In alignment with the focus of the study, the idea was to identify unique enablers of the society in the Indian context which would trigger the development of an ecosystem where CSR would be used as a tool of development and disaster resilience. The mandatory CSR regime instituted by the Government of India was the first big step in this direction. But, the investments through CSR funds, henceforth, were skewed and lacked the holistic outlook as envisaged by the government. The question that logically follows is how to orient the investments towards sustainable development? A first hand research into the issue revealed that there are a number of factors that play a very important role in this regard; corporates invest in avenues to have a better public visibility, they invest in avenues which are aligned with government schemes and plans to earn political mileage, corporates invest in avenues where less strategising is required (health and hygiene, for example; distributing medical supplies to the hospitals in the area they are operating) and in some cases, the lack of public pressure to coerce the corporate to contribute to the society in a meaningful way. So, on the face of it, it appeared that all the involved stakeholders have a role to play in building the desired ecosystem; the corporates need to have a holistic approach of their CSR investments and they also need a prospect of interest to lure them into spending in the attainment of sustainable development goals and disaster resilience, the political will, policies and frameworks must also be oriented in that fashion and the civil society, too, needs to be aware of their necessities and the responsibilities due to them.
Based on this initial understanding, efforts were made to go through all the available material (literature, articles, news reporting etc.) and identify enablers as well as barriers to get a whole picture of the scenario as it exists, in the Indian context. A thorough study of all relevant documents like research papers, draft articles, white papers, news reporting, details of which are discussed along with each identified enabler, led to the realisation that certain enablers, which academicians thought can be used to advantage, were common and repeatedly appeared in more than one document while some were unique and represented only a particular scenario. Attempt was made to extrapolate all such enablers to the Indian scenario. The following section contains the enablers that were identified, their sources and how they have been perceived and interpreted in this study. It is to be noted that all the identified enablers have been evaluated from three perspectives:
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a. From the perspective of the corporate: Why should we invest? What is our benefit?
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b. From the perspective of legislators, policy-makers: What can be done to promote the interest of corporates to invest in SDG and disaster resilience?
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c. From the perspective of the society: What responsibilities are due to us and how do we ensure that we are benefitted with what is necessary?
Awareness (E1)
Source
A Government document titled “Disaster Risk Management and the Role of Corporate Sector” by the Ministry of Home Affairs, India, emphasises on “involvement of corporate sector in awareness generation and disaster preparedness and mitigation planning through sensitisation, training and co-opting of the corporate sector and their nodal bodies in planning process and response mechanisms”. The document although highlights the need of corporates to pull up their socks and indulge in spreading awareness about vulnerabilities through informative booklets on hazards associated with their processes and the steps to be taken for preparedness and mitigation. The same document mentioned above and a manual prepared by Public-Private Partnerships for Disaster Management Initiative in China (2008), focusses on mock dills and “limited mobilisation of resources (e.g. personnel, equipment, etc.) used to simulate and test response plans, often focused on one component of the plan (e.g. building evacuation).
Understanding
Technically speaking, awareness is a two-way street. Awareness is not only about the community knowing about the persistent vulnerabilities and their right to claim the operating corporate’s responsibility towards them, but it is also about the employees working in the corporate knowing about the risks they are surrounded with, evacuation routes, evacuation plans, role of each personnel as per as the disaster management plan of the enterprise. Apart from this serious awareness, employees should also be aware of the fact that CSR is almost a right of the community and it is in no way a distribution of sympathy and philanthropy.
Interpretation
Such a sort of culture amongst the employees, makes CSR all the more effective tool of holistic development and to top that, if the awareness amongst the beneficiaries can inculcate awareness among professionals, personnels and employees, CSR initiatives and its impact would grow in leaps and bounds. Thus, awareness is an enabler which needs to be worked upon to ensure disaster resilience and off course, sustainability of the enterprise as well as the immediate community around it.
Proactive attitude (E2)
Source
“Corporate Social Responsibility & Disaster Reduction: An Indian Overview” by SEEDS, India (2002) is an authoritative document in this field. This document talks about the level of pro-activeness or readiness that should be inculcated within the corporates by stating that “one disaster team in the company should be ready all time to tackle any kind of disaster” and they address the issue of lack of interest on the part of district administration by fostering the need to educate the administration about disaster management plans and efforts. “The Corporate Sector Role in Disaster and Environmental Management: Beyond Corporate Social Responsibility”, a white paper prepared by the Global Forum for Disaster Reduction (GFDR) and Graduate School of Global Environment Studies, Kyoto University, emphasises “without properly taking actions that is proactive…., the level of impact of disaster and environmental hazards will be much more worse.”
