Home-grown CSR needed

Focus on South Asia

Corporate Social Responsibility is not new in south Asia. Leading industrial houses have pioneered progressive workplace and community practices for over a century. Yet, the severity of poverty demands new levels of engagement. A practical agenda building on existing humanitarian traditions and engaging in the key issues is needed.

With the retreat of the state from economic activity, businesses need to adopt wider social responsibilities. Given that most people in south Asia live below the poverty line and have little or no access to basic public services, the potential for firms to contribute positively needs exploring.

Expectations of business are growing. A recent opinion poll found that Indians feel that the business sector must play a wider role in society. It also revealed that people are not yet judging companies by their positive contributions to society.

The Energy and Resources Institute (TERI) in London categorises CSR issues in South Asia as: 'first generation', involving conflicts between companies and communities over natural resources; 'second generation', brought on by industrialisation, symbolised by the 1984 Bhopal disaster; and 'third generation' relating to unequal and unsustainable consumption patterns. The motivation behind these issues has come from within south Asia but also from donors, corporations and non-government organisations outside the region. It is now crucial that the CSR agenda in south Asia is rooted in the specific priorities and circumstances of the region and that it should:

• build upon traditions of corporate philanthropy (welfare) and involve a wider range of companies in funding social goods such as healthcare facilities and schools
• encourage the tradition of philanthropy to evolve so that businesses contribute to wider development goals
• prioritise the critical state of natural resources
• promote disclosure of corporate social and environmental practices and performance.

Businesses worldwide have been slow to report on their impact; sustainability reporting is in its infancy in India and almost non-existent elsewhere in the region. People's ability to apply their growing expectations of business in making decisions will not happen until reporting on impact becomes regular practice.

Ritu Kumar
TERI
27 Albert Grove
London SW20 8PZ
UK
T +44 (0)208 9479145
ritukumar@aol.com
www.teriin.org

See also
Altered Images: the 2003 state of corporate responsibility in Sri Lanka TERI-Europe and New Academy of Business by Ritu Kumar et al, 2004

International and South Asian case studies of corporate responsibility by Ritu Kumar et al, TERI-Europe and New Academy of Business (forthcoming 2005)

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