Innovative CSR: Some Best Practices

Presented by: Shobhna Vora

Outline: Objective Why? Innovation Best Practices in Innovative CSR Conclusion Suggestions/Recommendations

Objective To probe and analyze some best practices

in innovative ways of practicing Corporate Social Responsibility

Why? Corporate Social Responsibility has

become a fashion statement for most of the organization

All of them are in race Initiatives are duplicated many times Beneficiaries are the same target groups The effectiveness of the initiatives gets

lost This results in waste of time, money and

efforts.

Innovation Innovation can be seen as the process that

renews something that exists and not, as is commonly assumed, the introduction of something new.

Innovation In the organizational context, innovation

may be linked to changes in efficiency, productivity, quality, competitive positioning, market share, etc. and can all be affected positively or negatively by innovative forces.

Factors Driving Organizational Innovations Improved quality Creation of new markets Extension of the product range Reduced labour costs Improved production processes

Factors Driving Organizational Innovations Reduced materials Reduced environmental damage Replacement of products/services Reduced energy consumption Conformance to regulations

When these are applied to CSR Improved quality of benefits to the stakeholders Creation of specialized target groups for

benefits Extension of corporate resources for specific

benefits to target groups Reduction in costs Improved processes to deliver the initiatives Reduction in wastages and damages Reduction in resource consumption etc.

Best Practices in Innovative CSR

Piramal e-Swasthya

Why this initiative? Only 30% of Indians have access to modern

medicine The initiative dreamt to democratise

healthcare Give the average Indian access to what many

consider a luxury today This model, developed in partnership with Prof.

Nitin Nohria of the Harvard Business School, is specifically tailored to serve the grossly underserved populations in the remotest of rural areas.

How it works? Local literate women (Piramal Swasthya

Sevaks) are recruited and trained These women are given a medical kit,

marketing material and a mobile phone. They are then assisted in setting up a tele-

clinic (Piramal e-Swasthya Centre) at their own homes.

Villagers who feel ill come to the Piramal e-Swasthya Center or are visited by the Piramal Swasthya Sevak.

How it works? After talking to and examining the patient, the

health care worker communicates this diagnostic data through a cell-phone to a centralized call centre.

At the back end, a call centre worker enters the information provided into a simple e-diagnosis system, which generates an automated response with the recommended prescription and treatment. Doctors manning the call centre also validate this.

How it works? The total treatment costs between Rs.30 - Rs.50

depending on the medical condition.  The Piramal e-Swasthya Centre is also a village level pharmacy

If the ailment appears serious, the call centre recommends that the patient visit a secondary or tertiary healthcare facility immediately.

The healthcare worker also conducts preventive health workshops, which generate awareness about issues such as sanitation, nutrition and first aid.

The results The model provides reliable, high quality

healthcare at a villager’s doorstep through cutting edge technology developed from sophisticated diagnostic protocols.

Patients for the first time, have access to world-class medicines at an affordable price.

In addition, patients are treated in villages itself, not only receiving immediate relief but also saving on valuable time and money lost in traveling to see a doctor in a nearby town.

The results This works like HUL’s “Project Shakti” It creates women entrepreneurs Generates income for them The villagers get the products and services

from someone whom they know and can trust.

Adani Foundation’s “Adani Vidya Mandir”:

About Adani Vidya Mandir The Adani Foundation which is sponsored by

Adani Group has established “Adani Vidya Mandir” school in June 2008 in Ahemdabad.

Educational routine activities involving academics, extra curricular activities and over all Personality Development.

Computer Literacy.  Competitive examinations for entry in good

professional courses

About Adani Vidya Mandir AVM is spread over a land area of 26256

Sq. mt. with a total built up area of approximately 1 lakh 10 thousand Sq. Ft.

The elegant landscapes along with the water bodies

Tech savvy class rooms.   

