act: case study

Birla is Chairperson of The Aditya Birla Centre for Community Initiatives and Rural Development.

the spinning of the wheel

rajashree birla

SMART SUMMARY CSR is not a Western construct. It is not a textbook idea. In spite of this issue of The Smart Manager, it is not even a matter of intense, multi-party debate. When the dust settles, CSR is all about getting yourself-and your people-to act, and act purposively. A case study on what this three-letter gospel really means.

n the last two decades, India as a nation has been successful in p u l l i n g up a significant n u m b e r of people f r o m below the poverty line. Unfortunately, we still have quite a large n u m b e r of our people l i v i n g below the poverty linethat is less than U S $ 1 . 2 5 a day. T h i s is a p r o b l e m . T h e G o v e r n m e n t of India has an ambitious vision for inclusive growth. T h e r e is the o v e r w h e l m i n g challenge to improve the lives of the poor. H o w e v e r m u c h it hurts, we have to reckon w i t h the fact that we have the largest concentration of the poor in the w o r l d . Today more than ever it is necessary to look into societal

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Apart from charities, GD Birla set up schools and templeseducation is a great leveler, and temples a great unifier.

issues, and it behoves corporates to proactively partner w i t h the government to see that inclusive g r o w t h happens. At o u r G r o u p , caring for the underserved is a legacy and an u n w r i t t e n edict that has been f o l l o w e d by generation after generation.

reasoning was that education is a great leveler, and temples a great unifier.

the philosophy continues

My husband Adityaji fostered this philosophy, taking it a step further and m o v i n g his lens to include sustainable l i v e l i h o o d . My son K u m a r M a n g a l a m has a zealous, evangelical approach. He has made the p h i l o s o p h y of caring, giving, developing and e m p o w e r i n g underserved people as part of o u r G r o u p ' s D N A . He feels we have a tremendous responsibility to give back to society, and to make a difference. T h i s has raised the A d i t y a B i r l a name to a u n i q u e brand that is trusted, respected and admired by its m u l t i p l e stakeholders.

in the shadow of the Mahatma

O u r s is a 120 years-old organization, rooted in history. O u r roots go back to the early 1900s and the nation's struggle for freedom. It was d u r i n g this formative period i n history that the legendary M r G D B i r l a , my grandfather-in-law, w o r k e d shoulder to shoulder w i t h M a h a t m a G a n d h i . W h i l e M a h a t m a G a n d h i was passionately engaged in the political freedom of o u r nation, G D B i r l a w o r k e d w i t h equal obsession for the e c o n o m i c liberation of India. T h e y were thus two sides of the same c o i n . For more than 25 years, he supported Gandhiji's nationalism w i t h his financial strength. T h e r e developed a special b o n d between the t w o a b o n d that united t h e m in the pursuit of a c o m m o n cause, India's freedom. G a n d h i j i looked u p o n my grandfather-in-law as his mentor and confidant. He always used to come and stay at o u r house in N e w D e l h i . It was at the B i r l a H o u s e that on the 30th of January 1948, M a h a t m a G a n d h i was assassinated by N a t h u r a m Godse. E v e n though the v o i d left by G a n d h i j i c o u l d not be filled, the legacy of his trusteeship concept lived o n . T h i s meant that a part of y o u r profits should be ploughed back for the larger good of society. Apart f r o m charities such as g i v i n g Rs 70,000 for the A l i g a r h M u s l i m U n i v e r s i t y t o G a n d h i j i o r R s 200,000 for the Harijans, or Rs 26 lac to Sardar Patel to set up B i r l a V i s h w a k a r m a Mahavidyalaya ( B V M , Baroda), in 1946, GD B i r l a set up schools and temples. H i s

institutionalizing the process: our structure

O v e r 14 years ago, we institutionalized the process of C S R , envisioned the road ahead and the way we wanted to string o u r activities cohesively as a group. A n d so spawned T h e A d i t y a B i r l a C e n t r e for C o m m u n i t y Initiatives and R u r a l D e v e l o p m e n t , w h i c h I am privileged t o lead. M r Askaran Agarwala, D r Pragnya R a m and I f o r m the apex team. T h e C e n t r e is anchored b y D r Pragnya R a m , w h o i s the G r o u p Executive President, Corporate C o m m u n i c a t i o n s & C S R . T h e C S R Heads of our major companies report to her. B e l o w t h e m is a team of 250 professionals spanning all o u r G r o u p companies. T h e y are further supported by a 2,500-strong field force operating at the village level. L i k e our businesses, the concept of performance management is ingrained in o u r C S R projects and measurement metrics w o v e n in the goals of all the C S R heads, alongside the auditing of o u r w o r k . We have a clearly defined C S R policy. O u r Board of Directors, o u r management, and all of our employees

