In fact, in recognition of their contributions and continued initiatives in green technology and businesses, Mukesh Ambani and Sushil Tanti, along with three other Indians find themselves to be amongst the world’s richest ‘eco barons’ in the ‘Green Rich List’ compiled by the Sunday Times.

Communications service provider BT launched its “Sustainable Development Index- An Assessment of Business Performance in India” study in November, 2008. The SD index developed in partnership with GlobeScan reveals that the country’s largest cities were seen as making the strongest moves to improve sustainable development practices. A majority of respondents felt that companies in India are now more active with regard to sustainable development compared to a year ago. The Tata Group was considered the top corporate leader in sustainable development. Tata Steel has also been conferred on March 3rd, the Golden Peacock Award for its corporate social responsibilities’ initiatives at the 4th Global Conference on Social Responsibility in Vilamoura, Portugal.

A Greendex study (Source: National Geographic and Globescan), which tracks global attitudes towards consumption and the environment, rates India along with Brazil as countries having the world’s most environmentally sustainable lifestyle.

According to a recently released global enterprise survey by GreenFactor, (which researches and highlights green marketing opportunities), India has emerged as a world leader in green IT potential. Indian respondents scored higher than respondents from 10 other countries in their willingness to pay 5 per cent or more for green technology which was beneficial for the environment and if its return on investment (ROI) were proven.

The government has formulated the National Policy on Biofuels and given its approval for setting up the National Bio-fuel Coordination Committee and Bio-Fuel Steering Committee. Under the policy, it targets increasing the blending of biofuels with petrol and diesel to 20 per cent by 2017.

Recently, the UN secretary general Ban Ki-moon, while pushing for a trilateral partnership (government and inter-governmental agencies, business corporations and civil society organisations) to fight the brunt of climate changes, said that India can provide effective leadership in the space. Several Indian companies have become part of a global initiative under the World Business Council on Climate Change (WBCCC).

The Indian cleantech sector is roughly deals with three areas – clean energy, clean water and sustainable agriculture.

The Environment Pollution (Prevention and Control) Authority (EPCA), the pollution monitoring arm of the Supreme Court, in order to reduce growing air pollution, has issued a seven-point action agenda for improving air quality in India’s cities. These include eight cities, which also stand to gain from a recent economic stimulus package of the Union government. According to EPCA, these cities need a massive transition to public transport, running on clean fuel, so that they can deal with the challenge of pollution and congestion.

Indian Renewable Energy Development Agency (IREDA) will be investing around US$ 3.39 billion for the development of renewable energy (RE) sector projects during the 11th Five Year Plan. As per Planning Commission estimates, RE projects worth US$ 15.97 billion, (expected to generate 15,000 mw power), is likely to come up in the Plan.

While the government plans to install an additional 78,577 MW of power generation capacity by the end of 11th Five Year Plan, it has set a target of 13,500 MW to come from renewable energy sources.

Ten renewable energy projects with a combined capacity of 100 MW are likely to be custom-built in West Bengal by the end of 2009. These ten projects include the proposal to build a 50 MW wind park project and a solar park with a capacity of 26 MW.

Towards social sustainability

A National Sample Survey Organisation (NSSO) report released on February 27 reveals that more than half the 33.5-million strong workforce in the country is rural, 60 per cent of all enterprises are actually located in Indian villages. The villages in India contribute more to the services sector, including financial, than urban India.

Further, an economically backward state such as Orissa recently has undergone some transformation as revealed by the Chief Minister, Mr Naveen Patnaik. He said that according to the Centre of Monitoring of Indian Economy, the per capita investment figures have soared in the state over last five years. It has reached US$ 1,520.59 by end-December 2007, more than thrice the national average of US$ 438.72.

Earlier, a vision document, ‘Orissa vision 2022′, was presented by the state council of the Confederation of Indian Industry (CII), which aims to make Orissa a poverty free state by 2022.As per the Planning Commission report, 39.9 per cent people lived below poverty line in 2004–05 as against the national average of 21.8 per cent. According to the vision document, there is a need to usher in a balanced socio-economic growth of the state with sustainable development of industry, right harnessing of natural resources and actualisation of employment potential.

The recent initiatives taken by the Government in improving socio-economic standards include the announcement of an allocation of US$ 5.83 billion for the National Rural Employment Guarantee (NREG) scheme for 2009-10, up from US$ 2.79 billion in 2008-09, in the interim Budget. Various social sector schemes show a substantial increase over the budget allocation for 2008–09.

Two new schemes – Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme were also announced in the current year. The authorised capital of the National Safai Karamchari Finance and Development Corporation (NSKFDC) is being raised from US$ 38.71 million to US$ 58.1 million to enable it to effectively carry out its mandate.

