SOCIAL ENTERPRISE: THE NEW MODEL FOR CSR

Social Responsibility Series 3 Bala Vikasa is grateful to ‘Global Affairs ’ and to SOPAR for their financial contribution towards this publication. Table of Contents

Preface 1 CHAPTER 1 CSR IN : NEWER DIMENSIONS 5 1.1 Regulatory Framework – CSR-The Companies Act, 2013 7 1.2 The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of 9 1.3 Trends in Business /CSR Expenditure in India 10 1.4 Conclusion 11 CHAPTER 2 The Evolving CSR Approach 13 2.1 CSR Expenditure and Profitability 16 2.2 The Future of CSR in India 18 2.3 Projected Business Responsibility Patterns by 2020 19 2.4 Conclusion 20 CHAPTER 3 Social Enterprise in India – An Overview 21 3.1 What is Social Enterprise? 21 3.2 The Difference between Social and CSR 22 3.3 The Social Framework 25 3.4 Observations on Social Enterprise Landscape in India 29 3.4.1 Summary of Intellecap’s 2012 Report on Social Enterprise Landscape in India 29 3.4.2 Summary of ADB’s 2012 Report on Social Enterprise Landscape in India 32 3.5 Sectors of Operations and Profiles of Social Enterprises 34 3.5.1 Health 34 3.5.2 Affordable Housing 35 3.5.3 Agriculture 36 3.5.4 Education 36 3.5.5 Energy 37 3.5.6 Livelihoods Promotion 38 3.5.7 Water & Sanitation 39 3.6 Conclusion 41 CHAPTER 4 Fusion Of Business Responsibility and Social Enterprises 43 4.1 The Growing Importance of Sustainability on the Global Business Agenda 43 4.2 Framework for the Corporate Contribution to Development 44 4.2.1 Providing affordable products and services. 44 4.2.3 Invest in social entrepreneurs 45 4.2.4 Strengthening women’s economic capacity as entrepreneurs, employees and producers 45 4.2.5 SME 46 4.3 New Models - BSR Promoting Social Enterprises 47 4.3.1 CSR-SE Alliances in India 47 4.3.2 NASSCOM Forum 49 4.3.3 DBS Bank 48 4.4 Recommendations for a Vibrant Social Enterprise Eco-system 49 4.5 Corporate Benefits from Getting Involved with Social Enterprises 50 4.5.1 Consumers more likely to buy from a social cause 50 4.5.2 Making the most out of your CSR spend 51 4.5.3 CSR: Global Perspective, Competitiveness, & Innovation 51 4.6 Measuring Corporate Social Responsibility 52 4.7 Conclusion 52 CHAPTER 5 Conclusions and Recommendations 55 ANNEXURE 1 Case Study 1: Urban Housing Project 61 ANNEXURE 2 Case Study 2: Synthesizing Technologies for Medical Emergency Management 63 ANNEXURE 3 Case Study 3: Health Care Model -Naya Jeevan, Pakistan 65 References 67 Websites 69 Acronyms

CSR Corporate Social Responsibility SME Small and Medium Enterprises SD Sustainable Development IIC Indian Investor Counsel HDI Human Development Index NGO Non-Governmental Organization BR Business Responsibility UNDP United Nations Development Program PLS Private Limited Companies SEBI Securities and Exchange Board of India CRISIL Credit Rating Information Services of India Lim-ited USAID United States of America International Aid IIC Impact Investor Counsel IP Intellectual Property BSR Business Social Responsibility MDG Millennium Development Goals SDG Sustainable Development Goals GDP Gross Domestic Product BOP NVGs National Voluntary Guidelines SE Social Enterprises CSE Corporate Social Entrepreneurship MSME Micro-Small and Medium Enterprises IICA Indian Institute of Corporate Affairs TBL GIIN Global Impact investment Network SSBU Strategic Social Business Unit NGO Non-Governmental Organization Preface

It is 2016, having concluded on the results of the ambitious Millennium Development Goals (MDGs), it is time for us to evolve a broader framework in addressing shortcomings and aligning with the Sustainable Development Goals (SDG’s). However India has made marked towards reaching the MDGs (reduced poverty by half, achieved gender parity in primary education, reduced maternal mortality by three quarters) however; the achievement across the goals has varied. The findings in the United Nations report, ‘India and the MDGs’, published in February 2015, shows that states which have performed better on the MDGs have focused on the following “drivers” such as: (i) accelerated broad-based employment creating economic growth, (ii) channeled resources into human development, (iii) promoted good governance and effective delivery of public services, (iv) promoted gender equality and empowerment of women, and (v) extended basic infrastructure networks. Encouraging the weaker states to undertake and replicate the above mentioned drivers would allow them to emulate the better performers path of success.

