By Dr. Rana Singh and Rusen Kumar
The organizations are required to evolve the CSR Model in the exponentially dynamic corporate world to ensure maximum productivity by optimal utilization of resources.
The success of the organization in the times to come shall depend to a great extent on the dynamically evolving business model including the CSR model of the organization. The organizations across the world and India in particular shall reorient the strategic planning process so as to be able to incorporate the changes that are to be made as an outcome of the exponential rate of change in the various dimensions of the business, legal, regulatory and economic environment including CSR.
Evolving a CSR model is highly recommended for organizations having multi country operations as well as companies operating in a single country like India irrespective of the size or scale or domain area of the organization. Evolving a CSR model is normative and not prescriptive for the organizations.
We must understand the perspective with which we are discussing and recommending the organizations to evolve their CSR model. The focus of this article is to ignite the spirit of evolving, developing and restructuring the CSR model of the organization which can provide a catalytic boost to the organizational growth and development apart from facilitating the organization in gaining and sustaining global competitiveness.
The evolution of the CSR model should be a systematic process wherein the top management of the organization shall judiciously analyze the internal and external factors and variables apart from evaluating some of the business best practices in the area of CSR. The organizations may opt for one of the many routes in the process of development of their own CSR model.
The low risk approach may recommend the evaluation of some of the successful CSR models in India and abroad and pick and choose the model which may seem to be relatively better than others after conducting an unbiased multi-dimensional analysis. The alternative option would be to travel on unchartered paths and evolve some new and radically different CSR model to outperform all the existing CSR models.
The success of a CSR model depends on thorough analysis of factors, variables and dimensions in the internal environment and the external environment, focused and meticulous implementation of the model with the required check and balances in the form of control mechanism. The development of the CSR model requires adequate research on various factors and dimensions so as to reach a conclusive form. The empirical research of the various factors and dimensions would be highly recommended to understand the pros and cons of adopting a particular CSR model.
The conceptualization of a CSR model has to be done with utmost care and focus as the careful analysis of various factors and dimensions in the process of developing the CSR model goes a long way in defining the success of the CSR model as well as ensuring success and competitiveness of the organization. The success story of the organization becomes concomitant to the success of its CSR model. It has to be understood from a holistic perspective. The successful planning, implementation and control of the CSR model along with the business model has a profound bearing on the image of the organization among the masses.
The positive image in the minds of the people as an outcome of the successful CSR model leaves a strong impact of brand perception in the minds of the customers in the society. The enhanced brand image due to enhanced confidence of the customers of the society as an out come of planning, implementation and control of a successful CSR model goes a long way in enhancing the sales, market share and ultimately enhancing the productivity of the organization and competitiveness of the products and services of the organization apart from maximizing the ROI.
The process of evolving the CSR model should be more participatory in approach rather than making it a simple process either managed at the top or the middle level. The participative and evolutionary process of development of the CSR model has proved to be relatively more and more engaging, enriching and rewarding with the various internal and external stakeholders of the organization. The process of development of the CSR model must be akin to the development of vision, mission and objectives of the organization.
The organization may conduct series of workshops to evolve the CSR model for the organization which can contribute to the accomplishment of organizational vision, mission and objectives. The process of the development of the CSR model must be highly interactive and responsive to new thoughts, views and ideas from stakeholders, analytical in approach and research focused with a passion to evolve a dynamic CSR model which can optimally integrate the thoughts, views and ideas of the majority stakeholders so that the stakeholders feel proud of the contributions they would make in the process of implementation of the CSR model. The risk of the CSR model must be analyzed from various angles and perspectives.
The simplest approach would be to analyze the various possible scenarios in the process of implementation of the CSR model. The risk analysis of the CSR model gives us the required confidence in the process of evolution and development of the CSR model so as to make it revolutionary in approach. The risk analysis must be done continuously in the process of evolving the CSR model, implementing the CSR model as well as changing the CSR model.
The process of risk analysis must focus on considering the multi-dimensional impact of the various factors, dimensions, and variables involved and impacting the process of the evolution and development in CSR modelling. The senior CSR professionals must keep a keen eye on the overall risk dimensions of the CSR model and keep on analyzing the risk profile of the CSR model to track phenomenal changes which can adversely impact the overall envisioned success of the CSR model and its associated programmes and initiatives.
The risk modelling of the CSR model has to take into consideration the various possible changes in the external and internal environment of the organization. The risk analysis, risk modelling of the CSR model helps in envisioning the various possible outcomes and their likely impact on the various dimensions of the organization including CSR in various possible business scenarios. This will ensure that the organization has options and alternative courses of action in times of economic turbulence or downturn without adversely impacting the CSR initiatives as well as the overall functioning of the organization.
The organizations in the modern digital era must have technology enabled systems, process and procedures to analyzed the overall analysis of the productivity, efficiency and effectiveness of the CSR model and the allied initiatives. The technology enabled systems facilitate an ongoing and dynamic tracking of the planning, implementation and control mechanism of the CSR model so as to ensure that the required preventive and corrective mechanisms must be in place in case of any requirements in the lights of the ongoing changes in the external and internal environment.
The successful evolution of the CSR model has manifold advantages. It helps the organization in following the right path in the CSR domain area by optimally integrating its requirements and resources to accomplish the vision and mission of the CSR domain with an ultimate intent to accomplish the vision, mission and objectives of the organization.
The success of an organization is a function of successful evolution of a dynamic and innovative CSR model, a team of dynamic CSR professionals to execute the model and its planned initiatives, optimal allocation of financial resources, meticulous implementation of the innovative plans, and a robust control mechanism to ensure that the plans are accomplished meticulously with necessary checks and balances at various levels of the organizational hierarchy. The successful process of evolving and implementing the CSR model leads to enhanced brand image which optimally supplements and complements the overall brand communication strategies of the organization.
This leads to a highly enhanced brand image among the customers and all stakeholders thereby leading to a cascading impact on the overall sales of various products and services ultimately contributing to the overall competitiveness of the organization in the domestic economy as well as the global markets.
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Disclaimer: The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of India CSR.
(Article first published in CSR & COMPETITIVENESS, October 2013)