Marketing through backdoor; implication of Corporate Social Responsibility and role play of Community Based Organizations (CBOs) and Non-Governmental Organizations (NGOs)

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Loyola College, Sundar A. Rodriguez M.Com.,FCA.,DISA.,CFSA

Chennai Research Scholar

With about 32 years of practical experience in developmental sector, in various capacities including, but not limited to auditing, consulting, program planning, implementation etc., I am a “people’s auditor” with experience including working at United Nations as Auditor. My qualification includes:

Fellow Member of the Institute of Chartered Accountants of India.Post Qualification Diploma in Information Systems Audit, ICAI, IndiaCertified Financial Services Auditor, The Institute of Internal Auditors, USAFellow of the Association of International Accountants, UKCertified Financial Accountant, CanadaCertified Internal Controls Auditor, USAMaster in CommercePresently – Research Scholar, Commerce Department, Loyola College,

Chennai

Authors Profile Sundar A. Rodriguez M.Com., FCA., DISA., CFSA(USA)., FAIA(UK)., CFA(Canada)., CICA(USA)

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Any idea on this…..

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› The introduction of Companies Act 2013, has opened up new vistas for the corporates. The avenues opened up not only brings about a “marriage of convenience” between two incompatible entities – corporates and not-for-profit organizations, but also comes up opening up of new opportunities for the corporates and for the NGOs to sustain their activities in a more responsible manner.

› The Indian Companies Act, 2013, had introduced Corporate Social Responsibility mandatory vide Section 135, though the same had been in vogue especially among the multi-nationals to have a “social conscious” image.

Introduction

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› Traditional marketing

› Reaching out to rural market using the traditional way

› Collection of data of consumer behaviour etc., still continues to be done wearing the “traditional googles”

› Lack of understanding of the visible and non-visible social teams

› Non conformity approach to the marketing

› Marketing without “human face”

› Marketing oriented towards “profit/optimization”

› Marketing not “inclusive”

› Marketing lacks “social consciousness”

Existing situation

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› The major objectives of the study are: (1) To study the factors affecting the implementing the Corporate Social Responsibility (CSR) from marketing perspective, and (2) To ascertain ways and means to use the change management concept in the marketing of the CSR program products perspective both of the corporates.

Objectives

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› This is based on the Conceptual Research concept, mainly because the impact of the CSR on marketing would only be known at the end of this financial year and there is no primary data as of now, and this is done relying on the secondary data and review of the literature including the appropriate statues and the theoretical framework for the change management.

Methodology

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› The CSR gives an opportunity to the corporates not only an opportunity to do something tangible for the society, but also gives immense opportunity for making use of these adages, namely NGOs/CBOs and use them as extended arm for various marketing activities including but not limited to, market study, pilot marketing, feedback, use the grapevine as communication of the products details to the consumers which also includes the CBOs.

› The NGOs strength in organizing people could be capitalized by the corporates to reach out to more people, and also get an understanding of the needs of such people, and use this data in trying to figure out the changing needs.

› Since most of the NGOs work with community especially in the rural areas, the interaction with the NGOs through their field animators etc., would give an opportunity to understand the rural market better and to fine tune their marketing strategy for the rural population by the corporates.

› The marketing through these groups could be again could give the much needed “color” to their activity with the adage “socially conscious organization”, and helps in brand building.

Piggybacking Marketing

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› The CSR program implement with special reference to the projects suggested in Schedule VII (ii) and (v) gives rise to the production of products in one form or other, and that would require a proper marketing strategy to sustain the efforts. However due to the divergent views of the partners in this, namely the corporates on one hand with “maximisation of profits” ideology and on the other hand NGO/CBO for whom “people” comes first, it is essential to make the marketing successful, to have a change process of their mind-set and also the strategy for marketing. This could be achieved by linking the 8 steps process for change by Kotter.

Major Findings

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› The success making using the new avenue that comes up with the linkage gained with the NGO/CBOs would happen with the open minded approach of both the parties concerned.

› This open approach and burying the hatchet of different terminologies by adopting common terminology for the marketing of the products and for the CSR program in general would go a long way in making the CSR Program a successful and sustainable.

Recommendations

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› There is a big future of the changed marketing strategy taking into cognizance of the additional leverage that comes up with the additional linkages that has come up with the new positive relationship between both the corporates and the CBO/NGOs would throw up new avenues with lot of stratified data accumulation both in formal and informal manner across a lot of area, needing Big Data Analytical to come into play.

Future scope of research

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› The Companies Act 2013.

› The Gazette of India Extraordinary GSR 130(E) dated 27th February 2014.

› Leading Change – John P. Kotter ISBN 978-1-4221-8643-5

› Handbook on Corporate Social Responsibility in India – Confederation of Indian Industry and PWC

› http://www.wbcsd.org/work-program/business-role/previous-work/corporate-social-responsibility.aspx

› http://www.unido.org/what-we-do/trade/csr/what-is-csr.htm1#pp1[g1]/0/

› Guidelines on Corporate Social Responsibility and sustainability of Central Public Sector Enterprises – http://www.reccindia.nic.in/download/DPE_Guidelines_CSR_Sust.pdf

› http://www.accountability.org/standards/

› http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines-2011_12jul2011.pdf

› Corporate Social Responsibility, Power Point Presentation – The Institute of Company Secretaries of India.

› Implications of Companies Act, 2013 – Corporate Social Responsibility – Grant Thornton

› An overview of CSR Rules under Companies Act, 2013 – Ekta Bahl – Business Standard.

› Reference Note No: 11/RN/Ref./2013 on Corporate Social Responsibility by Lok Sabha Secretariat – Members reference service

› New Age Management Philosophy from Ancient Indian Wisdom – V. SrinivasanISBN:81-7436-473-0

Bibliography

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Questions

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Thanks