Going forward, the international community of governments, , non- profits and private enterprises will be developing a framework for Sustainable Development Goals (SDGs), based on the successes and challenges of the previous years. The SDG proposals will ensure that momentum generated by the MDGs will carry through until 2030, to reach targets and end the diverse kinds of deprivations. “The SDGs would greatly face four sets of challenges for India, namely (i) completing the unfinished MDG agenda with a higher level of ambition of ending – not just reducing all deprivations; (ii) strengthening critical development drivers such as economic growth, industrialization, employment creation and reduction of inequality within and between countries, providing basic infrastructure including energy, and governance and institutions, without which many social and environmental objectives would not be easy to reach; (iii) strengthening the sustainability dimension to address new and emerging challenges such as deteriorating environment, unsustainable consumption and production patterns that are rapidly depleting natural resources, the need to effectively mitigate and adapt to climate change, and develop livable urban areas; and (iv) accessing the means of implementation including transfer of advanced sustainable technologies

1 from developed countries and harnessing India’s frugal engineering capabilities for pursuing low carbon development pathways.” This would stress on the need for having sustained economic growth, industrialization, employment creation and social and environmental improvements.

India still has a long way to go to achieve all the MDGs. Crucially, the focus needs to be on broad based economic growth i.e. that, which engages all segments of the population, generates employment and substantially enhances the incomes of the poor. Industrial growth, which does not achieve broad based inclusion, will not alleviate poverty. However, the goal of global sustainable development cannot be achieved without India’s participation, because of the country’s significance and weight in the world context. Therefore, India will be closely watched in the years to come, and it will be interesting to see how we strategically move forward, take action and provide a sustainable future for not just Indians but contribute to this movement globally.

In this context, it is important to note the role of business and the commercial sector in the development narrative. The ten principles of the UN Global Compact, signed by over 4300 companies in 120 countries, specifically outlines how business could contribute to the Millennium Declaration and Goals. It was an acknowledgement of how companies, both domestic and international, were a crucial piece of the puzzle, and demonstrated how they could ‘embrace and enact’ universal principles in the areas of human rights, labor standards and the environment within their spheres of influence. Over the last several years, there have been growing demands for firms to display more and for their economic, social and environmental impacts through all their operations. At the same time, companies are waking up to the fact that investing in a sound environment, managing the direct costs and risks of doing business, and harnessing new business opportunities are in fact extremely beneficial to their profit-making endeavors and long-term sustainability.

Globally, as the limitations of government interventions and traditional NGO mediations have become apparent, market-based solutions to poverty and sustainability have naturally taken the forefront. In the last decade, a new and potentially transformative solution to the numerous social, economic and environmental challenges faced by the world today has appeared and taken root in

2 developing economies. This new movement is embodied in organizations known as ‘social enterprises’, innovative social which exist to tackle a social issue, fuel economic growth and improve people’s lives while ideally generating enough profits to sustain themselves. Phrases such as ‘cause capitalism’, ‘’ and ‘blended value’ are entering mainstream development discourse.

Currently, India has one of the largest portfolios for such kinds of social enterprises in the world, and over the last decade, the ecosystem of supporting institutions has steadily been growing to accommodate a diversity of enterprises, which are addressing issues from solar energy to milk production. Increasingly, BoP (Bottom of Pyramid) populations are being perceived as consumers as well as producers. Rural areas are being explored for their huge market potential. The majority of these models, spread across sectors of education, agriculture, financial services, waste management, water, health, livelihoods, housing and energy are scalable and replicable.

The impact of such enterprises largely depend on its successful implementation, to those that need it the most, who are at the BoP. In line with the four sets of challenges outlined above through the Sustainable Development Goals, mainly the second and third – that of strengthening critical development drivers such as creating employment, and addressing emerging issues of environmental degradation –a compelling movement in social entrepreneurship are vital to improve the welfare of these communities. As 70% of the population lives in the hinterland, the rural environment has emerged as a lucrative option for the mainstream economy to invest in, as well as to identify emergent innovative solutions.

The demonstrated success of these ventures is evident from the strong sense of optimism amongst development finance institutions in the power of social enterprises to contribute to a better world order, and in the increasing amount of equity and debt sources available for them. Impact investors seek to support businesses with triple bottom line returns – that is monetary profits, social impact and environmental impact. Vikasa International Center has coined the term P-Cubed to capture this multidimensional agenda: People, Planet and Profit. We believe that if this forms the basis of investor criteria and business missions, not only is sustainability assured but also there is a real shot at positive change.

3 In this above context, BalaVikasa International Center (BVIC) wishes to draw from its learning’s, from both national and international experiences in promoting positive synergies between community and business, and how they can contribute to building social enterprises that create larger social impact through scalable and sustainable models. With the publication of this third book in the Social Responsibility Series, we present such social enterprise models as new alternatives for corporate social/ business responsibility in India. Previously, BVIC has published Social Responsibility Series 1 and 2, centered on the questions of business contribution to sustainable community driven development, and a discussion on the synergy between civil society and business.

The mandate of the P-Cubed Conference, held by BVIC earlier in 2015, and widely attended by participants from the corporate, non-profit and social enterprise sectors, was to introduce social enterprise as the new model for CSR. The conference offered a unique platform to various stakeholders in this process to present their perspectives and learning’s. This publication hence is an extension of the discourse initiated at that event, and intends to promote the idea of supporting social enterprises through corporate social responsibility initiatives, by delving deeper into the structures, partnerships and ecosystem that will allow this collaboration to flourish in the future.

