A new dimension to Corporate Social Responsibility of Indian IT firms

The basic philosophy that the corporate world follows is that every company, like every individual, has a duty to the society. Just like an individual harms the environment, so does every company in its own way. Corporate Social Responsibility (CSR) thus focuses on reducing the negative effects to eradicate the harmful effects caused by a firm’s processes and product-usage and takes steps towards increasing its positive contributions. Positive contributions can be brought about by taking proactive steps by using its resources, core competence, people and funds for the benefit of the society and the environment.

The society has its share of multiple issues and problems. Much as we look at some good Samaritans in the government and the NGOs to resolve them, the magnitude of the issues is such that it needs much greater participation. This participation must come from the individuals and a body of individuals. The think tanks of the corporates bring together the individuals and its resource pool within a strategic boundary, to create a holistic approach and plan to counter the problems. Corporates are important stakeholders of the society, with great strengths of capable people, technology, access to funds and the ability of reach to find meaningful solutions to the problems facing India today.

Early days of CSR in IT industry

Notwithstanding its contributions to the GDP growth of the country and the employment opportunities, the IT industry is also obliged to meet its responsibilities towards curbing some of the social problems prevalent in India.

CSR is not a new phrase for Indian IT firms. Many IT firms have already incorporated corporate social responsibility concepts in their core values. However, it also appears that there is no real consensus about what it really means. According to a survey conducted by Nasscom a few years back, on IT firms' understanding of corporate social responsibility and its importance to their firms, the key barriers to CSR used to be a lack of knowledge of the concept, insufficient resources and lack of commitment. Moreover, though many international standards were available to support, measure and assist companies implementing CSR, most of the Indian firms did not follow the guidelines in the past.

CSR till early this decade was basically understood in terms of philanthropy or charity. Welfare programs or initiatives were introduced not as a responsibility but as a form of charity that was supposed to indicate the virtues of a company. Many industrial groups like the Tatas or Birlas had setup charitable trusts that provided financial grants for various worthy causes. But due to the fundamental base being just charity, this model had its share of problems when applied by a lot of other firms:

1. Commitment was lacking and often the activities were just a one-off case or periodical financial grants rather than sustaining efforts towards a problem resolution.

2. Community participation was lacking in managing such programs due to lack of ownership and strong involvement of employees.

3. The lack of involvement from the corporation led to low levels of accountability and transparency at the implementation level.

Many companies made token gestures towards CSR in ways such as donations to charitable trusts or NGOs and sponsorship of events, without taking any ownership and accountability. Most companies believed that charity and philanthropy equals to CSR, while very few companies used their core competence to benefit the community.

Some companies even used CSR as a marketing tool to further spread the word about their business. Very few companies actually communicated openly about their CSR policies, damage caused by their processes and products, the steps they had taken to minimize the damages and uplift the society and how much they were spending on CSR activities (which anyway remained a small fraction of their regular corporate spending).


The new emerging trend

However, some strong trends are emerging in the Indian CSR front in the past few years. The stakeholders are becoming CSR savvy. They expect more from the corporates beyond just their profits and even demand a company’s social and environmental performance. Further, there is an increasing awareness amongst consumers, management and students who now appreciate the CSR fundamentals more and are ready to participate. Thus, one of the motivations for some IT firms still remain as an effort to change the stakeholders' perceptions on the organizations without changing their actual economic performance.
Quite a few IT firms undertake health service initiatives such as building hospitals, treating cancer patients, blood donation camps and food programs (such as midday meals for school children or providing food for people affected by flood, famine, earthquakes and other natural disasters) and even green technology movements.

The geographical and climatic changes are also emerging as mainstream issues like the natural disasters such as the Tsunami, Katrina, Aila et al. Quite a number of firms engage in community development to meet such natural disaster situations with a planned approach. Such engagements are initiated more often by employee groups rather than firm managements. The firms contribute to community development programs by topping up the monetary contribution made by its employees towards community development programs. A focus on global energy issues has also intensified as crude oil prices have topped $135 per barrel last year, driving consumer awareness to conservation efforts, alternative fuel development and green technology investment.

