The ‘Sustainable Livelihoods’ Program started by the World Business Council for Sustainable Development is business that benefits the company and benefits the poor. The Corporate Social Responsibility (CSR) movement that has seen a relative upsurge in the last decade has spurred the program on.

Since business cannot succeed in a society that fails, it has become imperative for companies to partner in the development of the community and environment. This has resulted in the creation of opportunities for partnerships between companies and non-governmental organizations, not-for-profit organizations, governmental agencies and other social enterprises.

Cases of ‘Sustainable Livelihoods’ programs have been coming out from all parts of the world – the Americas, Europe, Africa and Asia. Social Entrepreneurs have received a new lease of life and a new process to develop their organization. More and more social enterprises are springing up in the developing countries with the ‘Bottom of the Pyramid’ poor being classified as a potentially large target market for products and services. Multi-National Conglomerates are partnering with NGOs in rural areas to deliver products and services to the community. The NGOs have the competency of providing market intelligence and creating a favorable market for the company – something that the best business houses have been unable to do on their own.

Corporate Social Responsibility brings corporate chieftains and social entrepreneurs together to discuss mutually beneficial partnerships towards Sustainable Development. This convergence harnesses each other’s strengths and learning to develop products and services that benefit all stakeholders.

Over the next few days we will discuss the opportunities that exist in developed and developing countries for social entrepreneurs and examples of successful programs that have showcased CSR and social entrepreneurship partnerships.

I would like to hear your views on this rather largely debated topic:

• What are the potential methods of collaboration?
• Is it a fair deal for the social entrepreneurs or do the companies push them around?
• Does your organization have a Corporate Social Responsibility vision?
• And any other comment that you might have regarding this!

I look forward to having this discussion with you during the course of the next 6-7 days!

Kiran Menon is the Founder and Chief Executive of ‘The Footprint’, a social enterprise in India engaged in Corporate Social Responsibility. The Footprint provides advisory, research, implementation and social investment services that enable integration of sustainable development in processes and technologies.

kiranmenon - Feb 22, 2005 9:43 pm (#1 Total: 14)
The Footprint


Thank you for visiting this forum. Here we are discussing a rather exciting and debatable topic. Feel free to post your messages and thoughts about Corporate Social Responsibility and Social Entrepreneurship!

lindadcheng - Feb 22, 2005 10:36 pm (#2 Total: 14)

Hi Kiran,

What do you know about the SP Jain Institute of Management in Bombay?  We've accepted a team from this university to compete in our bplan competition - the 2005 University of San Francisco Business Plan Competition and its Inaugural Global Entrepreneurship Research Conference.  They have a most interesting idea that is right up this alley.

I've recently gotten quite involved in Net Impact, and am trying to revive it on our campus at USF.  While I currently work as the program coordinator for the USF Entrepreneurship Program, I might soon be taking on a more active role in trying to initiate a Sustainability curriculum at our MBA school.  As part of the effort, I've been brainstorming about areas of collaboration, and how to take the Entrepreneurship Program in a different direction - to at least somewhat address social ventures. 

Am glad to have found this site! 

trevorneilson - Feb 23, 2005 11:17 am (#3 Total: 14)
Global Business Coalition on HIV/AIDS


Should your business fight HIV/AIDS?

Ethical Corporation, Trevor Neilson

Trevor Neilsen looks at how companies can act to stem the flow of the pandemic.

Forty million people are living with HIV/AIDS worldwide. The disease has hit every country, every sector of society and every industry.

When companies saw that treatment of HIV/AIDS was not only crucial for good corporate citizenship but also beneficial to corporate self-interest, they began to act.

AIDS is devastating much of sub-Saharan Africa and infection is escalating dramatically in the world's fastest growing markets, including China, India and Russia.

The pandemic is challenging investment risk profiles, measures for political, fiscal and exchange rate stability, and a host of other factors crucial to accurate projections of profitability in the medium term.

It is not surprising that it is has been hard to calculate the precise economic and business costs of the pandemic.

Companies are often structured in a way that requires individual business units to be profitable and for those units to look mainly at the immediate bottom line of investment decisions that affect their operations.

Consequently, many of the pandemic's more serious costs to businesses cannot be measured by traditional cost accounting mechanisms.

The potential impact of the disease is likely to differ from one firm to another.

Global business leaders have some critical questions to answer: is it worth investing in the global fight against HIV/AIDS? What are the factors that might inform such a decision? If a company decides to act, are a range of interventions available to it and its management team?

At the Global Business Coalition on HIV/AIDS - an international alliance of more than 170 companies that use their business skills, expertise and products to fight HIV/AIDS - we encourage chief executives to understand what the likely consequences to their companies will be if no action is taken against HIV/AIDS.