According to the Finance Minister, Mr Pranab Mukherjee, the efforts of the Government and the financing institutions have led to rapid growth of credit linked women self-help groups now numbering over 2.9 million. The Rashtriya Mahila Kosh will also be provided enhanced authorised capital.

The ‘Priyadarshini Project’, rural women’s empowerment and livelihood programme, launched in Uttar Pradesh, will be implemented as a pilot programme in Bihar and UP. Young widows in the age group of 18-40 too have been empowered as the interim budget has proposed to give them priority in admissions to ITIs.

At least 22 States and Union Territories have initiated the process to implement Rashtriya Swasthya Bima Yojana for BPL families in the unorganised sector and 6.032 million persons have been covered for death and disability under Aam Aadmi Bima Yojana.

According to the Union Minister for Housing and Urban Poverty Alleviation Kumari Selja, though it is “primarily” the responsibility of state governments to provide for adequate shelter, “Union Government, has formulated the first urban area-focussed National Urban Housing and habitat Policy 2007 to set in motion a process to provide affordable housing for all, particularly economically weaker sections and low income groups.”

The policy further intends to promote sustainable development of habitat in the country with a view to ensure equitable supply of land, shelter and services at affordable prices to all sections of society, she added.

Government has also announced a US$ 386.98 million package for improvement and laying of roads in the backward districts of Jammu and Kashmir and Kerala. The Cabinet Committee for Economic Affairs (CCEA) has allocated funds for 33 backward districts of these states for improvement in National and State Highways and rural roadways.

The Finance Ministry has also recently directed Reserve Bank of India, NABARD and Indian Banks Association to tell banks to become proactive in offering loans to poultry farmers. The poultry sector in the state needs a higher bank credit flow not only because it generates employment and subsidiary income, it provides nutritional security too, especially to the rural poor.

Corporate Initiatives

Anglo-Dutch consumer goods major Unilever is applying its Indian subsidiary, Hindustan Unilever’s innovative rural distribution model led by women’s self-help groups to several developing world markets.

Launched in 2001, the initiative, Project Shakti, helped HUL reach the normally unapproachable regions by turning rural women into direct-to-home distributors of its mass-market products.
GlaxoSmithKline Consumer Healthcare (GSKCH) has announced a month-long campaign in March—targetting women between 19 and 50 years—for celebrating International Women’s Day. Focussed on women’s health, this in-store initiative, in association with GSKCH’s modern retail partners, includes health awareness kiosks, contests, interactive sessions on healthy living, and a host of activities across select outlets, the company said in a statement. The campaign will run across seven metros of the country.
Clean Energy and Technology

Gujarat with a view to tackling the menace of global warming, has taken an in-principal approval from the Union Government to set up a separate department for climate change. According to the Chief Minister, Mr Narendra Modi, “Gujarat is the first state not only in India but also in entire Asia to to set up a dedicated department for climate change. Across the world, only six countries have so far put up a separate ministry for climate change”.

Gujarat accounts for nearly 29 per cent of the total carbon credit income in India, Modi said, adding, “The state government further intends to launch ‘Green Credit Movement’ on the lines of carbon credit.”

The Ministry of New and Renewable Energy is planning to develop Nagpur, Maharashtra, as the country’s first solar city. The government statement said that Nagpur will become a model solar city by 2012, with the city deriving up to 10 percent of its energy consumption through renewable energy sources and implementing other energy efficiency measures.

Sir Richard Stagg, the British High Commissioner to India in his speech addressing the ‘UK and Northeast India – Sustainable Development Through Trade and Investment’ session, organised recently by an industry body, announced that the UK could provide support to Northeast to develop certain sectors in which the region already possesses natural advantages. He also said that the UK could also assist in areas where it possesses considerable experience and expertise. It is also prepared to act as a guide in combating climate change, which figures high in the UK government’s policy list.

Envisaging a significant role for French companies in India’s energy strategy, the Minister of State for Power and commerce, Jairam Ramesh has said that India and France are all set to join hands in the area of clean coal technologies.

The Punjab government has chalked out an ambitious plan to generate power from agriculture waste by setting up co-generation power plants at all the state-owned cooperative sugar mills.

The concept derived by Punjab’s Cooperation Minister, Capt Kanwaljit Singh, aims to involve the private sector on a build, own, operate and transfer (BOOT) basis at its nine sugar mills. The private sector companies, through cooperative societies in the state, will purchase agriculture waste including paddy straw to generate power through the biomass project. All these plants will be functional by the end of 2010.

