act: case study · assessed under the agreed strategy and are monitored every quarter, measured...

act: case study

Birla is Chairperson of The

Aditya Birla Centre for

Community Initiatives and

Rural Development. the spinning of the wheel

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 number of people f rom below

the poverty line. Unfortunately, we still

have quite a large number of our people l iv ing below

the poverty l ine—that is less than US$1.25 a day. T h i s is

a problem. T h e Government of India has an ambitious

vision for inclusive growth. There is the overwhelming

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

92 www.thesmartmanager.com The Smart Manager

rajashree birla

May-Jun 2011

the spinning of the wheel

Apart from charities, GD Birla set up schools and temples—education 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

growth happens.

At our G r o u p , caring for the underserved is a legacy

and an unwrit ten edict that has been fol lowed by

generation after generation.

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 Bir la ,

my grandfather-in-law, worked shoulder to shoulder

w i t h Mahatma G a n d h i . W h i l e Mahatma G a n d h i was

passionately engaged in the political freedom of our

nation, GD Bir la worked w i t h equal obsession for the

economic liberation of India. T h e y were thus two sides

of the same coin. For more than 25 years, he supported

Gandhi j i 's nationalism w i t h his financial strength.

There developed a special bond between the two—a

bond that united them in the pursuit of a c o m m o n

cause, India's freedom. Gandhi j i looked upon my

grandfather-in-law as his mentor and confidant. He

always used to come and stay at our house in N e w

D e l h i . It was at the Bir la H o u s e that on the 30th of

January 1948, Mahatma G a n d h i was assassinated

by N a t h u r a m Godse. Even though the v o i d left by

Gandhi j i could not be f i l led, the legacy of his trusteeship

concept lived on . T h i s meant that a part of your profits

should be ploughed back for the larger good of society.

Apart f r o m charities such as giving Rs 70,000 for the

Al igarh M u s l i m Univers i ty to Gandhi j i or Rs 200,000

for the Harijans, or Rs 26 lac to Sardar Patel to set up

Bir la Vishwakarma Mahavidyalaya ( B V M , Baroda),

in 1946, GD Bir la set up schools and temples. H i s

The Smart Manager

reasoning was that education is a great leveler, and

temples a great unifier.

the philosophy continues My husband Adityaj i fostered this philosophy, taking i t

a step further and m o v i n g his lens to include sustainable

l ivel ihood. My son Kumar Mangalam has a zealous,

evangelical approach. He has made the philosophy of

caring, giving, developing and empowering underserved

people as part of our Group '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 Adi tya B i r la name

to a unique brand that is trusted, respected and admired

by its mult iple stakeholders.

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 our activities cohesively as a group. A n d so

spawned T h e Aditya Bir la Centre for C o m m u n i t y

Initiatives and Rura l Development , w h i c h I am

privileged to lead. Mr Askaran Agarwala, Dr Pragnya

R a m and I f o r m the apex team. T h e Centre is anchored

by Dr Pragnya R a m , w h o is 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 them is a team of 250 professionals spanning

all our 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 ike our businesses, the concept of performance

management is ingrained in our 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 our work .

We have a clearly defined C S R policy. O u r Board of

Directors, our management, and all of our employees

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by birla

May-Jun 2011


subscribe to the philosophy of compassionate care and

to the upliftment of our rural societies. We believe that

a structured approach w i t h wel l -def ined objectives,

timelines, milestones and assessment is fundamental,

given that it contributes to a razor-sharp focus and

gauging the distance traversed.

our CSR vision O u r articulated vis ion is: "To actively contribute to the

social and economic development of the communit ies

in w h i c h we operate. In so do ing bui ld a better,

sustainable way of life for the weaker sections of society

and raise the human development index of our country."

O u r focus areas in the 3,000 villages that we are

engaged in are education; healthcare and family welfare;

sustainable l ivel ihood encompassing agricultural and

watershed development and w o m e n empowerment

processes; infrastructure support and espousing social

causes. O u r social vis ion is integrated into our business

vis ion. W h i l e we do not turn business into a cause,

we do 'social cause marketing' . We turn 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

mired in poverty.

In education, our endeavor is to spark the desire for

learning and knowledge at every stage through formal

schools, balwadis (nurseries) for elementary education,

quality primary education, Aditya Bal V i d y a Mandirs ,

girl ch i ld education and adult education programs.

In healthcare, our goal is to render quality

healthcare facilities to people l iv ing in the villages and

elsewhere through our hospitals; primary health care

centers; mother and chi ld 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 ivel ihood, our programs aim

at providing l ivel ihood in a locally appropriate and

environmentally sustainable manner through formation

of self-help groups for w o m e n empowerment;

vocational training through Aditya Bir la Rural

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;

housing facilities; safe d r i n k i n g water; sanitation and

hygiene; and renewable sources of energy.

