Philip Kotler defines CSR as "a commitment to improve community well-being through discretionary business practices and contributions of corporate resources." In simpler terms, CSR refers to all activities undertaken by an organization to preserve and carry forward its economic, environmental, business, ethical, social, and legal responsibilities toward society. As per Carroll’s pyramid model, companies have some responsibilities as part of their CSR like –
• Philanthropic – The main aim of any organization when fulfilling its corporate social responsibility is to be a good citizen. One should practice philanthropy and charity.
• Ethical – CSR should be done ethically, considering all the moral obligations. CSR is an activity that should be balanced in its pursuit, keeping in mind the needs of all relevant stakeholders. For example, maximizing production by installing manufacturing units may support social obligations by providing employment opportunities. However, it may harm the environmental obligations of a company. Hence, companies often struggle to find the right balance.
• Legal - Any activity done must be within the rules of law.
• Economic – Any company cannot function solely on CSR without fulfilling its economic requirements. Hence, profitability is the bottom line for all organizations.
The Triple bottom line
The triple bottom line focuses on an essential aspect of CSR. It refers to the three Ps of an organization – People, Planet, and Profit. Companies must aim to cater to the people, i.e., society. They should do so, considering the environment, and seek to work sustainably. The companies should strive to become profitable and economically functional. This triple bottom line helps the companies understand and find the right balance.
Importance of Education
“Education is the key to unlocking the world. It is the passport to freedom” – Oprah Winfrey.
Education opens doors to opportunities, fosters critical thinking, and promotes understanding and tolerance among people. Consider this with the example of Komal. Komal is a young girl who belongs to a humble background in Delhi. She studies in a school nearby and aims to become a doctor. Her parents are educated individuals who believe in empowerment. Shilpi, the daughter of the house help at Komal’s home is her close friend. She is an extremely bright child who Komal secretly lends her books to study. However, Shilpi’s mother is against her education due to financial restraints. Years later, Shilpi, now a young woman, is working in a house like her mother. She was devoid from any opportunities because of financial restraints. Education can help millions of children like Shilpi. It helps break the cycle of poverty by equipping underprivileged children with the tools they need for a brighter future.
Barriers to education for Underprivileged children –
• Financial constraints
• Lack of access to quality schools
• Social discrimination
• Lack of awareness
CSR initiatives focused on education help bridge these gaps by providing these children with the opportunity to learn and thrive. Such initiatives can felicitate their growth and acceptance in the society as respectable people.
Impact of CSR on Education
• Improved Access to Education - CSR initiatives can fund the construction of schools, provision of scholarships, and distribution of educational materials, ensuring more children can attend school. Various revenue support, resource management, and access to better opportunities help children to become successful.
• Enhanced Quality of Education - Corporate support can lead to better-trained teachers, improved school infrastructure, and access to modern teaching tools. When advanced companies with all the technical support collaborate with different schools and NGOs, it helps produce better educational outcomes.
• Holistic Development - CSR programs can develop vocational skills in children. Different internship opportunities, seminars, and workshops can foster this development.
Why Companies Should Engage in CSR
As Mark Kramer and Michael Porter stated, "CSR can be much more than a cost, a constraint, or a charitable deed—it can be a source of opportunity, innovation, and competitive advantage." CSR is a two-way communication pathway. It is not something restricted to the benefit of the receiving party alone. Instead, it is equally beneficial for the companies as it can drive their loyal customer base, alleviate their social image, create a positive brand perspective, and increase sales. CSR is a legal mandate for some companies that pass the criteria mentioned in the Company’s Act, 2013.
Types of CSR and how Education can be driven through it – With NGOs like Pehchaan – The Street School
Pehchaan – The Street School is a 9-year-old organisation working towards education of underprivileged children. They have various centres in Delhi where they teach children from Delhi slums and equip them with academic, vocational and co-curricular training. The aim of this organisation is to break the cycle of poverty by bridging the gap between education and underprivileged children through meaningful collaborations and skill development.
• Philanthropy – Refers to cash donations and grants, in-kind donations, and charity. Companies can directly support an organization through such activities. They can donate money, and contribute resources like stationery, materials required for infrastructure development etcetera. Companies can contact Pehchaan – The Street School through their social media or website to understand how to donate.
• Cause Promotion – Corporations can also leverage their resources and audience base to spread awareness. They can divert their resources towards creating advertising campaigns or other social initiatives linked with Education for Underprivileged children. They can also ask people to donate to this cause. Companies can collaborate with Pehchaan – The Street School to create engaging campaigns and videos to promote this cause and drive donations and support for the NGO.
• Cause-Related Marketing – This kind of CSR refers to linking monetary benefits directly to the sales. Companies can funnel their donation drive programs in this way – The more consumers take action, as in, the more they buy the company’s products, a percentage of that sale would go to a donation to Pehchaan – The Street School and their initiative.
• Volunteering – Companies should conduct volunteering hours for their employees so that they can spend time with children. They can directly teach them, and help them learn vocational skills and other activities.
These are some ways an organisation can support NGOs like Pehchaan – The Street School and Education for Underprivileged children through their CSR efforts. By collaborating with Pehchaan, companies can fulfill their CSR mandates and make a tangible impact on the education of underprivileged children.
Conclusion
Corporate Social Responsibility is a powerful tool for driving social growth through education. Companies have the power to make a profound impact on the lives of underprivileged children by helping them realize and achieve their full potential. Imagine a world where every child gets access to education. Every child is equipped with the necessary skills to become a strong independent individual. Imagine the strength of such a nation and world. This world is what we should aim to build. Our actions should reflect responsibility and authenticity. They should mirror our goals.
Education fosters –
• Economic growth as it makes an individual self-sufficient and capable of earning.
• Social stability as it helps in maintaining a healthy gap between rich and poor fractions of the society.
• Health benefits as it helps in innovation and development of infrastructure and technology. It also creates enhanced awareness.
• Environmental sustainability as people become more susceptible to the harmful effects of their actions and shift to sustainable and eco-friendly alternatives.
• Gender equality as it shapes people who believe in transformation and eradicate social evils that hinder growth.
Organizations like Pehchaan – The Street School exemplify the transformative power of CSR in education. By fostering education, nurturing skill development, holistic growth, vocational training, health camps, and other necessary components, they are doing commendable work. Companies can partner with Pehchaan – The Street School in various ways. The interns at the NGO actively reach out to various organizations to seek support. Similarly, organizations also participate in different activities themselves. CSR initiatives can create a ripple effect in our society and impact the nation as a whole. Prioritizing education as a crucial leg of empowerment is essential as CSR initiatives towards it can build a more hospitable and prosperous future for all. Perhaps, kids like Shilpi can become global leaders in the organizations that once helped in their education.
In the words of Kofi Annan, "Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family." And CSR is like an umbrella. It has the power to protect those families, to liberate individuals from the discriminating shackles of society.