College: MBA(IB), Dept. of Commerce, Delhi School of Economics 
Source :- http://www.evyp.gr/wp-content/uploads/2012/07/csr.jpg
8:10 am, 15th August 2014, "Sangachchhdhvam Samvadadhvam sam wo manansi jaanataam.",( We walk together, we move together, we think together, we resolve together and together we take this country forward).
These words said by our inspiring Prime Minister Shri Narendra Modi from the ramparts of the Red Fort, penetrated deep into the air. I hope the corporate houses/businesses interpret this sentence in the same way as I do.
We have witnessed extensive emphasis given to ‘the need for CSR in India’ in recent years. In the hope to make it widely accepted, we also saw, The Ministry of Corporate Affairs notifying Section 135 and Schedule VII of the Companies Act 2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014.This notification mandates spending at least 2% of average net profits for CSR activities. CSR is largely seen as a phenomenon that deals with the motivation and encouragement to take up socially responsible activities that will improve social and economic standards. It probably means giving back to society.
Human Resources department of an organization is seen as enabler of CSR. If HR is capable to engage workforce into CSR, does that mean every decision regarding CSR policy should be at the discretion of HR? Wouldn't that create a chasm and disintegrate CSR from core business? Let’s evaluate can ‘the greater good to the society’ be done just by CSR.
Source :- http://www.equitableorigin.com/media/eoweb-media/photos_db/blog-04.png
It’s time when we must proceed to find ‘solutions’ that are more than addressing weaknesses at the expense of business. The solution lies in the principle of ‘Creating Shared Value’(CSV). The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which they operate. Unlike CSR, CSV is not social responsibility or philanthropy but a way to achieve economic success. No doubt, CSR drive, to some extent, has helped society rise socially but our field of vision has simply been too narrow as CSR has emerged largely to improve firm’s reputation and it is treated as a necessary expense. The concept of shared value in contrast recognizes the need to expand the connection between societal and economic progress. A good example to clear the difference would be fair trade movement in purchasing. Fair trade aims to increase the proportion of revenue that farmers get by paying them higher price for the same crop and eliminating middle men. On the other hand, shared value perspective focuses on improving growing techniques and strengthening local clusters of farmers to improve the yield and productivity quality. The increase in income in second case (200-300%) would be much higher than the first one (20-30%). ITC’s e-choupal initiative is an example of this shared value concept.
Source :- http://www.evyp.gr/wp-content/uploads/2012/07/csr.jpg
8:10 am, 15th August 2014, "Sangachchhdhvam Samvadadhvam sam wo manansi jaanataam.",( We walk together, we move together, we think together, we resolve together and together we take this country forward).
These words said by our inspiring Prime Minister Shri Narendra Modi from the ramparts of the Red Fort, penetrated deep into the air. I hope the corporate houses/businesses interpret this sentence in the same way as I do.
We have witnessed extensive emphasis given to ‘the need for CSR in India’ in recent years. In the hope to make it widely accepted, we also saw, The Ministry of Corporate Affairs notifying Section 135 and Schedule VII of the Companies Act 2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014.This notification mandates spending at least 2% of average net profits for CSR activities. CSR is largely seen as a phenomenon that deals with the motivation and encouragement to take up socially responsible activities that will improve social and economic standards. It probably means giving back to society.
Human Resources department of an organization is seen as enabler of CSR. If HR is capable to engage workforce into CSR, does that mean every decision regarding CSR policy should be at the discretion of HR? Wouldn't that create a chasm and disintegrate CSR from core business? Let’s evaluate can ‘the greater good to the society’ be done just by CSR.
Source :- http://www.equitableorigin.com/media/eoweb-media/photos_db/blog-04.png
It’s time when we must proceed to find ‘solutions’ that are more than addressing weaknesses at the expense of business. The solution lies in the principle of ‘Creating Shared Value’(CSV). The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which they operate. Unlike CSR, CSV is not social responsibility or philanthropy but a way to achieve economic success. No doubt, CSR drive, to some extent, has helped society rise socially but our field of vision has simply been too narrow as CSR has emerged largely to improve firm’s reputation and it is treated as a necessary expense. The concept of shared value in contrast recognizes the need to expand the connection between societal and economic progress. A good example to clear the difference would be fair trade movement in purchasing. Fair trade aims to increase the proportion of revenue that farmers get by paying them higher price for the same crop and eliminating middle men. On the other hand, shared value perspective focuses on improving growing techniques and strengthening local clusters of farmers to improve the yield and productivity quality. The increase in income in second case (200-300%) would be much higher than the first one (20-30%). ITC’s e-choupal initiative is an example of this shared value concept.