To br ing about social change, we advocate and

support dowry less marriage; w i d o w remarriage;

awareness programs on anti-social issues; de-addiction

campaigns and programs; and espousing basic

moral values.

setting measurable targets with timeframes and performance management Prior to the commencement 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 ivel ihood processes; population

data—both below and above the poverty l ine; the

state of infrastructure, among others. F r o m the data

generated, a 1-year plan and a 5-year ro l l ing plan are

developed for the holistic and integrated development

of the marginalized. These plans are presented at the

annual planning and budgeting meet. A l l projects are

assessed under the agreed strategy and are monitored

every quarter, measured against targets and budgets.

Wherever necessary, midcourse corrections

are affected.

Let me give y o u a sense of our work . Let me first

focus on education. We run 42 Schools, where 45,000

chi ldren are provided quality education. Of these,

18,000 chi ldren receive free education. We have enrolled

20,000 chi ldren at our balwadis. We reach out to more

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. Near ly 20,000

students are enrolled at our vocational training centers.

O u r Centres of Technology Excellence include Bir la

Institute of Technology and Science (BITS) , P i lani ;

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


by birla

May-Jun 2011


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 , Hyderabad. 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 our companies.

O v e r 10 years ago, to put Indian business success stories

as case studies for global leaders in the making, we set

up the Adi tya Bir la India Centre at L o n d o n Business

School . It is contributing not only 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, among

others. We have helped i m m u n i z e 6 m i l l i o n chi ldren

against polio in the last one year, sponsoring and

managing 23,000 booths. We have also organized polio

corrective surgery.

vishnu's story Let me tell y o u the story of V i s h n u w h o lives in Nagda

in M a d h y a Pradesh. V i s h n u , n o w a lanky, 22-year-old

gir l , is a great farmhand. F r o m sunrise to near sunset,

like a lark she sings in the field whi le helping 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 upon

a time, I was only three feet tall because I had to bend

over and grip my legs whi le dragging my feet w h i c h

were crippled. My parents were always praying that I

should walk again. A n d then a miracle happened as I

underwent polio-corrective surgery, persuaded by your

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 walk w e l l . T h e little l imp that she has is

barely visible. We should not let any chi ld get to this

stage in the first place.

The Smart Manager

In Vishnu's case, fortunately, we were able to turn

the clock back as we saw a lot of hope when 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 l imb) w h i c h

accords them mobil i ty 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 wi th the government.

Besides this, we have mother-and-chi ld care projects

reaching out to w o m e n and chi ldren. 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 Adi tya

Bir la M e m o r i a l Hospital in Pune, 15% of the beds are

earmarked for the poor. T h r o u g h telemedicine facilities,

we connect the rural poor to our hospitals as w e l l .

water - the life force Water, w h i c h is the life force of people regardless of

geography, has been a perennial problem in India's

villages, w h i c h are often plagued by droughts. We have

been providing water on a continual basis to the villagers

that are in proximity to our plants. But this is for their

basic needs.

N o w we have evolved a mult i -pronged 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 worked w i t h water as the pivotal factor: replacing

traditional wells w i t h bore wells dug 400 feet d o w n the

belly of the earth to tap the natural underground

water aquifers.

We have recharged underground water sources,

such as tube wells and open wells, through rainwater


by birla

May-Jun 2011


harvesting. We have helped construct check dams in

as many villages as possible: at G i n d w a n i a in Nagda

( M P ) , rainwater collected f rom the roof 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 runof f for catering to micro needs, for

instance kitchen gardens and soak-pits.

shakuntala's story Let me share w i t h y o u another touching and

inspirational story, the story of Shakuntala. Shakuntala

lives in the D u d h i B lock of Renukoot in Uttar Pradesh.

A mother of five chi ldren, 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.

Voic ing her opin ion in t i m i d tones, she w o u l d say

that w o m e n in the villages are chi ldren of a lesser

god, given the hardships faced by them. O u r team

took this up as a challenge. Backed by our Group 's

resources and U N I C E F , they installed hand pumps at

an interval of every 10 houses in 110 villages, giving

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 handpump mechanic

earning US$650 , in the summer months, w he n the

pumps need to be repaired.

Shakuntala has, in turn, trained another 80 w o m e n

as handpump mechanics. These w o m e n , w h o cannot

read or write, earn a good deal of money by

rural standards.