Corporate Investments

Several eco-friendly green models of automobiles including Nano (diesel and hybrid versions) of Tata Motors, and global majors such as Toyota and Honda are being launched into the Indian markets by 2010. This will facilitate the ongoing plans of the government to bolster measures for cleaning up the environment.
Making potable water available has been part of the Tata Water Policy Research Programme, which is working with the International Water Management Institute to avert a water crisis in India. Tata Consultancy Services (TCS), has developed a water filter that is designed to provide water. The filter is made from materials like rice husk ash, cement and pebbles. The filtering medium is made up of rice husk ash, which is expected to remove colour, odour and micro-organisms.
With most Indians changing their mobile handsets every 18 months, the need to find safe ways to dispose of old mobile phones has grown. Nokia recently collected three tonnes of electronic waste including junk handsets, batteries, chargers and accessories etc. from four cities during a 45-day campaign. The company now plans to expand this initiative across the country to create awareness. This is a first of its kind initiative in India and there is no estimate of the amount of mobile junk in the country. The collected junk will be taken to Singapore for recycling.
GE Energy Financial Services and EPURON Pte Ltd Singapore, a regional subsidiary of Germany’s Conergy Group, have together launched Asia-Pacific’s first renewable energy private trust to promote investments into wind, solar, small hydroelectric, biogas and biomass project across the region.
Current rate used: 1 USD = 51.6701 INR

Even much before the issue became a global concern, India was aware of corporate social responsibility (CSR), due to the efforts of organisations such as the Tata Group.

Nearly all leading corporates in India are involved in CSR programmes in areas like education, health, livelihood creation, skill development, and empowerment of the weaker sections of the society. Notable efforts have come from the Tata group, Infosys, Satyam Computer Services Limited, Bharti Enterprises, Coca Cola India Pvt Ltd, Pepsico, ITC Welcome group and Thermax Limited, among others.

Corporate companies like ITC have made farmer development a vital part of its business strategy, and made major efforts to improve the livelihood standards of rural communities. Unilever is using micro enterprises to strategically augment the penetration of consumer products in rural markets. IT companies like TCS and Wipro have developed software to help teachers and children in schools across India to further the cause of education. The adult literacy software has been a significant factor in reducing illiteracy in remote communities. Banks and insurance companies are targeting migrant labourers and street vendors to help them through micro-credits and related schemes.

Mr B K Chaturvedi, Member, Planning Commission, revealed that presently, the private sector accounted for 80 per cent investment in the Indian economy, which emphasised the role of corporates in pushing up the economy. In fact, now the Ministry of Corporate Affairs has recommended that corporates ought to work in cohesion with the government for the promotion of inclusive growth in the country.

According to a survey carried out in June 2008 by TNS India (a research organization) and the Times Foundation, over 90 per cent of all major Indian organizations surveyed were involved in CSR initiatives. In fact, the private sector was more involved in CSR activities than the public and government sectors. The leading areas that corporations were involved in were livelihood promotion, education, health, environment, and women’s empowerment. Most of the CSR ventures were done as internal projects while a small proportion were as direct financial support to voluntary organizations or communities.

In a survey carried out by the Asian Governance Association, which ranks the top 10 Asian countries on corporate governance parameters, India has consistently ranked among the top three along with Singapore and Hong Kong, for the last eight years.

In another study undertaken by automotive research company, TNS Automotive, India has been ranked second in global corporate social responsibility. State-owned Bharat Petroleum and Maruti Udyog were ranked as the best companies in India. Bharat Petroleum and Maruti Udyog came on top with 134 points each, followed by Tata Motors (133) and Hero Honda (131). The study was based on a public goodwill index and India received 119 points in the index against a global average of 100. Thailand was at the top slot with 124 points.

Now there are plans to also introduce CSR in the small and medium enterprises (SME) sector to increase its reach in remote areas.

Stressing that community service should be a part of every corporate’s programme, Tata Sons’ Director, J J Irani, said that the benefits provided by the corporates to the society should be considered as an investment, rather than being seen as a cost. “It is not a cost, it is an investment…. There has to be growth with everyone else,” said Irani.

CSR Initiatives and Green Measures

India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set up a global platform to showcase all the work done by Indian firms. Confederation of Indian Industry (CII) and the TVS Group have collaborated to form the CII-TVS Centre of Excellence for Responsive Corporate Citizenship. The outfit, based in Chennai, will provide consultancy services and technical assistance on social development and CSR.

CII’s ‘Mission on Sustainable Growth’ has set up a code which was formulated in 2006. It provides consultancy services and technical assistance on social development and CSR. The mission’s aims are to promote the reduction of excessive consumption of natural resources and emission of greenhouse gases. The code had started with 23 new signatories and the total number of code signatories had gone up to 102, by September 2008.

Many large corporate houses are taking up projects—along with the help of the government—which are ‘green’ to promote the cause of sustainable development.

