'CSR can help an institution develop a competitive advantage'

CSR has been on the public sector enterprise's agenda since the beginning. But the new Companies Act is bringing this activity from the backroom to the boardroom, making it a mandatory and accountable exercise. How has this changed the relationship between corporations and society?

There has always been a social contract between corporations and society, especially in India. With the CSR Act, two main changes have happened: one, a range of activities has been specified, and so the government has the ability to direct corporate action. Secondly, the requirement for mandatory disclosure of CSR initiatives and expenditure makes the firm accountable to society. All disclosure, financial or otherwise improves corporate behaviour.

What role do educational institutions play in this scenario?
Educational institutions are a vital cog in this process. They can train managers and sensitise corporations to the changing requirements. More importantly, they can help shape the focus and monitor the impact of such efforts. They can help in the formulation of CSR policies, prioritise the agenda and provide feedback to the corporate world.

Has there been any change in CSR programmes already being conducted by education institutions?
There are a couple of trends to note, both of which are important. Firstly, more schools are integrating CSR approaches into their regular programmes. For instance, lectures on CSR and sustainability are incorporated into the existing courses of many academic institutions. Secondly, there have been recent attempts by educational institutions, NGOs and industry associations to create and deliver exclusive programmes on CSR. At IIM Bangalore, we have organised several workshops and conferences on CSR as well as created a website to support the process. Recently, we also offered an executive education programme on how the corporate world can formulate and implement CSR strategies.

Do you think CSR can help an institution develop a competitive advantage?
Definitely. CSR helps an institution build a reputation in different ways; it helps attract socially conscious students and improves the acceptability of the school among the local communities. For smaller institutions that do not have the resources to compete with larger institutions, CSR can be a major differentiating point. A small institute that focuses on CSR and sustainability may be able to attract better faculty, students and recruiters. 

If yes, then how should universities be satisfying their diverse stakeholders? 
Universities need to accept that they cannot be islands of excellence or affluence in social contexts which may be steeped in poverty, inequality and unsustainable development. Ultimately our institutions reflect the environment they operate in, and therefore have an important responsibility to help guide the society on a sustainable trajectory. Several options are available to universities, including (1) directing research to the important problems of sustainability; (2) creating centres of incubation innovation that work on social issues; (3) moderating and facilitating debate on related topics; and so on.

Do you think the collaborations between government, educational institutions and corporate will accelerate educational reform? 
There is an urgent need for collaboration among key stakeholders, for the simple reason that a transformation of society needs not just financial and intellectual resources but also policy support.