CSR – Philanthropy or Empowerment

Sharmila Katre

January 28, 2008

We’ve been discussing Corporate Social Responsibility (CSR) and whether its implications (and need) is fully appreciated by businesses.

A couple of years ago I did a project with the weavers of Chanderi and it was a good reality check of the India that struggles to live behind the facade that the world thinks real India is. India really isn’t only about Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, or Jaipur, Jodhpur, Agra for that matter. Neither is it about the stage set villages with its token computer/cyber point dressed up for visits of foreign heads of state. The potential to develop an economically sound India actually lies in its rural areas, in its cottage industries, in the small scale businesses of the unorganized sectors. The talent, the pride, the dignity of human life, the shrewd and competent business brain all exists there, but need to be nurtured and developed and most importantly need to be given a fair hearing and chance. Rural India is not looking for charity or ‘assistance’ – it is looking for empowerment. Unfortunately most of us don’t understand the difference. Corporate Social Responsibility is about empowerment, and does not mean ‘giving’ but ‘encouraging, developing, nurturing and sustaining’. CSR practiced in its truest sense would be a ‘win-win’ for both the buyers and the sellers in a given business environment.

With the growth of consumerism and wealth in urban India, businesses must realize that community awareness and service is not an option but a requirement. CSR can no longer be a sub-department of the personnel and HR division of the company. There is need for the ownership of CSR at a much higher level, on par with all other activities and decisions that drive the business. Corporate activism must be sustainable and accepted as a valuable change agent of today’s business environment. Corporate Social responsibility must have a much broader implication in modern India and reduce dependency on the government for social change.

Empowerment and concern for the society is often misunderstood as socialism. However one must realize that a capitalist economy only thrives when every citizen is a contributor and a participant in it and has the opportunity to succeed. As a recent example, ITC’s e-Choupal has demonstrated the success of such a concept in the current business environment, as did the success of Amul and Mother Dairy co-operative movement of the pre ‘CSR’ era of Indian business.

And yet, there is so much more to be achieved.