Today, the corporate world has just started seeing the opportunity to help solve the problems CSR addresses. It is relatively easy to claim good intentions, but it is much more challenging to deliver on them. The trick is to measure the impact! A number of national and international organizations promote CSR reporting guidelines and actively monitor corporate performances. Today we see more acceptances of these norms and a willingness to adhere to such guidance by the corporates. The emerging trend is a move towards clear and comprehensive public disclosure of CSR data with an emphasis on measurable performance versus marketing spin.
The Global Reporting Initiative is one such example. The initiative’s vision is to have a reporting on economic, environmental and social performance by all organizations as routine and comparable as financial reporting. Officials have developed a sustainability reporting framework, of which the sustainability reporting guidelines are the basis for organizations to use for disclosure about sustainability performance. These guidelines also provide stakeholders with a universally applicable, comparable framework in which to understand the disclosed information.
There are other important factors providing the foundation for the business’s financial success or failure as well. These other areas are: learning and growth, internal business process and customer satisfaction. Each perspective can include metrics that effectively measure CSR initiatives and help the organization realize benefits. Given these dependencies, there is a strong indication that CSR is moving from a tangential public-relations-driven initiative to a business imperative. Companies with strong corporate social values have embraced this transparency by publishing annual reports addressing these metrics.

CSR of tomorrow in Indian IT space

With the shifting of the CSR paradigm to a stakeholder centric approach, practices at the ground level have also undergone a radical transformation. In every aspect of CSR measures we are seeing corporations innovating to increase efficiency, effectiveness and accountability. The focus is on developing initiatives that are people-centric with active community participation at all levels. Further, the corporations themselves are moving away from the charitable initiatives like giving financial grants or sponsorships to providing products and services in a manner that would make a real difference in the target communities.

Let’s have a quick look at some examples of Indian IT corporations’ CSR activities*.

TCS has always recognized the responsibility corporates should have towards the wider communities they operate in. TCS' community initiatives have been in areas addressing environmental and civic problems; setting up and maintaining infrastructure for urban beautification, pollution reduction and healthcare; waste management in the office environment, tree plantation and water treatment.

Wipro Cares is an initiative by the Wiproites, their family members and friends to contribute in the areas of education, community and social development. Wipro Cares contributes through two pronged strategy: providing rehabilitation to survivors of natural calamities and enhancing learning abilities of children from the under privileged sections of the society

Infosys Foundation has worked to support the underprivileged in society and enrich their lives. Promoted by Infosys Technologies Limited, the Foundation began its work in Karnataka, India, gradually extending its activities to the states of Tamil Nadu, Andhra Pradesh, Maharashtra, Orissa and Punjab. It has successfully implemented projects in four key focus areas of healthcare, social rehabilitation and rural upliftment, learning and education and Art& culture.

i-flex solutions has special programs for disaster relief, disable children’s program (where they sponsored disabled children to International Special Olympics), Association with Freedom Trust pool, Chennai to provide support in the form of coaching, kits, and other assistance to under privileged children. I-flex solutions is also developing a comprehensive Decision Support System (DSS) at its own cost, to help the Education Department in Karnataka to monitor the quality of elementary education in schools across the State.

The changing face of CSR in SME IT firms is also visible in baby steps that are taken in the direction of involving the employees to the cause. For example, Innominds Software of Hyderabad has devised special programs for a three way CSR drive: Natural disaster support, Green Environment promotions and uplifting of small scale industries in the State of Andhra Pradesh. The innovation Innominds brought in, is the way of attracting the employees through its in-house club “IMpressions”, which along with the HR team creates an environment to generate employee participation in a sustained basis throughout the year to participate in the CSR initiatives. Finally it’s the hands-on involvement of the employees and the backing of the management that makes the programs a success rather than funding charity programs.

