Instead of maximizing shareholder owner profit 9h o w

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Unformatted text preview: of the firm. According to the stakeholder theory, the business entity should be used as a 3 vehicle for coordinating stakeholder interests, The phrase was coined by John Elkington in his 1998 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business. instead of maximizing shareholder (owner) profit. 9 | H o w s h o u l d y o u m e a s u r e C S R ? Source: Pulmor Inc Figure 3: Triple Bottom Line Core Strategy Using the Lenses ­ Analysis of community­based development This section illustrates the use of the lenses described in the previous section through a few examples. These examples should serve as background while evaluating other corporate social initiatives for their inclusivity, sustainability and scalability. Radar charts are used at the end of each example as “dashboards” to delegate a score of the initiative as seen through each lens. The scoring is an aid to gauge the success and failure points of the social enterprise for achieving the objective of a business’s CSR initiative. These scores are indicative and are based on author’s evaluation. They are provided as starting point for an in-depth analysis of the cases. Illustration 1 – Assured demand in urban housing Scenario Although India has robust residential construction and housing finance industries, developers and financial institutions overwhelmingly prefer to focus on the higher-income urban markets. The vast majority of urban low-income families live in poor quality rentals, typically single rooms of 100-250 sq. ft, often badly ventilated and lit, with shared toilets and bath, in bad neighborhoods. They face constantly rising rents, unreasonable demands from landlords and pressure to move every 2-3 years. Solution In this context, Taral Bakeri, a respected Ahmedabad developer, partnered with Aashayen, a development advocacy NGO, to build 800 apartments in two well-designed floor plans – a 210 sq. ft. one-room efficiency and 300 sq. ft. single-bedroom units all with indoor plumbing – for purchase in a nearby suburb. The neighborhood is vibrant and well serviced by public transportation and the least expensive house sell in the range of Rs. 2,50,000. 10 | H o w s h o u l d y o u m e a s u r e C S R ? The NGO, Aashayen, worked with Bakeri to line up both customers and financing even before the building plans had been approved. Bakeri built mock-up model apartments that wowed the financiers and buyers alike. Aashayen approached the prospective buyers’ formal employers, who were happy to provide the residential facilities for the employees by deducting monthly mortgage payments from employee paychecks and to transfer these directly to the financing bank. Note: A similar model was adopted by Telco in association with HDFC bank for providing low cost housing facility for its employees. Government of Gujarat has also recently started a program for slum resettlement under similar lines. Large corporations, particularly those which have sprawling plants in...
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