About Adani Vidya Mandir Infrastructure includes Math Lab, Science

Lab, Computer Lab, Library, Music Centre, Art and Craft Centre, Sports and a multi purpose Seminar Hall

About Adani Vidya Mandir The School provides following facilities

absolutely free: Transport facility Uniforms  School Notebooks & Books

For whom? The Total family income should be less

than one lakh in a year so as to be eligible for getting admission for the ward. To ascertain this following details are to be attached with application:

Income Proof Birth Certificate Last result(s) Residence Proof

The Result In this way the deprived section of

the society has access to the holistic education just like their counterparts from high income levels

The school has full fledged strength of around 1100 students for 10+2 level with science & commerce streams

Mahindra Kisan Mitra - a Mahindra Initiative

Mahindra Kisan Mitra Mahindra Group has designed a website

called MahindraKisanMitra.com. Farmers can check daily mandi prices,

read weather updates, latest crop advisories, and agri related news.

Farmers can also read and benefit from the success stories of other fellow farmers. 

Mahindra Kisan Mitra The site also provides information under various

other sections such as crop information, loans, insurance, mandi database, cold storages/warehouses and agri events.

Apart from this they have established Mahindra Samriddhi Centres at Pune, Aurangabad, Khammam, Karimnagar, Mehabubnagar, Jamnagar, Haridwar, Nagpur,Raipur andTadepalligudem etc.

Training women to drive tractors

Training women to drive tractors They have generated 600 women tractor drivers

last year and plan to train 15,000 women tractor drivers by the end of this year.

Most people refused to accept women driving tractors but with the carrot of supplementary income they came around and supported the initiative wholeheartedly.

This move was motivated when M&M found a large number of villages where the men had migrated to urban centres for jobs.

The Results Reduction in gender disparity Economic prosperity The company earns goodwill This helps in brand building.

Tata Archary Academy

Tata Archary Academy The Tata Archery Academy was

established in Jamshedpur in 1996 and has produced a long list of archers who have gone on to win national and international honours.

Tata Archary Academy: Initiative The Tata Archery Academy has all the

requisite training facilities like, highly efficient coaches, archery ground with flood lights, state-of -art equipment from India and abroad as well as hostel and multi gymnasium facilities for its cadets.

The Initiative After a vigorous selection process being

carried all over India, the Academy selects boys and girls between the age group of 13 to 18 years for the four years course and on the basis of their performance it further extends the training during which the cadets are also imparted with formal education.

The Initiative Throughout the year the cadets of Tata

Archery Academy participate in number of national and international championships and win awards and accolades for the State as well as for the Country.

Tata Archery Academy cadets have participated and have won several medals at Junior world Archery Championship, Senior World Archery Championship, Asian Archery Championship, Commonwealth Games as well as Asian Games.

The Results Opportunities to talented sports persons from all

streams of the society to learn the sport in a scientific

Health and nutrition issues are also managed well.

Education also does not get affected. With this targeted effort in a country where there

is very little beyond cricket, a sport like archery is looked after well.

In return Tata Steel earns goodwill every time its cadet wins medal at different levels.

Vidyagyan: The Shiv Nadar Foundation’s Initiatives

Vidyagyan The Vidyagyan School is situated at

Bulandshahr, on the outskirts of Delhi. Designed by one of the finest architects

and spread over 20 acres, 14 acres for the school itself and six acres for housing.

The total facility area is 250,000 square feet.

The school boasts of 30 classrooms A hostel for 700 students

Vidyagyan A language lab, a computer lab, a math lab and a

library, An amphitheatre with seating capacity of 800 An auditorium An athletic track, a football field, a skating rink

and indoor sports facilities. An eight-acre sports complex stands next to the

school campus. This includes a cricket ground and other outdoor sports facilities.

Selection Criteria followed by the Foundation To hand pick the brightest students from

hundreds of villages in Uttar Pradesh Provide the world-class education

absolutely free. Performance in the 5th grade junior

divisional board exams.

Selection Criteria followed by the Foundation Only the first or second ranking students

may be recommended by the school principal.

