Topic3-RamanAgarwal

1 whether the csr initiative actually drives

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Unformatted text preview: paper the promise of a CSR initiative through innovations and enterprises is gauged in the following light: 5 | H o w s h o u l d y o u m e a s u r e C S R ? 1. Whether the CSR initiative actually drives sustained improvements in people’s lives and livelihoods because individuals are making their own choices and taking responsibility of their lives rather than becoming dependent on aid providers. 2. The solutions provided by a CSR initiative promise to be self-sustaining and the up-front funding is thus true “capital” rather than an annual outlay for benefit programs. What really is Innovations & Enterprises in this context? Innovation is the production of a desired outcome by novel means. An enterprise is an activity or organization that produces outcomes. These abstract definitions can be explained with the aid of the expression, ‘Innovations and enterprises for the people; innovations and enterprises by the people; and innovations and enterprises of the people.’ 2 Here the people are those at the ‘bottom of the pyramid’— those who are not included yet or are inadequately included in the economic growth of the country. Source: World Bank Figure 2: Gardening Innovation In innovations and enterprises for the people, they are consumers. In innovations and enterprises by the people, they are earners. In innovations and enterprises of the people, they are owners. What the innovation is about shifts through this spectrum. In the former, the innovation is mostly in the design of the product. Then it shifts towards innovations in the designs of production and distribution models, and finally to innovations in designs of enterprise structures. A few words on Frugal Innovation… For India, innovation paradigm has to extend beyond products and patents and should focus on inclusiveness. In this context India needs more frugal, distributed, affordable and diverse innovation that produces more products and services that are affordable by people at low levels of incomes without compromising the safety, efficiency, and utility of the products. The country also needs innovation processes that are frugal in terms of resources required, especially if they are impacting on earth’s resources, and therefore must be designed to be environmentally sustainable. 2 This concept was brought about by Mr. Arun Maira, Member, Planning Commission and former Chairman, BCG India. It has been discussed in various forums and finds place in the Mid Term Appraisal of the 11th Five Year Plan document as well. 6 | H o w s h o u l d y o u m e a s u r e C S R ? The concept of frugal innovation is quite relevant for a business’s CSR initiative, particularly if it is following a Triple Bottom Line concept (discussed in the later section). 7 | H o w s h o u l d y o u m e a s u r e C S R ? The Lenses – Reading the Fine Print The points discussed below have been derived from different research reports and working papers on various social enterprises (focusing on India) and offer an effective framework for measuring / evaluating a community-based development approach of a CSR initiati...
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This document was uploaded on 01/14/2014.

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