CSR FOR SUSTAINABLE DEVEVELOPMENT

C S Venkata Ratnam
Director, International Management Institute, New Delhi

Corporates in India, as anywhere else in the world are striving to improve the public

image of business. It is not ‘dirty business’ any more. Most companies believe in being

and becoming good corporate citizen. They see the value of giving back to the

community which contributed to their success. Corporate social responsibility is no

longer mere philanthropy. Though still largely voluntary, it is seen as imperative for

sustainable business. And, there is growing evidence that socially responsible investment

by ethical companies brings in higher returns on a long term basis.

Large public sector companies are investing up to 5 per cent of their profits towards

social uplift and community development. Companies in the Energy sector – especially

ONGC – have committed resources by adopting a few villages to implement President

Abdul Kalam’s idea of PURA (Provision of Urban Amenities in Rural Areas. National

Thermal Power Corporation has established a trust to work for the cause of the physically

challenged people. In the private sector the Tata Steel has been a pioneer. Their

contribution to social and community development in the tribal belt of Jharkand is so

legendary that at one time the company used to say that ‘we also make steel.’ They were

the first in the country to have got a social audit done.

Most successful private companies believe in giving back something to the community

that contributed to their prosperity. Most large companies – Infosys, Dabur, Dr Reddy’s,
Satyam. Wipro – have established trusts to address important social issues like literacy,

health, rural development, livelihood opportunities, etc

In 1999 Kofi Annan of the United Nations invited corporate leaders for Global Compact

to promote nine principles covering three areas: human rights, labour rights and

sustainable development. Today, India can be legitimately proud to have had the second

largest number of companies from any country subscribing to Global Company. Several

public sector companies have joined together to form Global Compact Society of India.

In 2001, European Union-India Network for CSR was launched to bring together

European and Indian Companies and Stakeholders to look at selected issues of CSR. The

Indian partner in this venture is the Business and Community Foundation (BCF), a non-

profit body set up in New Delhi for Indian and international companies, in association

with the International Business Leaders Forum. In 2004-5 UNDP and the Confederation

of Indian Industry (CII) have networked with academics and brought out 18 case studies

on CSR covering as many companies – BILT, Excel, Hindustan Lever, IFFCO, NTPC,

Times of India and Titan among others -- in a book edited by CV Baxi of MDI and Ajit

Prasad of IMI.

Rajshree Birla, Chairperson, Centre for Community Initiatives and Rural Development

Initiatives and Rural Development at Birla Group makes a business care for corporates in

India to shoulder CSR, “for us in corporate world to expect that the government alone

should address welfare issues is both unfair and unrealistic…India’s needs are huge and

the resources of the state are limited.’ Chairman Y C Deveshwar asserted in ITC’s
Sustainable Development Report, 2005, the contributions of companies should be

measured by the triple bottom line: economic, environmental and social. The message is

loud and clear: Societal wellbeing is a prerequisite for business prosperity. Companies

which put people before profits and which care for sustainable development are the ones

who will survive the competitive pressures.