October, 2011 - Issue 3

CREATIVE PHILANTHROPHY

A portal to ignite energy and enthusiasm towards CSR

CSR Essentials - To keep it sustainable, inclusive and participatory !

In this issue Pg 2 -4th Wheel Team Message Pg 3 & 4 - Cover Story Pg 5 - 4th Wheel Engagements Pg 6 - 4th Wheel Media Coverage and Online Presence Pg 7 - Testimonials / Contact

CSR has gained its rightful position in public policy and dialogue. The concept is now being discussed in most Corporate Board Rooms. As many as 90% of the fortune 500 companies now have explicit CSR initiatives (Kotler and Lee,2004). The fact of increasing corporate investment in the development sector is clearly visible, the Indian Corporate sector spent $6.31 billion on social expenditure during 2007-08, up from $3.68 billion spent during the previous scal year. Market pressures on undertaking concrete and fruitful CSR along with the rising expectations from investors and consumers can be observed. A survey conducted by ORG-MARG for TERI Europe in several cities of India in 2001 to capture perceptions and expectations of CSR, revealed that the public at large felt that companies should be held wholly responsible for roles over which they have direct control. These included ensuring operations are environment friendly, treating employees fairly without any discrimination based on gender, race or religion, applying labour standards globally, bridging the gap between the rich and the poor, reducing human rights abuses, solving social problems and increasing economic stability. According to a study by the Brown Wilson Group in 2007 on the outsourcing industry in general, More than 21% of publicly traded companies that outsource have added green policies and performance demands to their vendor contracts, 94% plan on adding such clauses during renegotiations and 36% of private companies were contemplating green policies for 2008 outsourcing contracts. Even though charity and philanthropy from corporates has been age old in the country, the concept of CSR/CR/SR is still at a take off stage. According to Suresh Parmar, Managing Trustee, Global Gandhian Trusteeship & Corporate Responsibility Foundation and

Centre for training & research in Responsible Business, A majority of companies are involved in brand building in the name of CSR. An equal number of companies exist, who wish to do good CSR but have neither the knowledge nor the trained manpower to undertake CSR responsibilities. The basis of undertaking strategic and planned social development projects and particularly CSR, need to be carefully understood and executed for it to transpire into a successful project leading to long lasting change. According to Lars and Tino, Many organizations are urgently in need of an overview, structure and road map on how to engage with CSR in practice... only when an organization is aware of its societal impacts, has true and deep concern for these impacts and consciously acts according to these concerns both at a strategic and operational level can they hope of integrating the triple bottom line catering to people, planet and prot. It needs to be done right ! In order to be effective and aid in the progress and development of its stakeholders, CSR of a company is required to be Inclusive, Sustainable and Participatory. Key steps, processes and considerations need to be followed like integrating CSR plans based on core competencies of the company into business operations, undertaking needs assessments before making community investments and identifying and having stakeholder dialogues, among others. Indian companies have made little progress in reporting development projects, an estimated 100 corporate foundations and 25 foreign rms are involved in CSR activities in India but the input and output is elusive and there are large variations in the understanding of CSR in the head ofce and the local plant or sales ofce of an organization. Lets start by focussing on CSR essentials and then make those big social investment plunges ?

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Celebrating one year of learning and experience ! September, 2010 - October, 2011

EDITORS NOTE
This quarterly publication aims to reach out to the audience to enable a better understanding on CSR. It is essential for Business India to be aware and equipped to play a role in social and human development. The last two issues of the Newsletter introduced and explained the concept and the advantages attached to CSR. This issue discusses 10 essential CSR related concepts which need to be understood and incorporated in any CSR project plan. The 10 concepts are explained for the readers understanding and perusal. The reasons for undertaking those activities as well as the benets accrued by them are illustrated. Also highlighted are important considerations to be made while adopting each practice. On the completion of its rst year, this edition also talks about the organization - 4th Wheel and the services it offers. We showcase our media and online presence for the reader to get the essence of our organization and are thankful to our clients for providing us with valuable testimonials. Wishing you a very happy and prosperous New Year and we hope to hear from you soon ! -----------------Sharon Weir.