Understanding
Rather than response and short-term measures, proactive attitude is what is the need of the hour. Since few years there have been many vocal supporters of the fact that disaster management as an approach needs a paradigm shift and eventually it is undergoing such a change: from “relief only” it is moving to preparedness i.e. from management it is moving towards mitigation. Companies are also required to move in the same manner towards holistic development rather than ‘help in need’ attitude. Such evidences of paradigm shift are rare but not non-existent.
Interpretation
Proactive attitude is considered as an enabler because it is expected to play an integral role in fostering the shift from response to preparedness. If the government, through its policies, declare incentives for industries and enterprises to be pro-active, i.e., use their CSR funds to design and implement disaster management and disaster risk reduction plans for its immediate community, it will lead to the development of a resilient community. On the other hand, if the policy-makers are pro-active in nature, they will ensure that disaster risk reduction is mainstreamed into development plans and agendas. In fact, such steps are being actively taken in many South Asia countries.
Location and nature of the company (E3)
Source
The SEEDS document, mentioned above, illustrates that population accumulation in hazard zones due to better facilities, amenities and accessibilities have brought migrant labour resulting in unplanned settlements in zones prone to storm-surge and similar high-risk zones. It also puts forth the idea of “risks of disasters getting compounded due to industry's presence (e.g. in the aftermath of the Orissa Super cyclone, 1999, an industrial chemical tank in Paradip was on the verge of exploding due to its cooling systems having been made inoperative by power failure. Generators had to be flown in to avert a second disaster.)”
Understanding
The location of the company plays an important role while deciding the CSR initiatives of the company. Couple with this factor, the operational hazards of the company decisively puts a moral bearing on the company towards fulfilling its social responsibilities.
Interpretation
CSR initiatives should be determined by the location of the company but it is not the case. To understand the importance, let us consider an example of an enterprise, the establishment of which required deforestation. Due to strict environmental policies, afforestation in the ratio of 1:3 (1 tree cut to be replaced by 3 new ones) is done, but in a different area altogether. This is against the scope of sustainable development and the lack of afforestation, perhaps, may lead to landslides. If the immediate community residing around that enterprise is affected by such a landslide, all residents who are also employees will be affected and this in turn will affect the enterprise. Thus, CSR strategies and initiatives should be holistic in approach and the location of the enterprise should be a determining factor. To facilitate this, a pro-active local government may enforce a legislation to ensure that the enterprise takes its location and the immediate community in account while designing its CSR strategies.
Brand and reputation (E4)
Source
Corporate sustainability: Drivers and enablers, prepared by KPMG and FICCI in India Sustainability Conclave 2014, talks about “corporate identity” being a key instrument in strategising sustainable action plans; the increased reporting of CSR and sustainability issues has led to the big corporates leveraging the media space to enjoy enhanced brand image and intense reputation surge.
Understanding
The procedure of reporting the CSR initiatives of a company in accordance to the internationally accepted standards, which is also a requirement of the Companies Act (2013), works as a positive pressure for a company as the CSR initiatives are brought to the limelight and the company enjoys fame and popularity. This results in “a positive image of the company in the eye of the public and the employees’ morale is boosted, which in turn has a positive effect on the productivity of the company”, states a report on CSR and natural disaster reduction in Sri Lanka (2002).
Interpretation
Thus, it goes without any figment of doubt that CSR endeavours specially in times of dire need (disasters, epidemics etc.) appeals to the sympathetic threads of humanity which makes the company more acceptable to the society and it enjoys quantum leap in areas like investment, expansion, diversification etc.
Business opportunities in social investments (E5)
Source
A National Institute of Disaster Management (NIDM), New Delhi, document takes note of the fact that the increased conundrum of climate change, sustainable goals have opened up new avenues of business investments and opportunities. GIS based risk assessment and mapping by integrating spatial data collected through satellite or field surveys, early warning systems of earthquake or tsunami, disaster communications through HAM, retrofitting of buildings and structures in high seismic zones are some of the few lucrative fields in which one can now invest foreseeing the future trends of development. Vinod Kumar Duggal, member of the National Disaster Management Authority (NDMA), identifies other avenues where corporate sector can opt to play a crucial role by enforcing a techno-legal regime which gives away facilities, incentives only if certain standards are met. He also emphasised on the need of cost-effective, innovative technologies for disaster management.
Understanding
In tune with the above information, government schemes like Startup India and Standup India, can function with excellent synergy. Such schemes are like incentives to modern day technologists who are now being encouraged to develop low-cost, efficient technologies for disaster management; initiatives like Skill India can work to develop skills which are particularly useful during disasters.
Source
Barbieri et al. (2010) puts forth the idea of eco-efficient innovations. They define such innovations as those “which reduce the material and energy amounts per unit produced, eliminate toxic substances and increase product’s life cycle.”
