Good Practice of Corporate Social Responsibility In Small and Medium Sized Companies

Corporate Social Responsibility has been defined in variety of ways, and the definitions may not agree with each other. One of the popular definitions says that CSR means the ethical behaviour of business towards its constituencies or stake holders.

The underlying theme which the social responsibility highlights is of any civilized being, living in a community where there is interdependence within strata of society. An isolated individual who does not understand togetherness might not realize what responsibility is because he is busy in fulfilling own needs. Community and togetherness gives vision to the social responsibility. Only then responsibility becomes necessity.

The Indian belief (mythological) is that once taken birth in human form it is not about living life and demise one day, it is about making it as useful as possible for community, earth and self. Maharishi Dadhich a famous Indian saint went into eternal ‘Samadhi’ gifting his bones to the Gods for making weapon ‘Vajra’ for the benefit of mankind. It has been our ideology to help the less privileged or who needs support.

Social responsibility is not just about the basic needs it is much deeper into the roots from where the problem generates.

Responsibilities exist in civilized societies and social also includes economic responsibility. Stake holders exist both within and outside the organizations. Several corporate houses are seriously involved and look into the benefits of its people in the form of corporate responsibility. But when the word social is highlighted it forces or encourages the corporations to look into the social responsibilities as well as their routine responsibilities.

The main responsibility of any corporation is to make profits for its people, share holders and give best bargain to its customers. But the word ‘social’ when added to CSR address questions of low living standards, exploitation, poverty, unemployment and promotion of social development in general. The wider aim of social responsibility is to create higher standard of living for people, while preserving the profitability of the corporation.

CSR needs to be considered for the nation as a whole and not just for companies. This will reduce dependency on government for social change. The programmes highlighted or undertaken by the government for the benefit of common man mostly embroil in political manipulation, corruption, communal overtones and bitter fighting (within).

In a strong message to corporate India, Prime Minister Manmohan Singh reminded it of its responsibilities toward the common man and advocated a 'ten-point social charter' for sharing benefits of economic growth with the less privileged. The ten-point social charter emphasizes on workers welfare, corporate social responsibility, offering jobs to less privileged, resisting excessive remuneration to promoters and skilled development among other things.

A well defined controlled and processed public-private partnership (PPP) may be the better resource for social change. Any social reform driven by the community brings people together, turn the attention of the masses to the commitment that benefits the society and reinforce peace and harmony.

CSR stands to gain immensely through fostering and strengthening corporate-civil society partnerships in development missions. Therefore, actively seeks to network and forge partnerships with corporate world and premier Management Institutes in the country.

Leading Indian corporate houses like Infosys, Wipro, TATA, TCS, Dr. Reddy’s,laboratory….. have proved corporate activism to improve education, living conditions, health care and reduce poverty. Numerous primary government schools are supported by these foundations. They are continuously in developing methodologies for effective change. Various NGO’s are being supported by these corporates. Building orphanages, Hospitals and schools are their regular tasks.

Challenges in India are enormous. Social responsibility cannot be limited to large and successful corporations. However, Corporate Institutions in India, though more sensitive towards CSR as compared to elsewhere, with all the resources at their command, remain constrained in terms of their reach- both geographically and demographically. Their efforts appear insignificant in light of the size of our country and diverse, multiple problems therein. The small and medium businesses should be participating in greater terms.

The goodwill earned by acts of social responsibility is far more worthy to the businesses than the amount they actually spend.

The voluntarism among employees through proper incentives, recognition can be accelerated. Internal performance, evaluation of employees could give recognition to community work like teaching in government schools, supporting NGO’s with finance, encouraging civic sense, cleaner surroundings, planting trees, volunteering in orphanages, empowering women, protecting the abused or socially week. The list of community work in my sense is as wide as we can imagine. It requires zeal to work and the reward for such activities given by the companies to their employee will have a positive impact.

CSR is not just about charity. It may be innovative way to spend in our towns, villages, on million of artisans who are at the bottom of economic pyramid.

Unfortunately it is assumed that to improve the quality of people at the lower strata rests on the government and more often than not resources spent on such missions hardly reach the intended people.

Inculcating corporate social responsibility is also about training young entrepreneurs and helping future generations organize themselves for greater good. Social responsibility needs to be deeply ingrained from childhood. Admissions to professional universities and management institutes should not only based on academic grades, but also participation in community activities and leadership roles. Social responsibility is about leadership, respect for fellow human beings, and tolerance. Obviously, the next generation is groomed likewise. There needs to be a radical change in the incentive structure in the educational system, admissions and hiring process. Consideration must be given not only to grades, but also to leadership roles and societal impact; these may have greater value to corporations and society.

IIM and IIT graduates are giving up hefty pay packages and choosing to work for the social cause and use their entrepreneurial skills to develop small and medium sized companies and alongside fulfill the needs for social responsibility. There are NGOs like Junior Chamber International which are developing young entrepreneurs who are groomed for leadership challenges and social responsibilities concurrently. Young entrepreneurs should take up the challenge of corporate social responsibility in small and medium sized companies in the right earnest.

By

MRS SAPNA AGRAWAL

English Edge,

Behavioral Skill Trainer

Principal- Pragati School, Kota