|
Corporate Social Responsibility
in Modern India
Article contributed by:
name: SHASHI K. SHARMA
Email: shashiks02@rediffmail.com
Organisation: Consultant & Professor CSR/ MIS
Address: 23,Cozy Retreat, Survey No. 54, Aundh, PUNE-411 007
Telephone: 91-20-2588 5789
Fax:
Subject: Corporate Social Responsibility in Modern India
Message: Development in INDIA : Changing Role of Government,
Non-government Organizations and Corporates
- Shashi K Sharma B.E,MBA- IIM A , MS MIT
When we talk of development, the instant image that comes
to mind is of certain activities or processes taking place
for the betterment of our present and future generations,
by uplifting their standard of living. As the title suggests,
the author tracks the changing roles of the three major stakeholders
in the society, viz. the government, Non-government Organisations
(NGOs) and the corporate sector, in influencing the process
of development. Beginning from the British Raj and tracing
its way up to the present development scenario in the country,
the article shows us how the above players have metamorphosed
into efficacious entities in bringing about the process of
development.
Working separately, the impact of the above three entities
is limited to a certain extent. Keeping this in mind, the
author opines that if all three work hand in hand with each
other and realize that they are striving towards achieving
the same goal, i.e., progress of the country, it would surely
be the beginning of a new era in the field of development.
D
evelopment has been a constant striving for all societies
and nations. There are many questions associated with various
issues and aspects of development:
• Who is responsible for development?
• Who should benefit from development?
• Who should decide about resource allocation?
• Who should ‘pay’ for development?
Collectively taken together, many of the above questions
are subsumed under, “ who should play what role in the development
process.” This think-piece attempts to answer this question
in a dynamic temporal framework; particularly in the context
of three major players- Government, Non-government Organizations
(NGOs) and Corporates (or business enterprises).
GOVERNMENT
Government, in the modern sense, emerged in our country during
the days of the British rule. In that era, the connotation
of development was quite different. Foreigners were ruling
the country. Their main interest was in Administration- maintaining
law and order, collecting taxes, etc.
No doubt, lot of development took place, particularly in
infrastructure (railways, postal system, etc.). But the main
objective was to facilitate the ruling of the country- the
continued well-being of the rulers was the aim of development.
In the process, if the people of the country benefited, it
was just by the way.
Once the country became independent and we had a government,
“by the people, of the people, and for the people”, government
became a central, and in many ways, the only player in the
development field. Ideologically, the government believed
in a planned economy and a socialist, Nehruvian model of development.
The paradigm of development related to models and activities
like: the five-year plans; setting up of public sector undertaking
to command the heights of the economy; licenses and permits
to control investments and resources allocations; etc.
Over the last two decades, the paradigm of governance has
changed – first gradually and then at an accelerated rate.
Under the influence of national and international forces,
the economy is moving towards liberalization, privatization,
and globalization. Government wants to become a facilitator
and regulator rather than an active player in development.
The process has just started and is being implemented cautiously
under a close watch and rigorous monitoring, so that there
is net social gain and also that vulnerable sections of the
society are not unduly hurt.
It would not be an exaggeration to say that in some ways
government is withdrawing from certain fields of development,
and that is leaving a vacuum. To a certain extent, this has
been necessitated by severe constraint on (democratically
garnered) resources and the need to allocate these to relatively
higher priority areas.
NON-GOVERNMENT ORGANISATIONS
Non-government Organizations more or less did not exist during
the British Raj. The then paradigm of governance did not allow
for that (other than as anti-rule forces!!)
After independence also, it took a while for NGOs to emerge.
It should be possible to say that immediately post-independence,
individuals who comprised the government were themselves of
the NGO mindset – at least in terms of their proximity to
the ‘common man.’ And therefore, there was no felt need for
any intermediary for articulating collective desires of the
people relating to different aspects of development.
In due course, the primary functionaries of government -
namely politicians and bureaucrats - became rather distant
from the people. In that context, the NGOs emerged as a link
– both for expressing people’s point of view and for providing
a channel for resources meant for development activities.
Government also realized that there were lot of advantages
to enrolling NGOs in the development process : NGOs are motivated
and enthusiastic; they have flexibility in operations; they
are close to the people; they provide additional manpower
to conduct developmental activities.
In today’s context, NGOs have become an integral part of
the process of development and are shouldering more and more
responsibilities in diverse fields. In recent years, the number
of NGOs, their geographic extent, their resource channelisation
and, in the ultimate analysis, their impact have all increased.
CORPORATES
In the early 20th century – to continue the time parity –
the business world was more or less insulated from the concept
of development (though business did participate in the economic
processes). Around the time of Independence, Mahatma Gandhi
proposed the concept of trusteeship, allocating a larger role
to business in managing social resources for social development
(and not only for business per se). And this responsibility
was ably taken up by many business houses like the Tatas,
the Bajajs, etc., who began to allocate funds and other resources
to development.
Many eminent economic thinkers – like Milton Friedman – have
very categorically proposed that corporates should stick to
making profits and not get involved in development. Fortunately,
in many experts’opinion, this viewpoint has not made much
impact. Increasingly, the corporates are realizing that development
is necessary for their own growth. A business enterprise is
also an integral part of the society and therefore must address
the same concerns regarding poverty, environment, education,
energy, health, etc., as other constituents of the society.
Whether out of enlightened self-interest or out of pure goodness-of-heart,
corporates are dedicating more and more resources – in cash
and kind – to development. Many business enterprises have
created organizational units – in the form of charitable foundations
– which have the sole mandate to get involved in development.
SOME POSSIBLE TRENDS
There is a convergence and complementarity emerging in the
roles of government, NGOs, and corporates, vis-a-vis development.
Government is strapped for resources (managerial as well as
economic) and is now realizing its limitations.
NGOs have become more articulate, more knowledgeable, more
experienced, and, hopefully, more impactful in development
but realize the need for using concepts and techniques from
the discipline of Management to improve efficiency and effectiveness.
Corporates have surely realized their responsibility, have
a keen desire to contribute, and also have the requisite material
resources and managerial expertise but are somewhat inexperienced
in the field of development.
In this scenario, it would be optimal for corporates to pitch-in
with resources, and equally valuably, bring an attitude of
higher accountability and efficiency, as well as a penchant
for monitoring and results.
The NGOs could be the delivery arm - carrying out the actual
fieldwork in a manner responsive to the people’s needs.
The government could play the role of a facilitator by providing
a conducive policy and regulatory framework (for example,
through appropriate taxation laws.)
Of course, for this new paradigm to work effectively, each
of the three entity-groups will have to recognize one another’s
role, trust one another, and accept the supra-ordinate goal
that all of them are striving for a common objective- i.e.development
of our country
|
