March 2011 - ISSUE I
CREATIVE
PHILANTHROPHY
A portal to ignite energy and enthusiasm towards CSR
INTRODUCTION TO THE NEWSLETTER
The fact that Corporate Social Responsibility (CSR) has gained tremendous importance cannot be debated.
Owing to globalization and increasing economic power and
influence in society, the business sector has been assigned or ‘gained’
a new role in society. There has been an increase in the expectation
from businesses in the role they would play in the betterment of
society.
The United Nations Global Compact, a policy initiative for
corporate entities committed to aligning their businesses with
universally accepted principles in areas such as human rights, labour,
the environment and anti-corruption, and the Voluntary Guidelines on
Corporate Governance and CSR released by India’s Ministry of
Corporate Affairs in 2009 are two examples of the heightened
importance of CSR nowadays.
There has been a drastic change in the way CSR is perceived. It
is no longer about charity. There has been a shift to profitable and
sustainable business models to combat underdevelopment.
One way has been the use of organizational skills to create
social impact. For example FedEx Corp., the world’s largest logistics
services company, provides contributions as well as logistics and
transportation support for emergency and disaster relief. Microsoft
Corp. launched Unlimited Potential (UP), a global initiative focused on
imparting technological skills to disadvantaged individuals through
community-based technology and learning centres.
The other wave has been of socio-commercial investments, such
as technology multinational Apple Inc. donating computers to schools,
thereby increasing the usage and appeal of their systems.
(1]
In this issue
Pg 2 - Explaining CSR
Pg 3 - Our Influences
Pg 4 - Current endeavors 
Pg 5 - An introduction to CSR in
India
Pg 6 - 4th Wheel suggests...
Another popular method has been to integrate CSR with a
company’s business model, such as in the case of Starbucks Corp.
working with Conservation International, a not-for-profit that seeks to
protect ecosystems and biodiversity in order to ensure human health,
to support farmers in minimizing their impact on the local
environment.
This reflects an increasing understanding among businesses that
they can play a positive role in societies where they operate and invest
and contribute to social and economic development.
Looking at current trends and the heightened sense of
responsibility of business houses, it is essential to get the ball rolling
and ignite enthusiasm and dialogue on CSR. This newsletter aims to
increase awareness of CSR among corporate entities and the masses
and invite views on pressing social ills and problems.
United Nations Global Compact
‘Never before in history has there been a
greater alignment between the objectives of
the international community and those of the
business world! Common goals, such as
building markets, combating corruption,
safeguarding the environment and ensuring
social inclusion, have resulted in
unprecedented partnerships and openness
between business, governments, civil society,
labour and the United Nations.’
EDITOR’S ..WHAT IS CSR?
NOTE “CSR is the continuing commitment by business to contribute to
economic development while improving the quality of life of the
Corporations have gained
immense clout in the
workforce and their families as well as of the community and society
prevailing form of at large.” (World Business Council for Sustainable Development)
capitalism. The role of
businesses in facilitating
development has long been
debated. We have In its broadest sense, CSR refers to “the firm’s consideration of,
progressed to a society,
where businesses are no and response to, issues beyond the narrow economic, technical, and
longer based on the sole
motive of profit
legal requirements of the firm to accomplish social benefits along
maximisation. There has with the traditional economic gains which the firm seeks” (Davis,1973).
been an acceptance of the
role they can play in
making the effects of
globalisation and business CSR basically focuses on what an organisation does that affects
operations, positive and
reducing the ill effects
the society in which it exists (Stone, Social issues in business, 1987)
by conscious efforts.
These efforts in a broad
sense are termed as CSR is “a commitment to improve community well being through
Corporate Social
Responsibility. CSR is an discretionary business practices and contributions of corporate
evolving concept and is no
longer random charity or resources”. (Philip Kotler and Nancy Lee, Corporate Social
philanthropy but is now Responsibility, 2010)
looked as key to business
operations, sustainability
and development.
This endeavor by the
corporate sector should be
accompanied by appropriate
State assistance, guidance
and regulation. Civil
Society and International
Organisations can also
encourage and make CSR
more effective.
This introductory issue
introduces the concept to
the reader and attempts to
generate dialogue and
discussion on the subject.
The 4th Wheel, a start up
think tank, in operation
since September 2010 uses
this medium to communicate
their beliefs, interests
and on going projects,
hoping the literature
transpires into ideas,
innovations and support
for CSR.  

