Conscious and Commerce

"Industrial growth brings in its wake various social problems and it is the moral and social duty of the corporate sector to address them,” said Darius M. Forbes, the patriarch of the group Forbes Marshall which has been involved with steam engineering and control instrumentation solutions that work for process industry. But the group is proud of much more than just the products they have been making for over half a century. They are committed to creating a progressive work culture that uniquely puts people first. They are concerned with the community beyond their factory’s gate.

From a modest, Bombay based trading company, today it is a multi-divisional, ISO 9001 certified corporate group, manufacturing advanced engineering products for all of India’s core industries with an annual turnover of over Rs 110 crores.

Industry should function in close partnership with society and give back to society what it takes from it for its development and growth, opines Forbes. While industry provides employment opportunities and thus brings socioeconomic progress, it also displaces people and the onus is on industry to provide proper infrastructural facilities.

Forbes: giving back to society

Taking his thoughts over half a century ago, he said, "When we purchased about 10 acres of land from various farmers in (Poona) (@ Rs 2,500 per acre) for our factory, we realized that they would be ‘cash rich’ for only a short period of time. What would become of them after the money was over? So we decided to create employment opportunities for them through vocational training, especially for their children.

"Since our factory was situated outside the city limits, the first need we recognized for our employees — who commuted long distances — was proper transport. The next requirement was electricity, water supply and sewage facilities, not just for the factory but the entire village of Kasarwadi,” he said.

"Gradually, the village with a then population of 800 began to transform into a township. Today we run a hospital and several other welfare and development programs. We are not doing anyone a favor. And it is not charity either. It is our social obligation. We are simply giving back to society what we gained from them. It is a process of harmonious living with our neighbors,” he said philosophically.

Left: Dr Parviz Irani checking a patient at the Shehernaz Medicare Centre and (right) the company’s school intervention study hall

Over the years various community development programs have been implemented to improve the quality of life of people living in the neighboring area. These include adult literacy classes, vocational training and income generation programs for women, initiated by his daughter-in-law Rati. Creative recreation classes have been run to help children unlock their potential and learn skills through social interaction.

An accident, which Forbes witnessed while driving on a rainy day to the factory, moved him to create a medical facility on the company’s spacious complex at Kasarwadi. The Shehernaz Medicare Centre (named after Forbes’ departed sister-in-law) has grown from a one-physician clinic to a fully equipped 35-bed hospital with four full-time doctors, a modern operation theater, x-ray machines, dental care facilities and a laboratory for clinical analysis. Set up in 1966, at a time when there was no medical facility available for miles along the Bombay-Poona Road, the hospital provides free medical treatment to the staff and their families and to all the residents of the neighboring towns of Kasarwadi and Bopkhel. The company contributes handsomely toward running this medical facility.

What is the motivating force behind the group’s philanthropic programs? "We recognize that government has its limitations. Companies with their professional experience and expertise can contribute significantly to the nation’s development,” he says while sounding a word of caution: The company should not stretch its program (beyond its reach). A socioeconomic change in its immediate neighborhood should be the com­pany’s aim, he pointed out, stressing the need for "personal involvement” and "commitment beyond writing out a cheque to a NGO (non-governmental organization). He expressed consternation in partnering with NGOs with high overheads: "What is the point in part­nering with a NGO that takes away a large percentage of my company’s hard earned money for its own overheads and passes on only a small fraction to the community?” The company partners with a number of NGOs to implement programs for education, health, micro-credit, etc.

What are the ways in which a profit-making company can benefit by adopting a social agenda? "When corporate taxes were as high as 70 percent, tax deductions for charitable donations made a lot of business sense,” explains Forbes. "However today with corporate taxes in the range of 30 percent, the tax deductions offered under section 80G are hardly attractive,” he felt. While dismissing tax benefits as only a marginal motivating force, Forbes felt that "satisfaction” — that expression one sees on the face of the person whose life one may have touched — is the true benefit one derives.” By caring for its neighborhood a company earns respect, confidence, goodwill and support of the local community.

When undertaking welfare programs, companies often concentrate only on issues like education and health but ignore culture, opined Forbes. He felt that the government should adopt policies to encourage industries to generate more wealth which in turn could be channeled for welfare and development. Some of the biggest trusts and endowments are a result of the wealth generated during the industrial revolution.

He was also of the opinion that philanthropy covered a wider human interest than just working for or among the ‘poor and needy.’ He recalled that when he had met the trustees of a Japanese foundation about a decade ago, he had asked them what they were doing with their millions in wealth. He was informed that they were funding research to develop fuel efficient and environmentally friendly automobile engines. "Here is a classic case of prudent use of wealth where all (rich and poor) can benefit. After all, ‘environment’ is an issue that affects all classes and groups of people globally,” he notes.

The philanthropy and driving force behind the group’s spirit is enshrined in its vision: "To be a developed company in a developing country, pursuing market leadership in our chosen fields of steam engineering, process control and utilities management... Dedicated to growth and an increasingly international presence, committed to being a role model organization for our customers, suppliers, society and members.”