4 CHAPTER

CSR IN INDIA: NEWER DIMENSIONS

“If more companies follow the lead of the most creative organizations in 1 their industry, they will make a huge impact on the world’s worst problems.” Bill Gates - ‘Making Capitalism More Creative’ TIME magazine, July 2008

India is predicted to overtake China are insufficient; what is required is a as the fastest growing emerging broad based, collaborative, creative economy in the world in 2015-16 by and market-based approach. Business clocking a growth rate of an estimated is regarded as the key factor in 7-8%. Bolstered by being the largest India’s ascendancy on the global democracy, the country seems set economy map. On the other hand, on the path to achieving status as a companies are also being viewed as global economic powerhouse. This a potential source of strategic social does nothing to assuage the truth that and environmental interventions both 720 million Indians live on less than through their business operations, two dollars a day, or that close to 1.3 and through philanthropic or impact million children die each year from investing initiatives. Their contributions malnutrition. In the latest 2012 human to development are under scrutiny, and development index (HDI) report, India regulators have passed two landmark languishes at 136, out of 187 countries. policies – the National Voluntary Economic progress without equitable Guidelines for Social, Environmental and inclusive growth is unsustainable; and Economic Responsibilities of it means the benefits of progress do not Business and the CSR Act, 2013, which reach everyone, and the foundations of will define the increasingly important this kind of growth are rocky. Capitalism role business, shall play in India’s and its trickle-down economics have progress as an equitable nation. not delivered what it promised, and income inequality has doubled in the We are in possession of a ‘demographic last two decades. dividend’ (approximately half of the 1.2 billion population is under the age of The interventions of non-profits and 25), which could potentially give India the government to combat these the biggest labor force and the largest seemingly insurmountable problems consumer market in the world. There

5 is a dire need to create human and In this context, social enterprises can physical capital in order to reap the play a vital and distinctive role, with a rewards of such a possession, through business as unusual approach – using investment in health, education, skill mission driven foundations and market- development and infrastructure. All this proven business practices to tackle will increase the educational, nutritional social and environmental problems. and skill levels of youth, thereby Indian social enterprises are already improving their productivity and hence being used globally as success stories their employability. As traditional of scalable and replicable models government provisions of these using solar energy, providing rural goods and services have failed due to health care, affordable potable water, numerous reasons, private enterprise economy housing, and so on. While is being seen as an alternative source. there are numerous success stories Through their core business operations and India is ahead of other countries and value chains, firms are able to globally, it should be noted that the capitalize on adopting innovative level of impact investment is still in technologies, financing mechanisms, its fledgling state. Furthermore, social products, processes and skills to create enterprises notoriously face a limited employment and to develop essential access to capital. At the same time, goods and services. the Companies Act, 2013 has formally mandated a certain percentage of Well-established and large firms are now corporate profits to be channeled into beginning to acknowledge that tackling social programs. This could be a huge poverty is not outside the ambit of their boost for social development, by giving operations, mission and ultimate goal them access to more than a billion of increasing profits. Perceptive and dollars in precious capital, which is intuitive business leaders are realizing needed especially at the seed and early that contributing to a more prosperous stages. and equitable operating environment is not just important for managing risk The government also needs to play and building brand value, but can also its part and facilitate both foreign present innumerable opportunities for and domestic investors to invest in business expansion and proliferation. social enterprises through enabling Hence, they are working towards a better regulatory framework, building partnerships with public and smoother taxation policies, creation civil society bodies, in order to explore of multiple investment bodies, using these opportunities.

6 innovative investment vehicles like 1.1 Regulatory Framework – UK’s social impact bonds, co-investing CSR- The Companies Act, in technology based social enterprises, 2013 creation of a separate index like Singapore’s Impact Investment Index. Corporate Social Responsibility (CSR) - The Companies Act, 2013 came into With the environment buckling under effect from 1st April 2014. Section the pressures of exploitation, and rapid 135 of this Act on Corporate Social depletion of resources, as a country we Responsibility has made it mandatory need to learn lessons from the growth for boards of qualifying companies models that have not worked so far. If (those whose net worth is deemed we design a unique model of capitalism, to be Rs.500 crores or more; if the that fuses the newly available capital turnover of the company is Rs.1000 from business with mission driven, crore or more; if the net profit of the socially conscious enterprises, we company is five crore rupees or more) can capitalize on this cross-sector to establish a CSR policy, constitute a collaboration to use the power of CSR committee at the board level, and capitalism to solve social problems. allocate 2% of its average net profits of Businesses and investors need to find the three preceding financial years for ways to incorporate a social mission in CSR initiatives. their strategy and operations, what is now known as ‘shared value’. Further, social the element has indispensable According to the Indian Institute influence and impact on business of Corporate Affairs, at least 6000 sustainability. Indian companies fall in the category of qualifying businesses, and many As traditional donor organizations will be undertaking these kinds of are turning into impact investors, CSR activities for the first time. The nonprofits need to find ways to adapt Act stipulates that not only Indian business approaches to solving social companies, but also foreign companies problems. The government needs to with branch or project offices in India refashion the way it works with the for- will have to abide by these regulations. profit and nonprofit sectors. BalaVikasa Altogether, these companies have International Center envisages its role the potential of contributing Rs.20, and contribution in this area to promote 000-25,000 crores every year towards develop and facilitate this process development. With the policy shift in through its partners. its nascent stages, civil society, non-