Interpretation
The existing big shot corporates can employ or seed-fund these upcoming firms as a part of their CSR endeavour which would serve dual purpose; it will help the new firms get clients and the existing corporates to invest in promoting social entrepreneurship. In a job-starved country, promoting employment through such strategies ensures development and financial resilience in times of disaster. Another way of harvesting such an opportunity is by creating a market by initially making a social investment. SC Johnson nurtured the habit and culture of clean toilets through CSR initiatives in Kenya. The move saw tremendous change and huge development in habits of the residents. Once clean toilets became a habit and a necessity, SC Johnson withdrew the CSR initiative as Kenya had already become a willing market of their toilet cleaning and sanitation products. Thus, they taught the world how CSR can effectively bring about social change and also create market space.
National regulations and international compliances (E6)
Source
“Corporate Social Responsibility and Disaster Reduction: A Global Overview” by John Twigg (2001), states that at national, international and even at local levels, collective initiatives by business organisations or dedicated organisations play a very important role. The Yokohama strategy (1994) called for “integration of the private sector in disaster reduction efforts through promotion of business opportunities”. The Hyogo Framework for action 2005-2015, strongly proposes the role of corporates in reducing disaster risks of communities. The Kyoto Protocol, one of the most celebrated multilateral agreements signed in the context of climate change, patronises instruments like Clean Development Mechanism to ensure involvement of a developed nation. The most recent amongst all this, the Paris Agreement doubly emphasises on common but differentiated responsibilities.
Understanding
As an international player, India is a party to many such international agreements and frameworks. Thus, there is a constant peer pressure to abide by such clauses and India has done impeccably well in living up to the expectations of the international powers without compromising on any national needs. The submission of Intended Nationally Determined Contribution (INDC) in lieu with the climate change agreements also reflects the willingness of India to contribute to the cause. The more India, as a nation, contributes, the more social pressure would build up on the companies to abide by provisions like CDM which invariably enforces environment sustainability, eco-friendly processes leading to disaster resilience. Examples of similar sorts are also available.
Interpretation
Commitment of India as a nation to such international frameworks and agreements and the political and bureaucratic intent to abide by such regulation would impact the national regulations and in turn would affect the activities of enterprises and even their associations. Thus, if proper international frameworks are in place and they are adhered to nationally, it may be expected that even CSR initiatives would no more be one-off affairs.
Awards, recognition and incentives (E7)
Source
The development of sustainability index by the Bombay Stock Exchange and the Indian Institute of Corporate Affairs is a remarkable step to provide recognition for CSR initiatives. Dr. R. K. Dave, Senior specialist (Policies and Plans), National Disaster Management Authority, India in his concept paper on CSR in Disaster Risk Reduction supports the idea of incentives for disaster risk reduction initiatives taken within the ambit of CSR. However, there is also a catch. Christine Bader, an independent researcher, in an article titled “The Bangladesh factory collapse: Why CSR is more important than ever?” points out that there are issues of perverse incentives. There are cases where companies or individuals are awarded for efficiently and effectively handling a major disaster begging the question ‘why was there a disaster at all? what about those who made sure that such a disaster never happens?’
Understanding
The recent trend of awarding companies depending on their CSR performance has gained huge audience in India. Various trusts, various organisations, various confederations are recognising the efforts put in by companies in CSR initiatives. These awards go down into the annual reports and websites of the company and act as an excellent instrument to gain popularity, publicity, strategic business advantages like investments.
Interpretation
The growing trend of recognition, be it through different platforms, has become a driving force to perform better in CSR initiatives and as awareness among people is growing towards sustainability, environment friendliness, the entire process is wheeling towards disaster resilience.
Legislation (E8)
Source
Compliance of an enterprise, be it private or public, to Section 135 of the Companies Act (2013), has created a regime of mandatory CSR expenditure of “at least 2% of the average net profits of the company made during the three immediately preceding financial years”, if the company has “net worth of INR 500 crore or more; or turnover of INR 1000 crore or more; or net profit of INR 5 crore or more during any financial year”.
Understanding
A detailed study of the illustrative but not exhaustive list of the activities which would be counted as CSR investment reveals that as on one hand where there is emphasis on women empowerment, upliftment of backward classes etc., on the other hand, there are avenues listed which directly or indirectly builds the capacity of the society like ensuring environmental sustainability, maintenance of ecological balance, contribution to Prime Minister’s Relief Fund etc.
Interpretation
The basic legislation required to facilitate the use of CSR as a tool of development is already in place. This particular enabler already has a positive impact, however, the way it is implemented in will determine the success or outcome.