(2]
INFLUENCES According to Bill gates, “Self interest is just one of two
forces in human nature. The other is ‘caring for others”.
The book asserts that the genius of capitalism is that it makes self
interest serve the general interest. Philanthropy and government are
supposed to address our ‘caring for others’ but there is not enough
philanthropic or government money to solve the world’s problems. It is a
dialogue and presents notable articles by professionals who discuss a
reversed system which should use profit incentives where possible. Even
where profits are not possible, there is a market based incentive:
Recognition. Positive recognition is good for a company’s reputation,
good for attracting customers and good for attracting employees.
Creative capitalism is “a system where incentives for both profits
and recognitions motivate both self interest and caring for others. Under
creative capitalism, governments, businesses and non profits work
together.” Bill Gates gives suggestions of corporations donating money
or products or using technology to find new markets in poor countries.
An apt example is ‘Tiered pricing’ wherein a drug company has a
valuable patent and charges full monopoly price in the developed world
but lets poor world manufacturers produce for less than one dollar a
dose. Another example he gives is the Bono (RED campaign) model
under which products are sold with a small percentage of the profits
going to worthy causes in the poor world.

C.K. Prahlad (2005) has stated that “The idea that the
private sector can and should be involved in creating
market-based solutions for the world’s poorest
consumers is gaining credibility.”
He highlights various case studies, a noteworthy one being,
‘Jaipur rugs’, operating in India and elaborates on how a company can
benefit the poor by connecting them with global markets. Jaipur rugs
makes this connection by building and orchestrating a global supply
chain on a massive scale- one focussed on developing human
capability and skills at the grassroots level, providing steady incomes
for rural men and women in the most depressed parts of India and
connecting them with market of the rich, such as the US. He gives an
example of the cell phone revolution which has demonstrated beyond
doubt that there is a market for world class goods and services if they
can be made at accessible at affordable prices. “The cell phone, we can
say, has shown that the Bottom of the pyramid is not just a market but a
source of innovation in business models and applications. It has
transformed the lives of the poor. We can do well and do good
simultaneously”. He mentions organisations which help the
handicapped walk, helps subsistence farmers check commodity prices
and connect with the rest of the world. There are banks adapting to the
financial needs of the poor, power companies reaching out to meet
energy needs, and construction companies doing what they can to
house the poor in affordable ways that allow for pride. He also mentions
the chains of stores tailored to understand the needs of the poor and to
make products available to them.

(3]
CSR in rural areas of Gujarat
Business thrives on a prosperous society. India has 638,596 villages. The rural population is
72.2% (Census of India, 2001). These basic facts make it an important task to cater to
SEMINAR 04/11
contemporary India’s rural population and their quandary.
The private sector has gained importance and plays a critical part in the growth of rural
India. Their role can be looked at in two different ways, one is to bridge the gap left by the
government and the other to increase their markets. For example when a corporate builds a road
in rural India it not only benefits the community as whole but it is also beneficial to the corporate
which can use these roads to deliver their products to the rural market which stands very
important to them as two-thirds of the country's one billion consumers live in rural India, where
almost half of the national income is generated.
In April 2011, we shall initiate a 6 month research project to document CSR activities in
rural Gujarat and the test the impact and the effect it has on the beneficiaries residing in rural
areas. Examples of companies undertaking CSR in rural areas are Adani Foundation, which
works in the rural areas for agriculture, animal husbandry, water conservation, village institution
building, capacity building and amenities to fishermen, L&T's rural development programs which Self Sustainable Business
touches the lives of people in remote villages and isolated communities through comprehensive
models. An Effective form of
packages of medical services to the communities and ACC’s contribution to the rebuilding effort
after the 2001 earthquake in Gujarat which was unique.
CSR investments.
Gujarat Livelihood Promotion Co. Ltd (GLPCL) signed agreements at the Vibrant Gujarat In India, most CSR funds are
forum, with at least 30 firms, including Reliance Retail Ltd, Tata Motors Ltd, Future Group, ITC utilized to dole out charities.
Ltd, Arvind Ltd and National Spot Exchange Ltd to create livelihood options for the rural poor. There is a dearth of awareness of
These case studies and interventions shall be showcased and understood, thereby leading business models that lead to
to more effective and long lasting change in how CSR is currently undertaken. sustainable and inclusive growth and
development in society. Most CSR
activities are charity and fail to build the
capabilities of the beneficiaries.
Through this seminar, we propose
to discuss methods of more effective
use of CSR funds, educate people
about CSR and the need to move from
charity to focused CSR, create a
platform to increase the scope of PPP
models and provide ideas and options
for meaningful CSR. The seminar will
take the participants through CSR
models/case studies of sustainable
projects which are currently running
successfully and the different sectors,
areas and social issues where
sustainable models could be
undertaken and how corporates can
execute these ideas.
This is an endeavor to build alliances,
provide opportunities for people to
participate and engage in solving
pressing social issues and share
experiences of agencies involved in
social development, social change and
CSR operations.The speakers are
reputed academicians, development
professionals, corporate employees,
and NGO spear headers, amongst
others who have achieved
commendable laurels in their chosen
fields.