At the same time the GBC informs companies about the possible benefits that can be gained from pursuing an HIV/AIDS strategy; along with the options available to businesses and their associated costs.

Through GBC's "Business and AIDS Methodology", a three-step process to help companies develop a business plan to fight AIDS, GBC works with its member companies to identify opportunities in four main areas: workplace, community programmes, core competencies and advocacy/leadership.

Costing the problem

The first questions many companies ask when trying to address AIDS relate to the direct costs. Increasing evidence has shown that HIV/AIDS is threatening productivity and profitability in the worst-affected regions.

The direct costs on companies will vary depending on factors such as whether firms provide in-house medical facilities, employment benefits, funeral costs, or pension accounts.

Productivity and efficiency of operations will also be affected by increased absenteeism, loss of morale, workplace cohesion, training and rehiring of workers and decreased reliability of supply chain and distribution channels.

A study of Kenyan tea pickers, for instance, demonstrated that HIV-positive workers plucked significantly less tea in the 18 months preceding death. DaimlerChrysler revealed that the savings from preventing a new infection in its South African operations ranged from about $25,000 to $280,000, depending on job level.

However, there are reasons for businesses to act that are beyond their bottom lines. Businesses want to operate and invest in safe and stable environments.

AIDS threatens the stability and security of nations; it can deter foreign investments; and it may disrupt the flow of goods and capital.

On a global level, civil and international conflicts contribute to the spread of HIV as populations are destabilised and armies move across new territories.

A weakened economy and increased demand for healthcare services strain public sector capacity and force countries to reassess budgeting decisions.

The loss of human capital and shifting demographics threaten to undermine decades of development, skill and intellectual resources.

The system becomes strained at all levels as households experience decreased purchasing power and the government loses its tax base as more people demand greater access to basic public goods.

Applying business know-how

Business brings with it the qualities that can turn the tide of the epidemic. The entrepreneurial spirit and problem-solving expertise of the private sector and core business skills can be put to good use against HIV.

Companies with operations in heavily affected regions should aim to support the implementation of comprehensive workplace programmes that cover non-discrimination, prevention education, access to counselling and testing, as well as care, support and treatment.

Companies in less affected areas can use their competencies and products to support community initiatives or their business leaders can speak out against the stigma and discrimination associated with the disease.

Taking action on AIDS has resulted in enormous benefits for companies. Such action can offset future costs by providing care and treatment to employees living with HIV/AIDS. This allows employees to remain productive and active in the workforce.

For example, oil giant BP demonstrated measurable savings when it introduced AIDS medicines for employees - 45 lives and $800,000 were expected to be saved in one year.

In anticipation of the potential impact of AIDS, Anglo Gold, a subsidiary of Anglo American, looked beyond direct measurable costs. Bobby Godsell, chief executive of Anglo Gold, says: "HIV is costing us about $5 to $6 per ounce [of gold produced]. If left unmanaged those costs could soar to $9 an ounce."

To further enhance companies' AIDS response, it is critical to form partnerships with governments, unions, community-based organisations, people living with HIV/AIDS and other relevant stakeholders.

Anglo American maintains intricate layers of partnership, for example with the LoveLife HIV-prevention programme, which have helped to extend the company's workplace programme to local communities.

Anglo has also transformed its global responses to the epidemic through active participation in the Global Fund to fight AIDS, TB and Malaria.

BP works with community-based organisations, non-governmental organisations and government institutions to influence behaviour change through public awareness and education campaigns.

There are also important public-relations implications for companies that get involved in HIV/AIDS issues. In hard-hit areas, companies that do not take an aggressive stance against AIDS will find themselves out of step with their peers.

Viacom, DaimlerChrysler, Anglo American, MAC Cosmetics and others have found that their involvement in the issue brings them worldwide recognition - routinely referred to in the media as models for corporate citizenship.

The bottom line: it is worth it for any company to fight HIV/AIDS.

Trevor Neilson is the executive director of the Global Business Coalition on HIV/AIDS.

Michael Chertok - Feb 24, 2005 5:51 am (#4 Total: 14)

Hi Kiran,

Thanks for hosting this discussion.  I'm curious to learn more about the business perspective on CSR in India.

For many large companies in the USA, corporate social responsibility has been a very important but primarily defensive strategy to manage business risks, for example, focusing on employee and community health and safety issues, mitigating environmental harm, etc. 

As you mention, the "Bottom of the Pyramid" presents opportunities for forward-looking strategies for businesses to seek out innovative ways to grow their markets in socially responsible ways.

