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Using Market-Based Approach
to CSR
- Harsh Shrivastava
- Centre for Civil Society
January 21, 2014
Presentation to IIM, Udaipur
CSR | Centre for Civil Society | www.ccs.in 1
Emphasize the Corporate in CSR
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o Individuals can give charities of their choice.
Often, can choose to give to temples
o Governments must focus on development and social
infrastructure
Government has much more resources; can compel
o Corporate should focus on the Corporate or
business side of social responsibility.
But, in all focus on the marginalized
Who are the marginalized
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o Dalits
o Muslims
o Naxal-affected area residents
o North-East residents
o Women
o Youth
o Transgenders
… fourteen disadvantaged groups defined by the
Planning Commission!
Who are not the marginalized
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o Artists—painter, sculptors, etc.
o Sportsmen
o Middle-class parents of your own schools.
o Traffic islands and gardens near your offices
o Planting more trees—good in the long run, but the
poor are here today.
… all of these categories should be targeted through
you marketing and brand-building budgets.
Capabilities + Opportunities = Growth
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o Both are needed to promote growth, especially
inclusive growth.
o Capabilities without opportunities cannot create
growth.
o Opportunities without capabilities cannot sustain
growth.
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Focus so far is on the Capabilities side of the
equation
o Education
o Skills
o Health
o Hunger
o Power
o Banking
Capabilities + Opportunities = Growth
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Not enough on the Opportunities side
o Opportunity to start a business
o Opportunity to grow a business
o Opportunity to exit a business
Even a street-vendor is a capitalist; she survives by
competing in the market every day; not by subsisting on
doles.
Capabilities + Opportunities = Growth
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CSR guidelines of the government want companies
to focus on the capabilities.
Why replicate the government, which has far more
resources and legitimacy.
Big problem is that government outlays is not
resulting in outcomes. Because of lack of staff, inter-
agency issues, poor procedures, etc.
Capabilities is the government’s job
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o You understand business and profit best.
o You realize that it is in your long-term interest to
increase the earnings of your future customers.
o In this, you steer clear of government
entanglements.
Focus on the opportunities side
Creating more opportunities: Business
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• Outsourcingo Tata-DICCI collaboration
• Mentoringo BYST is a good model
• Financingo No moneylenders by 2017!
• Technologyo Mobiles for Muslims to make more money
• Support grow-upso Not just start-ups
Creating more opportunities: Government
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Create physical infrastructure
o Offices, markets, haats, parking lots
Make it easy to do business
o Arun Maira committee for states
o Need equivalent for cities and panchayats
Remove KYC norms
o Currently make it impossible to get regular loans
Reduce petty corruption
o Street-sellers’ business limited by the reach of their hands
Creating more opportunities—direct 1/
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o Offer stalls in your offices for small businesses to
sell to your employees.
o Give your boardroom when not needed for NGOs to
host fund-raisers.
o Provide hardware—including old mobile phones to
small businesses
o Get your main bank to provide easier loans to small
businesses
o If possible, commit to buying some products and
services—even if slightly costlier.
Creating more opportunities—direct 2/
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o Get and give details of relevant government
schemes, subsidies, and programs that those you
work with can use.
o Mentor them in applying for such grants.
o Connect these local entrepreneurs to your suppliers
and, if possible, your customers too!
o Teach the basics of marketing, finance, accounting,
to these entrepreneuers.
o Invite the children of such people to your offices to
show them how businesses work—and inspire them.
Time more than money
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o All these points require a bigger investment in time
of individuals and businesses, rather than money.
o But your time is your most valuable resource—so
you will use it well.
o Also, this is of higher marginal value to your CSR
“customer” than money that she or he can get from
some other source.
o When you give time, you give it to another
individual—not to some agency.
So where should we spend 2 percent?
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o Some of it will be spent by your chairman’s wife—
but not more than 5 percent of the total.
o Some will be spent on local beautifications—
another 5 percent
o Some will be spent on providing improvements to
schools and other facilities from local communities,
as part of being a good citizen—perhaps 10 percent.
o Another 10 percent will be to satisfy political
requests—5 percent at the national and 5 percent at
the local level.
So where should we spend 2 percent?
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o But spend balance on improving physical markets
(pay for more shop—collectively);
access to markets (including vans and other
vehicles—like Nitish’s cycles to girls);
on mobile phones with apps that can help;
on running a business bootcamp for Dalits;
on buying group health insurance.
How to organize your CSR
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o Partly by helping other NGOs—space, mentoring.
o Partly by creating your own corporate foundation,
which can channel the work, hire people (at lower
salaries).
o Partly by your HR department—to coordinate
volunteering and payroll giving
o Partly by your regional and local heads who need to
respond to local pressures.
Companies focus on opportunities;
Government on capabilities
More capabilities
Plus
More opportunities
Equals
Inclusive growth
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