FOR MUTUAL BENEFIT

MY PHILOSOPHY FOR SOCIAL WORK

Opening Plenary of International Workshop on Resource Mobilization 19 August 2014, Hotel Crowne Plaza New Delhi

SURPLUS THINKING!SOCIAL CAUSES CAN CREATE SURPLUSES

CASE STUDY – I “LEPER”

• Founded in 1969 to employ cured lepers

• TVS provided equipment• Ancillary manufacturers

• “We compete on Quality & Price”• No donations - “Siemens” approach• OEMs to Rane, TVS Group, Parry

group….and Perkins etc.• Work with strengths – better than

“normal”

“The ISO-certified Braillers Unit of WORTH Trust assembles the world famous Perkins

Braillers, which are exported back to the US and then sold all over the world.”

http://www.worthtrust.org.in/

CASE STUDY – II “ACCIDENTALLY SOCIAL”

• Over 80% from the NE states• 50% women entrepreneurs• Loans to ME: IOB, BMB

• Charges 150-3000 for haircut• Upgrade path for employees

• Handicapped Therapists• Potentially 5000 -> 45,000 jobshttp://www.naturals.in/

“Naturals has grown to become India's most prominent chain of hair and beauty salons. With 300+ salons across the sub-

continent ……, the dream is to reach 3000 salons by the year 2020”

THINK TRIPLE BOTTOM LINE

• Core belief:• Every good cause has a benefit for the financier• Do not be constrained by compassion and pity

• Perpetual dependence on external funding is not sustainable• Use the above to find a route to profits

• What you see as a benefit may not resonate with everyone• Triple Bottom Line Thinking• Profit: Is there an economic surplus created by delivering value?• People: Does the economic surplus get distributed equitably?• Planet: Is there a direct benefit to society or environment?

PROFIT VS SURPLUS

HANDLING THE CHALLENGE OF “CAPITALISM”

MAIN CONCERNS

CONCERNS• Will it dilute the Mission• Would we be exploiting

vulnerable beneficiaries• The optics: will we lose

donors

• Will we attract wrong people

Some Ideas• Working on “culture”• The “business” must involve

the beneficiary, not exploit• Counsel Donors on “surplus

mission”: EVERYONE uses same “hymn book”

• Red Flag - disproportionate income

CASE STUDY – III: MY DILEMMA: “POT OF GOLD”……

• RAINBOW HOMES: for street children• Risk Managed – one report over 11 years

and 30 homes

• Exhaustive documentation

• Exhaustive education on child rights

• Mission driven team

• Extra sensitivity to possible exploitation• Hesitate even to put web pictures

• Difficulty of over 18: “skills programs may curb their potential”

http://rainbow.in

KEY CULTURAL INPUTS

• Distribute disproportionately to beneficiaries• Do not increase salaries of Management Team• Have a strong “10 commandments” approach• Do it before the money comes in

• I would recommend posters

• Only mission aligned people run the “for profit” initiative• Do not hire specialists

• Be sensitive to outsiders’ perception

CASE STUDY IV – “RETARDED?”

• Luck: evicted by a lateral thinking genius

• The “Ah ha” moment:• Executives want to run SCMM• Corporates want “Team Building”

• The “For Surplus” idea:• Share a moment with us• A Photo Op for stars and Honchos

• 2 Teams in 2006; 75 teams in 2013• Donations flow in too: pool by ICICI

“…..what do parents do, when they are the chosen ones….? Hide “it”

away, appoint a nurse, curse fate, try black-magic …., …. OR silently train

themselves and the child to enable the child to be independent and self

sufficient...”http://swayamsiddh.org/

HARNESS THE POWER OF SELF INTEREST

IT CAN LAUNCH WARS &

MAKES ENEMIES EMBRACE

INNOVATIONS “FOR SURPLUS”

ADDING VALUE TO DONORS ………………….

SOME LESSONS• Beneficiaries need not be exploited• Involvement need not be in the form of “work”

• Adult beneficiaries must ideally “work”• Self-worth and self-respect

• Independence gives comfort to parents and care-givers

• Avoid “social” returns in commercial enterprise• Recognize that commercial enterprise must be scalable• How many cards & mud pots will people buy?

• A thought from Rainbow…….Alumni support program

• Look for unique skills, qualities or advantages of beneficiaries

CASE STUDY – V “CONSTRUCTION BABY”

• A “pure” charity• The beneficiaries cannot be “used”

• Does not create employment

• The “Aha Moment” in 2002• FDI in Real Estate

• The linked idea – Nike, Mattel

• The “For Surplus” idea:• Builders may not fund children, but they will

fund to get foreign capital

• The “Branding Input”

Who benefits by keeping

them safe & healthy

http://www.mumbaimobilecreches.org/

“SURPLUS” DOESN’T EXCLUDE DONATIONINNOVATIVE USE OF DONATIONS AND SURPLUS

CREATIVE CAPITAL STRUCTURES• Catalytic First Loss Capital• First Loss Deficit Guarantee• Infrastructure from grant capital, running costs from “Investment”• Low revenue area from grants, high revenue area from “Investment”• “Top up” capital from donations• Plough back of “For Profit” capital• The Mutual Benefit Trust

• Pehle roti, kapada, makan…….phir sadak, bijli, paani

YOU AND THE CSR RULES

……..ABOUT THE RS.27,000 CR. P.A. OPPORTUNITY

2004 & THE ORIGINAL IDEA

Companies can use a part of their profit to engage with Society and contribute directly to the well being of their area of operation, thus

improve their effectiveness and brandObjective: To

reduce the perception of

corporate India as exploiters.

REDUCE THE PRESSURE

• Give companies time to evolve their policy• Let them figure it out first

• Understand Board process and CSR Policy of TG• Study a few websites without your hat……

• Remember they are accountable under law• Focus on your usual donors

PILLARS OF CSR POLICY

CSR BoardCSR Policy“Project Mode”Schedule VIIAnnexure IFear

PREPARING YOURSELF FOR CSR• Work on Governance and Reporting• Invest in Accounts & Auditors (Quatrro / GT Options)• Prepare reports as per Annexure I (the SAN Option)

• Resilience – succession planning and bandwidth• Align your model for Corporate self-interest• Segmentation – Measurability & Branding• Involvement/ Participation• Mutual Benefit e.g. filling reserved quotas

• Scalability – can you become as big as your donor?• Or choose smaller donors

CASE STUDY – VI “CORPORATE INDIAN”

• Each year Bharati requests for sponsorship from the corporate houses in Manila for Annual Diwali Ball

• 1,500,000 Pesos, generated to aid needy institutions through the year.

• The Indian Ambassador supports Bharti as the Official outreach of Indian Embassy.

• Since two years , Bharati funds the Elsie Gaches Home for the mentally disabled

• Why it works: • Expat Indians benefit from giving back to

the host• major date on Manila social calendar

CASE STUDY – VI “KUTTE!”

• Rid yourself of 2 Trustees • Shri S. Bhatt and Ms N.O. Bhat