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The difference between what we do
and what we are capable of doing would suffice to solve most of the
world's problems.
~ Mahatma Gandhi
India in the last four years of the Eleventh five year plan has seen a
growth rate of 8.7% (avg.), making India one of the fastest growing
economies in the world.
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The industrial sector including
other areas has responded well to economic reforms and has shown that
it is capable of competing in the global economy. Perceptions about
India among global investors are very favourable. These developments
suggest that the economy is now at a point where it can achieve
sustained economic expansion that has the potential to bring
significant improvement in the lives of our people. If this momentum
can be accelerated in the years ahead, it will put India on the path
to becoming one of the key players in the |
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two decades. |
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These positive factors notwithstanding, a major weakness in the economy is
that the growth is not perceived as being sufficiently inclusive for many
groups. Indicators of deprivation suggest that the proportion of the
population deprived of a minimum level of living is much higher. The
composition of growth in recent years has also presented some problems,
agriculture has grown very slowly, it has widened the rural–urban divide
and also contributed to the severe distress in rural areas in some
regions. Total employment in the economy has improved in recent years, but
the labour force has grown even faster, leading to an increase in the
unemployment rate. Also, economic growth across regions has not been
balanced.
The delivery of essential social services at the grass roots
level is also poor and this is a major causative factor in unequal
development. Much higher levels of human development can be achieved even
with the given structure of the economy, if realignment or reorientation
of delivery system is improved. So, the central vision should be is to
build on our strengths to trigger a development process which ensures
broad-based improvement in the quality of life of the people. Growth
should be better balanced to rapidly create jobs in the industrial and
services sectors. Rapid growth in the economy at large, and especially in
the employment generating sectors such as medium and small industry and
services, needs to be supplemented by targeted livelihood support programmes aimed at increasing productivity and incomes of the poor in
several low income occupations.
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India is currently at a stage of ‘demographic transition’ where population
growth is slowing down but the population of young people entering the
labour force continues to expand. If the workforce is gainfully employed,
a lower dependency ratio means a higher rate of savings which, in turn,
can raise the growth rate. This young demographic profile places India
favourably in terms of manpower availability and could be a major
advantage in an environment where investment is expanding in India and the
industrial world is ageing. It is, however, essential to produce a growth
process in which employment/gainful engagement, would be available not
only for new entrants to the labour force but also in the non-agricultural
sector. Rapid growth should focus on labour-intensive industries and small
and middle enterprises will create employment opportunities in the
manufacturing and services sectors. The vision of inclusiveness must go
beyond the traditional objective of poverty alleviation to encompass
equality of opportunity, as well as economic and social mobility for all
sections of society. There must be equality of opportunity to all with
freedom and dignity, and without social or political obstacles. This must
be accompanied by an improvement in the opportunities for economic and
social advancement. In particular, individuals belonging to disadvantaged
groups should be provided special opportunities to develop their skills
and participate in the growth process. This outcome can only be ensured if
there is a degree of empowerment that creates a true feeling of
participation so necessary in a democratic polity. On the contrary, it is
a strategy which aims at achieving a particular type of growth process
which will meet the objectives of inclusiveness and sustainability.
Private enterprises are well placed to play a much larger role in
augmenting natural and social capital. Corporates have created assets and
facilities that span the length and breadth of the country, and therefore,
constitute the front line of engagement with civil society. The physical
presence in communities around their catchments gives them an opportunity
to directly engage in synergistic business activities that can create
livelihoods and add to preservation of natural capital. More than
financial resources, private enterprises possess the more crucial
managerial capability to ensure efficient delivery of social projects.
Apart from focusing on their top-lines and bottom-lines, the corporate now
can also be seen focusing on inclusive growth. The ministry of corporate
affairs has suggested that the corporates should come together and work
along with the government in promoting inclusive growth in the country. In
the present global scenario, it’s not just the government or the
regulators that have a role to play, but even the corporates should come
together and play an effective role to contribute in the country’s
inclusive growth. The pace of growth of Indian economy with inclusive &
sustainable growth in possible to its full potential by the role played by
government only but private companies have to play a dynamic & leading
role in this regard. This has been also highlighted by our Hon'ble Prime
Minister Dr Manmohan Singh in ten-point 'Social Charter' sharing his
vision on the responsibility of corporates for sustainable and inclusive
growth. He said “In a modern, democratic society, business must realise
its wider social responsibility. The time has come for the better-off
sections of our society to understand the need to make our growth process
more inclusive—to eschew conspicuous consumption, to save more and waste
less, to care for those who are less privileged, to be role models of
probity, moderation and charity. Indian industry must, therefore, rise to
the challenge of making our growth processes both efficient and inclusive.
If those who are better off do not act in a more socially responsible
manner, our growth process may be at risk, our polity may become anarchic
and our society may get further divided. I invite corporate India to be a
partner in making ours a more humane and just society”.
Today the companies are contributing towards society through their CSR
activity. The ministry of corporate affairs and the industry chamber,
Confederation of Indian Industry (CII) had recently come out with a study
on the Corporate Social Responsibility (CSR) in which the role of private
sector in fostering inclusive growth and globalization has been recognised.
Almost all major companies in India have a CSR programme. The companies in
partnerships with the civil societies have provided funds, skills,
infrastructure and technical know-how to various people. CSR initiatives
are quantified by the market and provide a direct incentive to the company
to enhance socially responsible behaviour. An enlightened consumer, by
exercising a choice in favour of 'socially responsible' enterprises, can
unleash a powerful force of incentives. A 'positive vote' for socially
responsible companies, exercised through preference for a company's
products and services, would change the context and dimension of
meaningful CSR, create strong economic multipliers and enhance shareholder
value. The implications of such consumer franchise for business will be
wide ranging. Consumer preference will spur a massive movement in
corporate innovation to integrate business goals with the building of
societal capital. CSR also emerges as a distinctive market differentiator
and helps in positioning progressive companies more strongly in the
marketplace. Companies will vie for consumer spend by positioning CSR as a
compelling value proposition. Gains would accrue to the company and its
shareholders with increasing revenues and goodwill. Where consumers go,
Investors will follow. Investors will increasingly find such socially
responsible companies attractive, given the larger market gains.
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Potential employees would also
seek opportunities in such successful companies and the enterprises
themselves would be better positioned in the war for talent.
Competition amongst CSR exemplars would lead to a perceptible
augmentation of natural and social capital and this would create a
more sustainable future. Thus, powerful market drivers will emerge to
encourage CSR as an integral part of business strategy. In the course
of time, stakeholders will build a more enduring relationship with
such companies, continuously creating value for the organisation, for its shareholders and
the nation. CSR can lead to optimum utilisation of national resources,
given that far higher social benefits will accrue to every unit of
incremental cost incurred by the organisation. Thus, given the right
market incentives, Indian corporate can significantly add to Government
efforts in pursuing growth with equity.
Companies procure goods and services form the different sources, if
companies can closely look their supply chain and sourcing they can
definitely contribute for the inclusive growth of India, along with that
they can get advantage of getting quality goods (also services) and saving
in their expenditure which lead to improvement in their bottom line. So,
this gives new dimension and facets to CSR activities of organizations.
The main theme of this paper is to examine how companies by changing,
modifying, innovating and realigning their supply chain can help them in
contributing towards inclusive growth of country can also get benefited to
improve their bottom lines.
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