4th Wheel has had an exciting rst year with projects ranging from CSR and social development related content writing and training, business plan formulations, needs assessments and stakeholder mapping, surveys and research to event strategy, planning, logistics and execution. Considering majority startups in India dont see the light of their rst anniversary, we are delighted and humbled at achieving our rst important milestone. For those who havent come across 4th Wheel, we are a social enterprise working on research, consulting and advocacy of Corporate Social Responsibility in Gujarat. We strive to bring about a paradigm shift from a charity centered approach to more focused corporate responsibility. To contribute to the cause of a more aware, responsible and responsive Corporate World, this year, we focused on understanding the development sector and its issues, initiating dialogue on the topic of CSR and strengthening our professional network. In the coming year, we shall look at the research function of the organization by undertaking social development and CSR related studies focusing on the Gujarat diaspora. The advocacy angle for CSR in Gujarat shall be explored by a Training Module on CSR, a Seminar to discuss CSR related issues and our Quarterly Newsletter. We engage in Needs Assessments and Stakeholder Mapping for CSR execution in addition to social development business plan formulations and execution. We are focused on Monitoring, Evaluations, Reporting, Documentation and Social Audits and have acquired a GRI Certied Training from CII, Delhi for Social Auditing. We shall be looking at strategy, execution and content related work for social causes and events. Our aim for this year is to complete our Research Survey on CSR in Gujarat and introduce a functional CSR Training Module with 3 Companies undergoing the training by the end of the year. This one year has taught us lessons, education and experience has added tremendous value to us as thinkers and individuals, stories have been etched and our faith in the need and potential of the organization has been strengthened further. We are exceedingly grateful to those wonderful people who have helped, supported, mentored, criticized, advised and been a great form of motivation for us to continue to be brave, patient, persistent and aspiring. We pledge passion, hard work and enthusiasm for this year and as young social entrepreneurs, constantly seek exposure, experience and challenges. We urge the reader to keep tabs on us as we thrive on advice, feedback and learning. Thank You! 4th Wheel team.

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cover story - csr essentials - 1

1. CSR based on core competencies and incorporated in business operations
In most companies, there is a serious mismatch between the business and CSR strategies and functions. This results in minimal benets to the beneciaries and the business. In the new market economy this approach is not sustainable in the long run, and shareholders will quickly lose interest if their money does not give them tangible results. It has been realized that corporate success does not depend on altruistic CSR but development of the local environment with developing appropriate infrastructure, designing the type and quality of education to future employees, cooperation with local suppliers, development of quality institutions and so on. CSR activities should be based on core competencies like software companies should engage in ICT and social development, pharmaceutical companies should facilitate better health provisions among the poor, etc. Green Washing in CSR should be abandoned. A company should focus on creating minimal externalities in society rather than compensating for the loss it makes society incur. For example, companies polluting the afuent belt in its operational area should focus on reducing the huge externalities the people in the area suffer rather than engaging in top down community investment programs.

3. Needs Assessment and Baseline Surveys

It involves the systematic collection and presentation of data to give a clear picture of a particular situation. A needs assessment makes the desired CSR project defensible, fundable and measurable. Comprehensive needs assessments achieve results because the solutions are targeted at the real causes of issues. A needs assessment targets resources and can reenergize existing efforts. Since resources for most organizations are scarce, this targeting can help to achieve results without wasting precious funding or time. A needs assessment is a good strategy for involving various members of a coalition or organization in important activities.

of environmental, social and economic results on an equal basis. It is important for companies to be communicating with all their stakeholders to demonstrate leadership, their values, vision, successes and failures in CSR.

6.Environmental Considerations
Environmental CSR initiatives impacts climate change, water use, footprint and energy use effectiveness by improving operational effeciency, developing eco friendly product designs and innovative technologies. To design environmental CSR, considerations like reviewing exisiting environmental compliance status i n t h e c o m p a n y, f o r m u l a t i n g a n Environment Safety and Health (EHS) policy, setting goals and targets for protecting the environment, desigining processes and systems to increase compliance and conservation standards in the company, etc need to made.

4. Monitoring and Evaluations

Monitoring and evaluation serve the purpose of bringing information to the forefront and help to make changes in the existing system of delivery and planning to ensure desired outcomes. A scientic approach coupled with necessary participatory and qualitative aspects that will grasp true achievements and progress, leading to a successful and purposeful evaluation and monitoring system t h a t p ro v e s i m p a c t s a n d i n u e n c e s improvements should be undertaken.The impact of CSR to the organization has to be studied in terms of employee loyalty, reduced strikes in the production line, increased employee performance, increased productivity and other parameters which are an outcome of practicing CSR in the organization. When thinking about what to measure, start by thinking how the CSR strategy can support the overall corporate strategy.