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subscribe to the philosophy of compassionate care and to the upliftment of o u r rural societies. We believe that a structured approach w i t h w e l l - d e f i n e d objectives, timelines, milestones and assessment is fundamental, given that it contributes to a razor-sharp focus and gauging the distance traversed.

Technology Parks; agriculture development and better farmer focus; watershed development; partnership w i t h Industrial Training Institutes. In infrastructure development, we endeavor to set up essential services that f o r m the foundation of sustainable development through basic infrastructure facilities; h o u s i n g facilities; safe d r i n k i n g water; sanitation and hygiene; and renewable sources of energy. To b r i n g about social change, we advocate and support d o w r y less marriage; w i d o w remarriage; awareness programs on anti-social issues; de-addiction campaigns and programs; and espousing basic m o r a l values.

our CSR vision

O u r articulated v i s i o n is: "To actively contribute to the social and economic development of the c o m m u n i t i e s in w h i c h we operate. In so d o i n g b u i l d a better, sustainable way of life for the weaker sections of society and raise the h u m a n development index of o u r country." O u r focus areas in the 3,000 villages that we are engaged in are education; healthcare and family welfare; sustainable l i v e l i h o o d encompassing agricultural and watershed development and w o m e n e m p o w e r m e n t processes; infrastructure support and espousing social causes. O u r social v i s i o n is integrated into o u r business v i s i o n . W h i l e we do not turn business into a cause, we do 'social cause marketing'. We t u r n it into a lever, where the R o l or return on investment lies in the transformation of a people's lives as they are no longer m i r e d in poverty. In education, o u r endeavor is to spark the desire for learning and knowledge at every stage t h r o u g h formal schools, balwadis (nurseries) for elementary education, quality primary education, A d i t y a Bal V i d y a M a n d i r s , girl c h i l d education and adult education programs. In healthcare, o u r goal is to render quality healthcare facilities to people l i v i n g in the villages and elsewhere through o u r hospitals; primary health care centers; mother and c h i l d care projects; i m m u n i z a t i o n programs w i t h a thrust on polio eradication; healthcare for the visually impaired and physically challenged; preventive health through awareness programs. U n d e r sustainable l i v e l i h o o d , o u r programs a i m at p r o v i d i n g livelihood in a locally appropriate and environmentally sustainable manner through formation of self-help groups for w o m e n empowerment; vocational training through A d i t y a B i r l a R u r a l

setting measurable targets with timeframes and performance management

P r i o r to the c o m m e n c e m e n t of projects, we carry out a baseline study of the villages. T h e study encompasses various parameters such as health indicators; literacy levels; sustainable l i v e l i h o o d processes; population databoth b e l o w and above the poverty line; the state of infrastructure, a m o n g others. F r o m the data generated, a 1-year plan and a 5-year r o l l i n g plan are developed for the holistic and integrated development of the marginalized. These plans are presented at the annual p l a n n i n g and budgeting meet. A l l projects are assessed under the agreed strategy and are m o n i t o r e d every quarter, measured against targets and budgets. Wherever necessary, midcourse corrections are affected. Let me give y o u a sense of o u r w o r k . Let me first focus on education. We r u n 42 Schools, where 45,000 children are provided quality education. Of these, 18,000 children receive free education. We have enrolled 20,000 c h i l d r e n at o u r balwadis. We reach out to m o r e than 29,000 people through our adult literacy and bridge education programs. O v e r 8,000 students in the villages are awarded merit scholarships. N e a r l y 20,000 students are enrolled at o u r vocational training centers. O u r Centres o f Technology Excellence include B i r l a Institute of Technology and Science ( B I T S ) , P i l a n i ;

We believe that a structured approach with well-defined objectives, timelines, milestones and assessment is fundamental.

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Water has been a perennial problem in India's villages, which are often plagued by droughts.

