Saturday, December 27, 2014

Businesses to rethink their approach to CSR for greater economic & social impact

Businesses to rethink their approach to CSR for greater economic & social impact
KNN Bureau | 09 12 2014 05:32:35 PM IST

Businesses to rethink their approach to CSR for greater economic & social impactNew Delhi, Dec 9 (KNN)  While the new Companies Act 2013 presents critical opportunities for Indian companies to become more socially responsible and contribute to the country’s economic future, a new report outlines steps companies can take to overcome the operational challenges and adopt new corporate responsibility (CR) programs.

The report ‘Organizing for Success on Corporate Responsibility: The Path to High Performance,’ was made by Accenture and the Federation of Indian Chambers and Commerce Industries (FICCI).

According to the report, the expanding the list of activities that would classify as CSR under the Act are creating a firm ground for corporations to move beyond the by lanes of corporate social responsibility to a wider, well-paved highway of corporate responsibility (CR). The difference between the two is more than the word “social.” The report notes that corporate responsibility is about building environmentally friendly, people-sensitive, safe and ethical businesses that are also capable of generating socially responsible profits.

While the report recognizes that in the short run, a large section of businesses in India will continue to focus on building their CSR muscle, it highlights that a large section of industry will gradually embrace the CR paradigm, as they bridge capability gaps and gain experience on the way.

To achieve those objectives, the report outlines a framework that provides actionable insights to companies for organizing themselves towards: conceptualizing, designing and delivering CSR; and seamlessly transitioning from CSR to CR.  The framework guides companies through all possible requirements and options—from vision and strategy to operating model, capabilities and culture.

The study also features case studies of organizations that are already blazing a trail for others to follow.

The components of the High Performance CR framework are: CR vision, footprint and differentiation strategy, distinctive capabilities, a performance culture and an enabling environment, it said.

The research is based on a survey with senior executives from 20 companies across consumer products, resources, financial services sectors, as well as civil society, NGOs and intergovernmental organizations. The report also features several case studies of CR high performers.

Commenting on the report, “Our framework is designed to help organizations to think through a wide range of potential requirements and options – from their vision and strategy to their operating model, capabilities and culture -- as they prepare themselves to take advantage of current and future opportunities to develop impact generating CR initiatives,” said Managing Director and Lead, Accenture Strategy, India, Sanjay Dawar.  (KNN/ES)

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