Business’ first rule is to understand environment

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The 16th century industrial revolutions in England and the United States transformed the world by providing the masses with jobs and goods to consume. However, the deplorable working conditions and the smog of the world’s premier industrial cities became notorious folklore. This Dickensian backdrop of social and environmental plight became the precursor to Friedman’s and Marx’s  pioneering thoughts towards social responsibility, giving birth to the rights of workers, laws against child exploitation and the formation of labour unions. The corporation has historically played a pivotal role in the development of mankind, responsible for the evolution of society and its overall impact on the environment.   

Fast forward to the 21st century and shift from the West to the developing world. YES BANK’s corporate headquarters is located at the Nehru Centre in Worli, Mumbai — a thriving and growing business district nestling in the heart of the city. Adjacent to the premises is a sprawling slum, where thousands of Mumbaikars, the vital cogs in Mumbai’s rugged machinery, live, play, eat and dream. The disparity and inequity comes as no surprise or rattles little emotion for some since it is the most common of sights in India’s commercial capital. Skyscrapers and shiny corporate buildings are springing up in full view; the city’s real estate prices now match (and in some cases exceed) those of New York, Tokyo and London. Life is looking up for those who can afford the Indian dream, while the populations of the slums simply look up.

Charity = Guilt/Expense/Immediate solutions /Business as usual CSR = Foresight/Investment/Long term solutions/Strategy/Innovation Corporate social responsibility (CSR) in India is still largely regarded as a drain on company resources, an emotional and irrational business response to the immediate environment. However, to say that India’s business community is not socially and environmentally focused is premature. Numerous trusts and philanthropic efforts have been established by India’s corporate leaders and they have made inroads into the most ignored segments of Indian society. However, there is a difference between philanthropy and CSR, whereas the former implies ‘giving a man a fish’ and the latter suggests ‘giving a man a fish net’, ie dependence versus empowerment.