B I T S , D u b a i ; B I T S , G o a ; and B I T S , H y d e r a b a d . F r o m B I T S , w h i c h is a premier, globally recognized institute, we get some of the best recruits for o u r companies. O v e r 10 years ago, to put Indian business success stories as case studies for global leaders in the m a k i n g , we set up the A d i t y a B i r l a India C e n t r e at L o n d o n Business S c h o o l . It is c o n t r i b u t i n g not o n l y to India's image but ours as w e l l . To provide healthcare to the people, every year we conduct more than 3,500 medical camps, treating over 5 m i l l i o n patients for various ailments, such as A I D S , T B , cancer diagnosis, cataract and cleft-lips, a m o n g others. We have helped i m m u n i z e 6 m i l l i o n c h i l d r e n against polio in the last one year, sponsoring and managing 23,000 booths. We have also organized polio corrective surgery.

In Vishnu's case, fortunately, we were able to turn the clock back as we saw a lot of hope w h e n the surgeons reviewed her case. Reconstructive surgery in acute cases is not even attempted. T h e n we try to rehabilitate polio victims w i t h the Jaipur foot (artificial limb) w h i c h accords them mobility to a large extent and reduces their dependence on the family. In a way, it restores their dignity and sense of self-esteem. For almost a decade, polio eradication has been, and continues to be, a priority. For the year 2010, we helped administer 6 m i l l i o n polio drops, w o r k i n g closely w i t h the government. Besides this, we have m o t h e r - a n d - c h i l d care projects reaching out to w o m e n and c h i l d r e n . O u r 18 hospitals all over the country cater to more than 5,00,000 poor people almost free of cost. At the world-class A d i t y a B i r l a M e m o r i a l H o s p i t a l in P u n e , 15% of the beds are earmarked for the poor. T h r o u g h telemedicine facilities, we connect the rural poor to o u r hospitals as w e l l .

vishnu's story
Let me tell y o u the story of V i s h n u w h o lives in N a g d a in M a d h y a Pradesh. V i s h n u , n o w a lanky, 22-year-old g i r l , is a great farmhand. F r o m sunrise to near sunset, like a lark she sings in the field w h i l e h e l p i n g her parents on their two-acre farm. Y o u can see shoots of wheat, almost golden in color, swaying in the w i n d . V i s h n u appears to be enjoying herself She says, " O n c e u p o n a time, I was o n l y three feet tall because I had to bend over and grip my legs w h i l e dragging my feet w h i c h were crippled. My parents were always praying that I should w a l k again. A n d then a miracle happened as I underwent polio-corrective surgery, persuaded by y o u r teams. After months of physiotherapy, m u c h anguish and physical pain, n o w I can almost walk straight again." Sure she does w a l k w e l l . T h e little l i m p that she has is barely visible. We should not let any c h i l d get to this stage in the first place.

water - the life force

Water, w h i c h is the life force of people regardless of geography, has been a perennial p r o b l e m in India's villages, w h i c h are often plagued by droughts. We have been p r o v i d i n g water on a continual basis to the villagers that are in p r o x i m i t y to our plants. B u t this is for their basic needs. N o w we have evolved a m u l t i - p r o n g e d strategy based on an integrated development plan. Engaging the influential people in the c o m m u n i t y at every stage, we w o r k e d w i t h water as the pivotal factor: replacing traditional wells w i t h bore wells d u g 400 feet d o w n the belly of the earth to tap the natural u n d e r g r o u n d water aquifers. We have recharged u n d e r g r o u n d water sources, such as tube wells and open wells, through rainwater

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harvesting. We have helped construct check dams in as many villages as possible: at G i n d w a n i a in N a g d a ( M P ) , rainwater collected f r o m the r o o f of the village school is diverted to a water pipe. We have also installed handpumps at intervals of 10-15 houses and provided training for their maintenance and repair. For water conservation at the c o m m u n i t y level, we have helped harvest the excess r u n o f f for catering to m i c r o needs, for instance kitchen gardens and soak-pits.

they believe that they are n o w in charge of their o w n destiny.