It ushers a new era of CSR in the Indian IT space, as we see the introduction of a host of innovative programs and schemes in areas like education, healthcare, rural development, environment protection, protection of artistic and cultural heritage and disaster management. These programs are customized to meet the specific needs of target groups. Corporations devote not only financial resources but expertise, manpower, products and services for the successful implementation of these schemes. As a part of the Indian IT community, we seem to be finally catching up with the fundamental definition of CSR. Way to go!

* Source www.karmayog.org.

What won the Slumdog Millionnaire the Oscars

Kudos to the Slumdog Millionnaire team which on expected lines (after winning various awards for the past few weeks) swamped the Oscars with an 8 count. It was a great feeling – I am sure all those who watched it live from Los Angeles will agree with me – to finally see lots of Indian actors on an Oscar stage along with scores of all time greats. Guruji AR Rehman bagged 2 Oscars (not to forget Gulzar for sharing the Oscar for Best Score – for lyrics) – that simply is one of the happiest days of all musicians in the country. The movie of the year – while almost expected, but “The award goes to….” sounded like bells in a fairyland. Amazing stuff!

Now that was the perfect formula, some critics will say, a Hollywood movie under the banner of the WB and a British Director, an international crew, sleek storyline, editing and cinematopgraphy, great music (Rehman... Rehman) and Indian poverty in slums (again!). Well Satyajit Ray faced the same critics, who said he was selling Indian poverty abroad to win awards. True, lot of winners from India in the past in Global awards like Cannes had similar themes. But then, at least they are not trying to hide any facts behind the facade of a multi-billion IPL industry or similar riches that India boasts of (like 4 out of top 10 richest men in World are Indians). Truth lies out there!

But then, there were many such movies of better substance, like Lagaan for example, which to me was one of movies with the best potential to win an Oscar. Mother India was another potential, and so was Salaam Bombay to some extent. Gandhi won 8 Oscars, but again it was not an Indian movie. It was under the Hollywood banner with an international crew and a international hero, that were major pull factors for multiple Oscars). But the kind of mass appeal that Slumdog generated was unmatched probably. There was a typical Indian disbelief at our hearts, because we have never experienced glory at this level before, and we were looking at the screen more with hope than anything else, though all the logic pointed at a sweep of Academy awards 2009 by Slumdog. It was more of a question of “how many” and they all happened in a heap at the end, again, more or less on expected lines. Folks in India were ecstasic, but not majorly surprised. There was a hint of disbelief, but it was "kind of expected". Thanks to the media who made us starting to believe, that it will happen this time!

The common factor of Indian movies that failed in Oscars was that they were “Indian” movies vying for just one slot in the ‘Foreign language film” with thousands of competing movies across the world. It may sound weird, but the competition is less when it comes to Hollywood movies! Think about it! The only other so called “Indian” movie (root wise) that made similar waves was Gandhi which also won 8 Oscars. That also had the international appeal of being a Hollywood film, directed by Richard Attenborough with a foreigner (Sir Ben Kinsley) playing Gandhi. It even had another common factor with typical Indian movies - it was long!

Other couple of points to note why the 3 pure Indian movies didn’t make it - Mother India, Salaam Bombay and Lagaan. It “pure Indian” tag may not have raised enough public interest, vis-a-vee a white man looking at India though much more credible (!!) eyes, dissecting Indian poverty through its naked lens! And of course, as I said earlier, in the “foreign film category” they were battling against the world’s best rather than Hollywood’s best for just 1 award. Mother India and Lagaan also had a hint of patriotism which may not have cut ice with the jury. “Water” was the other Indian film which participated in Oscar under Canadian banner for whatever reasons. It was a nice movie, on a controversial theme as usual like other Mira Nair films, but even the avid Indian watchers had doubt about its fate in the Oscars. As it happened it went down without much of a whimper. Rang de Basanti was a strong movie, but couldn’t bag nominations against stronger “foreign films”. Strong messages are important, all the winners have them, but the presentation and the pedigree of production look like pre-qualifiers.

