A show of hearts

Merchants of Philanthropy: Profiles in Good Corporate Citizenship by Noshir H. Dadrawala. Published in 2003 by the Centre for Advancement of Philanthropy, Mulla House, 4th floor, 51, M. G. Road, Bombay 400001. Pp: viii + 120. Price: Rs 150.

Aeons ago, in one of our Yasnas in the Gathas, Prophet Zoroaster proclaimed that "among living beings who is better in acts of worship, of such Ahura Mazda is aware on account of their holi­ness, all such, both men and women, do we revere.” This ancient prayer comes to mind on reading Noshir Dadrawala’s new book, where he describes an age old business principle of giving onto charity so as to enrich oneself and society. The book cites instances of men and women who in recent times have put this adage into practice, and are hence worthy of respect.

The Yenghe Hatam prayer recited above has acquired new meaning and new jargon over the centuries. Holiness has evolved, though the concept of one being holy, as one who is charitable and kind by disposition, has not changed. The individual has given way to institutions, and even business houses, companies indulging in trade, with an eye permanently placed on the bottom-line. The name has transmorphosised hence to Corporate Social Responsibility (CSR) or Corporate Citizenship (CC), but it yet commands as much respect as it did in Avestan times.

Dadrawala puts forth this business principle where long-term interests of business are served when its profitability and growth are accomplished alongside the development of communities, the protection and sustainability of the environment, and impro­vement of people’s quality of life. The first section of the book provides the backdrop to the principle, outlining the various social and developmental challenges facing the country and why doing good makes business sense. The second section is where the author really takes off from being a textual primer to an origi­nal researcher, though, for reasons best known to him, not a commentator or reviewer. In this section, he profiles the CSR programs of various companies and the vision and motivating factors that has driven their leaders to integrate CSR as part of their business strategy.

Dadrawala: celebrating the joy of giving

Dadrawala presents the readers with nine case studies of CSR as glimpsed by him after interviewing and moving around with corporate chiefs. He speaks to Anand Mahindra, who tells how the Mahindra Group invests in education, and outlines the many chari­ties and schemes that they have initiated or promoted and sup­ported to further education in the country. The Forbes Group’s head honchos share with Dadrawala and readers the rationale for their investing in charity only in and around their plant at Kasarwadi near Poona. Deepak Par­ekh of Housing Development Finance Corporation (HDFC) who foun­ded this innovative organization recounts the satisfaction of making people happy — and this interestingly includes Narayan Murthy of Infosys who, Parekh informs, bought his home by taking a loan from HDFC. Dadrawala has met almost all the modern tzars and sought their views on CSR, including the Fortune 500 favorites like Mukesh Ambani (of Reliance) and Azim Premji (of Wipro), and old Parsi favorites such as the Godrejs (Jamshyd) and Tatas (Ratan).

The concept of industrialists taking on social responsibili­ties is ‘chicken soup for the soul,’ which no good Zoroastrian can resist, even if offered on an anroja (days when meat eating is abstained from). Dadrawala makes it even more interesting, garnering his chicken soup with spices ranging from narration of company history to personal anecdotes relating to its head and family members, all laid out to bring forth the rationale for the charities indulged in. The book hence celebrates ‘the joy of giving.’ "It is also,” as Dadrawala writes, "an attempt to connect people and create consciousness on the potential of corporate philanthropy and promote organizational capacity.”

In an age where advertising and marketing strategies drive companies, and the creation of brand image is of paramount impor­tance, Dadrawala’s book brings out numerous examples of how CSR has advanced the ‘feel-good’ brand image, even as Godrej rightly points out, that people are not going to buy a mediocre product or accept poor service because "you are philanthropic or care for the environment.” The book would be an excellent hand­book for today’s public relations practitioner, in view of such fine statements, and Premji’s 10-point program for success, to quote just two examples.

At the end of a fast-paced un-put-down-able single read (though one is certain one will go dipping into the book on several occasions), there is only one regret that Dadrawala has chosen not to reflect and comment on the CSR programs of his subjects. Probably, this was deliberate, as he wanted the readers to draw their own conclusion, or probably, because he did not wish to offend the charitable sensitivities of his subjects. Yet, if one were to take some time off to do the same, Dadrawala’s work gives the impression that every company’s CSR does provide an insight as to how the company’s leading figures think. Mahin­dras and Dr Badrinarayan Ramulal Barwale (who established the Maha­rashtra Hybrid Seeds Company Limited or MAHYCO) have invested in education and eye-care respectively, because education changed the Mahindra family’s fortunes, and Barwale was impressed by the technology that saved his eye and sought to make it available for his people. Then, there is the ‘bania’ school of philanthropy, which has been practiced by Parekh, Ambani, Narot­tam Sekhsaria, who want to give back to society, primarily be­cause only then you can do more business and make more profit. "The higher the purchasing power of people, the greater will be the demand for goods and services. The greater demand will in­crease turnover,” reasons Ambani, a view almost echoed by Parekh who responds with "How can any prudent businessman consider doing business in a poor and illiterate country with beggars and hungry millions?”

Pardon the self-flattery, but maybe, it is only the Zoroast­rian community that truly indulges in CC. Godrej believes that to "give back what one receives should generally come quite naturally,” and not as a result of market forces and exercises at brand building. And, Tata has the last word: "We are not doing this (CSR) for propaganda or visibility. We are doing it for the satisfaction of knowing that we have really achieved and given something to the community in which we are working. We are doing it because we really wish to do it by choice.” Which is probably why in public perception, the Tatas will always be Tatas, and the Ambanis, Ambanis.

A dog-eared Oxford Dictionary reminds me that the word "merchant,” which Dadrawala uses as a title to his book, means a wholesale trader. Is CSR then merely a trade, as Dadrawala himself subtly seems to indicate?

Homi J. Rogers