I'm curious to learn about how Indian businesses are thinking about CSR.  Is it mostly a defensive strategy to minimize business risk and appease government and civil society?  Or are companies in India developing more creative CSR approaches?  If so, can you share some examples?

Dave Kilroy - Feb 25, 2005 3:09 am (#5 Total: 14)

Hi Kiran,

Thanks for hosting this discussion, I'd like to get your views on the impact of your programme on participating social enterprises.

What effect does the organisation having a go at CSR have on the social enterprise?  Is it always a beneficial one?  What are the factors in the relationship between the organisations that encourage/discourage win-win outcomes?

Regards

Dave

kiranmenon - Feb 26, 2005 12:00 am (#6 Total: 14)
The Footprint


Hi Michael,

Most new companies in India have a predefined agenda in CSR. They pursue social responsibility activities to gain mileage in PR and Marketing!! However, there are some mature and rather large business houses that have contributed to Social Development with a more philanthropic perspective!

However, over the last couple of years the outlook for integration of CSR in business processes has been rather encouraging! Companies have initiated projects that positively impact its bottom-lines and business goals and at the same time develop the community! There are a few really encouraging business cases for CSR in India.

Therefore, the picture looks promising and I will definitely share some of these examples soon!

kiranmenon - Feb 26, 2005 12:12 am (#7 Total: 14)
The Footprint


Hi Dave,

The relationship between CSR and Social Enterprises is a closely knit bond. However, most often both parties fail to see the opportunity.

Companies, more often than not, have no idea as to what the community requires or how to contribute to its development. At the same time Social Enterprises have minimal knowledge in organizational management and strategy.

Now if you look at it - the factors that the company lacks in can be provided for by the Social Enterprises and the factors that the Social Enterprises lack in can be provided for by the company.

There is definitely a win-win relationship. If a company is looking at launching a 'Sustainably Livelihoods' program it needs market intelligence and the support of the community around it. This is where the social enterprise can step in. The Social Enterprises can provide the company with all the market intelligence it requires and also work towards educating the community about the product/service offered.

On the other hand, Social Enterprises need financial backing and more importantly other resources that the company posseses - such as management guidance, strategic roadmaps, hman resource and the clout and the backing of a corporation - only to name a few.

I will also introduce a couple of case studies here that will further exemplify the win-win relationship between businesses and Social Enterprises

kiranmenon - Feb 26, 2005 12:42 am (#8 Total: 14)
The Footprint


Hi,

I have heard a lot about SP Jain Institute of Management in Bombay. It is a fairly well-known and acknowledged institute!

However, it is great to hear about the Entrepreneurship program that you are looking at! Sounds extremely interesting and you might want to take a look at the material that World Business Council for Sustainable Development (WBSCD) on 'Sustianable Livelihoods' to get a few ideas.

As far as a Sustainbility Curriculum is concerned we have been working on a few modele as well and it has proved to be quite a challenge in India.

Regards

Kiran

K.L.SRIVASTAVA - Feb 26, 2005 6:18 pm (#9 Total: 14)
Researcher and Consultant,Hyderabad,INDIA


Hi Kiran,

Thank you very much for hosting this discussion. As you have mentioned, it would be really ideal if the corporates and social entrepreneurs are able to complement each other's work. In this context, the sustainable development framework provides common meeting ground.

It is good that your organisation has started work in this area. We look forward to hear more on this subject.

Regards,

KL

kiranmenon - Feb 27, 2005 11:00 pm (#10 Total: 14)
The Footprint


Noted Economist C K Prahalad writes that, "if we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up."

This is the basis for the success of Sustainable Livelihoods projects that certain leadership companies have experienced. The Indian subsidiary of Unilever, Hindustan Lever Limited (HLL), has enjoyed tremendous success with its Project Shakti.

The Project works to empower rural and disadvantaged women. Through Project Shakti, women are given the opportunity to earn an income selling HLL's products. The Direct Marketing Chain has proved to be useful for the community and for the development of the society as a whole.

The FMCG companies in India have also seen tremendous growth in their single serve/use sachets of products like shampoos, ketchup, jams, washing powder etc. These satchets have been very popular in the rural communities that survive on less than $4 a day!