Coca-Cola India had started with a corpus of US$ 10 million for its CSR activities in 2008. It had undertaken US$ 25–30 million a year project on water conservation, and the project “Elixir of life” to provide drinking water to nearly 30,000 school children. Coca-Cola India won the ‘Golden Peacock Global Award for Corporate Social Responsibility – 2008′ for these initiatives.
Astonfield Renewable Resources (ARRL) has announced that it will invest US$ 2 billion in India’s renewable energy sector, over the next two years. While the focus would mainly be on solar energy, the company will also be investing in the bio-mass and the waste-to-energy space. The projects will be coming up in Gujarat, West Bengal and Bihar.
The Hong Kong and Shanghai Banking Corporation are involved in an effort to support a business school for illiterate women in western Maharashtra.
ArcelorMittal will spend about US$ 500 million as part of its CSR initiatives in Jharkhand and Orissa.
BHEL has joined hands with a UN body ‘Global Compact’ (The United Nation’s Global Compact is a partnership between the UN, the business community, international labour bodies and non-government organisations (NGOs) to partner with global corporate houses for greater focus on corporate social responsibility.
Global Compact, in association with FICCI, is also organising the first ever national convention on ‘Excellence in Corporate Citizenship and Global Compact’.
Tata Motors and space agency ISRO are likely to launch the prototype of the world’s cleanest vehicle that will run on hydrogen and leave behind nothing more than a trail of water vapour.
Bajaj Auto, Ashok Leyland, Tata Motors, Mahindra & Mahindra and Eicher Motors have come together to develop hydrogen-blended compressed natural gas (HCNG)-run vehicles to tackle the problem of rising pollution.
Reliance Power (R-Power) is planning an investment of over US$ 12.63 billion for renewable and alternative energy resources such as hydro-electric, wind, solar and fuel cell-based power. The company is planning to generate about 5,000 MW from hydroelectric energy and most of the projects would come up in water-abundant north-eastern states.
The Indian paints industry too is making its products more environmentally friendly by opting for water-based paints and making it carcinogen-free.
The heating, ventilation, air-conditioning and refrigeration (HVAC) industry is working to get rid of its ‘global warmer’ stigma through greater use of gases with zero ozone depletion potential (zero ODP).
Sustainable Technologies and Environmental Projects Ltd (STEPS) is planning to start a project to change plastic, organic and electronic waste into petroleum without the usual harmful residue.
Pharmaceuticals Company Jubilant Organosys Ltd runs an anti-tuberculosis programme with the government of Uttar Pradesh.
Rural Development

Rural development is attracting major CSR initiatives from various corporates.

Reliance Communications, a Reliance ADA Group company, is planning to foray into the hitherto uncharted mGovernance (mobile governance) sector with the introduction of the service in select rural pockets. After offering various e-governance services in semi-urban and rural markets in West Bengal, the service is likely to be soon launched in Andhra Pradesh and Bihar. Information related to local issues will be provided though this service wherein information related to local mandi prices, agriculture, fertiliser prices will be offered. A mass messaging group platform, though which panchayats can relay their message is also another area likely to be explored. Reliance Communication is also planning to introduce the mCommerce service for transferring money to bank accounts, and making micro payments using a mobile, in 2009. The company is planning to offer these services free to the subscribers in the first two years.
Finacle, (the banking product division of Infosys Technologies) is planning to develop a software product suite for rural operations of the financial sector.
Following the success of Hindustan Unilever Limited’s (HUL) rural micro-enterprise, Project Shakti, Unilever is now replicating the project in many international markets as well. The project empowers rural women with micro-credit, and they work as direct-to-home distributors of Unilever brands in rural markets. The project was launched in 2001 to empower disadvantaged rural women by providing income-generating opportunities, health and hygiene education. Appointed as Vanis (communicators) these women spread awareness in social forums like schools and village get-togethers. Project Shakti operates in fifteen states.
In an effort to modernise rural health services in India, GE Healthcare now wants to focus on maternal health. Omar Ishrak, President and CEO of GEHC clinical systems, said, “GE wanted to enter into rural healthcare in a big way and revolutionise in the same way as cell phones did. We have embarked on several programmes in Bangladesh and India especially on maternal care.”
Airtel has tied up with Indian Farmers Fertiliser Cooperative Limited (IFFCO) to reach farmers directly. Farmers will receive free voice messages twice daily on a range of issues such as farming techniques, weather forecasts, dairy farming among others. Additionally, farmers can also call a dedicated helpline, manned by experts from various fields, to get answers to their queries.
Reliance Communications has introduced a low tariff initiative like the Grameen Programme for rural subscribers.
SREI Sahaj e-Village Ltd will set up 25,000 IT kiosks to be known as common service centres (CSC) across West Bengal, Bihar, Orissa, Assam, Uttar Pradesh and Tamil Nadu, by 2010.
ITC’s e-Chapual has been a great developmental initiative which has also added value to its own agricultural products. It comprises improving the lives of farmers and villagers.
HDFC has started a ‘village adoption’ scheme to improve the investment climate in Indian villages.
Mahindra Shubhlabh, the agricultural business arm of Mahindra & Mahindra, aims to use especially cultured seeds to improve contract-farming productivity.
DCM Shriram provides information services through its chain of Krishi Vikas Kendras, which have now evolved into Hariyali Kisan Bazaars.
Hindustan Petroleum has started community kitchen programmes in some Indian villages.
ICICI Bank has launched an ambitious rural banking and agribusiness initiative.
The Byrraju Foundation’s GramIT programme has generated a rural BPO model. It aims to employ rural people in the ITES (IT-enabled services) industry, and to create profit for the entrepreneurs or cooperatives running the BPOs.
India’s Human Resource (HR)

