I happened to attend ASSOCHAM organized 3rd CSR Summit .At the event, the Chief Guest Mr Veerappa Moily, Minister for Corporate Affairs reiterated that the Government was not in favor of imposing its views on the corporate sector. He said “We will encourage a voluntary approach on CSR initiatives of private sector. We will act as facilitators for companies to adopt social, environmental and economic responsibilities,”
Mr Arun Maira, Member, Planning Commission said in India in his note exhorted people at large saying “It is time we write off companies that do a lot on CSR, but have a business model that is harmful for the society at large.”
Mr Satvik Varma Founder Independent Law Chambers quoted from A C Nielsen study which says that that people tend to buy more from socially responsible corporate and what’s more interesting is that they are even willing to pay little more for the products and services of CSR responsible organizations.
Hearing all this, I wondered if all this talk of CSR only for established corporate sector. I came back to home and searched more on the much spoken guidelines for CSR and realized that it makes sense even for a MSME to follow the same and reap benefits for self and the society in longer terms.
Young Entrepreneurs are therefore encouraged to ensure that not only do they follow the Guidelines for areas directly within their immediate control or within their sphere of influence, but encourage and support their vendors, distributors, partners and other collaborators across their value chains to follow the Guidelines as well.
A summary of the 9 basic principles is provided below for your perusal.
1. Ethics, Transparency and Accountability: Ethical conduct in all its functions and processes is the cornerstone of responsible business.
2. Goods and services that are safe and contribute to sustainability: All stages of the product life cycle, right from design to final disposal of the goods and services after use, have an impact on society and the environment.
3. Well being of employees: Well being of all categories of employees engaged in activities contributing to businesses, within or outside of its boundaries and covers work performed by individuals, including sub-contracted and home based work.
4. Responsive towards stakeholders: While appreciating that all stakeholders are not equally influential or aware, the principle encourages businesses to proactively engage with and respond to those that are disadvantaged, vulnerable and marginalized.
5. Respect and promote human rights: The principle recognizes that human rights are the codification and agreement of what it means to treat others with dignity and respect. This holistic and widely agreed nature of human rights offers a practical and legitimate framework for business leaders seeking to manage risks, seize business opportunities and compete in a responsible fashion.
6. Environment: The principle encourages businesses to understand and be accountable for direct and indirect environmental impacts of their operations, products and services and strive to make them more beneficial.
7. Influence public and regulatory policy in a responsible manner: Businesses operate within the specified legislative and policy frameworks prescribed by the Government, which guide their growth and also provide for certain desirable restrictions and boundaries. The principle emphasizes that policy advocacy must expand public good rather than diminish it or make it available to a select few.
8. Inclusive growth and equitable development: Reiterates that business prosperity and inclusive growth and equitable development are interdependent.
9. Provide value to customers and consumers: Recognizes that customers have the freedom of choice in the selection and use of goods and services, and enterprises would strive to make available goods that are safe, competitively priced, easy to use and safe to dispose of, for the benefit of customers.
Responsible entrepreneurship can also contribute to creating a more positive image of entrepreneurs in society and encourage more young people to choose self-employment as an attractive career option.
Hope budding entrepreneurs include “Be a responsible entrepreneur” motto in their business strategy.
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