2. Stakeholder Engagement
The legitimacy of the corporation depends not only on its wealth creation but also on its ability to meet the expectations of its varied stakeholders. The corporation must evolve to be an organization which mobilizes resources to create wealth and benets to all its stakeholders. Stakeholder mapping, a technique for identifying and prioritizing stakeholders, is a powerful diagnostic tool. A business should identify their current position in relation to the various interest groups, community organizations, economic and nancial interests, government agencies, and others who take an interest in or can affect their activities. There should be effective communication with a company's stakeholders.The stakeholders' interests and the differences between the need of the stakeholders and those of the company should be taken into account, thereby nding effective and appropriate solutions leading to successful CSR projects.

- Regardless of the exact CSR approach undertaken, the method to identify targets and measure performance of CSR activities, should follow the SMART principles, which is simple, measurable, achievable,reliable and time bound. - Out of 536 companies surveyed by Partners in Change, only 17% had any kind of written policy on CSR. Proactive dialogue with external stakeholders can help to foster understanding in preempting and minimizing social and environmental repercussions .

5. Social Audits and Reporting

A technique to understand, measure, verify, report on and improve the social performance of an organization. A social audit looks at factors such as a companys record of charitable giving, volunteer activity, energy use, transparency, work environment and work pay and benets to evaluate what kind of social and environmental impact a company is having in the locations where it operates. Increasing global companies are using Triple Bottom Line Reporting (TBLR). For formulating such reports, companies use Global Reporting Initiative (GRI) indexes. TBLR integrates information throughout all business processes and encourages the measurement, management and communication

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7.Employee Engagement

csr essentials - 2

Companies that offer corporate volunteering programmes hope to increase morale and productivity of their employees. Many hope to secure new customers and strengthen the positive view of their brand. Employee volunteerism in India is being encouraged by corporates. Employees spend voluntary hours because it helps in morale building, acts as a feel good factor, creates healthy competition among different teams and enables them to understand future customers, understand resource limits and how to maximize the same. A survey by Sirota Survey Intelligence (2007) afrmed that employees who are satised with their organizations commitment to social and environmental responsibilities are likely to be more positive, more engaged and more productive than those working for less responsible employers and when employees are positive about their organizations CSR commitment, their engagement rises to 86 per cent. On the other hand, when employees are negative about their employers CSR activities, only 37 per cent are highly engaged.

8. Corporate Governance
The issues of governance, accountability and transparency in the affairs of the company, as well as the rights of the shareholders and the role of the Board of Directors have never been as prominent as they are today. Corporate governance is concerned with the regulation, supervision, or performance and conduct oversight of the company. Corporate governance improves strategic thinking in the Board through induction of independent directors who bring in experience and new ideas, it rationalizes management and constantly monitors risk, assures the integrity of nancial reports and other communication and limits the liability of top managements and directors by carefully articulating the decission making process. It helps to gain long term reputational effects and builds condence among stakeholders as well as prospective stakeholders.

9. Supply Chains and CSR

Companies that improve their supply chain practices and labour conditions results in reduction in errors and defective pieces in their work producing higher quality of products and services. Many companies are imposing codes of conducts on both their suppliers and consumers to ensure that other companies policies and practices do not reect badly on them. This has a cascading effect on the entire suply chain, encouraging suppliers to adopt socially responsible business practices (BSR,2001). It helps to improve competitiveness and market positioning if the company is serious about labour standards, fair wages, working conditions, etc in their entire suply chain.

10. Engaging in partnerships

Strategic partnerships involving Governments, NGOs and businesses are extremely important. Companies now wish to move from crisis management systems to more socially responsible commitments. Companies are constantly in search for expertise and skills they are unaccustomed to applying and for guidance in order to promote their own values, image and credibility while adopting those of civil society. NGOs and CSR experts desire more collaborative and pragmatic relations to develop strategic alliances and sustainable communities and businesses. Organizations need to train employees directly engaged in CSR activities

- A global enterprise Green Factor reveals that Indian firms scored better than 10 other countries in sensitivity to and supporting green technology- using non toxic materials, recycling, etc. - CSR codes in the supply chain provide benefits in terms of health and safety measures, welfare and over time regulation.