Over the last decade, India’s vast manpower has played an instrumental role in its economic success story. Several corporate bigwigs are now thinking of ways for maximising the skill sets of their employees. Infosys Technologies is re-assessing the organisation’s existing role-based structure and is coming up with a new structure. One of the concerns it will look into is better flexibility and movement of people within the organisation, and another is identifying star performers or the top 15 per cent of its employees.

India Inc has started encouraging ‘intrapreneurs’ or employees who have ideas that could potentially become a venture, and most of these intrapreneurs end up directing these projects and ventures. Some companies promoting intrapreneurship include Adobe, NIIT, KPMG, Pepsi and Microsoft.

Adobe launched the incubation programme for its Indian employees three years back, after the success of its global seed programme. Employees initiate ideas and after approval, these ideas get the support from Adobe’s global expert pool for further development. Additional to an initial funding of US$ 1 million, the idea initiator also gets a 6-12 months window period to work on it. As a result, last year, 25 per cent of the patents filed by Adobe worldwide came from India alone.

Likewise, the Growth through Innovation (GRIN) programme at NIIT was launched with the same objective three years ago. NIIT’s IFBI Institute, NIIT Imperia, NIIT-Litmus are ideas developed though GRIN.

A study, titled “How the Disciple became the Guru”, (released by the Kauffman Foundation and conducted by Duke University’s global engineering and entrepreneurship project team), has extolled the workforce training carried out by Indian firms across sectors such as IT, BPO, banking and pharmaceuticals. The study revealed that Indian companies go to colleges much before the hiring process begins so that students are prepared for employment. The study also refers to Satyam Computer’s project of appointing 80 senior executives as mentors in university campuses and Infosys’ scheme to hire and train final year engineering students for short-term projects.

It is therefore not surprising that in a matter of merely four years, HR services have become a US$ 4 billion industry spawning hundreds of start-ups and attracting a horde of MNCs. There is so much demand in areas like temping (temporary staffing), that the industry has been growing at 100 per cent year-on-year for the last four years and is expected to continue to grow at 75-100 per cent for the next two years.

The temporary staffing industry size in India is around US$ 111 million. Temporary staffing is only about 0.03 per cent of India’s total organised workforce of 40 million whereas in developed economies, it is about 5 per cent of the total workforce. These figures reveal the size and opportunity that this industry can offer.

India is fast emerging as a preferred destination for human resource outsourcing and HR outsourcing (HRO) is one of the most rapidly-growing segments in the Indian as well as global-outsourcing market. In fact, HRO is likely to be the fastest growing segment over the next three years. Large-scale HR off-shoring is an ongoing phenomenon and big names like Fidelity, Exult and Hewitt are soon going to set up shop in India for their HR operations. According to a combined survey carried out by Nasscom-McKinsey, the revenues in the HR outsourcing were estimated at US$ 3.5 billion in 2008.

Furthermore, Recruitment Process Outsourcing (RPO) as a concept is rapidly gaining popularity in India, with several new players entering the market. Research firm IDC forecasts staffing and recruitment spending to reach US$ 92 billion globally by 2009 (Source: ERE media study) and India has a good opportunity of attracting a large portion of this spending.

Despite the global recession, Indian employees still have lots to cheer about. According to a report by the Hong Kong based compensation firm HR Business Solutions (HRBS), compensations in the Asia-Pacific region are expected to grow despite the global slowdown. In fact Indian employees are likely to see one of the highest increases in the Asia-Pacific region, with a growth of 16 per cent in 2009. “The forecast pay increase in India averaging 16 per cent is one of the highest among all the countries,” the report stated. “Labour demand is still robust and there is a lack of sufficient supply of the skills-set required by India’s rapidly growing services, manufacturing, construction and retail industries to boot,” the HRBS report added.

