CSR collaboration with Non Governmental Organizations

(NGOs)In India

Corporate social responsibility is a gesture of showing the company concern commitment towards society sustainability & development

CSR is the ethical behaviour of company towards society

A Non Governmental Organization (NGO) is any non-profit, voluntary citizens' group which is legally constituted, organized and operated on a local, national or international level.

Some are organized around specific issues:

→ Human rights→ Environment → Health → Poverty eradication → Rehabilitation→ Employment

TYPES OF RESPONSIBILITY

→ Towards Society

→ Government

→ Shareholders

→ Employee → Customer

CSR NGOs Classification

By the level of Orientation

Charitable Orientation

Service Orientation

Participatory Orientation

Empowering Orientation

By the level of Operation

Community Based

Organizations

City Wide Organizations

National NGOs

International NGOs

Act as a change agent

Environment

Safeguarding Human Rights

Representatives of weaker sections

Responsibilities of NGOs

Need for honest and dedicated persons.

Need for transparency to create confidence.

A proper personnel policy

Protect the interest of the people rather than

members

Transparent and easy to operate mechanism.

Challenges to NGOs

Features of NGOs

Support democratic system Function on no profit basis Non Political in character Clearly defined objectives Limited external control Voluntary Character Wide operational area Positive contribution Need financial support Interest in long-term projects

Activities of NGOs

Create awareness

Protect human rights

Encourage rehabilitation

Gainful employment

Combat man made crisis

Protect environment

• To reduce the social cost.• To enhance the performance of employees.• It a type of investment.• It leads to industrial peace.• It improves the public image.• Can generate more profit.• To provide moral justification.• It satisfies the stakeholders.• Helps to avoid government regulations & control.• Enhance the health by non polluting measures.

Why Need for Corporate Social Responsibility

Case Study

Crompton Greaves supports Health initiatives in South India

Crompton Greaves Limited (CG) has partnered with Smile Foundation in Chennai and Hyderabad to implement a series of initiatives. An Aids Awareness campaign and Diabetes Health Camp for the underprivileged have been conducted in both the cities. The awareness campaign was aimed at youth and adults, which saw enthusiastic participation and debate. Next in line is library support for two Mission education centres.Crompton Greaves Limited is a pioneering leader in the management and application of electrical energy, with a presence in over 10 countries. CG is active in the global power transmission & distribution arena, and is amongst the world’s top ten transformer manufacturers.

Case Study

Nerolac supports healthcare of 5050 Smile Children

Kansai Nerolac Paints Limited has partnered with Smile on Wheels to support the primary health care of the painter community across India. They have conducted more than 80 health camps during the last three years.Kansai Nerolac Paints Limited (KNPL), formerly known as Goodlass Nerolac Paints Ltd., was established in 1920. With over 90 years of strong presence in the paint industry, KNPL offers a comprehensive range of products both in Industrial and Decorative businesses.KNPL is an organization which cares for its people and involves them in the ambit of social responsibility.Kansai Nerolac is a responsible organisation and understands its responsibilities - both internal and external, and is committed to making a difference to the society it operates in. Nerolac invests in communities to improve the quality of life and sense of well being of the people. KNPL, under its social outreach programmes, works in the areas of healthcare, education, environment preservation and community development.

Evaluation and Rating of NGOs

No. Of Years in business:

Reputation

Certification and Registration:

Experience in relevant areas

Partner feedback

Capabilities and expertise

Benefits of Corporate - NGO partnership

Benefits to the private sector

Image and credibility

Entering new markets and increasing long term profits

Better CSR policy as part of corporate strategy NGO’s help to enhance the CSR policies as they have innovative idea to solve the social issues.

For example: ITC Limited joins with NGOs like Exnora International, Sewa Bharat, and Action for Social Advancement (ASA) to develop community. There by it creates good image among the society.

For example Unilever is integrating social innovation strategies in its business operations. In India, it teamed up with NGOs to create Shakti, a rural network that sells products adapted to rural customers in more than 100,000 villages, employing 31,000 women. So from this Shakti movement Unilever reaches the rural areas too

Benefits to the NGO Sector

Financial sustainability and funding for projectsCorporation act as the source of funds for NGO.

Access to free marketingNGO’s get free advertisement for their social marketing to enhance their NGO’s brand image.

Example: Times now India’s “Teach India” is famous campaign to teach young children. Teach India brings the opportunity to teach young children with the guidance of a multitude of NGOs across India. From this Times group many NGOs are getting free advertisements.

Requirements for successful implementation of CSR through NGO

Partnerships are most successful when they are established with both parties thinking about the long-term benefits.

Effective communication

Unity of vision and purpose,

Having positive relation with local authorities and the public sector

For example: In 2000, Environmental Defense teamed up with FedEx Express, the world's largest express transportation company, to develop a cleaner, more fuel-efficient delivery truck. These trucks go up to 50% farther on a gallon of fuel than a conventional truck, reducing greenhouse gas emissions by approximately 30%. They emit 65% less smog-causing pollution

Conclusion

One of the reasons corporate-NGO partnerships can be successful is because they are more focused, and target development on a much smaller scale than larger projects. They have the capacity to impact fewer people but do so in more significant way.Although partnerships may not lead to large scale improvement in sustainable development and poverty reduction, they do have the ability to improve the livelihood of the individuals they specifically target.

Today, Save the Children is supported by 1,15,000+ individual supporters, 35 corporate and 38 institutional (National and International) supporters

With this new model of CSR, corporations are not detached from society but established mutual support relationships so that both corporations and communities benefit from each other.