Today, Shakuntala very proudly says that f rom 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 only 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. Another 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

our teams. T h e y are making a l iv ing. L ike Shakuntala,

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 mult ipronged strategy. Its planks

are education and vocational training for self-help

groups among rural w o m e n . At our vocational training

institutes all over, we conduct certified, skil l -oriented

programs for both the rural and the urban youth.

A l l of our projects are carried out in partnership w i t h

the Government , and wherever necessary, w i t h reputed

N G O s . Just to give y o u two examples, at UltraTech's

V i k r a m Cement , we are w o r k i n g in the public private

partnership (PPP) Watershed Project w h i c h w i l l go on

stream in the N e e m u c h District of 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 Government of M a d h y a Pradesh. In a phase-wise

implementation, our collective efforts w i l l br ing 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 European Union/Br i t i sh Counc i l/Ci ty and

Guides ( 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 Humani ty , for homes for the homeless; and

w i t h C A R E India, for maternal and newborn healthcare,

a t Jagdishpur in Lucknow. T h e P P P model , where in

the government bodies play a vital role along w i t h other

key associates, is arguably the best model , since pool ing

of our collective resources lends enormous depth and

breadth to projects.

broadening the base In a far wider move in India, we have aligned w i t h

F I C C I (Federation o f Indian Chambers o f C o m m e r c e

& Industry) and set up the F I C C I - Aditya Bir la C S R

Centre for Excellence. T h e vis ion of our Centre, the

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


by birla

May-Jun 2011


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 in India, thereby raising the H u m a n Development

Index through poverty alleviation."

We have sponsored C o l u m b i a Globa 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 long way in making sustainable

development in India a ground reality and help us in

poverty alleviation.

W i t h a v iew to creating both employabil i ty 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 in 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 youth.

At the heart of all these interventions, our primary

goal is poverty alleviation and long-term sustainability.

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 widows . We are reaching out to

chi ldren in two orphanages. We have also set up the

intensive care unit at a cancer hospital for chi ldren in

collaboration w i t h the Government .

In Thai land, we have established the Aditya Bir la

Knowledge Centre, a vocational training center for

the weaker sections of society. In Phi l ippines , we have

helped hundreds of physically challenged people w h o

were crippled to get back on their feet through the

Jaipur foot.

The Smart Manager

At our Canadian C o m p a n y Nove l i s , headquartered

in Atlanta, we have mounted a massive recycling

education program involv ing our people and the local

communit ies . N o v e l i s is the world '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 me n o w move on to h o w our engagement w i t h

underserved communit ies has profited us. Profit not

in the normal sense of the term quantified monetarily,

but going far beyond the bottom-l ine mentality. We

k n o w what we are do ing is benefiting society. So our

motivation is very different. O u r C S R deployment has

translated into four distinct advantages.

• Firstly, our activities provide us w i t h a great

reputational lever that translates into a distinct values-

led-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 our G r o u p transcends business and

is genuinely committed to social upliftment. Today's

youth want to ensure that the benefits of capitalism

percolate d o w n . Like us, our talent believes that wealth

creation is a noble pursuit. T h e y feel that wealth can

be best enhanced by distributing it. A new ethos of

generosity is surfacing. T h i s is clearly seen in the

willingness to bu i ld 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 think 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 'The Best Employer in India

and among the top 20 in Asia ' , by the H e w i t t - E c o n o m i c

Times and Wal l Street Journal Study in 2007. In 2009,


by birla

May-Jun 2011


we were ranked 6th across the Asia Pacific Region in

the 'Great Place for Leaders to W o r k ' study by H e w i t t

and Fortune.

• Secondly, our w o r k has created, and continues to

create tremendous goodwil l among consumers, far

in excess of the price tag. Consumers look upon our

G r o u p and its companies as having a social conscience,

so there is a marked preference for our products and

services. In all the sectors that we operate in—cement,

a l u m i n u m , copper, viscose staple fibre, carbon b l a c k —

we are among the topmost in industry. A n d these

undoubtedly are profitable businesses.

• Thirdly , mi l l ions of our shareholders and investors

are proud of our 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 our

G r o u p companies' annual reports, we provide quantified

evidence of our 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

our 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 tel l ing them that we

care about y o u , that your concerns are ours as w e l l , and

that we are a principled people led by a moral compass.

Mainstreaming C S R into our businesses and

delivering societal value has given us tremendous

profits, albeit of a different k ind—the turnaround of

human lives, l i f t ing tens of thousands of people out of

stark poverty. There is a newfound dignity among them.

What more can one ask for? •

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


by birla

May-Jun 2011

act: case study · assessed under the agreed strategy and are monitored every quarter, measured...

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