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.

We at YES BANK suggest that CSR is not an activity, but a core driver of business strategy, an investment of time and capital towards the betterment of society, the environment and most importantly, the firm’s long-term business security. At YES BANK we have a core value of ‘Responsible Banking’ through which we actively search for innovative technologies in the social and environmental space and integrate business with development. Like, YES BANK played an instrumental role in the loan syndication and subsequent growth of the third global wind energy major, Suzlon. On a micro level the Bank has also financially supported over 10,000 nomadic bee farmers in Kashmir so that they can organise the honey production process into a more competitive business model.

Sustainable development : need for synergy

The Indian government has made it a top priority to address India’s social and environmental issues through numerous policy reforms and programmes in industry, education, health and human resource development. However, the reality of the matter is that even with a large bureaucracy for a vast and dynamic modern India, it is difficult to fast track project approvals and expedite policy implementation. On the other hand, NGOs and non-profit organisations have traditionally taken such initiatives upon themselves, thus developing well-entrenched networks within their target communities, but they have been unable to reach scale in an effective and efficient manner. It is up to the corporation to step forward and take responsibility for the changes required, leveraging the work of both government and NGOs. We do not suggest that the private sector can do the government’s work for them, which would be an impossible task, but rather work with the government and civil society though a public private partnership (PPP) approach to meet India’s sustainable development agenda head on.

YES BANK’s Responsible Banking philosophy puts front and centre this agenda because as a public trust and financial institution, we can and we should fill that gap. The most notable feature of a developing country is that it witnesses the birth of a number of organisations geared to meet the demands of, and opportunities presented by development. The complex and unique socio-economic and environmental make up of India requires an equally unique business approach, where every company must deeply analyse what it can offer to the country’s sustainable development agenda considering its core competencies and capacities. 

The value and final aim of CSR 

There is a strong business case for CSR both from a brand equity standpoint and innovation in business. For YES BANK, responsible banking incorporates social equity and inclusion into the organisational framework and societal engagements. The financial sector is posed with a plethora of opportunities. CSR as a value and core fundamental practice will bridge the chasm between the slum dweller and the corporate worker in the shiny building, where rather than looking up or down, they will one day see eye-to-eye.