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September - December, 2010 -Training for Pandit Deendayal Rural Internship Program, Ahmedabad -Content Writing for Kids Foundation of India, Ahmedabad -Rural Farming Initiative, Mankol Village, Sanand - Research Project on Role of the private sector in assisting the state in social development in Gujarat - Research and needs assessments on Solid Waste Management and CSR, Ahmedabad September, 2011

Undertaken Projects
January - March, 2011 -Content and Proposal writing for Self Employed Womens Association (SEWA), Ahmedabad - Newsletter Issue 1 -Research Survey on Industrial Manpower scenario for ITI- Sanand for the Gujarat Chamber of Commerce and Industry (GCCI), Ahmedabad - Seminar on Sustainable Business Models as an effective form of CSR investments, Ahmedabad April - June, 2011 - Lecture on Social Entrepreneurship and CSR at Railway Staff College, Vadodra July - August, 2011 - Leh Disaster Response Project for Habitat for Humanity India, Mumbai - Newsletter Issue 2

Social development research execution on Middleman, Bargaining and Price Information: Is Knowledge power? with farmers and traders in Agricultural Produce Markets in Gujarat, London School of Economics, PhD. Student.

4TH WHEEL SERVICES

RESEARCH
Baseline surveys

ADVOCACY
Lecture Modules on CSR and Social Development

CONSULTANCY
Social Audits and Reporting

Needs Assessment Surveys Documentation and Content Writing Assisting and coordinating Social Development Research Monitoring and Evaluations

Training and Workshops Seminars

Stakeholder Engagement Certications and Awards

Events

Government Schemes Program

Blog, Newsletter, Website

Employee Engagement

Contributions to Online Portals

Internships for Students

Project Strategy and Implementation

For more information, contact payal@the4thwheel.com

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4th wheels media and online presence

India CSR, 30th March,2001 DNA, 5th June, 2011 Ahmedabad Mirror, 7th June,2011

Habitat for Humanity Project, Dainik Bhaskar, 2nd August, 2011 IE Business School Blog, 17th June, 2011

Propoor Blog,15th June, 2011

Response Net,11th August, 2011

The World Entrepreneur Society, 27th July, 2011 Times of India, 30th July, 2011 Career Edge, 26th September,2011

4th Wheel on Facebook Youtube Videos on Point 10 TV

www.the4thwheel.com

www.the4thwheel.wordpress.com

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TESTIMONIALS
The 4th Wheel provided invaluable research assistance to me on a project with farmers and traders in Gujarat that formed part of my PhD thesis. They were always enthusiastic, exible and made every effort to make sure that I was satised with the research. Working with them was a pleasure. Tara Mitchell, London School of Economics Great team to work with. I am happy to see their business backed by strong social ethos. Wishing all the success in your endeavors

4TH WHEEL A Corporate Social Responsibility consultancy, advocacy and research rm. The name signies the business sector in addition to the other three integral wheels- the state, NGOs and international development organizations, required and capable of driving human development.

Phani Trivedi, Gujarat Chamber of Commerce and Industry

We are happy to associate with The 4th Wheel for Habitat for Humanity Indias Bike Expedition to Leh. They were instrumental in garnering tremendous media support for the cause and the event. We are keen to collaborate with them on future events and projects for Habitat for Humanity India. Amalia Rebello, Habitat for Humanity, India

16 Pahelgaon bungalows, near judges bungalow road, Ahmedabad, 380015

www.the4thwheel.com http://the4thwheel.wordpress.com/ newsletter@the4thwheel.com

WRITE TO US
Inviting views, suggestions and feedback from corporates, NGOs, Government employees, professionals, media, entrepreneurs, businessmen, academicians, social institutions and students interested in the well being of society

I was quite enthusiastic to work in a eld that was completely new with so much potential. Throughout the internship, our opinions and suggestions were always taken into consideration which made my internship more fruitful. Being a Social Entrepreneur is a great venture and a novel eld to be explored, particularly in CSR. My best wishes to them, in being Manan Parikh, successful young women Intern, HL BBA entrepreneurs in the near future.

Editor Sharon Weir Content Payal Mulchandani Design Tania Lakadawala Art & Logos Sameer Singh & Pravin Mishra Marketing & Circulation Salomi Gupte

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