Corporate Social Responsibility – Through Ages

Corporate Social Responsibility – Through Ages

- Sai Papineni                       

The Great Depression had brought into focus a few lacunae in the system and forced the intelligentsia to look closely at the capitalist ideal; and the concept of Corporate Social Responsibility had its genesis; a concept made popular by the management thinkers like Drucker in mid 20th Century. In India the word began to make rounds very recently – of course, true capitalism here is a new, post-liberalization phenomenon – but is it really new to us?  

If one explores various phases of India’s long and illustrious history, there are many phases during which welfare activities were undertaken by the the mercantile and industrial enterprises. But the social processes and particularly the parlance differed significantly from what we understand it as today. 

Let us simplify the term CSR into easily comprehensible words…

“Voluntary alienation of one’s wealth for the general good of many”

This may not explain the concept in its entirety, but it should suffice for now. The contexts, the motivations and the priorities differed from time to time. However, in this simplified form, it is not new to India from the earliest times known.

Dāna is a term well known from the earliest literary tradition available to us – Rig Veda. The number of instances, of a wealthy patron – a warlord or a landlord –, giving away cattle or gold or some such movable tokens of wealth to the officiating priests at the sacrifices, abound in the Vedic tradition. The size of these donations preempts their enjoyment by a single individual or a family; they were essentially meant for the community benefit and differ from the mandatory taxes such as Bali and Bhāga.

The concept of taxing the business as a means to state led welfare schemes is part and parcel of civilized societies from the times immemorial. When a strong welfare state exists, the focus on CSR becomes irrelevant. The focus on the direct contribution of non-government institutions, therefore, is inversely proportional to the people’s confidence in state-led welfare processes. In the occident, the church became the agent of welfare and the tithes a means for the welfare of the parish. Its prominence increased with the weakening state authority during the dark ages. Its Indian parallel is the rise of temples as nuclei of rural communities.  

Therefore, religious sanction to the endowments made by commercial institutions and wealthy individuals has been a fact that persisted through ages in different social and religious milieu. The individual motivation remains the same, “Donor acquires merit (Puṇya) and also material wealth (Artha) in one’s lifetime”. Is it in reality different from the motivations of a modern corporation? To me they are essentially the same – a long-term image building for the corporate brand and improved economic conditions leading to a stronger customer base.

Now, if you look back at the historical times, one may argue that the purpose of donations had nothing to do with the welfare of people, even though they might have had indirectly contributed to the community benefit. However, there is no denying the fact that some literary and epigraphic records do establish that the donors were conscious of the purpose for which the donatives were made.  

A later codicil of the Mahabharata story, the Anusāsanika Parva, differentiates dānas into two distinct types – Işṭa & Pūrta. While the Işṭa dāna is a honorarium for officiating a ritual, the Pūrta dāna was specifically towards such activities like digging wells, repairing irrigation tanks and building of temples. While Işṭa dāna is mandatory, the Pūrta dāna is voluntarily made by the Landlord / Merchant. 

 Arthashāstra is a manual on statecraft representing a strong unitary state – probably 2000 years old – and primarily deals with the welfare initiatives that are state led. A modest provision in its tax collection and administration code gives discretion to the collectors to waive the duties if the articles of trade are meant for community benefit, indirectly pointing to the fact that such practices had taken place even though at a low key.

Vinaya piṭaka, from the Buddhist canon mentions such terms as Shréni, Puga, Nigama etc. which denote corporate organizations or guilds that are engaged in industry and trade. There were references of such guilds providing regular supplies of food and clothing not only to the monks, but also to the destitute and the disabled.

There are several inscriptions of early historic period referring to wealthy persons investing in guilds towards some pious endowments, the interest from the investments to be utilized for the needy and towards improving public amenities. For example, an inscription from Junnar refers to an investment with one Konachika guild for the purpose of planting karanja and banyan trees on the highways. 

 
Dharmāta, the practice of setting aside a part of the profit margin towards some pious activity is followed even today by the most traditional Jain and Marwadi business houses  in India; a practice that had its origins in the earliest Jain literature dating back to the pre-Christian times.

 
Sharia, the Islamic law book institutionalized the process, by making it mandatory for every pious businessman to set aside a portion of his income towards alms for the poor and the destitute.

Medieval texts list Sapta Santānas, seven kinds of progeny – the legacies one may leave to improve one's merit afterlife – and these are namely, Rest house, Irrigation tank, Book, House, Temple, Orchard and New Village Settlement. A large number of inscriptions spread across the country, belonging to this period, evidence contributions made by the wealthy merchants and manufacturing groups towards such activities like building, maintenance and repair of community infrastructure. 

This brings us to the fact that the Oriental affinity to contribute a part of the wealth towards the general welfare of the community is very much alive even today. During the years of colonial high tide, the institutional endowments dwindled as the economy suffered. But the instinct was internalized at an individual level, which is evident from the number of alms-seekers at every traffic junction in India. At the institutional level there certainly is a discontinuity. With the rise of modern enterprise and businesses, and the growing disenchantment with state apparatus, a need exists to channelize this proclivity into effective strategies to address the current social needs and priorities.

But … how true is our current crop of NGOs to this purpose?

