Devangshu Dutta
February 7, 2008
An article by Shailesh Dobhal and Bhanu Pande in The Economic Times today refers to a growing inequality of income in India. (“India Rising, Bharat awaits for the trickle to turn flood”)
The change for all of urban India is reported to be 15%, which is quite visible, especially in the larger cities where the change is possibly greater. What is worrying is that even in rural India the change is 13%.
And these figures are for 2004-05, from a report authored by NCAER’s Dr. Rajesh Shukla. My guess is that the difference would be even higher now, 3 years later.
Obviously at a personal level this should concern all. Each person is part of the ecosystem – there is only so long one can hide in ivory towers behind tall walls and locked gates. We are most secure and content when our neighbour is secure and content. Stark disparities that grow even more stark are not a way to develop security.
However, one might ask, why should business managers in consumer goods and retail sectors concern themselves with this phenomenon from a business perspective?
The answer should be self-evident – as shared in a presentation at the Confederation of Indian Industry (CII) National Retail Summit in 2006 – a retailer can grow its market by encouraging the development of smaller enterprises, especially those in lower income areas. As these enterprises grow, so does prosperity and available income.
“Grow your wealth by growing someone else’s.” That may seem like an odd notion. But think – is it so odd?
In May 2007 Arun Maira, Chairman of the Boston Consulting Group’s business in India, presented scenarios that were developed in an exercise a few years ago, about the possible developmental trajectories of India. These include:
“Atakta Bharat (India Stuck)” described as ‘Buffalos Wallowing’,
“Bollyworld” (the crazy mix of glamour and tragedy) described in two parts as ‘Peacocks Strutting, Birds Scrambling’ and ‘Tigers Growling, Wolves Prowling’ and
“Pahale India” (India First), subtitled Fireflies Arising.
Here’s his very thought-provoking article (India: Many Million Fireflies Now) that is well worth a read.
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.
Devangshu Dutta
January 23, 2008
The recent stock market mayhem brings to mind another ‘boom’ – the much-hyped retail boom.
Booms and busts are complimentary, and always follow each other (if history is a teacher which we would care to listen to).
We are already seeing the signs of what people might call a slow-down in the Indian retail market. (Those people would have built their business plans, made investments and planned expenditure based on 50-500% annual growth, and would see a 15-25% growth as a slowdown.)
But for the most part, retail is an organic business, and a 15-25% annual growth is far healthier for most companies. It allows for infrastructure and processes to grow in a planned way. It gives the companies time to mature their processes and their organizations, and build businesses that are more sustainable. It allows the development of brands that are more lasting.
Growing retail businesses over time also allows them to develop the ecosystem around them organically – in my opinion absolutely vital for a healthy economic and social environment.
admin
January 1, 2006
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