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”
“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.”
• Founded in 1969 to employ cured
lepers
• TVS provided equipment
• Ancillary manufacturers
http://www.worthtrust.org.in/
• “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”
CASE STUDY – II
“ACCIDENTALLY
SOCIAL”
“Naturals has grown to become India's
most prominent chain of hair and beauty
salons. With 300+ salons across the subcontinent ……, the dream is to reach 3000
salons by the year 2020”
• 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
http://www.naturals.in/
• Potentially 5000 -> 45,000 jobs
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
http://rainbow.in
• Hesitate even to put web pictures
• Difficulty of over 18: “skills programs
may curb their potential”
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?”
“…..what do parents do, when they
• Luck: evicted
by a lateral
are the chosen ones….?
Hide
“it”thinking
genius
away, appoint a nurse,
curse
fate, try
• The “Ah
ha” moment:
• Executives want to run SCMM
black-magic …., …. OR
silently
• Corporates
wanttrain
“Team Building”
• The “For Surplus” idea:
themselves and the child
to
enable
the
• Share a moment with us
• A Photoand
Op for self
stars and Honchos
child to be independent
• 2 Teams in 2006; 75 teams in 2013
sufficient...”
• Donations flow in too: pool by ICICI
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”
Who benefits
by keeping
them safe &
healthy
• 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:
http://www.mumbaimobilecreches.org/
• Builders may not fund children, but they
will fund to get foreign capital
• The “Branding Input”
“SURPLUS” DOESN’T EXCLUDE
DONATION
INNOVATIVE 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 brand
Objective: 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 Board
CSR Policy
“Project Mode”
Schedule VII
Annexure I
Fear
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