The Hindu Business Line : Time to give back

Today `giving back' has acquired a new dimension for Indian corporates — the shift is towards developmental activity, where companies can actively build their image as well as positively impact the community.

Corporate social responsibility (CSR) revolves around active people-oriented projects. There are two approaches: the here-and-now approach where companies respond to immediate situations such as natural disasters and social upheavals; and the sustained development approach, where companies nurture causes and communities.

For instance, India Inc responded to the tsunami, the Mumbai floods and the recent Kashmir earthquake with alacrity. Citizen Watches gave away 1,000 tents to the South-East Asia Relief Fund for the Kashmir victims, while companies such as Glaxosmithkline, Nokia, Cadbury, Bajaj Auto and Nestle took part in the tsunami relief and rehabilitation work.

Likewise, many public sector undertakings have been involved in sustainable CSR projects since the 1950s, when Indira Gandhi kick-started such initiatives through her 20-point programme. "Since then, it has become a part and parcel of our business," says a PSU official.

Bharat Heavy Electricals Ltd (BHEL), for instance, has adopted 56 villages near its plants for all-round rural development. Says a company spokesperson, "We have taken up rural development activities not as an act of charity, but because we believe that rural development is an extension of the role and function of our business."

The programme, based on four main objectives — development, education, health and environment, and employment generation, also includes free medical camps, disaster and calamity aid, widow resettlement, among others. It has also joined the United Nations' `Global Compact', a partnership between the UN, the business community, international labour and NGOs for promoting good corporate citizenship.

However, CSR is not just about rural development. IOC's Indian Oil Foundation has the mandate to protect, preserve and promote world heritage sites such as Qutub Minar, Khajuraho, Konark Sun Temple, Hampi and the Kanheri Caves.

Besides, the company has also been providing scholarships to rural students to pursue professional education. The recipients of the scholarship are also considered for employment in the company later on.

IOC also supports creation of educational facilities and infrastructure at schools; it has also helped set up the state-of-the-art refractive eye surgery centre at the Sankara Nethralaya Hospital in Chennai.

Tata Motors' main emphasis is on health, sanitation and economic development of villages and `initiatives to improve the quality of life' with a scientific approach to its efforts. It has undertaken projects to augment water resources to make the land arable and has set up groups to impart knowledge and skill development. The company has also established the Tata Motors Disaster Relief Fund, which mobilises funds for victims of natural calamities.

New Holland Tractors, in an attempt to help the community near its plant, from whom it had obtained its land, funds the education of one person from each displaced family and provides them employment at the company shopfloor.

ITC Foods' promotes an environment-oriented programme. It recently announced the second phase of its `Sunfeast Hara Banao Week' — a nationwide initiative that encourages schoolchildren to say `No to plastic'.

Aimed at spreading the message of `recycling and protecting the environment', Ravi Naware, Divisional Chief Executive, ITC's Foods Division, believes that the campaign, conceptualised with children as the prime drivers and influencers, would be effective in spreading awareness on environmental issues.

Gautam Thapar, Vice-President, Ballarpur Industries, has pledged that his company will contribute at least one per cent of its net profit towards CSR activities.

Apart from its livelihood sustainability and primary education programmes that are promoted through self-help groups, it has initiated social forestry efforts by selling eucalyptus saplings to farmers near its plants.

The company also ensures them livelihood through its buy-back policy when the plantations mature. The saplings are sold at a throwaway price to farmers and are bought back at the prevailing market price. The company claims to have sold 35 lakh samplings in just one of its units (Ashti), this year.

Hindustan Lever Ltd's Fair and Lovely Foundation provides scholarships to women from low-income groups for their higher education or professional studies.

HLL is also involved in water conservation and harvesting, health and hygiene education programmes.

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