7 profits, governments and business are sustainability, ecological balance, still maneuvering this new landscape, protection of flora and fauna, attempting to identify opportunities, animal welfare, agro forestry, partners and projects. While some conservation of natural resources companies have risen to the challenge and maintaining quality of soil, air in a proactive and enthusiastic manner, and water; others are slower to keep up. v. Protection of national heritage, art It is also the board’s duty to ensure and culture including restoration that these CSR activities are carried of buildings and sites of historical out in keeping with Schedule VII items, importance and works of art; setting delineated below: up public libraries; promotion and development of traditional arts and i. Eradicating hunger, poverty and handicrafts: malnutrition, promoting preventive health care and sanitation and vi. Measures for the benefit of armed making available safe drinking forces veterans, war widows and water: their dependents;

ii. Promoting education, including vii. Training to promote rural sports, special education and employment nationally recognized sports, enhancing vocation skills especially Paralympics sports and Olympic among children, women, elderly, sports; and the differently-abled and viii. Contribution to the Prime Minister’s livelihood enhancement projects; National Relief Fund or any iii. Promoting gender equality, other fund set up by the Central empowering women, setting up Government for socio-economic homes and hostels for women and development and relief and welfare orphans; setting up old age homes, of the Scheduled Castes, the day care centers and such other Scheduled Tribes, other backward facilities for senior citizens and classes, minorities and women; measures for reducing inequalities ix. Contributions or funds provided faced by socially and economically to technology incubators located backward groups; within academic institutions iv. Ensuring environmental which are approved by the Central Government

8 x. Rural development projects. rights, environmental stewardship, responsible policy advocacy, inclusive Another clause of the Companies Act development and consumer well- states that preference should be given being. Each principle consists of core to local areas and the areas where elements that further articulate the the companies operate. The internally purpose and sense of each principle, appointed CSR Committee shall and additionally offers suggestions prepare a CSR Policy document, which of incorporating these principles into details the projects and programs to be everyday business operations, as well undertaken and focuses on integrating as CSR. business models with social and environmental priorities, in order to According to the Business India create shared value. Responsibility Survey conducted in 2013 (GIZ, IICA, Ministry of Corporate Affairs), most of the top 1.2 The National Voluntary 200 companies in India claim to Guidelines on Social, have established diverse practices Environmental and of business responsibility, including Economic Responsibilities CSR as part of their operations. A very of Business significant proportion of the top 200 companies have ‘policy statement with These guidelines were developed board resolution’ (72%) and/or ‘code and disseminated by the Ministry of of conduct’ (92%) with respect to the Corporate Affairs, India, and were the first BR principle stated in National result of an extensive consultative Voluntary Guidelines (NVGs) on ‘Ethics, process that was born out of a wish Transparency and Accountability’. to provide Indian businesses – small However, the percentage of top and large alike - with a distinctive 200 companies having a ‘stated and unique India-centric approach commitment in form of objectives’ to responsible business. Relatively is relatively low at 40%. Hence, there simple to comprehend and implement, is a noted gap between intent and the guidelines stress on the triple execution. bottom line approach, highlighting nine principles which pertain to ethics Interesting to note, the percentage and transparency, product life cycle of top 200 companies having ‘stated sustainability, employee well-being, commitment in form of objectives’ for engagement, human

9 sixth BR principle on ‘protecting the spent Rs.3.79 million while foreign environment’ is significantly higher at companies spent Rs.8.5 million on CSR about 70% as compared to the ‘policy activities, while in 2012-13 these figures statement’ and ‘’ on were raised to Rs.22.6 million and 19.5 the same (35%). The case is similar for million respectively. According to the the eighth BR principle on ‘supporting Indian Institute of Corporate Affairs inclusive development’. The conclusion (IICA), about Rs. 200 billion (roughly is that policies or objectives on US$ 3.2 billion) could be unlocked from environment and internal stakeholders a pool of around 16,000 companies remain higher than those for social for CSR spending during 2014-15. issues do. The major reason for the drastically increased expenditure appears to be the anticipated pressure from consumers, 1.3 Trends in Business /CSR investors and NGOs/activists, and the Expenditure in India promotion of the brand. In any case, it is clear that expenditure on CSR Of course, the concept of CSR is not is growing in significant leaps and new to India. A few conglomerates have bounds. gained a reputation for their extensive and praiseworthy development Table 1.1 programs. An Analysis of Corporate CSR budget No.of companies Social Responsibility Expenditure in (Rs. Million) India, published in the Economic & Up to Rs. 5 13,346 Political Weekly in December 2014, Rs. 5-10 1,196 explains that in the year 2012-13 Rs. 10-50 1,186 alone (before the Act was passed), Rs. 50-100 182 businesses donated more than half Rs. 100-200 79 a billion dollars to various initiatives Rs. 200-500 43 run by governments, foundations and Rs. 500 or more 25 NGOs. Some 50% of the funding came from 10 major donors, including RIL, Source: IICA (2013), “Corporate social responsibility: The new game changer.” Coal India, Tata Steel and SBI. It has also been observed that domestic firms An Analysis of Corporate Social have increased their CSR expenditure Responsibility Expenditure in India significantly more than foreign firms notes that companies mostly undertook have. In 2011-12, domestic companies CSR projects that involved the welfare