The Day of the Dog

The Day of the Dog

SAI PAPINENI

“Those were the days, when the world was as the great creator, the three headed Kerberus, had intended it to be…” Old Bitch began, lazily circling and tamping the soft leaves and rubbish into a cushion before settling down for a long Sunday predawn sermon. A lone streetlight in that narrow lane was still shining brightly. It is their favored place for their weekly gatherings that always followed a midnight feast, near the late night restaurant’s garbage dump.

I being half breed Pomeranian, greatly disadvantaged by the stature of my parent, was relegated to the most disagreeable corner crawling with fleas. My belly, well sated by a large leftover portion of chicken kebabs, desperately wanted to get back to my native territory – a beautiful tree-lined street in Defense Colony – and lie down in air conditioned comfort under the car parked in the porch of Wobbly Legs, ah! That is one humane biped, who had never failed to leave a nice little breakfast for me, every morning, properly wrapped in a flimsy plastic bag.

But … Old Bitch is a bitch.

She doesn’t like anyone in her congregation missing her weekly discourses – those who are mad enough will be doggedly hounded by her terriers – “Dog’s life!” a low snarl escaped my jaws. Immediately, I looked around to see if someone had noticed. Thank Dog! None of those Dylan’s dogs prowling around. I looked up at Old Bitch, perched high on the rubbish mound, as she continued with her gobbledygook extolling the virtues of canine race.

“Those were the idyllic days when we were simple pack living and sharing the pleasures of communal life. In our little dens deep in woods, we were all grey and had no disparities.

“Howl Kerberus…!

“There…! He was a great leader. We all hunted with him, – so strong we were then – and we could bring down even a mighty mammoth. Do you know mammoths?” she paused, scratching her flanks, “They were huge – even bigger than those gigantic city buses – and equally vicious. And, the legends say that it was our hunters that sent their species to extinction”

Entire congregation began to nod their heads LOL-ling their tongues, warming to the rhetoric.

“It was a historic blunder”, finally she launched into her familiar rant, “when some of our ancestors began to follow the bipeds. A false sense of comfort in bourgeois kennels and our eagerness to catch the attractive bones that they tossed at us sounded the death knell to a glorious phase in history. We were enslaved – they turned us into sentries to guard their misbegotten wealth. We became shepherds. Brother against brother – we gamely chased our own kind when they hunted. Mutely taking orders, faithfully, we even subjected ourselves to such heinous makeovers to fit their pockets.”

Shame! Shame!

The entire congregation responded perking their ears up.

“So far, our struggles to make a point, our attempts at reaffirming our dignity are largely ignored by bipeds, secure in their homes guarded by our own greyhound brethren. They even have the temerity to parade our Kennel Club members on leash, in spite of our noisy protests. Our occasional exultations after a few sporadic attacks by our belligerent brothers, terrorizing the biped puppies and defenseless oldies only serve as trivial entertainment, and no more. Those undignified cries of their helpless females, cornered by our playful adolescents are brushed away as harmless teasing. Even our loud concerted pursuits are ignored by those motorcyclists, reckless enough to keep coming back to our territories and disturb peace.”

A solemn gloom descended on the congregation interrupted by a few feeble snivels of despondence.

“Do not whine, my comrades in fangs”, Old Bitch gave a terse woof. “You are the fortunate ones. You live in a city, a city of future, the Land of Litter and Garbage promised by Kerberus, himself … a ray of light at the end of a long burrow of time …”

A collective howl interrupted her tirade as the lone streetlight flickered and died. A buzz of discontent at the failure of civic bodies followed as each one tried to adjust their night vision.

“Don’t you bitch” Old Bitch growled.

“The civic bodies of this city are peerless,” She continued furiously. “They are our allies in our struggle against the oppression of bipeds. We owe our numbers and freedom to them. Their acts of magnanimity are numerous – dark alleys, bumpy roads and unlimited supply of unattended garbage – and give us a tactical advantage over those two-legged freaks. I strongly denounce criticism of this city’s noble civic authorities.

“You better have down pat, comrades, they are dogs’ best friends,” she barked.

A lone yip reverberated in the stunned silence that followed. It was the leader of a stray terror outfit called Cubbon Pack, that made the long verandahs of a red building its lair, raising his paw rather tentatively as he began to speak.

“Comrade Old Bitch,” he raised his whimper to a howl, for everyone to hear, “I have terrifying news. The reactionary forces are gathering momentum under our own snouts. There is a new vixen in town that was stirring up hornets with questions which no one dared to utter, atleast not until now, are pricking the conscience of our friends. The civic powers that be are completely foxed by them. I expect some vigilant onslaught in the days to come.”

His words sent a chill down my spine all the way back to my tail.

“Hush” Old Bitch barked and grinned with her canines hidden, at her congregation terrified and looking up to her for guidance.

“Perk up your ears, you dogs. There is nothing to worry. No single vixen can make this city’s administration wake up from its slumber. Just go back to your home streets and do what you are best at, making more litters. I assure you, that the promised day is near.”

Then came the comforting words, settling my palpitating heart,

“Most importantly, we have our NGOtiators in right places, to safeguard our interests. They will ensure that one day …

“very soon …

“the city comes to us”.