A Perspective on Innovation In Implementing ‘CSR’ Programs And Increasing Value For Poor People- Devendra Shahapurkar

1. A Perspective on
Innovation In Implementing
‘CSR’ Programs And Increasing
Value For Poor People
02 March 2012
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2. Introduction - CSR
Stakeholder Dynamic
Challenges in implementing CSR programs
CSR levels and ongoing activities
Innovation in CSR implementations
International & National Social Innovation Brands
Implementation of Innovative Models
CSR Activities in India
Conclusion
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3. Corporate Social Responsibilities
CSR can be summed as the additional commitment by businesses to
improve the social and economic status of various stakeholders involved
while complying with all legal and economic requirements.
CSR Model
1. Gandhian Model - Voluntary commitment to public welfare
based on ethical awareness of broad social needs. – Philanthropy
2. Nehru Model - State driven policies including state ownership
and extensive corporate regulation and administration.
3. Milton Friedman Model - Corporate responsibility primarily
focused on owner objectives
4. Incorporation of CSR strategy in to business strategy
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4. Stakeholder Dynamic
Civil Society
• Watchdog, Critics
• Protect People’s rights
• Service Delivery
Economy
Government Corporation
• Enforcers, providers • Innovators, Doers
• Preserve order • Deliver value to
• Represent citizen stakeholders
• Support to customers
Ref. CSR as risk mgmt by John Gerard Ruggie 4

5. Challenges in implementing CSR programs
1. Lack of Community Participation in CSR Activities
2. Need to Build Local Capacities
3. Issues of Transparency and Visibility Factor
4. Non-availability of Well Organized Non-governmental
Organizations
5. Narrow Perception towards CSR Initiatives
6. Non-availability of Clear CSR Guidelines
7. Lack of Consensus on Implementing CSR Issues
Corporate Social Responsibility – Issues and Challenges in India
Nilesh R. Berad, nileshb_iom@bkc.met.edu, MET Institute of Management, Nasik 5

6. CSR levels and ongoing activities
Institutional Level • Organizational Legitimacy
Individual Level • Moral Choices of Managers
Organizational Level • Stakeholder Management
Global Level • Sustainable Development
• Vocational Training and Women empowerment activities
• Community Development
• HIV Drugs Distribution and Mobile healthcare vans
• Setting up computer training labs
• Cyclone proof houses/houses for poor
• Environmental protection venture 6

7. Innovations in CSR implementation
Products Distribution
• Designing of products at micro • Capitalizing existing channel
level and models
• Bundling of Services such as • Suggest new players to
Health and Life Insurance, organize this type of programs
Pension, Tele-medicine and • Integration with ongoing CSR
Child Education programs
USPs - Technology and Process
• self reliant individual and • Integration with distribution
sustainable community channels so as to reduce
• Catering latent customer costs and increase
needs through to mitigate operational efficiency
risks
• To educate community on
sustainability
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8. International and National Social Innovation Brands
ABN AMRO Ranbaxy
Electricité de France Tata Consultancy Services
Essilor International (TCS)
Novo Nordisk Bharat Electronics Ltd
Philips Ion Exchange
Procter & Gamble
Telenor
TrygVesta
Unilever
Lupin India Ltd
Cipla
A Literature Review on Corporate Social Responsibility in the Innovation
Process. Prepared by Kai Hockerts and Mette Morsing1 Copenhagen
Business School (CBS), Center for Corporate Social Responsibility
Porcelaenshaven 18, Office 0.113, DK-2000 Frederiksberg, Denmark 8

9. CSR Activities in India
In India companies run CSR programs in following ways:
1. Approaching local NGOs and participate in their ongoing programs
2. Select a focus area and support in concerned initiatives
3. Contribute in the existing initiative of common interest
Companies also support their own foundation by monetary assistance
to implement CSR goals set by management. Corporate also focus on
issues such as:
•Health And Community Development
•Gender Equality / Labor Standards / Human Capital
•Environmental Management / Energy And Water Conservation
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10. Conclusion
This CSR Innovation model will help corporate, government and society
to bolster the growth for poor.
Reduce inequality between affluent and risk-prone poor
Ease the burden of social support of government
Taking forward the notable efforts taken by Indian Corporate
Provide better client value
Help governments to align & channelize PPP initiatives
Help reducing harassment to the workers
Launch of awareness generation programs
At the same time, sustainability of this model will open new avenues for
new business operations as well.
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11. Thank You
Devendra Shahapurkar
+91 9167252987
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12. By using BOP thinking MNCs are believed to better target their design as well as
improve the distribution so as to bring down the poverty premium. The Mexican
cement
manufacturer Cemex launched an initative that enable low-income rural Mexican
households to by the cement to build a house. The purchase includes low-weekly
payments and consultation and inspections from Cemex architects. The initiative
allows a
great deal of flexibility and assistance to the poor, who would not have been able to
construct a house at traditionally fluctuating market prices.
A Literature Review on Corporate Social Responsibility in the Innovation Process
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