10 of rural communities around their areas and expertise, product donations and of operation. Another study that looked other in-kind contributions, all of which at the top 300 firms in India found that can amount to several crores worth of only 30% of them collaborated with non- investment. profit organizations to implement their CSR projects. Mostly, funds were given Another result of the passing of the Act to the corporate rather than is the steep rise in the number of firms to a non-profit. reporting on their CSR activities on their official websites, annual reports and In terms of sectors of development, sustainability reports. There was also an education and healthcare received by far increase of in the number of companies the most attention with as many as 80% who complied with environmental of the top 100 technology companies reporting guidelines and disclosed their having donated funds to these two performance evaluations. areas, providing access to quality primary education, supporting midday meals at schools and conducting 1.4 Conclusion health camps and blood donation camps for the underprivileged. Other In summary, the progression of areas of involvement included skill development in India is increasingly development, women’s empowerment focusing on business, both in terms and environmental sustainability. of holding the corporate sector accountable as an active participant In addition, firms are also starting to in alleviating India’s pressing social, demonstrate newer forms of giving, economic and environmental problems, such as staff programs but also as a tool for sustainable and providing expertise to NGOs. Such growth by merging profitable business collaborative efforts are on the rise, and practices with mission driven some companies have started tracking enterprises. To make way for this key volunteering metrics such as progression, regulatory and voluntary number of employees contributing to guidelines are in place and slowly, we CSR and the number of person-hours observe that Indian companies are spent on these activities. Described as rising to the challenge of implementing ‘social investment’, these acts consist CSR and business responsibility of contributing non-commercial dimensions into their company financial support, employee volunteers culture and operations. Trends such

11 as increased CSR expenditure and increased reporting on CSR activities attest to this positive new movement.

This transition phase requires active facilitation in building business responsibility to translate into larger social impact. The process requires a shift from the conventional approach of CSR driven social development to social enterprise driven social impact, by promoting and building social enterprises for greater and inclusive impact. These social enterprises should target sustainability, scale and impact. There have been a few examples in the Indian context, where companies have been involved in the promotion of social innovation, and innovative social enterprises. The flexibility in the 2013 CSR Act for supporting incubation services outside academic institutions will add greater momentum. Bala Vikasa International Center is one such incubator being promoted to foster the culture of entrepreneurship by offering aspiring entrepreneurs access to seed funds, infrastructure, capacity building and mentorship.

12 CHAPTER

The Evolving CSR Approach 2

The range of CSR activities, in their these companies often collaborate aspirations and impact, usually vary with the government to leverage the with the size of the company. Smaller, infrastructure and capacities that the nascent firms with limited budgets latter already has. choose to implement initiatives that are primarily philanthropic in nature. The need of the hour is to transform For this group of companies, CSR is an CSR collaborations into cost-efficient obligation they must fulfill to meet the yet game-changing innovation. It has regulatory requirements. already been mentioned that India has a demographic dividend, but there is Other companies use strategic CSR another important resource that is approaches to consolidate their social yet to be fully tapped; the innovation license to operate and build their equity, potential of its people. “Just as political in geographies of their operation. democracy can lift nations by building This gives them the opportunity to on the combined ideas of their citizens; strengthen relationships with the “democratized” innovation can lift communities in these areas and attain countries’ economic systems and greater visibility, and hence a tighter spur sustained, profitable growth for control over the business and its companies”. The fact is that Indian outcomes or future possibilities. youth are willing and prepared to take in the nation’s social innovation journey. In Finally, a few, well established a survey by Accenture and the All India companies with longer term thinking Management Association of 1,000 choose to implement broader Indian students, 74% of respondents interventions directed towards nation said, they would like to contribute to building, with priorities and targets innovations that improve products similar to those of the government. and services available in the market In order to achieve scalability and and 43% said that a key motivation for impact across large regional areas, sharing innovations was to help people

13 benefit from their ideas. So just under with these incubators and enable the half of the respondents expressed not creation of open innovation labs that only a desire to innovate, but also a foster the design and development of desire to innovate for the betterment of game-changing technologies with lower their fellow citizens. start-up investment. These labs could turn into hotbeds for ideas to help solve Businesses across sectors must the nation’s problems, while serving as mobilize this growing interest among a base for affordable innovations those young people in creating shared value industry players can utilize to drive for themselves and the nation. The CSR profitable growth. Further, it is essential Rules 2014, which permit enterprises for the Government to pave way for to contribute CSR funds to technology social innovations and building social incubators, provide a way to do so. enterprises by easing and forging these The corporate sector can collaborate collaborations.