These are a couple of very successful Sustainable Livelihoods projects that India has seen over the last few years! There are a lot of other examples that have grown across the globe. Most of them have been in Telecommunications and Financial markets!

dipikapgupta - Feb 28, 2005 2:52 am (#11 Total: 14)

Sharawan kumar@yahoo.co.in - Dec 21, 2005 9:48 am (#12 Total: 14)

Patrick O'Heffernan - Dec 21, 2005 10:06 pm (#13 Total: 14)


I am so pleased to see this level of interest in social entrepreneurs. As far as working with companies, there are so many comapnies now that use triple bottom line accounting and use their profits to support NPOs. Take a look at www.workingassets.com for a great example.

george.polisner - Mar 24, 2006 4:20 pm (#14 Total: 14)


We have designed a portal and database that has integrated Corporate Social Responsibility ratings directly into the ecommerce experience. We are effectively using technology, human behavior/user experience, economic data, corporate behavioral data and are working to provide a compelling experience that will ultimately address the Millennium demographic and redirect their respective spending to the supply chain (manufacturers and merchants) that use fair labor practices, are reducing their environmental footprint, using alternative energy and evolving to balance people,. planet and profit.

This effort is not a narrow effort (we are not a hemp tshirt and longer burning energy efficient light bulb store). We leverage the entire amazon catalog -thus the alonovo.com community has full access to amazon inventory with no increase in cost, or subscription fees. We remain a lightweight model (and can focus on our core competency) by using amazon to handle the financial and fulfillment components of the commerce transactions.

The power of our model is money (remember "It's the Economy, stupid"? -that is our mantra). We are a significant and missing element to a social values driven economy. The Socially Responsible Investment (SRI) community has had a negligible impact because a method to work in conjunction with the intelligent flow of capital had not been available. Thus, businesses that operate in a profit without regard manner still attract significant investment demand because of their growth and profitability. Now, by providing corporate behavior data and informing demand directly within the scope of the purchase transaction (a very important element) we can connect the concept of Corporate Social Responsibility (CSR) (arguably - without an intelligent demand, and absent government regulation and/or enforcement-- CSR simply does not exist) directly to competition for product and service sales -which connects CSR to the profit motive. An intelligent and informed marketforce demand forms, and as consumers become more educated about externalities -more consumers that are also investors will transform into Socially Responsible Investors. This leads to more equity value for companies that operate using progressive policies -which attracts more capital for expansion that drives additional growth in the community of progressive business and capital leadership.

Beyond providing a corporate behavior rating infused experience, we are aggregating corporate behavior news sources, provided blogs and original content from subject matter experts and a framework for a social values community network. Upon proper funding we have plans to engage some media design companies to produce some short animations that educate the millennium demographic about externalities (without the demographic ever needed to know the word 'externality').

We are for-profit, yet share a significant portion of our revenue with many progressive and centrist causes to further engage important demographics that will also engage politically.

The following are a few comments first from Charles Cameron with Rheingold Associates (and formerly of the Arlington Institute), the second is from Joel Makower, and the third is from Dr. John Tepper Marlin author, NYU Professor and former Chief Economist for NYC.

In your second post, ROI and other measurements, Polisner writes:

we are facilitating this in an apolitical way -based on thought that you do not have to be liberal to appreciate a blue sky, and you don't have to be conservative to want a growing (responsible) economy

That's an excellent example of the kind of "alchemical marriage" I was thinking of getting past the conventional dichotomy of left and right.

The human tendency to dichotomize is a powerful one, but it tends to leave us seeing the world in black and white, with very little nuance, with distinct categories of us and them, good and evil and when taken to an extreme, such attitudes result in conflicts between tribes or factions, beliefs or ideologies which polarize and isolate us, in which the possibilities of mutual understanding get squeezed out in the name of "right" and clarity.

So yours is a powerful approach, not only because it can call on and gain benefit from participants from each of two "opposed" camps, but also because in doing so, it allows us to glimpse the fact that values are of importance to people on both sides of the divide the necessary first step for dialogue between them, and an eventual synthesis of the best of both.

How good will Alonovo be? "If it catches on," says Joel Makower, "it could be one of the most powerful social change tools ever put into consumers' hands." Article © 2006 Vegetarian Times, Inc.

The Corporate Social Responsibility ratings provided by alonovo provide very valuable information for consumers and investors who are concerned with labor practices, environmental protection, and social justice issues more generally. And the more general Alonovo programs also have great promise, I think. It's a very admirable initiative, in my opinion. It could make a substantial difference.

-Noam Chomsky

"The prospect of alonovo's providing instant guidance for socially conscious consumers at their online point of purchase is a dream come true," said Dr. Marlin. "This is a brilliant idea, an electronic fulfillment of the objectives of those of us who participated in the heady launching of the printed editions of Shopping for a Better World. I look forward to adding my knowledge of the terrain to the planning for this exciting project."

Wei wu wei (Doing, without doing). We believe that we can be far more political without being directly or overtly political at all. By being apolitical -we can engage issue based conservatives and then have a terrific opportunity to provide more information and education that will help shape their perspectives. It is an opportunity that direct political entities will never have, which makes our model sustainable and far more politically powerful.