Corporate social responsibility

In the context of Integral Rural Development, the major ideas are as under: 1) Leadership is required to set Goals and Directions for the People 2) Management is essential for crisis Prevention and crisis Management 3) Continuous Self-improvement and Innovation is needed for Efficiency 4) Precision in Planning and Long-term Strategies are always essential 2. Why Integral Rural Development? A very simplified definition of Rural Development (by Dry. Qatar Sings, ex- Director, IRMA) is “Rural Development is a process leading to sustainable improvement in the quality of life of rural people, especially the poor’. This is the second strand in the process.

But this definition does no justice to the multi-sector and multi-dimensional ramifications of rural development. Even after spending huge amount of resources since 1947, our rural development results have been patchy and development has taken root only here the political leaders, the bureaucrats and the local people have joined hands to ensure development. Many such instances abound in rural India but these are definitely far from being replicable. Government -?aided schemes are largely top-down schemes, designed without involving the local communities and most of these well-meaning schemes disappear without a trace after the funds stop or the key persons are transferred.

A plethora of schemes which look good on paper, but which are badly implemented and have failed to create any local impact, result in waste of precious resources. Rural Development which is integral to the problems of the rural folk has to be dynamic with a multi-sector approach to meet the requirements of the poorest of the poor. There are eight unfinished tasks for rural development: The Sector Analysis Chart for Integral Rural Development in India Each of these sub-sectors need to be discussed and analyses at length as there are competing demands for funds/projects to be designed and implemented and at times, priorities have to be shifted temporarily, pending concentrated attention later.

In a democracy, there is always a clamor for shifts in demands r priorities by the vested interests with support from various political elements as funds are limited and need to be carefully husbanded to meet urgent demands. All development initiatives have serious effects on the environment and project sustainability demands environmental sustainability. Studies have shown that to maintain the existing levels of agricultural production, we are drawing heavily from the existing stock of natural resources without adequate replenishments. Preferably, all future development has to be ensured through regenerative processes in order to prevent further environmental damage. 3.

Corporate Social Responsibilities (CARS) The year 2000 was a watershed year as the Millennium Development Goals were launched to reduce poverty levels, malnutrition, maternal deaths, hunger levels, etc. With the enthusiastic support of world leaders from all countries. The united Nations Organizations (NUN) also launched a Global Compact of the World’s corporate leaders that year and enumerated 10 principles of good business citizenship and since then, corporate Boards have intensified their commitment to such principles and translated these into concrete actions for their CARS portfolio. Over time, these social obligations eave been highlighted as a reaction to unethical business practices sometimes followed by corporate to further financial interests.

Another positive development has been the creation of Voluntary organizations (Nags) which serve the underprivileged sections of civil society and which can be leveraged by corporate for furthering CARS outreach. To minimize errors and to assist corporate, guidelines and codes of conduct have been framed, based on country experiences beginning with the Catbird Report in UK (1992), the Serbians-Solely Act in USA (2002) and the COED Practices (1999 and revised in 2004). However, many Macs and corporate were already engaged in corporate charity or philanthropy on their own, since ages but as the expectations of the community and other stakeholders became more diverse and demanding, the need for a framework of ethical and social conduct by corporate was felt.

CARS is no longer perceived as a compliance tool or as an aspect of corporate charity but is more of a strategic intervention which improves the corporate brand image. There is a growing realization that corporate have an obligation to society and the triple bottom line approach is more relevant today (Planet, people, Profits). CARS in India India has witnessed six major CARS phases as under: 1st Phase- Up to 1850- Charity and Philanthropy related to famine relief, religious works, food distribution etc. This was largely due to the pre- industrial age in India. 2nd Phase- 1 850 to 1914- personal- based and not corporate- based for social welfare causes. Rd Phase- 1914 60th- Mahatma Sandhog’s Trusteeship Model related to social forces and freedom struggle- empowered women, fought against intractability and for area development etc. 4th Phase- 1 960 to 1980- Mixed economy with the public sector omitting with the corporate sector and with mixed results for the economy. CARS activities depended on availability of funds. 5th Phase- 1980 to 2012- traditional philanthropic engagement, integrating CARS into sustainable business and community development phase. 6th Phase- 2013 onwards- CARS Bill passed and Companies Act, 1955 amended (2% of profits of last three years to be compulsorily used for CARS activities). Thus CARS has evolved from charity to corporate philanthropy to the single bottom-line approach and further to the triple bottom-line approach (modern CARS).