(4]
 The Gandhian principle

INDIA AND CSR

of trusteeship (Gandhi
M.K. Harijan, 1927)
expresses the inherent
duties of the business
enterprises to its
consumers, workers,
community and the
mutual
responsibilities of
these to one another.

THE TRUSTEESHIP PRINCIPLE

Charity and philanthropy is not new to India. Mahatma Gandhi
spoke of the trusteeship principle. The trusteeship principle is about
equity and sustainable growth.
The principle asserts that organisations have an obligation to see
that the public’s interests are served by corporate actions and the way
in which profits are spent.The Gandhi ashram was established and
supported with the charitable acts of big industrialists and philanthropic
individuals.
Indian industrialists were pressurized to demonstrate their
commitment to social progress during the independence movement,
which resulted in the development of the notion of trusteeship, by
Gandhi, whereby the owners of property would voluntarily manage their
wealth on behalf of the people. Gandhi’s influence prompted various
Indian companies to play active roles in nation building and promoting
socioeconomic development during the 20th century. This trend had
continued till date and has increased in scope and extent.

IN THE NEWS
CSR Voluntary Guidelines
The guidelines were issued at the
conclusion of the first India Corporate
Week in late December 2009
The guidelines set out six core elements
for companies to address
Covered in the core elements are areas
related to 1. Care for all stakeholders; 2.
Ethical functioning; 3. Respect for
workers' rights and welfare; 4. Respect
for human rights; 5.  Respect for the
environment; and 6. Activities for social
and inclusive development.
India is one of the latest Governments
to reference the UN Global Compact
principles in formal CSR guidelines or
strategies, as has previously been done
in Norway and Denmark.
2009/10- The government made it
mandatory for all public sector oil
companies to spend 2 per cent of their
net profits on corporate social
responsibility.
2011- The new Companies Bill will
make it mandatory for private
companies to contribute a certain
amount towards corporate social
responsibility activities. The Ministry of
Company Affairs (MCA) has said that
companies will have to spend 2% of the
average net profit on CSR. India Inc. If
approved, mandatory CSR will be made
part of the amendment to the
Companies Bill

(5]
 RECOMMENDATIONS
Organisations, blogs, books, movies,
documentaries, movements, events

BLOGS
craneandmatten.blogspot.com
Two business school professors from the Schulich School of THE 4TH WHEEL
Business in Toronto, Canada, best known for their books
A Corporate Social Responsibility consultancy, advocacy and research firm.
and research articles on business ethics and corporate
The name signifies the business sector in addition to the other three integral
citizenship. Have been writing the Crane and Matten blog
wheels- the state, NGOs and international development organisations,
since 2008, offering unique insight on a range of issues from
required and capable of driving human development.
across the globe.
Services
blog.bsr.org FOR CORPORATES
The business of a better world (BSR) works with its global Strategising and planning CSR projects/ Needs Assessment
network of more than 250 member companies to develop Project implementation for corporate firms
sustainable business strategies and solutions through Channel corporate decision making in socially desirable activities
consulting, research, and crosssector collaboration. Monitoring and Evaluation of existing CSR/social and human development
projects
Stakeholder identification/mapping/ engagement
ORGANISATIONS
Stakeholder Cause promotions
SustainAbility Compilation of CSR reports
A think tank and strategy consultancy working to inspire Collaborations with NGOs
transformative business leadership on the sustainability Creating partnerships between Corporates, the State and Civil society
agenda
Read more about them on www.sustainability.com
FOR NGOs
Project development
Business in the Community (BITC)
Events planning
Works with over 800 UK companies committed to improving
Content writing
their impact on society, and operates throughout the UK.
IT support
BITC seeks to positively shape business impact on the
environment, in the marketplace, in the workplace and in the
community. It is an organisation that works with businesses ADVOCACY, RESEARCH AND EDUCATION
to improve their Corporate Social Responsibility (CSR) Promoting CSR practices

credentials, offering advice and programmes tailored to Heighten public awareness and create platforms for discussion and

meet their needs. suggestions regarding CSR and its potential through seminars and

Read more about them on www.bitc.org.uk workshops

Developing case studies and best case practices

WRITE TO US 4th Wheel Editor Sharon Weir

Inviting views, suggestions and 16 Pahelgaon bungalows, near Content Payal Mulchandani
feedback from corporates, NGOs, judges bungalow road,
Government employees, professionals, Design Tania Lakadawala
Ahmedabad, 380015
media personnel, entrepreneurs, www.the4thwheel.com Art & Logos Sameer Singh &
businessmen, academicians, social
http://the4thwheel.wordpress.com/ Pravin Mishra
institutions, students and anyone newsletter@the4thwheel.com Marketing & Circulation
interested in the well being of society
+919825885044, 079-40092492 Salomi Gupte

(6]