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Moyna Manku

Moyna Manku

CSR is about responsibility: Richard WelfordCorporate social responsibility goes far beyond what is envisaged in India’s current CSR rules, says Welford

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Richard Welford, co-founder and chairman of CSR Asia.

Richard Welford, co-founder and chairman of CSR Asia, an independent think tank and consultancy èrm that is a strategic

partner of IRBF Index 2015, has been working on environmental management and social responsibility for over two decades.

A pioneer of social auditing in the UK, Welford is of the opinion that corporate social responsibility (CSR) goes far beyond

what is envisaged in India’s current CSR rules. In an email interview, Welford shared his views on the value of conducting

business in a responsible manner. Edited excerpts:

What is corporate social responsibility (CSR) according to you?

It is about how you do business and not how you give away or utilize the proèts you make from that business. In India, CSR is

about how you give away your proèts and not how you make those proèts. I feel the approach of the companies in India has

been narrowed down to just doing philanthropy rather than taking afèrmative action towards business processes—barring a

few top companies—with the new legislation.

Where do you place Indian companies with regards to your deènition of CSR?

You have a whole range of companies—the most responsible ones known globally for their best practices like Tech Mahindra

Ltd, Tata Consultancy Services Ltd, Wipro Ltd and Infosys Ltd, but you also have a large number of companies who are not

looking at sustainability or CSR in a holistic manner. Their approach is limited to “CSR is a nice thing to do or the right thing

to do”. They don’t recognize the value in doing business responsibly... their approach is limited to charity.

What are the main features of responsible business?

Transparency and accountability are the basis of CSR. Largely these have to be voluntary. The legislation around these

aspects is limited to guidance like the National Voluntary Guidelines, which the Securities and Exchange Board of India has

asked the top 100 èrms to adopt a few years back. However, increasingly we see that these guidelines are now taking on the

nature of being mandatory. For instance, the Hong Kong and Singapore exchange boards have mandated all companies listed

with them must adhere to certain principles of sustainability.

What is the driving force behind CSR or sustainability? Is it the business case for it or the need for greater good?

A little of both. By now, there is enough researched evidence that CSR is good for business. Responsible business results in

positive impact on the bottom line of the company. And here I must emphasize that not CSR as philanthropy but CSR as

sustainable responsible practices by companies.

For instance, across the globe, there is no one company doing as much as Coca-Cola is on water conservation. It is a simple

correlation—no water means no Coca-Cola. The risk of resources is in part driving corporate action on issues like resource

scarcity and climate change.

What are the signiècant trend shifts of this sector over the past ève years?

There has been growth in inclusive business. Businesses understand that if you want to elevate poverty, you need to involve

rural poor in the market space. In this regard, companies are looking to address the value chain and work towards inclusive

policies.

How can CSR or sustainability be made attractive for businesses?

Businesses need to realize that sustainability creates competitiveness and adds value to the brand. It helps differentiate

products and services. The bottom line is that customers are demanding it and companies that aren’t sustainable will be left

behind.

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First Published: Mon, Oct 26 2015. 01 00 AMIST

TOPICS: CSR RICHARD WELFORD CORPORATE SOCIAL RESPONSIBILITY ENVIRONMENT MANAGEMENT

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