CSR reforms as a nursery for empathetic learning and innovations

CSR reforms for augmenting inclusive innovation movement are overdue. So far, a very few corporations (foundations apart) have really devoted their Corporate social responsibility (CSR) investment strategy towards augmenting innovations. If we exclude, the contributions of public sector corporations towards CSR, the total contribution for CSR is very low by the rest of the thousands of the corporations.

Why should companies pay attention to CSR not as a social obligation imposed by the government but for more important strategic reason. One of the important reasons is that by engaging with socially disadvantaged regions, the corporations can learn to be empathetic. Without empathy, no good corporation can ever become great.

What are the ways in which the journey from good to greatness can be mediated by CSR? One way is to learn the systematic way in which certain social needs remain unmet for a very long time. Second is the inspirational value. One has to recognize that there are always a few people at grassroots level who do not adjust and adapt with the problems or challenges. They try to find solutions, these odd balls can be a great source of inspiration. The third reason is to learn the heuristics or metaphors or gestalt of frugality from these grassroots innovators. Which corporation doesn't want to learn the art of frugality. It is not just low cost, that is important part of the frugal innovations but also circular economic dimensions which make many of these more sustainable than the rest. Fourth reason is to realize the value of forging connections between communities and corporation may be guided by not just utilitarian business interest but also for a larger value laden purpose.

More and more companies are realising is that purpose and not just profit drives the great corporations. Fifth treason is that social connect augments social capital of the corporations which many young customers put a lot of weight on.

Sixth reason is very practical. By engaging with furgal innovators and many entrepreneurs, start-ups, a culture of intra-preneurship may emerge in the companies. This will be most strategic gain for a corporations which most corporations have not yet realized. There are many other reasons which may guide the CSR strategies of the corporation to be a better corporate citizen of the society. It is hoped that a new empathetic logic will evolve which will shape the new social contract of the business entities.

After all, the are so many common and public goods which need to be sustained and rejuvenated for larger viability of the entire socio-ecological fabric of our society.

The author is founder of Honey Bee Network & visiting faculty at IIM-A