sustainable livelihood
To address the issue of poverty alleviation effectively, we have evolved a m u l t i p r o n g e d strategy. Its planks are education and vocational training for self-help groups a m o n g rural w o m e n . A t o u r vocational training institutes all over, we conduct certified, skill-oriented programs for both the rural and the urban y o u t h . A l l of o u r projects are carried out in partnership w i t h the G o v e r n m e n t , and wherever necessary, w i t h reputed N G O s . Just to give y o u t w o examples, at UltraTech's V i k r a m C e m e n t , we are w o r k i n g in the public private partnership ( P P P ) Watershed Project w h i c h w i l l go on stream i n the N e e m u c h District o f M a d h y a Pradesh. O u r collaborators are the Rajiv G a n d h i Watershed M i s s i o n and the Water and Irrigation Department of the G o v e r n m e n t of M a d h y a Pradesh. In a phase-wise implementation, o u r collective efforts w i l l b r i n g 5,000 hectares of land under irrigation, directly benefiting 20,000 farmers and their families. Likewise, we are w o r k i n g in partnership w i t h the CII/The E u r o p e a n U n i o n / B r i t i s h C o u n c i l / C i t y and G u i d e s ( U K ) , the technical support partner, in a project on vocational training for vulnerable and marginalized groups in Sirsa (Haryana) and Sitapur ( U P ) ; in several projects w i t h N A B A R D for the rural populace; w i t h Habitat for H u m a n i t y , for homes for the homeless; and w i t h C A R E India, for maternal and n e w b o r n healthcare, a t Jagdishpur i n L u c k n o w . T h e P P P m o d e l , w h e r e i n the government bodies play a vital role along w i t h other key associates, is arguably the best m o d e l , since p o o l i n g of o u r collective resources lends enormous depth and breadth to projects.

shakuntala's story
Let me share w i t h y o u another t o u c h i n g and inspirational story, the story of Shakuntala. Shakuntala lives i n the D u d h i B l o c k o f R e n u k o o t i n U t t a r Pradesh. A mother of five c h i l d r e n , she along w i t h other village w o m e n w o u l d trudge 5 k m to fetch four pots of water for the family, and even that w o u l d barely suffice. V o i c i n g her o p i n i o n in t i m i d tones, she w o u l d say that w o m e n in the villages are c h i l d r e n of a lesser god, given the hardships faced by t h e m . O u r team took this up as a challenge. Backed by o u r G r o u p ' s resources and U N I C E F , they installed hand p u m p s at an interval of every 10 houses in 110 villages, g i v i n g water to over a 100,000 people. No longer d i d w o m e n have to spend hours on end collecting water. T h e U N I C E F collaboration entailed that the handpumps be maintained by w o m e n . Shakuntala was the first w o m a n volunteer. Today, she is a qualified h a n d p u m p mechanic earning U S $ 6 5 0 , in the s u m m e r months, w h e n the pumps need to be repaired. Shakuntala has, in t u r n , trained another 80 w o m e n as h a n d p u m p mechanics. These w o m e n , w h o cannot read or write, earn a good deal of m o n e y by rural standards. Today, Shakuntala very p r o u d l y says that f r o m being a seeker of charity, she is n o w a teacher. She says that the G r o u p has been a life changer not o n l y for her but for all the 110 villages w h o n o w have easy access to w a t e r their life force. A n o t h e r 45,000 w o m e n across India feel empowered, w o r k i n g in 4,500 self-help groups set up by o u r teams. T h e y are m a k i n g a l i v i n g . L i k e Shakuntala,

broadening the base

In a far w i d e r move in India, we have aligned w i t h F I C C I (Federation o f Indian C h a m b e r s o f C o m m e r c e & Industry) and set up the F I C C I - A d i t y a Birla C S R Centre for Excellence. T h e v i s i o n of o u r Centre, the

The PPP model, wherein the government bodies play a vital role along with other key associates, is arguably the best model.

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Today's youth want to ensure that the benefits of capitalism percolate down. Like us, our talent believes that wealth creation is a noble pursuit.

first of its k i n d in the w o r l d , is "To incubate, nurture and accelerate a paradigm of sustainable and inclusive C S R i n India, thereby raising the H u m a n D e v e l o p m e n t Index t h r o u g h poverty alleviation." We have sponsored C o l u m b i a G l o b a l Centre's Earth Institute in M u m b a i , India. We believe that the Earth Institute w i l l go a l o n g way in m a k i n g sustainable development in India a g r o u n d reality and help us in poverty alleviation. W i t h a v i e w to creating both employability and entrepreneurship, we are w o r k i n g on a major project named N a t i o n B u i l d i n g i n South India. T h e project encompasses a diverse range of disciplines that w i l l foster inclusive, sustainable growth, and create employability for the nation's y o u t h . At the heart of all these interventions, o u r p r i m a r y goal is poverty alleviation and long-term sustainability.

