Corruption
2008-07-15
Corruption, Opportunistic Politics, Ignorance – Hurdles for Social Entrepreneurs
Filed Under:
A recent Bollywood movie brings problems such as political motives, ignorance and corruption in India to the fore. Many social entrepreneurs working at the BoP in emerging economies often encounter these problems.
I am a great fan of movies in general, be it Bollywood, Hollywood, European cinema or anything else and I used to do movie reviews a couple of years ago. I recently watched a Bollywood movie by name ‘Sarkar Raj’, which has superstars Amitabh Bachchan, Abhishek Bachchan and Aishwarya Rai Bachchan in lead roles. The movie is the second part of a series which is loosely inspired by ‘The Godfather’ and it’s about a popular and influential public figure, Sarkar, and his son Shankar, who play modern-day Robin Hoods, using money and muscle power to ensure development and social justice in their area. When a multinational power corporation’s CEO (played by Aishwarya) comes up with a proposal to install a large power plant in the area, Shankar, keeping the region’s economic development in mind, takes up the task of ensuring the commissioning of the plant upon himself. However, corruption and local politics aimed at bringing down Shankar’s popularity take over and the project goes haywire. Shankar’s opponents convince villagers that the project is just a money-making business for the power company and Shankar’s family. Villagers riot against the project and things turn murkier when Shankar and his wife are killed.
Sure, the movie dramatizes the scenario but it’s not uncommon for socially-minded leaders and social entrepreneurs to face such problems in India or in any other country. A largely ignorant rural folk can be easily misled and there are several people who believe that political motives are the reason behind India’s expansive illiteracy.
SKS Microfinance’s CEO, Vikram Akula, wrote about an incident, in his recent article for Harvard Business Review, wherein SKS faced violent opposition in a particular area, triggered by extortionists and misguided communities. I have also heard of several similar experiences by various Microfinance Institutions in different parts of the world. If such opposition can be faced by many genuinely social non-profit initiatives, one can guess how difficult it can be for social enterprises with profit motives.
To be honest, I have been unable to figure out if there are any quick solutions to such problems. One has to be patient and tenacious, perhaps. Exiting a particularly troublesome area might be good for both the BoP and the enterprise in the short term, as SKS did. As Vikram rightly points out, not giving in to corruption and extortion can create a lasting impression in the minds of people at the BoP. In addition to creating strong, need-driven products or services at the BoP, social enterprises should stand up against corruption and extortion – something that mainstream corporations have often not done. This might mean jeopardizing the business in the short term, but such an approach driven by values can bring greater benefits in the long run. I do realize that this is easier said (blogged, rather) than done and such opinions from someone like me, who has not really faced such a scenario, should be open for debate. Do feel free to fill up the comments for this post.