Today, CARS is being interpreted as good corporate governance and cannot be over- emphasized but there is a lack of clarity in the definition of CARS and the CARS models to be followed. Measuring the impact of CARS on society and the community and institutionalizing the private-public partnership, are matters of debate. Literature Review: The initiation of social change in rural communities is characterizes by a very dynamic and contrasting surroundings, which makes replication of Success stories or best practices as a difficult exercise. Social Change in India without mentioning the tremendous contributions of Mahatma Gandhi would always be incomplete.

Mahatma Sandhog’s ‘Experiments with Truth’ and his views on the rural economy which have always been inclusion, need to be revisited in view of our costly failures in rural development since 1947. Thus the four important tenets of Gandhi economics biz. Humanism of the Backbit Movement, Gram Swards, Crossroad and Noonday remain as important landmarks in the evolution of CARS theories for rural India. Therefore, conducting basic research on the evolution and theoretical background of the CARS activities in rural areas is essential to understand its importance in the evolution of rural development. Especially the evolution ring the past 80 years is of great importance. The examination of this period identifies overlaps of charity, philanthropy, CARS and social change, as well as reasons for basic differences in the concepts’ application.

Therefore, an equilibrated literature review was a major task in order to gain an overview in this vibrant field. Particularly the investigation of social change initiatives represented a challenge, as the study in this field has only recently gained prominence. This challenge was resolved through introducing field research. The procedure of the investigations is outlined later in the research raptors. The initial research interest was to identify the impact of CARS practices. As the close theoretical and practical connection between CARS, charity and philanthropy became apparent, their distinction represented a further research topic. Due to the involvement of corporate in CARS activities since long, questions regarding social change initiatives arose.

However, investigations revealed that, in contrast to the sociological background of the terminology, literature on CARS and rural social change practices is limited. Therefore, field interviews with rural experts in the areas of CARS and social hanged were deployed. The communication with practitioners and cooperation by corporate, reinforced the motivation to consider the success factors of social change initiatives in this thesis. Thereby, the initial research questions remain essential to identify these factors. This paper introduces charity’, CARS and philanthropy, which play an important role in the social change process. In order to create a theoretical understanding of the different ways to initiate and drive change, these concepts are examined later on.

The elaborate characteristics, applications and motives of the given approaches support the distinction to the social change present in academic research since mid of the 20th century (Carroll, 1 999, p. 268), and philanthropy since end of the 20th century (Friedman, 2003, p. L there is a great assortment of literature available in these fields. However, it can be observed that studies are mainly concentrated on America and partly on other developed countries. The range of scientific reflections on CARS and philanthropy within India or other emerging and developing countries is much sparser. This is also the case for literature considering social change initiatives, especially in regard to organizations utilizing the Internet for social purposes.

Due to the infancy of these Internet-based initiatives and the steady evolution of new approaches, their theoretical consideration is rather rare. The concept of social entrepreneurship, however, is present in academia since mid-asses and therefore data on this concept is available (Akin, 2003). The concept of inclusive social change itself is also extensively analyses, which can be ascribed to its basic meaning in sociology (Zap, 2006, p. 346). In order to advance this work, particularly in regard of social change initiatives, a number f field interviews were undertaken. As the field research was deployed in rural India, a second focus of the research was the medley of CARS practices applied within the country.

This provided the additional opportunity to gain a different perspective. There have been various shifting theories of CARS over time as it is yet evolving and some of the major theories are as under: 1 Mahatma Sandhog’s Theory of Trusteeship (1939) Based on Santa Dharma with the capitalist acting as a trustee of society resources and ensuring a non-violent resolution of the social and economic inequities. 2. Anions (1965) Companies are responsible to stakeholders such as customers, suppliers and employees. 3. Trucker on Management: Task, Responsibility and practices (1954) Business enterprises and public service organizations are organs of society.

They do not exist for their own sake but to fulfill a specific social purpose and to satisfy specific needs of the society, community or individual. They are not ends in themselves but merely the means. 4. Milton Friedman (1970) Advocated the CARS single bottom-line approach and felt that companies should concentrate on the interests only of the shareholders. 5. Carroll (1979) del of CARS based on Corporate Social Performance Social Issues, Social Responses and Social Responsibilities are dominant themes for CARS. 6. Theorizing (People, Planet, Profits)- 1994 Triple P- People, Planet Profits or Triple E- Economy, Environment, Equity. 7. Freeman (1989) Broadened the scope of CARS to encompass the interests of stakeholders, regulators, consumers and advisory groups. 8.

