New Deal of Micro Finance and Corporate Social Responsibility: New Dimensions to ensure Sustainable Development under Millennium Development Goals of the UN.
Abstract:
Corporate Social Development and Corporate Social Responsibility
(CSR) came into prominence in the mid 1980s. It is known by different names such as corporate responsibility, corporate conscience, sustainable responsible business, corporate social performance, etc. This means business would among others, ensure responsibility for its likely influence on stakeholders, environment and the community at large. It is a proactive approach to bring in holistic growth by containing the ill effects on environment on the one hand and to bring in a new deal in relation to mother earth vis a vis consumers, employees, environment, business profit and the like on the other. Having seen the advent and background of CSR, the whole issue is examined with the help of some empirical data collected from a randomly selected international sample study of seven countries, spread over three continents. The major hypothesis of the empirical study was to ascertain whether CSR of businesses adequately empower NGOs with micro finance? The general perception of CSR is to plough back part of the profits of companies and businesses for sustainable development oriented activities. 93 per cent of the respondents had favored NGOs as the right vehicle to channel CSR funds on account of their grass root level connectivity and transparency. It was opined that NGOs may take up micro finance activities by making use of CSR related funds for ensuring sustainable development. 97 per cent of the sample respondents had voted in favor of cost effectiveness of micro finance operations by NGOs. May be the wisdom coming from the field is worth experimenting with location and regional refinements. The extent of recovery performance of NGOs in relation to micro finance at 67 percent can not be taken as a major suggestive policy indication.
These are all potential challenges for researchers. 63 per cent of the sample respondents had favored the exclusiveness of SHGs in indulging in the micro finance domain. Respondents from all most all countries had favored the micro finance lending through NGOs. It is interesting to note that all the respondents had opined that wider coverage of CSR related funds deployment may be done only through NGOs. Obviously it is an excellent policy indication for those who are the movers and shakers of policy domain in the developing world and that too particularly in the context of the Millennium Developments Goals of the United Nations.
Much depends on our perception. Conscious efforts required to select only those NGOs with impeccable integrity to channel the CSR funds for redeployment. These NGOs must have undergone both financial and social audit. NGOs which resort to strong arm tactics in effecting recovery may be discriminated against in channeling the CSR funds. NGOs are to be assessed periodically to review their credibility.
Key Phrases/ Key words: CSR/ NGOs/ SHGs/ empower/ sample study/ sustainable development / micro finance/ Millennium developments goals/ impeccable integrity/ financial and social audit/ seeing is believing/ inclusive growth/.
Introduction:
There is a good volume of literature on corporate social responsibility (CSR) now in the world. The very advent of the term CSR can be traced back to the 1970s. But it became prominent after the mid 1980s. It is also known by different names like corporate responsibility, corporate conscience, sustainable responsible business, corporate social performance, etc. It is not imposed from with out. CSR means that business would monitor and ensure its support to rules and regulations of the land where it operates, maintain ethical standards and the norms of consciousness. This means business would among others, ensure responsibility for its likely influence on stakeholders, environment, and the community at large. It is a proactive approach to bring in holistic growth by containing the ill effects on environment on the one hand and to bring in a new deal in relation to mother earth vis a vis consumers, employees, environment, business profit, etc.
The attention CSR has attracted is rich and varied. It is evident from the foregoing. “The practice of CSR is much debated and criticized. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window dressing; yet others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Corporate Social Responsibility has been redefined throughout the years. However, it essentially is titled to aid to an organization’s mission as well as a guide to what the company stands for and will uphold to its consumers”. Only parts of the CSR funds are earmarked to NGOs as the top executives of corporates have other demanding claims. Therefore the theme deserves great deal of thought in its approach and handling. The views of the corporate executives on NGOs and the deployment of micro credit through them are very important. However, at lest five per cent of the sample were corporate executives as respondents of the field study and to that extent we have covered that lacuna, though not fully.
Hypothesis:
The major hypothesis of the empirical study was to ascertain whether CSR of businesses adequately empower NGOs with micro finance for ensuring sustainable development?
Sources of Data & Methodology:
Having seen the advent and back ground of CSR, the whole issue is examined with the help of some empirical data collected from a randomly selected international sample study of seven countries, spread over three continents. It was designed in such ways that both developed and developing countries represent the sample along with a mix of large and small economies as well. Data were collected on a pre- structured questionnaire electronically. Though it was proposed to collect data from some 300 respondents, in effect, only 100 respondents had returned the filled in questionnaires. The sample respondents were well educated and had adequate exposure to CSR related subjects to comment on it. Some of them were really practitioners of CSR regime themselves. Most of the respondents were personally known to the authors, owing to their professional erstwhile interactions with them.
The countries covered for the field work included Australia, UK and Italy as representatives of the developed world. The developing economies constituted India, Bahrain, Qatar and Afghanistan. The selection of these countries was mostly on account of the personal familiarity of the authors with the respondents. Some 10 sample respondents each had returned the filled questionnaires form these countries. In addition, some 30 filled in questionnaires had come from several other countries like Pakistan, Bangladesh, Nepal, Sri Lanka, PNG, Singapore and Philippines. But the number of such questionnaires was less than five from any one country. For the purpose of data collection, the calendar year 2010- 2011, (July 2010 to June 2011) was considered as the study period, while field work was done during July, Aug, and Sept 2011.