Landmarks

Satyam Computer Services Ltd won the United Kingdom Trade and Investment India Business Award for Corporate Social Responsibility in September 2008, for its work with the Byrraju Foundation.
ITC Green Centre in Gurgaon – the world’s largest green building (170,000 sq ft) – was awarded the United States Green Building Council-Leadership in Energy and Environmental Design’s (USGBC-LEED) platinum rating – the highest in the order.
The Environmental Protection Agency (EPA) of the United States honoured Dr R K Pachauri, Chairman, Intergovernmental Panel on Climate Change (IPCC) and Director General, The Energy and Resources Institute (TERI) for his efforts and leadership in spreading awareness about environmental issues.
Achievement Through Awareness

Apart from improving the overall quality of life, corporate social responsibility, sustainable development and good human resource practices can help improve India’s long-term international competitiveness in attracting ‘socially responsible investment’. Environmental, social and governance (ESG) compliance would make Indian stocks stronger and more attractive to issuers from other emerging markets, in the race for long-term, high quality investors.

It’s inevitable. In an economic downturn, companies look for the essentials and cut back on the rest. Often, this means fewer business trips and a dwindling selection of tea in the break room. Companies also stop hiring, and in the worst cases, start scaling back projects and laying people off.
In the current financial crisis, one place where executives are bound to take a closer look is their corporate social responsibility (CSR) projects.

Over the last several years, corporate scandals and public concern about environmental issues like climate change have prompted many of the world’s largest companies to integrate “sustainability” and “social responsibility” into their business strategies.

Being “green” has also become a powerful marketing tool. These days, it is not unusual to see oil giants advertising their investments in clean energy, or to hear banking CEOs speak about reaching out to poorer clients at the “bottom of the pyramid.”

But will CSR – widely considered ornamental, but not essential to business – survive these tough economic times? Is it the wrong time for business school students to focus on things like social enterprise and sustainability?

“I would say that now more than ever, there is a need for business leaders who have this kind of training and understanding,” says Nicola Acutt, associate dean of Presidio School of Management, which offers an MBA in Sustainable Management in San Francisco.

“In an economic downturn, sustainability becomes even more critical,” says Acutt. “One of the most important things is to tighten your belt, and look at where you can be more efficient.”

Acutt is not alone in thinking that sustainability will remain an important niche for MBA students graduating from the increasing number of sustainability and CSR-focused programs. Many graduates who end up in the private sector use CSR and sustainability concepts to improve the operations and policies of their employers.

“They’re not going to get displaced,” says Raymond Horton, who directs the Social Enterprise Program at Columbia Business School. “It’s just another way of saying that CSR has become a profit center in a lot of businesses.”

Horton says the socially and environmentally focused courses are still extremely popular among students at Columbia Business School – outdrawing some finance and operations courses. And despite – or because of – the financial crisis, Horton says applications to Columbia Business School are up about 25 percent this year.

“A lot of people think this is a good time to get an MBA,” he says.

Still, CSR and other sustainability initiatives may have to prove their value in order to survive. According to Dan Vermeer, executive director of Duke University’s Corporate Sustainability Initiative, this value will already be apparent for companies that have been serious about CSR and sustainability.

“There’s no question that there will be a whole lot of stress on the job market in general, and nobody is going to be exempt from that,” says Vermeer. “There are a few things that give me comfort. One is that a good chunk of the environmental sustainability agenda has a cost-saving benefit immediately.”

“I think efforts around reducing energy use, water use, and waste are going to have very direct benefits on the bottom line in a more efficient kind of enterprise,” he says.

But it is also true that not all companies have taken sustainability seriously. What about those companies who jumped on the bandwagon to improve their image – the so-called “greenwashers”?

“I think this downturn is going to get rid of the more superficial aspects of the sustainability agenda,” says Vermeer. “There is one line of argument in doing this sort of thing, which is about reputation and image, ethics, and being a ‘good corporate citizen.’ To me, this approach is vulnerable to downcycles in the economy.”

Max Oliva, associate director of Social Impact Management at IE Business School in Spain, agrees.

“We will obviously be affected by the crisis, but it will also be a good opportunity to see which companies were ‘walking the talk,’” says Oliva. “Those are the companies expecting benefits in innovation and bottom-line business.”

“But some companies were doing it on the PR or marketing basis without having it integrated,” says Oliva. “You will see cutbacks in the companies that have not integrated it. That’s good for consumers and an opportunity for maturity in the sector.”

It is not surprising that business schools remain sanguine about the job prospects for their graduates. But they also have a convincing point: for the many companies that have already cut costs through sustainability practices, it hardly makes sense to quit now.

