Indian companies need to move from corporate social responsibility by adopting a broader vision of corporate responsibility. This can be done by combining commercial, social and environmental goals while improving competitiveness, says a report by global consultancy major Accenture and the Federation of Indian Chambers and Commerce Industries.
Outlining a framework for this “seamless transition” from CSR to CR, the report, ”Organizing for Success on Corporate Responsibility: The Path to High Performance,” notes that in the short run, most businesses in India will continue to focus on building their CSR capabilities, but will gradually embrace the broader opportunities of CR.
The new company law has classified a range of activities as CSR, providing a path for companies to implement innovations and new forms of collaboration for “generating socially responsible profits.”
“A holistic CR agenda should not just focus on making companies commercially and socially viable but also focus on sustainable and scalable initiatives,” said Shaifalika Panda, co-chairperson, FICCI Young Leaders Forum.
The report suggests that companies need to have a broader vision of CR that enables company leaders to engage with internal and external stakeholders and identify areas in which they can create value.
Developing distinctive capabilities, particularly in how they work with partners to identify talent and new ideas, and how they create models that share value appropriately between partners, is crucial for this, says the report.
“Our framework is designed to help organisations 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 to develop impactful CR initiatives,” Sanjay Dawar, managing director, Accenture Strategy, India, said in a release.