NGOs and Corporates Partners in Corporate Social Responsibility

Corporate social responsibility (CSR) blends the objective of social development and
environmental protection through ethical effort. Many non-governmental
organisations in India are engaged in social development and environmental
development activities. These organisations can support industrial development by
ensuring community participation in the developmental process. The concept of CSR
is underpinned by the idea that corporations can no longer act as isolated economic
entities operating in detachment from society. CSR must be viewed as mutual
support programs that ensure development of the community near industrial areas
with the expansion and development of the industrial organisations.
Section 135 of the Companies Act 2013 makes CSR mandatory. Corporates have
started to recognise CSR as a core activity, and are looking for innovative ways to
effectively utilise their CSR fund. This has opened up new avenues for collaboration
between NGOs and corporates in order to achieve what is known as collective
impact.
The legislation calls for and encourages companies to utilise the expertise of non-
profits with a credible work record of three years or more. It also allows companies to
collaborate with other corporates in joint initiatives that can achieve greater impact
with more capital. For instance, Bharti Airtel, Star Global Resources and IFFCO
Kisan Sanchar Limited (IKSL) joined hands to empower farmers by providing them
information and services such as free voice messages and a dedicated helpline to
interact with experts through a robust communication network. About 13 lakh active
farmers under IKSL are benefitting from this initiative.
Advantage NGOs
NGOs located within the industrial location and closer to the community can act as
moderators and facilitators in the realisation of their social need and better
environmental protection. NGOs can assist in the implementation of developmental
activities. They can help the industrial management by explaining the expansion
program to the community; there by developing a proactive social, environmental
and industrial development policy. The organisation can benefit from lower operating
costs, enhanced brand image and reputation, reduced regulatory oversight, product
safety and decreased liability and improved financial performance.
Nurturing a Value System
It is just not the organisation or community that benefit from CSR activities, but even
employees. Research demonstrates that CSR initiatives have a positive impact on
employee morale, motivation, commitment, loyalty, training, recruitment and
turnover. Three surveys across Europe, US and a survey involving 25 countries
found employees felt greater loyalty, satisfaction and motivation when their
companies were socially responsible. The impact of these initiatives gives a better
brand image to the organisation in the labour market and in turn helps the HR
department to get potential employees who believe in similar values system. The
ultimate goal of such effort is the development of an organisational culture which
establishes harmonious relationship with the community-employee and organisation
at large. This establishes the fact that many CSR initiatives reflect the essence of
Human Resource Management activities.
NGOs on their part have never been better positioned than now to be the consumers
of a large quantum of capital. The premise of companies wanting to associate with
them in their efforts not only fuels their cause directly but also increases the visibility
of their work, thus building trust and credibility for them.
Companies should balance their social, environmental and financial responsibilities.
They should choose NGOs and projects based on their missions, visions and goals.
Their CSR activities must be based on values and ethical standards. On the other
hand, NGOs should not be used by companies to gain public support. NGOs must
convince companies to conduct projects that provide substantial benefits and funds
to protect the environment, labour and customer rights; improve living conditions of
people, serve nutrition, health care and education for poor, old, sick and disabled
people. The cooperation projects between NGOs and the private sector should
initiate big changes and improvements in the society and the lives of people.