It is important to understand different views of corporate responsibility. In market economies, the primary purpose of companies is to maximize shareholder value (e.g. economic profit, share price and dividends) bound by legal/regulatory obligations, which address specific social and environmental issues. For this, companies pursue competitive strategies, which rely upon and develop relationships between the corporation and its stakeholders.

Since the early 1990’s, corporate responsibility issues including the social obligations of corporation have attained prominence in political and business debate. This is not only in response to corporate scandals, but also due to the realization that development centered only on economic growth paradigms is unsustainable. Therefore there is a need for a more pro-active rile by states, companies and communities in the development process aimed at balancing economic growth with the environmental sustainability and social cohesion. This debate has motivated the following three interlinked movements in the corporate world:

·      CSR (Corporate Social Responsibility)

·      Corporate Sustainability

·      World wide reforms on corporate governance

CSR and corporate sustainability represent the way companies achieve enhances ethical standards and a balance of economic, environment and social imperatives addressing the concerns and expectations of their stakeholders. Corporate governance reflects the way companies address legal responsibilities and therefore provides the foundation upon which CSR and corporate sustainability practices can be built to enhance responsible business operations.

We distinguish between two interrelated dimensions for CSR and corporate sustainability:

·      Corporate responsibility and sustainability as part of a new vision for the world based on a global partnership for sustainable development

·      Corporate responsibility and sustainability as business management appraoches that should provide, in the long run, better value for shareholders a well as for others in the society

Early roots of CSR can be found in the actual business practices of successful companies and early theoretical views in the 1950s and 60s linked corporate social obligations to the power that business holds in society. Theoretical developments are currently broadly subdivided into the ethical and accountability issues and the stakeholder approaches to strategic management.

The corporate responsibility movement is backed by the United National initiatives such as the Global Compact and the Millennium Goals which have defined the goal and principals for responsible corporate behavior in the following areas:

·      Human Rights

·      Labor Standards

·      Environment

·      Health

·      Anti-Corruption

·      Economic Responsibility

·      Social Empowerment

·      Economic Empowerment

·      Poverty Alleviation

Key driving forces include investor and consumer demands and governmental and public pressure. Particularly important is the support from Socially Responsible Investors (SRI). The corporate responsibility movement is now entering mainstreaming phase.

CSR, corporate sustainability and corporate governance collectively are shaping the identity of organizations and are therefore increasingly integrated into the business strategy and practice is becoming one of the most dynamic and challenging subject corporate leaders are facing today and possible one of the most important ones for shaping the future of our world.

-       ICECD Concept Note on “Mainstreaming Corporate in Rural Development”

India is a fast growing economy. We often hear about mergers and takeovers converting Indian companies into multinationals. But at the same time one faces social challenges – increasing poverty, population growth and illiteracy, just to name a few.

Therefore, it is all the more imperative for Indian companies to be sensitized to CSR. CSR is an approach by which the organization ( a component )

·      Recognizes that CSR activities have a wider impact on the communities and thereafter on the society in which it operates.

·      Actively manages the economic, social, environmental and human rights impact of its activities across the world, basing these on principals, which reflect international values. Thus reaping benefit both for its own operations and reputation as well as for the communities in which it operates; and

·      Seeks to achieve these benefits by working closely with other groups and organizations – NGOs, local communities, civil society, and other businesses and host Governments.

-       ICECD Concept Note on “Mainstreaming Corporate in Rural Development”

Corporate social investments can help sow the seeds of prosperity anywhere in the world, but especially in those places where the needs are greatest. People prosper when their basic needs have been met and they are free to reach their full potential, increasing their own well-being and that of their family and community. Food, shelter, and health are essential to human life. But knowledge is the key to prosperity in the modern world, and the catalyst for acquiring that knowledge is education.

Cisco takes a results-oriented approach to corporate social responsibility (CSR) by compiling a strong portfolio of social investments and continually assessing how well they perform. Our investment model focuses on education as a catalyst for social progress, but we also invest in programs that offer sustenance and support to people in need. We look for CSR investments that offer a good return by having a measurable impact on lives and society, and that promise to grow and sustain themselves over time through community involvement.

Innovation is central to Cisco’s business approach, whether in product development, supply chain management, sales and marketing, or CSR. We are always looking for new and better ways to apply our core competencies to build healthier, more productive, and more sustainable communities, enabling them to play a stronger role in promoting prosperity throughout the global community.

Projects:

1. Teachers without borders:

In 2004, Teachers Without Borders received a Cisco^® Impact Grant to increase access to their global Certificate of Teaching Mastery program by hosting the courses online. This free program provides a comprehensive overview of topics ranging from educational theory and pedagogy to performance metrics and multicultural studies. The content was developed by teachers from 28 countries and has been incorporated into teacher training programs by several universities and development agencies. After completing the program, teachers post portfolios of their work online and develop service projects that align with the United Nations Millennium Development Goals. 