Ease of doing CSR (E9)
Source
While the corporate sector and the Government representatives nod to the need of partnership with NGOs and each other, in reality they are reluctant to give away the power of decision making. (Corporate Social Responsibility & Disaster Reduction, SEEDS, 2002). It has also been discussed amongst leading experts that corporates are suspicious of NGOs thinking that they might take the whole credit and NGOs feel that corporates should have a ‘cash only’ relationship with them, giving away the decision making power to the NGOs in a particular joint venture. Another aspect of ease of doing CSR is the issue of red-tapes and improper liaisons during post-disaster strategies of relief and rescue which forces the CSR committees to be biased towards opting the option of contributing in Prime Minister’s Relief Fund which would save them the tiring effort of associating themselves with any relief activity.
Understanding
Ease of doing CSR, contextually focusses on the ease with which organisations, enterprises and government liaise with each other based on mutual trust and worth and less of bureaucratic hurdles.
Interpretation
More the ease to coordinate and liaise, irrespective of the domain of the organisation, better are the chances of the CSR strategies being implemented in a correct manner.
Vision (E10)
Source
The Sustainability Conclave Report (2014) of Federation of Indian Chambers of Commerce and Industry (FICCI) points out that “Sustainability vision is a function of the company’s history, affiliations, regional policy scenario and sectoral maturity in the context of its long-term growth strategy.”
Understanding
The relevance of this particular parameter lies in the fact that if the vision of the company encompasses service towards the society as one of its prime intention then in due course of time, the vision parameter manifests itself in the company’s strategy and hence in its organisation structure and governance which inherently then reflects themes like social performance, social responsibility and sustainability and in such a scenario, the CSR strategies would also reflect the same.
Interpretation
Vision is an effective enabler because it can truly inspire the activities of an enterprise. Especially for those companies which are legally not bound to fulfil their CSR, vision of the company can instigate the company to indulge in CSR, going above and beyond of what is legally expected from them.
Religion and culture (E11)
Source
Madhavi Malalgoda Ariyabandu and Preethi Hulangamuwa in their research paper titled “Corporate Social Responsibility and Natural Disaster Reduction in Sri Lanka” state that “the concept of acquiring merit in a spiritual sense was a main motivator of their action (disaster relief through CSR)”
Understanding
Buddhism, Hinduism, Islam, Christianity are few of the religions that are followed in India and religion has always been a sentimental aspect for Indians. It has been noted that in the relief activities conducted by the private sector, many companies are more willing to work with religious institutions rather than governmental agencies or NGOs in their efforts. Institutes like Ramkrishna Mission, Bharat Sevashram Sangha are few of those religious institutes with whom corporates and NGOs join hands during relief and rehabilitation. Thus religious motivation can work wonders when it comes to CSR, social help and holistic development. This is a perfect example of how collective conscience can drive social development. Hofstede 1980, identified four primary dimensions of culture which eventually grew into six; power distance index, collectivism or individualism, masculinity or femininity, uncertainty avoidance index, long-term orientation or short term orientation and restraint or indulgence. Out of these, the research focusses on collectivism which emphasises on “we” rather than on “I”. Collectivism promotes undoubted loyalty and support for each other when a conflict arises. Thus, if a culture is inclined towards collectivism it would assuredly lead to better plans, better operations, better legislations and also improved efficiency. Another important dimension is the uncertainty avoidance index. A society with high index value would invariably believe in rigid codes, guidelines i.e. it would want to be well prepared for any mishap. This particular aspect or dimension fosters the previously discussed idea of pro-activeness and it also shapes up the culture of “being ready”.
Interpretation
Given the context of India, religion and culture is a parameter which can either be used as an enabler or as an impediment. The relationship of this parameter with the other parameters outlined till now will determine the direction in which it can be used.
Political influence (E12)
Discussions with personnel from few different enterprises and a survey amongst academicians gave a subtle understanding that selection of CSR projects to be implemented is sometimes guided by political influence.
Source
Understanding
It would not be incorrect to assume that if the political leader of a region encompasses disaster mitigation, disaster resilience and risk reduction in his plans of development, then his influence over CSR initiatives can become an effective enabler in a particular region.
Interpretation
This enabler is very objective in nature as it inherently depends upon the social designs, political stature and character of the leader.
Few other enablers were also identified along with these like “Trend of training”, “Design of a disaster management plan”, “Active role of confederations”, “Willingness and involvement of employees”, “Cost effective technologies for disaster management” but they were done away with by merging their core concept with one of the above enablers after discussion with the experts. Enablers like “Trend of training”, “Design of a disaster management plan” were merged with “Awareness”, “Legislation” and “National regulations and international compliances” as it is only through proper awareness, legal and societal pressures like framework and law of the land such enablers like training and disaster management plans manifest themselves. Similarly, “Willingness and involvement of employees” was merged with “Vision” and “Cost effective technologies for disaster management” was merged with “Business opportunities in social investment”.