Table 2.1 CSR increasingly being integrated into business

CSR 1.0V CSR 1.5V CSR 2.0V Social Contribution Operational Integration New Business Offerings

Description Broader Directly related to Products or service corporate giving activities business process which in itself changes • Employee volunteering • Supply chain the inducting norm, while • Adopting community management, address key social issues • Make a difference manufacturing and challenges • Affirmative action process Direct giving to • Does not require extra Description beneficiaries CSR budget to improve • Donations • Budget is inbuilt into • Sponsorships etc., operations process

• Trainings skill • Reducing carbon foot • Tesla motors development for youth print in mfg. process • Nintendo’s ‘wii-fit’ (Real Dreams, Africa) • Safe product • Toyota Hybrid car ‘Prius’ • Uniliver India, development • Donating fortified distributes soaps with • E-Waste Mgt. recycling yogurt hygiene education to • Disposable cup • Daimler – disaster Examples tea farmers & families reduction- Starbucks response all terrain vehicle

Source: Adopted from BCG Consulting Group: “Catalyzing Change Through Corporate Social Responsibility” – NASSCO Foundation Feb.2015

14 Table 2.2 CSR 1.0 Programs with primary focus on social impact

Select Examples

• Working across • Undertaken flagship • Flagship rural education program in multiple project under its CSR program – Satya Bharti sectors to improve regime School Program access to quality health • Institute & driving and • Providing free quality education to Approach care for underprivileged Traffic Research marginalized children • e.g., free artificial limbs • Maruti Driving School

• Quality education • Health care for the • Rood safety and for under privileged underprivileged lack of proper driving training children addressed Social need

• Partnership with 280 • Training over 700000 • 500 Primary and 50 NGOs for execution people senior secondary 65000 + people served schools; 200000 + Impact created though health camps underprivileged children • Global CSR Award for • Golden Peacock Award • Global CSR Excellence CSR education, 2012 for CSR 2013 & Leadership Award 2014 Awards & Awards Recognition Source: Adopted from BCG Consulting Group: “Catalyzing Change Through Corporate Social Responsibility” – NASSCO Foundation Feb.2015 Table 2.3 CSR 1.5 Tight integration of CSR initiatives into operations

Focus Theme Rural Supplier development Sustainable Operations Resource Management • Village women dairy • Green network • Replenish water development program: for reducing conservation, Educate train women electricity and diesel Replenish water on best practices to computation through community increase milk production • Fast forward entering water recharge projects • Help expand cultivation optimization project Sold Waste and quality of chicory in 2011 to achieve •

Approach management AP, TN, and coffee energy savings by 5% Haryana Farmers training on • Resolve campaign • • Partnership with to manage non – better farming practices farmers to boost hazardous solid waste potato production • Community well-being • Energy conservation • Resource depletion farmer livelihoods and and optimized farmer livelihoods Need

Social productivity utilization and productivity • Reduction in carbon • Agriculture raw • Raw material resources emission. Energy supply development material supply and consumption reduced • Natural and farming

Impact development by 5% in six circles based Source: Adopted from BCG Consulting Group: “Catalyzing Change Through Corporate Social Responsibility” – NASSCO Foundation Feb.2015 15 Table 2.4 CSR 2.0 New business model created by addressing social need

Select Examples

• Malnutrition Poverty • Lack of exercise and • Disaster response personal fitness Emergency relief Need Social

• Fortified yoghurt micro • Fitness video games • Modified G-Class all- dis-tribution structure wii-Fit and successor terrain vehicle and its will fit plus. trailer Product Solution /

• Pilot reached – 60000 • More than 22 million • Cater to special people daily, proven games sold requirements found health benefits along the Chilean – Social Benefit Bolivian border

• Market development • Profitable product, • Engineering expertise and understanding New cus-tomer network segments advantage Competitive Competitive

Source: Adopted from BCG Consulting Group: “Catalyzing Change Through Corporate Social Responsibility” – NASSCO Foundation Feb.2015

Another emerging trend in CSR markets oriented towards profit-making investments, which has seen a enterprises investing in technology convergence of technology and giving, and human development in emerging is ‘smart capitalist’ , markets, reflects similar thinking in which involves investing in potentially strategic giving and encompassing disruptive technologies inside social responsible business practices and enterprises that can be scaled up. ‘shared value creation’. According to the Economist, this ‘entrepreneurial model of tackling social and environmental problems is likely to 2.1 CSR Expenditure and stir up the CSR world and may over time Profitability produce transformative technologies and creative new business models’. Contrary to criticism that the Prahalad and Hammond’s influential Companies Act, 2013 and its mandatory work on ‘Bottom of the Pyramid’ CSR clause will affect the profitability

