It?s the interest value that can assure some degree of success. And that applies more so to a social responsibility (SR) programme. It needs to be attractive. That?s the only way people would want to respond to it, if at all. Likewise, the programme also has to be interesting to employees, clients and other stakeholders of a company floating the initiative, who can then be motivated enough to pitch in.
Every company wants its employees to volunteer and thus act like brand ambassadors for its social agenda. That?s where Hemant Singh, CEO, Modicare enjoys being part of the direct selling industry. The first benefit that comes to the industry, according to him, is the way it functions ? direct to the consumers, and thus to society. ?Second is our workforce, which constitutes mainly women: our best initiative towards any social cause. Giving women economic empowerment and helping them take decisions on their own is the best way to help any society. An independent mother can nurture society much better than even hundred corporates put together,? says Singh, who has instances to prove his point. There are several success stories ? of giving employment to women, many of whom do not even have basic school education and were thus domesticated ? and these in turn have spurred the company on its social journey.
The spirit is unanimous with every company being part of the direct selling industry in India today. Though they don?t have fancy shop floors to boast of and no brand recall like their counterparts in the organised FMCG industry, the companies here have at least made up their mind to shoulder their responsibility towards society. There are several kinds of initiatives from the companies. Some like Tupperware believe in launching a product whose sales (or a percentage of its sales amount) go towards a welfare mission. Others like Amway and Avon have dedicated foundations to address issues ranging from children to AIDS awareness. A few like Modicare believe in dedicating a per cent of their sales to address social causes. Then there are those who help out when there are natural calamities like Tsunamis, earthquakes or floods. And if that?s not enough, the guiding association, Indian Direct Selling Association (IDSA) helps its member companies plan a better SR strategy at the local level.
IDSA this year set the ball rolling on the eve of its tenth anniversary by acting as a facilitator for the industry?s SR initiatives and thereby creating awareness on how its members must contribute towards social causes. The year began with a musical event of a visually-impaired troupe, Komaggan Raag Priya, based in Chennai, to celebrate the anniversary. The proceeds of the event went to support the infrastructure needs of the troupe by buying them the latest musical instruments, encouraging them to perform better and making a decent living probable. The body soon intends to introduce a rolling trophy for the best SR activity amongst the direct selling companies. ?Over a period of time, we plan to extend the competition to companies beyond the industry as well. In addition, based on specific recommendations, we intend to recognise the member companies, as well as distributors who are involved in the SR initiatives, through newsletters, letters of recognition and certificates. Direct selling has at its disposal 14 lakh pairs of hands and their supporting families whose physical force can be harnessed for social causes,? says P Sanker, chairman, IDSA.
The direct selling industry stands at $105 billion globally and is growing at a healthy pace (as high as 30% in some countries). The turnover of the industry in India is Rs 3,100 crore (including sales of companies that are not IDSA members). The industry here comprises both multinational companies and homegrown Indian companies. In the case of multinationals, the SR initiative is directed on a global basis and local affiliates are allowed flexibility to tweak it to meet the local needs. A good example here is Amway. ?The company has a global initiative to support children and their needs. In India, we focus on the education of visually-impaired children in particular and underprivileged children overall. The mission is now spreading to orphans, wherein through our programme Muskaan, we adopt orphanages and help them cater to children abandoned by parents,? says Rajat Banerjee, manager, social responsibility, Amway India.
Like Amway, most of the international direct selling companies follow their global missions, though customised to local needs. ?On the business side, most companies bring their international projects into India after they have had a successful launch in mature markets. With rapid strides, the Indian market is gaining and the time lag (between international and Indian) is shortening. Today, India is at par with other countries. International companies are keen to launch their new or bestselling products in India. The same can be expected on the SR front,? says Sanker.
However, an irritant that comes in the way is how the industry is formulated. ?The industry fails to grow to its full potential due to the lack of a regulatory framework. This would have helped keep the fly-by-night operators away and would thereby have prevented the name of the industry being tarnished. IDSA has been trying to seek a legislation to protect consumers. We are confident that with such a measure being adopted, the industry will take rapid strides and grow to its full potential. This will also boost SR,? hopes Sanker.