Helping communities is an inherent part of its business strategy; so is weeding out corruption. By naresh minocha
There are many companies, which look at the entire issue of corporate – social responsibility (CSR) as an effort, as something they have to do to either to cater to legal compulsions, or to add incrementally to corporate image and credibility. But most of these firms don’t believe in the concept. Then there are a few business families – like the Tatas – who have traditionally invested in philanthropy; for them, it is a part of business values that have been ingrained over decades.
Among the new wealth creators like Wipro’s Azim Premji, there’s a sense of trying to do something for the country, to change the world for the better. So, Premji spends huge sums on changing the face of primary education in India. And then there are the others in the technology world, who see CSR as a way to progress their businesses; if Indians don’t get wired, the software czars will continue to witness a talent crunch, which will hurt their global toplines and bottomlines.
Of course, there are some firms that are forced to implement CSR for internal reasons; ITC started e-Choupals because of this reason and, over time, made it a part of its FMCG strategy. But these are rare cases, when CSR becomes an inherent part of strategy; in such cases, there is no business without CSR, here philanthropy goes hand-in-hand with operational and financial objectives. And there’s no better example to illustrate this than the state-owned Gas Authority of India Ltd. (GAIL).
The position that the integrated energy major GAIL finds itself in is both enviable as well as challenging on both the business front and CSR. As a dominant operator of gas pipelines across the country, it has to accommodate the aspirations of various states and people to supply them with natural gas. Corporate giants, including Reliance Industries and global energy major Shell, are keen to transport natural gas through GAIL’s pipelines. So do the gas users; they want GAIL to haul imported or indigenous gas to their plants.
Such demands propel the company to hasten up its charter of networking the entire country with a gas grid to which are tagged optical cables for commercial use by telecom operators. It has risen to this challenge of laying new trunk pipelines, expanding existing ones, tapping all sources for supply of gas and sharing its expertise in city gas distribution through a slew of joint ventures at home and abroad.
There are many companies, which look at the entire issue of corporate – social responsibility (CSR) as an effort, as something they have to do to either to cater to legal compulsions, or to add incrementally to corporate image and credibility. But most of these firms don’t believe in the concept. Then there are a few business families – like the Tatas – who have traditionally invested in philanthropy; for them, it is a part of business values that have been ingrained over decades.
Among the new wealth creators like Wipro’s Azim Premji, there’s a sense of trying to do something for the country, to change the world for the better. So, Premji spends huge sums on changing the face of primary education in India. And then there are the others in the technology world, who see CSR as a way to progress their businesses; if Indians don’t get wired, the software czars will continue to witness a talent crunch, which will hurt their global toplines and bottomlines.
Of course, there are some firms that are forced to implement CSR for internal reasons; ITC started e-Choupals because of this reason and, over time, made it a part of its FMCG strategy. But these are rare cases, when CSR becomes an inherent part of strategy; in such cases, there is no business without CSR, here philanthropy goes hand-in-hand with operational and financial objectives. And there’s no better example to illustrate this than the state-owned Gas Authority of India Ltd. (GAIL).
The position that the integrated energy major GAIL finds itself in is both enviable as well as challenging on both the business front and CSR. As a dominant operator of gas pipelines across the country, it has to accommodate the aspirations of various states and people to supply them with natural gas. Corporate giants, including Reliance Industries and global energy major Shell, are keen to transport natural gas through GAIL’s pipelines. So do the gas users; they want GAIL to haul imported or indigenous gas to their plants.
Such demands propel the company to hasten up its charter of networking the entire country with a gas grid to which are tagged optical cables for commercial use by telecom operators. It has risen to this challenge of laying new trunk pipelines, expanding existing ones, tapping all sources for supply of gas and sharing its expertise in city gas distribution through a slew of joint ventures at home and abroad.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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