Bottomline, whether the Academy awards jury trusts a western eye to describe Indian facts based stories (and yes, along the truth of slums and poverty – that is a proven winner – you don’t expect to win Oscars for “dishum dishum” and “running around the trees” movies) will become a debate I am sure with more and more movies trying out the formula of an Indian theme, an India crew along with international crew, a Hollywood director and of course, most important - it should be a hollywood production. May be there’s a “Returning to The City of Joy” awaiting us in the Oscars tomorrow!

Employee Motivation - The power is in there!

There are several myths about employee motivation that exist today. One popular one is that “People can be motivated”. Well, not really! You can bring the horse to the water but cannot make it drink it. One cannot motivate people. The key is however to set up the environment that will empower the employees to motivate themselves. Also, it is wise to understand that different people are motivated by different things and one shoe will not fit all sizes.

Money, Fear factor, job satisfaction, incentives, flexible timings, training and learning, perks of various kinds and various other tools are used at random by the organizations with the belief that a combination of these tools will motivate their employees. These tools in isolation indeed motivate people for a short term or even slightly longer terms. The chance is that one or two in the combination will definitely work for an individual as long as “all the tools are covered”. While, there is nothing wrong in this formula, none of these tools work in isolation to the environment and culture of an organization.

So, instead of focusing on the tools, an organization has to work towards building an environment and culture that empowers employees to develop themselves and get self actualization needs (Maslow’s Hirarchy model) fulfilled. Self Actualization is a need to maximize one’s potential. The onus is on an organization to provide employees the platform to maximize their potential as they desire.

At the same time, the focus of any employee motivation program should not lose its focus on the key objectives. Employees can be all fired up about their work and be working very hard. However, if the results of their work don't contribute to the goals of the organization, then the organization is not any better off than if the employees were sitting on their hands! Identifying the goals for the organization is usually done during strategic planning. The steps then taken to support the motivation of the employees are aligned to build an environment that is aligned to the corporate goals.

Another factor to remember is the phenomenon of “change”. Organizations change all the time, as do people. Hence, sustaining an environment where employees can strongly motivate themselves is a continuous process. Cultivating strong interpersonal relationships with employees to motivate them may not work at all times. Particularly at times of stress, nature of these relationships can change to a great extent. Take for example the current economic downturn when many companies are resorting to survival tactics like downsizing. Priorities of organizations change, and interpersonal activities and employee motivational programs strangely take a backseat. This results in an environment where fear and uncertainty rules with la ot of negative vives.

This is the time to indulge in use innovative, reliable and comprehensive systems in the workplace to help motivate employees. For example, a clear corporate communication to take employees in confidence, establish compensation and performance incentive systems, organizational policies and procedures, and sustained employee motivational programs. Various systems and structures such as these help ensure clear understanding and equitable treatment of employees which takes care of the primary needs as per Maslow’s Hierarchical model and drives the self actualization needs which provides the platform for employee motivation.

To start with, make a list of top 5 motivators of your employees and then have your employees fill out a list through a survey. The order of priority or even certain line items may differ between your impression of what you think is important for them and what they think is important. Talking to employee groups and one-on-one will help understand the motivational factors even more. Work with your employees to ensure that these motivational factors are taken into consideration in your reward systems and corporate behavioral styles. Good starting point will be to recognize their importance and communicate effectively how their contributions affect corporate results.

Employees are motivated more care and concern. Sincerity is must and setting aside time to be with each of them is recommended. Skills in delegation should be cultivated can free up a great deal of time for managers and supervisors. It also allows employees to take a stronger role in their jobs, which usually means more fulfillment and motivation in their jobs, as well. Another fact to remember is, employees must be rewarded when the time comes and as soon as the time comes. Procrastination will spoil the show. That’s why every success should be celebrated in whatever appropriate way. Without ongoing acknowledgement of success and appreciation of good work (both from internal and external customer perspective), employees become frustrated, skeptical and even cynical about efforts in the organization.

