Feature

Aligning CSR with business goals

Kusum Makhija writes how corporate social responsibility can achieve social development along with business success.

"Giving back a part of the benefit that the company gets over a period of time from the society and building an eco-system with strong values is a responsibility, not a service" - Pradip Dutta MD & President Synopsys India

Organisations view Corporate Social Responsibility (CSR) as the point of convergence of various initiatives aimed at ensuring socio-economic development of the community which would be livelihood-oriented in a credible and sustainable manner. CSR has become a medium to upstage competition and ensure sustainable growth. It is supported by shareholders and stakeholders, by and large encompassing the entire community. In the new global economy, companies that are responsive to the demands of all of their stakeholders are arguably better positioned to achieve long-term financial success. It is no longer optional for a company to communicate its environmental and social impacts. Such information is pertinent in an information-driven economy, and improved communication has become critical for business growth.

Pradip Dutta, MD and President, Synopsys India says, “It’s not just the individuals who can make a difference to the people, to the environment or to various other institutions around them. Giving back a part of the benefit that the company gets over a period of time from the society and building an eco-system with strong values is a responsibility and not a service.”

Bidyut Kanti Thakur, Assistant VP and Mentor of Social Services Committee (SSC), CSC India informs that in his organisation social contribution is not a mere corporate responsibility but a collective effort of the employees, charged with their emotional energy and enthusiasm, to create a better, uplifted society. “In a largely wealth-driven work life, the sheer joy of giving back to the society gives our employees immense satisfaction that clearly reflects their productivity at work,” he adds.

Corporate social responsibility at CSC India involves employee participation from all levels. Each employee gets an opportunity to become a part of the company’s CSR activity. Each location of CSC India has a Social Services Committee (SSC) that is elected by the employees as per the mandate. These committees carry out the social responsibility initiatives and projects along with support from the company’s volunteers.

"At Agilant, CSR is acknowledged as the tool to make the organisation an economic, intellectual and social asset to each nation and community where it operates" - Venkatesh Valluri President & Country General Manager, Agilent Technologies, India

Says Venkatesh Valluri, President and Country General Manager, Agilent Technologies, India, “At Agilent, CSR is recognised as a necessary step towards fulfilling the organisation’s commitment to connect with the various communities where it does business. It is also acknowledged as the tool to make the organisation an economic, intellectual and social asset to each nation and community where it operates.”

Boost to the brand

CSR focusses on the social, environmental, and financial success of a company—the so-called triple bottomline—with the aim to achieve social development while achieving business success. Companies now perform in non-financial arenas such as human rights, business ethics, environmental policies, corporate contributions, community development, corporate governance, and workplace issues.

Social and environmental performances are considered side by side with financial performance. From local economic development concerns to international human rights policies, companies are being held accountable for their actions and their impact.

Organisations are also more transparent in disclosing and communicating their policies and practices as these impact employees, communities, and the environment.

“The major CSR programmes that Agilent runs essentially support the promotion of science, research, learning and development. Agilent being a high-end technology company encourages innovation through many platforms. CSR happens to be one of the key delivery vehicles. When Agilent employees engage in such activities that help society improve, it has a direct influence on employee satisfaction. Supporting CSR activities is a key component of the work/ life balance at Agilent,” explains Valluri.

CSR plays an important role in enhancing the brand image and reputation of an organisation which in turn translates into increased sales and customer loyalty. Customers feel delighted to be associated with a company that shows responsibility towards society and has a favourable social image. This lends a sense of authentication to the products and services of the company.

In today’s competitive scenario where a business operates in a complex environment, achieving an environmental sustainability and forging of partnerships with various stakeholders is important. Brand visibility, recognition and awareness among the stakeholders can be achieved through a good CSR plan in place. CSR initiatives by a company lend it competitive mileage along with favourable positioning for its products and services.

Internal benefits

CSR is an effective way to boost employee morale and inculcate a sense of belonging for their company. In an environment where attrition rates are high and employees hop jobs, CSR initiatives give them an outlet to bring out the creative and emotional aspects to their personality.

“The business environment is changing rapidly and the time-schedule is getting tighter. These kinds of activities need to be incorporated in the career plan of employees so that they get enough space to satisfy their emotional needs,” says Dutta.

“CSC India has a policy that incorporates CSR activities of its employees as an integral part in their career development. Under this policy, any CSC India employee who has been with the organisation for at least three years can take a sabbatical of six months to work with an NGO. The employee is paid half the salary during this period and is appraised on his/her performance at the NGO when the person gets back to the CSC India mainstream employment,” explains Thakur.

It is also a means by which employees connect with the society, among themselves as well as with the organisation. “For example, tsunami resulted in many volunteers from all our locations at CSC India going and working for the tragedy struck. These volunteers have formed a close-knit group where the bonding among themselves and the company is much stronger now,” says Thakur.

However, any campaign, tactic strategy is baseless without an effective communication plan. It is therefore critical for companies to develop CSR initiatives and communication strategies that reach various stakeholders viz. shareholders, customers and emplo-yees. Effective communication will have a two-way effect by ensuring an expanded brand equity and marketshare. It’s important to implement things and let people know what is being done as the benefits could be manifold.

Business impact

CSR is the alignment of business operations with social values. It takes into account the interests of stakeholders in the company’s business policies and actions.

“Our CSR activities are very much in sync with STM’s philosophy to contribute to environmental protection and bridge the digital divide. STM’s commitment to the environment has resulted in substantial reductions in the consumption of energy, water, paper and hazardous chemicals, increased recycling of waste products and a significant cut in carbondioxide emissions,” says Pradeep Kumar, Vice-president, EMR and Director S&M, STMicroelectronics.

The CSR activities of a company have to be aligned with the company’s objectives of profit optimisation and its responsibility towards the society in which it operates.

“CSR is beyond the business goals of the company and cannot be measured in numbers for the return of investment in short term. It provides a platform for a company to be perceived in the right way, demonstrate its value system to the general public in the industry and in academia by increasing awareness about things that impact the daily life of people,” says Dutta.

The scope of CSR today is broad and depends on the nature of the organisation and its commitment to a cause. It has always been important for a business organisation to have strong and positive relationship with the community in which it operates.

“The yardstick with which we measure our success is the quality of impact we make in the initiatives we engage in. We continue to support initiatives in education and science so that healthy communities can be created,” says Valluri.

For every business, engagement with the society is the key. Engaging employees of an organisation for such activities create a sense of pride and contribution in their individual lives.

kusum@expresscomputeronline.com