A t o u r Canadian C o m p a n y N o v e l i s , headquartered in Atlanta, we have m o u n t e d a massive recycling education program i n v o l v i n g o u r people and the local c o m m u n i t i e s . N o v e l i s is the w o r l d ' s largest recycler of used beverage cans, to the tune of 35 m i l l i o n cans in a year.

the Rol
Let m e n o w move o n t o h o w o u r engagement w i t h underserved c o m m u n i t i e s has profited us. Profit not in the n o r m a l sense of the term quantified monetarily, but going far beyond the bottom-line mentality. We k n o w what we are d o i n g is benefiting society. So o u r motivation is very different. O u r C S R deployment has translated into four distinct advantages. Firstly, o u r activities provide us w i t h a great reputational lever that translates into a distinct valuesled-company image. T h i s enables us to attract, retain and energize talent. Professionals feel a sense of comfort w h e n they see h o w o u r G r o u p transcends business and is genuinely c o m m i t t e d to social upliftment. Today's y o u t h want to ensure that the benefits of capitalism percolate d o w n . L i k e us, o u r talent believes that wealth creation is a noble pursuit. T h e y feel that wealth can be best enhanced by distributing it. A n e w ethos of generosity is surfacing. T h i s is clearly seen in the willingness to b u i l d a society that works for everyone. T h e y prefer to w o r k for companies w h o are strong in C S R . O u r employees and potential employees t h i n k of us as a G r o u p that is cast in that m o l d , a G r o u p that mirrors their personal values. O u r reward lies in the fact that we have been named ' T h e Best E m p l o y e r in India and a m o n g the top 20 in A s i a ' , by the H e w i t t - E c o n o m i c T i m e s and W a l l Street J o u r n a l Study in 2007. In 2009,

the global focus

Besides India, we w o r k in many other countries. In Egypt, we have adopted 2 schools. T h e El K h a l i d i n School w h i c h is close to our plant, and the Kafr El Sheikh School for vocational training, where university the students are taught by university professors. We have set up a tailoring center for w o m e n , largely divorcees and w i d o w s . We are reaching out to children in two orphanages. We have also set up the intensive care u n i t at a cancer hospital for c h i l d r e n in collaboration w i t h the G o v e r n m e n t . In T h a i l a n d , we have established the A d i t y a B i r l a K n o w l e d g e Centre, a vocational training center for the weaker sections of society. In P h i l i p p i n e s , we have helped hundreds of physically challenged people w h o were crippled to get back on their feet t h r o u g h the Jaipur foot.

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we were ranked 6th across the A s i a Pacific R e g i o n in the 'Great Place for Leaders to W o r k ' study by H e w i t t and Fortune. Secondly, o u r w o r k has created, and continues to create tremendous g o o d w i l l a m o n g consumers, far in excess of the price tag. C o n s u m e r s l o o k u p o n o u r G r o u p and its companies as having a social conscience, so there is a marked preference for o u r products and services. In all the sectors that we operate i n c e m e n t , a l u m i n u m , copper, viscose staple fibre, carbon b l a c k we are a m o n g the topmost in industry. A n d these u n d o u b t e d l y are profitable businesses. T h i r d l y , m i l l i o n s of o u r shareholders and investors are p r o u d of o u r G r o u p . T h e y feel that this is a G r o u p that they w o u l d definitely like to support. In all o u r G r o u p companies' annual reports, we provide quantified evidence of o u r social and environment performance. I have seen at the annual general meetings, the special pride that shareholders take in their involvement w i t h o u r companies on this score. Investors also flock to our G r o u p .

Fourthly, social projects are also a means of sharing w i t h the c o m m u n i t y the values that we as an organization stand for. It is a way of telling them that we care about y o u , that y o u r concerns are ours as w e l l , and that we are a p r i n c i p l e d people led by a moral compass. M a i n s t r e a m i n g C S R into o u r businesses and delivering societal value has given us tremendous profits, albeit of a different k i n d t h e t u r n a r o u n d of h u m a n lives, l i f t i n g tens of thousands of people out of stark poverty. T h e r e is a n e w f o u n d dignity a m o n g t h e m . W h a t m o r e can one ask for?

Mainstreaming C R into our businesses and delivering societal value has S given us tremendous profits, albeit of a different kind.

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