Carter and Jennings (2004) Shifted CARS focus to the company-market model and supply chain management issues. The results of the interviews with field practitioners are discussed throughout the paper. Thus, the sections dominated by literature research are completed by some insights of experienced practitioners. The structure, conduct and evaluation of the interviews are outlined in greater detail in the next section. Purpose of the Study: The basic framework of the study will be within the Gandhi concepts of Economics and Management and the aim will be to ensure that CARS activities are directed towards integral and sustainable rural development in India.

This study is urgently needed so that required leadership and direction is given for the CARS activities of corporate by widening their horizons and involving expansible Non Government Organizations (Nags) so as to enhance corporate outreach and involve Civil Society Organizations in productive work and wean them away from unproductive work. CARS practices of various corporate in India will be studied in addition to the data on the best CARS practices of corporate outside India. Research Objectives I propose to do original work, collect field level data in India and add to the body of research, as under: 1 . Study of CARS versus Corporate Social Action. 2. Effects of Ethics and non-market forces on CARS Practices. 3. Globalization, he associated growth in Competition and its effects on CARS. 4.

Increased influence on CARS by Corporate and Multinational Corporations (Macs). 5. Repositioning the role of central/state governments in CARS. 6. Lack of talent and expertise in handling CARS activities. 7. Growth of civil society activism and effects on CARS. 8. Increased importance Of Intangible Assets in CARS. 9. Achieving Targeted Goals as per Triple Bottom Line Approach. 10. Charity or Corporate Philanthropy or Sustainable Rural Development? Research Questions Today when Corporate in India are mandated into taking up CARS activities, he corporate inevitably launch into the compliance mode and try to see how to comply without much damage to the Balance sheet. This is the immediate knee-jerk response.

If wisdom strikes, some of them try to set up CARS Cells and encourage staff members to volunteer for corporate-sponsored projects or even work with reputed Nags. Few Corporate feel that CARS activities go beyond photo opportunities and some media headlines. And only a handful feel that they have a responsibility to the community and can take part in financial inclusion, in poverty alleviation and in sustainable rural placement, as these are perceived to be the prerogative of the Government bodies and agencies. When Wisdom dawns, corporate realism that they are actually growing their markets, as also their stakeholders and well-wishers with sustained CARS efforts. However the acid test will be when Corporate team up with good Nags to enhance outreach and stretch their CARS value-for-money approach.

Research Methodology: Exploration of the various objectives Of CARS as practiced by various corporate in India, requires an approach that not only describes complex relationships between conflicting corporate requirements but also varies as ere the experiences of the people who are personalizing these CARS objectives on behalf of the corporate. Thus the research aims are to be met by a mixed method approach of the study of primary and secondary data. The research consists of four major components which have inter-related variables and which need to be evaluated using both qualitative and quantitative methods. The four components to be examined via personal interviews and surveys: 1 .

Staff deployed by corporate/Nags for CARS activities and their individual views on rural development. 2. CARS Objectives which vary depending upon attainment of objectives or otherwise. . Budgeted cost considerations for corporate, Nags and other agencies. 4. Efficacy or Outreach Efficiency and Sustainability of Initiatives in Community. The qualitative methods will examine the myriad CARS objectives of Corporate and Nags as also the availability of skilled staff for fulfilling these objectives as per budgeted costs. The quantitative methods will examine the outreach efficiency and sustainability, as also the costs for the CARS functions both at the MONGO/Corporate levels. The use of in-depth interviews will also add to the quality of research.

This approach not only reveals how data relating to CARS implementation is insufficient to predict about the utility value to the rural people/communities, depending upon specific CARS interventions and how these are actually implemented in rural areas. Drawing on the insightful perspectives of Mahatma Gandhi, CARS ideas will be explored through the use of quality rural Nags and the efficiency of outreach, whether in-house or out- sourced. Also important are the views of corporate which have been involved in CARS activities over the last 30-40 years biz. Excel Chemical Industries, Data Group of Companies, Ditty Barilla Group and other corporate which have taken up CARS activities recently. The study will cover CARS activities from the angle of corporate culture, community initiatives, staff interests and budgeted funds.

The use of all these perspectives will enable the construction of a replicable framework which underpins the analysis undertaken in this study and provides an avenue for analyzing CARS objectives and the community responses thereto. This is particularly relevant for those corporate which use disproportionate community resources and hence are not environmentally sustainable. The quantitative data analysis will enable a cost effective efficiency-analysis of various CARS approaches of corporate. Len- depth interviews with 15-20 Nags and 15-20 corporate which have implemented joint CARS projects are expected to be taken up to provide the base data for the qualitative part of the study. The views of the rural communities and the rural people who are the beneficiaries of the CARS interventions will also be analyses.