, Future Group, ITC
Ltd, Arvind Ltd and National Spot Exchange Ltd to create livelihood options for the rural poor.
These case studies and interventions shall be showcased and understood, thereby leading
to more effective and long lasting change in how CSR is currently undertaken.
Self Sustainable Business
models.An Effective form ofCSR investments.
In India, most CSR funds are
utilized to dole out charities.
There is a dearth of awareness of
business models that lead to
sustainable and inclusive growth and
development in society. Most CSR
activities are charity and fail to build the
capabilities of the beneficiaries.
Through this seminar, we propose
to discuss methods of more effective
use of CSR funds, educate people
about CSR and the need to move from
charity to focused CSR, create a
platform to increase the scope of PPP
models and provide ideas and options
for meaningful CSR. The seminar will
take the participants through CSR
models/case studies of sustainable
projects which are currently running
successfully and the different sectors,
areas and social issues where
sustainable models could undertaken
and how corporates can execute these
ideas.
This is an endeavor to build alliances,
provide opportunities for people to
participate and engage in solving
pressing social issues and share
experiences of agencies involved in
social development, social change and
CSR operations.The speakers will be
reputed academicians, development
professionals, corporate employees,
and NGO spear headers, amongst
others who have achievedcommendable laurels in their respective
fields.
SEMINAR 04/11
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THE TRUSTEESHIP PRINCIPLE
Charity and philanthropy is not new to India. Mahatma Gandhi
spoke of the trusteeship principle. The trusteeship principle is about
equity and sustainable growth.
The principle asserts that organisations have an obligation to see
that the publics interests are served by corporate actions and the way
in which profits are spent.The Gandhi ashram was established and
supported with the charitable acts of big industrialists and philanthropic
individuals.
Indian industrialists were pressurized to demonstrate their
commitment to social progress increased during the independence
movement, which resulted in the development of the notion of
trusteeship, by Gandhi, whereby the owners of property would
voluntarily manage their wealth on behalf of the people. Gandhis
influence prompted various Indian companies to play active roles in
nation building and promoting socioeconomic development during the
20th century. This trend had continued till date and has increased in
scope and extent.
The Gandhian principle
of trusteeship (Gandhi
M.K. Harijan, 1927)
expresses the inherent
duties of the business
enterprises to its
consumers, workers,
community and themutual
responsibilities of
these to one another.
INDIA AND CSR
CSR Voluntary Guidelines
The guidelines were issued at the
conclusion of the first India Corporate
Week in late December 2009
The guidelines set out six core elements
for companies to address
Covered in the core elements are areas
related to 1. Care for all stakeholders; 2.
Ethical functioning; 3. Respect for
workers' rights and welfare; 4. Respect
for human rights; 5. Respect for the
environment; and 6. Activities for social
and inclusive development.
India is one of the latest Governments
to reference the UN Global Compact
principles in formal CSR guidelines or
strategies, as has previously been done
in Norway and Denmark.
2009/10- The government made it
mandatory for all public sector oil
companies to spend 2 per cent of their
net profits on corporate social
responsibility.
2011- The new Companies Bill will
make it mandatory for private
companies to contribute a certain
amount towards corporate social
responsibility activities. The Ministry of
Company Affairs (MCA) has said that
companies will have to spend 2% of the
average net profit on CSR. India Inc. If
approved, mandatory CSR will be made
part of the amendment to the
Companies Bill
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BLOGScraneandmatten.blogspot.com
Two business school professors from the Schulich School of
Business in Toronto, Canada, best known for their books
and research articles on business ethics and corporate
citizenship. Have been writing the Crane and Matten blog
since 2008, offering unique insight on a range of issues from
across the globe.
blog.bsr.org
The business of a better world (BSR) works with its global
network of more than 250 member companies to developsustainable business strategies and solutions through
consulting, research, and crosssector collaboration.
ORGANISATIONS
SustainAbility
A think tank and strategy consultancy working to inspire
transformative business leadership on the sustainability
agenda
Read more about them on www.sustainability.com
Business in the Community (BITC)
Works with over 800 UK companies committed to improving
their impact on society, and operates throughout the UK.
BITC seeks to positively shape business impact on the
environment, in the marketplace, in the workplace and in the
community. It is an organisation that works with businesses
to improve their Corporate Social Responsibility (CSR)
credentials, offering advice and programmes tailored to
meet their needs.
Read more about them on www.bitc.org.uk
RECOMMENDATIONSOrganisations, blogs, books, movies,
documentaries, movements, events
WRITE TO USInviting views, suggestions and
feedback from corporates, NGOs,
Government employees, professionals,
media, entrepreneurs, businessmen,
academicians, social institutions,
students and anyone interested in the
well being of society
4th Wheel
16 Pahelgaon bungalows, near
judges bungalow road,
Ahmedabad, 380015
www.the4thwheel.com
http://the4thwheel.wordpress.com/
[email protected]+919825885044, 079-40092492
Editor Sharon WeirContent Payal Mulchandani
Design Tania Lakadawala
Art & Logos Sameer Singh &Pravin Mishra
Marketing & CirculationSalomi Gupte
THE 4TH WHEEL
A Corporate Social Responsibility consultancy, advocacy and research firm.
The name signifies the business sector in addition to the other three integral
wheels- the state, NGOs and international development organisations,
required and capable of driving human development.
Services
FOR CORPORATES
Strategising and planning CSR projects/ Needs Assessment
Project implementation for corporate firmsChannel corporate decision making in socially desirable activities
Monitoring and Evaluation of existing CSR/social and human development
projects
Stakeholder identification/mapping/ engagement
Stakeholder Cause promotions
Compilation of CSR reports
Collaborations with NGOs
Creating partnerships between Corporates, the State and Civil society
FOR NGOs
Project developmentEvents planning
Content writing
IT support
ADVOCACY, RESEARCH AND EDUCATION
Promoting CSR practices
Heighten public awareness and create platforms for discussion and
suggestions regarding CSR and its potential through seminars and
workshops
Developing case studies and best case practices
mailto:[email protected]:[email protected]:[email protected]://the4thwheel.wordpress.com/http://the4thwheel.wordpress.com/http://www.the4thwheel.com/http://the4thwheel.wordpress.com/mailto:[email protected]:[email protected]://the4thwheel.wordpress.com/http://the4thwheel.wordpress.com/http://www.the4thwheel.com/http://www.the4thwheel.com/http://www.sustainability.com/http://www.sustainability.com/http://blog.bsr.org/http://blog.bsr.org/http:///craneandmatten.blogspot.comhttp:///craneandmatten.blogspot.comhttp:///craneandmatten.blogspot.comhttp:///craneandmatten.blogspot.com