16 of firms by placing an unnecessarily correlation between CSR and profit, large burden on them, studies have namely that the chance of higher CSR shown a positive and incremental spending increase as the company relationship between community expands. Smaller companies are development/donation expenditure, less likely to design and execute and profit after tax. CSR expenditure strategic CSR, instead opting for builds brand image and value in the traditional philanthropy and community opinions of customers, suppliers development activities such as and the government. Following a donations to local organizations or global trend, companies strategically setting up schools for employees’ differentiate their products and services children. It is important to note though, from those of their rivals by explicitly that CSR initiatives, which are closely associating them with a certain social linked to the company’s business goals or environmental cause. Companies and can be defined as ‘strategic CSR’ involved in some kind of environment ultimately have higher payoffs in the pollution or extraction (oil, mining, etc) long-run, and this kind of CSR assists are aware that implementing targeted with product differentiation in the CSR initiatives help in avoiding protest marketplace, which in turn increases movements and future governmental profits. regulations. This reduces uncertainties and increases the stability and returns Overall, however, there is a discernible of the company. trend amongst companies – big and small - to move towards strategic CSR, According to the Business rather than pure philanthropy inspired Responsibility Survey India 2013 (GIZ, projects. CSR is steadily moving from IICA, Ministry of Corporate Affairs), institutional building (educational, approximately 90% of the top 200 research and cultural) towards more companies in India identify CSR or sustainable community development BR as a source of competitiveness projects and goal-oriented investments or growth. This indicates that the that are linked to the business companies as either a social license to objectives. Within this framework, operate, or a potential opportunity for where CSR expenditure is directly sustainable and inclusive innovations, linked to increased profitability in the or both perceive CSR or BR. long run, it is appropriate to inject the idea of supporting social enterprises Another finding shows a positive as part of CSR initiatives. Not only will

17 this exponentially improve brand equity, customers, suppliers and communities, it will also open up a space of value- and be able to adapt to rapidly changing based partnerships, where “socents” contexts and circumstances of need, (Contemporarily, a substitute term for regulations and societal shifts. social enterprises or social business for larger good) are able to work closely Indian companies are steadily with companies, and adopt sound crossing borders and becoming business strategies as a result. global players. With opportunity comes risk, and navigating these foreign contexts requires adaptability 2.2 The Future of CSR in India and acuity with technology and fast moving information flows, but also The new ‘Make in India’ campaign being the requisite acknowledgement of the promoted by the current government fact that reputation, responsibility and has shifted focus from services to risk are increasingly interconnected manufacturing, which implies several in today’s world. Hence, firms that are things: as manufacturing companies going global will be under compulsion require larger investments, they are to incorporate responsible business more likely to fall in the mandatory CSR practices for sheer survival in an bracket and therefore there will be more increasingly demanding and complex funds available; as exported goods consumer environment. will reach international markets, there will be a greater stress on responsible Almost all companies have procedures business in the form of social and in place to identify and manage environmental safeguards and corporate risks with ‘environment’ being sustainable supply chains. As these the most considered factor (91%of the processes evolve, the ecosystem of top 200 companies) among others. CSR will similarly be enhanced, leading There is a direct co-relation between risk to increased requirements for niche assessment and regulation in certain talent in the CSR space, and a support areas. For instance, ‘environment’ is system for improved disclosure. In- one of the critical areas for sectors such house and consultant CSR experts will as metals and mining, oil exploration, require not just knowledge and skill, cements, and petrochemicals. Human but insights into stakeholder groups, rights, supply chain, and corruption

18 are poorly regulated areas in India 2.3 Projected Business and therefore currently rank lower Responsibility Patterns by 2020 as potential risk areas to companies. In the future, these may pose higher It is optimistically predicted that not too risk and will need to be addressed by far in the future, smoothly functioning, companies. effective and ethically run businesses will compete with the best social The way information and technology enterprises and most remarkable public works today, brands can no longer sector organizations to be at the top of go about their business without the the social impact spectrum. Traditional succinct approval and support of their social enterprises will no longer be consumers. Digital connectivity, the able to claim they are superior to other plethora of data on the web, the potency businesses just because of their social of the possible ‘viral’ nature of any kind mission or legal structure. Instead, ordinary businesses are projected to of information, has the power to make operate in such a way that they deliver or break. In this context, consumers enormous social good for minimum can be persuaded to support or disown financial input and inefficiently run, . CSR will therefore have to ineffective social enterprises will find be more about the genuine desire to be they are judged to be delivering limited a part of keeping the world alive, and its or even negative social value. Many people dignified. It will be more about private businesses will fall within the impact, than activity. It will deal more broad definition of social enterprise with connecting causes to brands, by 2020 – delivering social value and than blindly pursuing profits. However, reinvesting some of their profits for the causes will need to be thoroughly social purpose. vetted and understood; otherwise, they may remain mere ad campaigns. • By 2020, an increasing number Essentially, companies will need to of private sector businesses will evolve into value-based entities, who have to demonstrate their social integrate sound ethics into all their CSR credentials, and many of them will campaigns. In order to do this, they fare better at this than traditional will need to innovate, transform and social enterprises, perhaps engage with all stakeholders, especially because of the former’s historical the communities they stand most to association with maintaining a benefit. competitive edge.

