Cement Energy and Environment

: ;'-: ~f" 'I-.. .~ .,. ·~ f": - .-: • ~-,-;, __ I~') "'-;-- ~ .... • ·:;_-~"".:·. • :I •- • - .:. . ._- ~O,R~PRAT(:fSOCIA~ 'Rt;SPO~SIBILITY: .. , ~ . - .. SHOULD INDIA INC SHARE MORE SOCIAL RFSPONSIRII lTV? We have been hearing a lot in recent times regarding Corporate Social Responsibility (CSR). In essence. it is a transfer payment from the corporate sector to the other sectors. which means that there are no returns preferably reaching the poor and the marginalized. But why do we need CSR? Is it purely philanthropic or can it have some economic logic beside philanthropy? We will look at this question basing our analysis on two thematic areas: socially deprived sections (lower castes/dalits, religious minorities), and women. In the next sections we will briefly review the Government of India's (Gol) stand on CSR through the Voluntary CSR Guidelines of Gal, and conclude with some observations regarding the corporate sector of India on its CSR activities. Social & economic need for CSR First of all, it is necessary to realize that CSR is not a philanthropic activity. It has a clear goal of socio-economic equality, productive capacity building with a broader base and certainly to achieve sort of social and moral acceptability of what otherwise is a purely profit driven business. CSR has two components: First - the precautionary steps taken by the company to reduce the negative effects caused by its products and processes and ~he second is the positive steps 1t takes for the benefit of society, economy and ecology. Socially deprived sections In the case of the deprived sections like the lower castes or minorities a separate sensitive attitude outside the open market system is required to prevent their steady exclusion from the system. The CSR principles call for adhering to human rights and labour rights, especially in the context of socio-economic exclusion based on caste and religion . The separate sensitive attitude is justifiable because such exclusion is ingrained within the very system, which calls for the necessity to work in regions where social exclusion is very high. The business houses in India, thus, should aim through its activities based o~ CSR, to transcend the caste system. This transcendence is justifiable from pure economic efficiency ground as well. Caste system suppresses individuality in work preference, prefers traditional efficiency over modern skill training instead of a scientific combination of the two and prevents labour mobility (even the idea of it) across sectors. Hence it acts as an obstruction to labour efficiency. Again , if we accept the above logic that essentially formation of a skilled labour force is obstructed, which in turn entails an obstruction to improvement of living standard of the workers through better wages, such social evils also keeps demand low which prevents good business. Hence, doubly, from economic ground, the business houses and corporates should be undertaking CSR activities. Women Almost everything that has been said about the socially deprived sections can be applied to the case of the women too. Additionally, there is the component of gender, which in our society has effects of other dimensions. In a household, women perform their stereotypical roles 1 like childcare, cooking etc. which have serious implications on the educational future of the young generation and physical health of a household. These make a case in favour of CSR for providing more opportunities to the women or take a positive step towards empowering them. The role of the Government Realizing this importance, the Government of India has formulated voluntary guideline for CSR. In line with the argument of this article the document notes that " CSR is not philanthropy". It lists the following core elements which CSR activities could cover: 1. Care for all Stakeholders 2. Ethical functioning 3. Respect for Workers' Rights and Welfare 4. Respect for Human Rights 5. Respect for Environment 6. Activities for Social and Inclusive Development The document lays out four basic guidelines (voluntary), suggesting how CSR activity should be implemented. First of all , there should be a coherent CSR policy; secondly, there should be specific amount allocated 1n a company's budget for CSR activity; thirdly, companies should tie-up their CSR activities with organizations that have considerable reputation in this field; and 48 --~ '~ J