To extend the benefits of the teaching mastery program to areas without Internet access, NetAid volunteers transferred the courses onto CD-ROMs, and DHL shipped them to teachers in remote areas. The World Bank also placed 12,000 copies of the program onto recycled computers that were sent to third-world nations. 

To learn more, please visit www.teacherswithoutborders.org. 

2. E-Schools:

The NEPAD E-Schools initiative is designed to help bridge the digital divide in Africa by providing technical skills training to primary and secondary school students, teachers, and administrators. In support of this initiative, Cisco had led ICT implementations in 19 secondary schools in Algeria, Ghana, Mauritius, Rwanda, Senegal, and South Africa, and provided equipment to 39 schools in nine other countries. Project objectives include building labs and media centers, setting up networks, and providing laptops for teachers.

Since the program launch, more than 30,000 students have gained access to computers and the Internet, and the number continues to grow as new students enter the e-schools each year.

Cisco has created a website for NEPAD teachers, school administrators, and support staff at www.cisconepadeschools.com

3. Cisco Networking Academy:

Cisco Networking Academy is an innovative education program that provides access to information and communication technology (ICT) skills to help meet the growing demand for networking professionals, while increasing access to opportunities for career advancement, continuing education, and economic gains in communities around the world .

Partnerships

Networking Academy has developed an ecosystem of public-private partnerships to extend the program benefits to more than 700,000 students a year in more than 165 countries. These partnerships help increase access to ICT training for students with varying interests and backgrounds and improve accessibility for disadvantaged and disabled students.

In support of the UN Millennium Development Goals, Networking Academy also leverages partnerships to support the professional development of women and promote gender equality within the ICT industry.

Community

Members of the global Networking Academy community can showcase their skills and accomplishments atAcademyNetspace.com. This interactive site is designed to support personal development and career advancement .

To learn more , please visit www.cisco.com/go/netacad.

Cisco Financial Contributions over Five Years

Awards in the last year:

Fortune – 100 Best Places to Work

• #6 overall

Ethisphere Magazine’s Most Ethical Companies

• #1 for Networking Communications, #31 overall

Suzlon Foundation’s strategy focuses on its three brand pillars of ‘Engage, Empower and Sustain’.

Focus areas:

• Livelihood
• Education
• Civic Amenities
• Health
• Environment

Brief of some projects:

1. Anandshala in Waghodia, Gujarat in collaboration with CEE (Centre for Environment Education)

• Initiate the process of up gradation of the quality of education, imparted in schools
• Develop demonstrative model of Anandshala in order to co-relate formal education with life skills activities
• Strengthing the existing education institutions in the region
• Enhance relations among institutes, individuals, and other stakeholders for future development

       2. Introduction to Basic technology in High Schools Dhule, Maharashtra in collaboration with Indian Institute of Education

• Imparted training in 20 technologies namely welding, preparing food products, carpentery and so on
• Infrastructure facilities developed to impart training in high schools

       3.  Distribution of Solar Lanters in Rajasthan and Madhya Pradesh

• Distributed 123 Solar Lanters in Rajasthan and 212 in Palsodi, MP
• Working potential of the people has increased due to the use of Solar Lanters
• Students can study in the evenings with the availability of adequate light
• Traveling at night for villagers is lot safer

        4. Polytechnic Reform Project in Gujarat

• Short listed 5 Government Polytechnics for the pilot project
• Identified the gaps that hinder the growth of an education system
• Soft skills came out to be the highest need right now among both faculty and students
• Systems and process very lengthy which hardly leaves much time with the faculty to take classes
• Maintenance of equipments a major concern
• Obsolete technologies being used, not in line with what the industries use currently

These are just some of the projects that the foundation has undertake for more information check: http://suzlonfoundation.org

Sustainability:

“Sustainability development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

-Burndtland Report
World Commission on Environment & Development

What is Corporate Social Responsibility ?

“CSR is defined as the integration of business operations and values, whereby the interests of al stakeholders including investors, customers, employees, the community and the environment are reflected in the companies policies and actions”

-CSRwire

CSR is NOT:

• Only charity or philanthropy
• Short term, one time intervention
• Cleaning up after other peoples failure
• Restricted to CSR department
• How we spend our money

CSR is:

• Making money in the most responsible way possible
• Including considerations of all major stakeholders in our business practices such as labour and local communities and on all the aspects of sustainability – natural, social, physical and not only financial
• Going beyond legal compliance and holding ourselves accountable to higher ethical standards aligned with our values

-Suzlon Foundation CSR Presentation