The student would be required to produce an income certificate and would have to be from an economically challenged background

The Final stage will be based on merit - after a written examination

The Results Get future leaders from rural India using high

quality school education Bridge the rural-urban divide. Neutralize the disadvantage on a scale large

enough to have tangible impact initially across the states of Uttar Pradesh and Uttaranchal

High quality education to a select few will make positive impact to uplift and transform lives

Will help narrow the socio-economic divide and bear forth India’s future leaders from its rural heart.

Makaibari Tea Estate Home-stay

Makaibari Tea Estate: Makaibari is located at Kurseong,

Darjeeling in West Bengal, India. It is the world's first tea factory which was

established in 1859. Rajah Banerjee is the fourth generational

owner He has practiced the ethnic diversity in

these seven Makibari villages This results in harmonious entity and

holistic sustainable practices.

Makaibari Tea Estate The most innovative of all the initiatives

under taken is the Home Stay Project. In 2005, it was decided that to

accommodate the constant flow of visitors to Makaibari some villagers would open up their homes to them as paying guests.

The 13 families who initiated the homestay programme formed a group called Hum Tera.

Tea Estate Home-stay The villagers took the decision to install

western style toilets in their homes to facilitate the homestays.

The raw materials were provided by the management and the fitting was done by skilled masons.

Hygiene improved dramatically. At present 21 families are offering home-

stays at 25 $ per day for a couple, all meals included.

The Results The home-stays signifies the harmony of

man and nature that this garden epitomizes

It also reflects the concord between workers and the owner

The major beneficiaries are the workers and their families as it generates additional income for them.

This initiative becomes a major draw for tourists, especially foreign tourist.

Results This benefits the whole society. It also improves the labour-management

relations. Makaibari as a brand get greater exposure

and create new market.

Conclusion These models can be improvised and

followed in other areas also. With this kind of targeted approach, where

the company is involved in different stages of its implementation, results would be far more effective than just an ad hoc approach adopted by NGOs, Government agencies etc.

Business skills and strategies get reflected in CSR initiatives also and it becomes a win-win situation for all the stakeholders.

Suggestions/Recommendations Develop an integrated CSR implantation

structure Prepare and implant a CSR plan like any

other business plan Set measurable targets and performance

standards Engage everyone involved with the plan Implement the plan Monitor and evaluate it at regular intervals Follow-up and implement changes wherever

necessary

Keywords: Corporate Social Responsibility: A form of self

regulation integrated into business Innovative: Using or showing new ideas,

methods etc. Best Practice: Expression used to designate a

technique, method, process, activity, incentive, or reward which is regarded as more effective at delivering a particular outcome than any other technique, method, process, etc. when applied to a particular condition or circumstance

References: John Hagel III and John Seely Brown “Innovation blowback:

Disruptive management practices from Asia” McKinsey Quarterly, 2005.

Monica Thiel, “Innovations in Corporate Social Responsibility from Global Business Leaders at Panasonic, Thomson Reuters and Nanyang Business School – American Journal of Economics and Business Administration 2 (2) 194-200, 2010”

C. K. Prahalad, “The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits”.

Harvard Business Review Vijay Govindarajan and Chris Trimble, “The Other Side of

Innovation, Solving the Execution Challenge”

References: Next wave of innovations will be driven by sustainability:

CK Prahalad Business Standard John Hagel and John Seely Brown, “Embrace the Edge – or

Perish – The periphery of today’s global business environment is where innovation potential is the highest. Ignore it at your peril”.

Harvard Business Review on Corporate Social Responsibility

Dr. Babita Agrawal and Anil Agrawal, “Social Responsibility of Business Enterprises”

P. V. Khatri and Indu Baghel, “Corporate Social Responsibility: Challenges in the Age of Globalisation”

Digital References: www.knowledge.wharton.upenn.edu/India http://www.adanividyamandir.org/av/ http://www.makaibari.com/ http://vidyagyan.in http://www.piramal.com http://www.tatasteel.com http://www.mahindrakisanmitra.com http://csrindiaconclave.org