Can We Do Better than CSR?

Can We Do Better than CSR?

In India, Section 135 and Schedule VII of the Companies Act (2013) relate to corporate social responsibility (CSR). For a few years now, it requires companies clocking over a certain turnover or profit, to spend 2% of (their three-year annual) net profit on CSR activities each financial year.

Allotting profits to CSR in general, and to the environment in particular however, seems more a post-mortem thing to do. Especially now that we humans have brought the world to the brink, with regard to the climate, animal and plant life.

Because that is how CSR seems to be designed. Conduct business in any manner you please. And at the end of the year, give 2% towards corporate social responsibility initiatives. And you are absolved of ecological sins committed inadvertently or otherwise, in the course of business. The 2% seems like a ‘no-questions asked’ opportunity for redemption, irrespective of the damage done.

What if, instead, companies could be made to be responsible from the time they start business? If every action, employee, step and process for an existing business was also committed to align with environmental needs?Not in a punitive way. But maybe a set of guidelines that businesses could introduce towards becoming more holistically responsible from the starting line. Perhaps the corporate ministry could help.

What if companies could be made to be responsible for every action, employee, step and process?

Patagonia, the American outdoor clothing company. Founded in 1973, it has been striving to align increasingly with environmental needs. It commits 1% of total sales to environmental groups, and a few years ago, donated 100% of its Black Friday sales to environmental organizations. This company should provide for some inspiration. A close friend recently shared this interesting article about its founder, Yvon Chouinard, and his views on sustainability, and why it’s not too late to save the planet. Interesting read.

Build responsibility into the corporate or startup value system and into everyday actions of all employees of the company. That’s the only way we can collectively grow without triggering global catastrophes each year.