Let me cite here an example of an employee motivational initiative taken by my organization Innominds software. The initiative started in February 2008, on the brink of the break out of the global financial crisis that started the meltdown. The Innominds management team firmly believed in the idea of building a team within the organization “for the people, by the people” which will champion employee motivation and spirit within. Thus born an organization called “IMpressions” within Innominds (IM capital – highlighting Innovative Minds).

IMpressions, formed with volunteers across the ranks, is an independent (it does not report to any function head) and autonomous body made up of Innominds employees which acts as a change agent in the organization to bring in positive changes through various activities and initiatives in culture, Corporate Social Responsibilities, internal communication, team spirit and employee motivation.

The primary objective of being a change agent towards building a positive atmosphere within Innominds, IMpressions focuses on enhancing:

• Effective Communication channels
• Camaraderie and team building
• Healthy competition across teams
• Professional culture and etiquettes
• Boost morale and create a bonding with Innominds brand identity
• Feel good factor and pride being an Innomindsian
• Organizational development activities
• Creative spirit leading to ideas and innovation

IMpressions has its own operating body and office bearers with various responsibilities with specialists from various departments to handle specific operational tasks. The team does frequent surveys and keep talking to employees and various levels to understand the dynamics and pulse of the organization and decides on action plans to address employee related organizational issues under the principal of Internal Marketing and Internal Branding. It undertakes various intra-company activities like sports, socio-cultural activities, internal branding and posters, internal newsletter (of the same name “IMpressions”) and Corporate Social Responsibility activities.

IMpressions is in a constant state of evolution ever since its inception. As new members keep joining, the team keeps up its learning curve at a sustained basis. Following are some of the activities the team started with:

• A monthly in-house newsletter
  o To serve as a communication platform for top management to the employees with regular articles and Q&A sessions
  o A platform to broadcast announcements, news, awards and other happenings in Innominds
  o To propagate writing habits and creativity in employees
  o To propagate Innominds’ branding identity and culture across the organization

• An internal corporate blog
  o IMpressions is working on creating an IMpressions portal with interactive facilities including blogs, to further provide a platform of exchange of information and corporate communication

• Creating a structured CSR face of Innominds
  o It organized its first blood donation camp which also attracted positive media attention.
  o Organizing a corporate handloom mela for the benefit of the handloom weaver community of Andhra Pradesh.
  o Other CSR activities followed with more participation from within, like Bihar Flood Relief along with TCS and HYSEA organizations.
  o Currently IMpressions is planning various activities and movements to create a Green environment at working places, tree plantation movements in Hyderabad city and popularizing public transport and carpooling to reduce traffic problems, encouraging office bearers to use public transport at least once a week.

• Organizing several internal social events like national dress day, khadi wear day, tree plantation day, painting competition and Diwali lighting festival with a central theme to create bonding among employees and have fun at the same time.

• Organizing a intra-group competition to build an atmosphere of healthy competition charged with positive energy
  o The Innominds employees were divided into 4 teams (across the functions) of equal size and strength. The 4 teams were named “Power Panthers”, “Regal Eagles”, “Raging Rhinos” and “Bashing Bulls” – to signify power, speed, vitality and endurance as spirit of all socio-cultural and sports competitions.
  o Teams compete against each other in multiple sports and cultural disciplines starting last year August – with the winners to take the honors after a 12 month long schedule of competitions. The 12 month calendar also features a socio-cultural nite and an Annual Sports day.
  o The key feature of the competition is that – the executive management team members run the 4 teams as Presidents and Vice Presidents and play significant roles in motivating and encouraging their teams to win! In all events, participation of the senior management team is mandatory and they have been doing that so far with remarkable regularity.

• IMpressions is also working on a plan to organize campaigns to propagate positive values in employees by activities like Buddy week, Time Mgmt and Office etiquettes workshops, presentations and external training programs
  
  To conclude, IMpressions is just an example of an initiative taken by the people for the people at Innominds. It reinstates the theory that, people themselves understand what motivates the best and can work together to create an environment to achieve the best results. The organizational and top management support and participation is of course mandatory without which any such initiative will not survive the barrier of time! Its time, the corporate management teams start looking at this reality.