Over the years, progressive
organisations have demonstrated several laudable examples of responsible
corporate action for social development. Unfortunately, many of these
efforts have not been able to reach a level of scale and dimension that
can make an impact on a nation as large and diverse as ours. But, why is
it, that despite possessing rich and diverse managerial capabilities, a
tradition of entrepreneurship, economic resources and the right
consciousness, corporate are still unable to participate more meaningfully
in building natural and social capital?
The reasons are many and complex. These relate to the lack of a conducive
external environment as also to organisations' vision, values, leadership
and competitive capability. However, if there is one common thread, it is
the unassailable fact that markets have failed to reward CSR (Corporate
Social Responsibility)/ their helping hand towards society.
They do not adequately provide the drivers required to sustain a level of
intensity of long-term engagement necessary to produce results in the vast
social fabric. Social initiatives, are meant merely for compliance of
regulations, and do not ignite creativity and innovation to accelerate
But the social initiatives give a 'reputational asset' to companies which
in turn connect the consumer to the companies & their product.
Stakeholders will build a more enduring relationship with such companies,
continuously creating value for the organisation, for its shareholders and
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. Further it is also a logical thought that we earn a
lot from society and we should be generous enough to give something to
society. As Mahatma Gandhi had rightly said “Earth provides enough to
satisfy every man's need, but not every man's greed”.
Helping to achieve inclusive growth through supply chain is a somewhat
better proposition as it not only helps the company to participate in
societal development and participation in Government agenda of inclusive
growth but also to help the companies to improve their bottom lines.