One of the five ‘guidelines' J. R. D. Tata drew up for himself in 1965 was that no success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people and is achieved by fair and honest means. Another guideline, as listed by R. M. Lala in ‘The Art of Effective Giving' (Harper), is that good human relations not only bring great personal rewards but are essential to the success of any enterprise.
When a wealthy man holds his money as a trustee of the people, that money is really for their benefit, instructs Lala.
Regulate volunteerism
The main challenge to philanthropy in India is to widen the circle, and make it convenient for people to donate money, observes Lala. He rues that trusts are governed by myriad Central and state laws, often making it difficult for them to function fruitfully. “But this is soon to change with charities and trusts across religions coming under a single law ensurimg better management and stem the flow of black money.”
Noting that, as of now, there are no specific laws or rules to regulate volunteerism in India, Lala makes a mention of the recommendation of the task force constituted by the Planning Commission that the National Accreditation Council of India be set up on the lines of the Bar Council and the Press Council of India. He also recommends the inculcating of sound values of philanthropy in schools, universities, and business schools.
Continuing commitment
An important message in the book is that giving is not a commitment you can take on and drop off lightly. The model extolled by the author is of Tata Steel, which used to give about 2 per cent of its profits for social causes in the years when the company was doing well financially. “But when the crunch came in the year 1993-94 and profits plummeted down to Rs 181 crore, its commitment towards social causes was not affected and the percentage of its profit which went to charity in that year was as high as 13 per cent.”
Build assets
The M. S. Swaminathan Research Foundation's J. R. D. Tata Ecotechnology Centre identified a village with very little annual rainfall and also no assets.
A staff member found that the government had abandoned a number of huge pipes, and someone came up with the bright idea to cut those pipes into sizes, seal them up one side, fill them with water and breed fancy fishes there, reads the narrative. “The Centre had found that there was a great demand for these fish in South-east Asia. The Chinese loved them. In collaboration with an entrepreneur in Chennai the business flourished, and in the last few years it has done so well that a poor woman of that village who earned nothing before makes over Rs 1,000 per month now…”
Forceful presentation on the role of philanthropy in business, a topic that is vital to economic growth.
Keywords: R. M. Lala, The Art of Effective Giving, philanthropy, business,