19 • Small and medium-sized from the current scenario, where the enterprises (SMEs) will seek ways Indian CSR regulations already require to generate customer loyalty, or companies to furnish these reports simply to give something back to annually. and engage meaningfully with their communities. • Traditional social enterprises 2.4 Conclusion may find it difficult to preserve their social innovation and client In the Indian context, it is not only the centered approach within the tight policy transition that is taking place restrictions of service delivery in making business accountable for contracts. The for-profit companies social development, but essentially will compete to deliver the same business is raising up to manifest its services for lower and lower cost. social impact by aligning business The debate will shift from defining and social goals in a unique fusion. social enterprise to measuring and There is a clear shift from traditional comparing the actual social impact approaches to impact driven business created by different companies on approach. Such a transition will not the spectrum. only deploy professional and scientific tools, but will also have to build Further, by 2020, social impact processes and systems to support measurement will not only be a delivery and manage impact. Bala common practice amongst social Vikasa International Center provides enterprises, charities and associations; tools and process capabilities in both public and for-profit organizations facilitating change with business and will be expected to do the same. “Social communities. impact measurement and reporting will become increasingly sophisticated with the result that all organizations will be judged on a ‘Social Impact Spectrum’, affecting the way buying, giving and investing decisions are made. In fact, by 2020 many organizations will produce an annual impact statement covering social, environmental and economic impact.” This is a natural progression

20 CHAPTER Social Enterprise in India– An Overview

“Social entrepreneurs are the essential corrective force. They are sys- tem-changing entrepreneurs and from deep within them (and therefore their 3 work) are committed to the good of all. Whenever the world needs to turn in a better direction, they emerge to ensure that it does so.” -Drayton, 2013

3.1 What is Social Enterprise? revenue that exists would be ploughed back into the business, toward For UNDP and EMES, social enterprises improving the quality of the product or may be defined as “private, autonomous, scaling up the enterprise. entrepreneurial organizations providing goods or services with an explicit aim to He does not approve of the hypothesis benefit the community. They are owned of a social business model that or managed by a group of citizens, and distributes dividends for shareholders the material interest of capital investors because “profit-seeking companies is subject to limits. Social enterprises with a strong CSR commitment try to place a high value on their autonomy make their pursuit of profit consistent and on economic risk-taking related with social considerations. However, to ongoing socioeconomic activity. their commitment to making a profit Social enterprises are either legally inevitably limits their contributions to prohibited from distributing profits or social causes. By contrast a social are structured to exclude profit as the business is designed exclusively to main goal” deliver social value”.

Yunus (2008), who interprets the social Furthermore, Yunus (2008), developed business as one that operates as an a second model of the social business: enterprise, selling products and services a profit-making company that is owned to customers, give a similar definition by poor people. In this case, even if of social entrepreneurship. The the business prioritizes profit, it can difference between social businesses still be considered a social business and traditional enterprises is that in the because it allows for the improvement former, there are no dividends for the of livelihoods and social status of low- shareholders. Investors who decide to income groups. In this bracket, there set up a social business enterprise can also exists ‘work integration social take back the amount of money that enterprises’ (WISEs) whose intention they invested, after which any surplus is to integrate excluded/marginalized

21 members into work and society Marti, 2006) through a productive activity. A recent • Alleviate the suffering of the target successful example is The Specialists, group (Martin and Osberg, 2007) a for-profit consultancy firm from • Benefit society with an emphasis Denmark that almost exclusively hires on marginalized people and the autistic people. poor (Schwab Foundation, 2011)

Ashoka, the largest network of social • Create and distribute new social entrepreneurs globally, defines social value (Peredo and McLean, 2006; enterprise as disruptive innovation in Perrini and Vurro, 2006) resolving everyday social problems with new services and products in an Bala Vikasa International Center entrepreneurial way. It is the impact interprets a social enterprise as on local communities that matter, a business that stands to create without prioritizing income generation. three essential outcomes: one being Intellecap, in addition to identifying sustainability; the second being the social enterprises as businesses creation of measurable social impact; with the goal of generating profit the third is an ability to scale. Therefore, alongside the mission of social impact, whether the enterprise is profit-oriented additionally bring in the element of the or non-profit-oriented, it should aspire BoP, stating that business operations for any or all of these three factors. should directly improve the lives and livelihoods of those residing at the BoP. Also, they have a ‘critical needs sector’ 3.2 The Difference between label, which recognizes agriculture, Social Entrepreneurship education, energy, healthcare, water/ and CSR sanitation and livelihood development as key sectors of operations that should Social enterprises can also be divided be targeted by social businesses. into two typologies on the basis of what they produce. The first category To sum up, social entrepreneurship is a includes social businesses, which process that aims to: have developed an innovative social or environmental service or product. • Address significant/alleviate social For example, new technologies for problems/needs (Light, 2006; Mair alternative energy sources, water- and Marti, 2006; Korosec and saving irrigation techniques, or Berman, 2006) creating mobile education services. • Catalyze (Mair and As with Intellecap’s definition of social

22 enterprises above, this category also The difference between CSR and social includes the design and development entrepreneurship is the core objective of products and services, which benefit of the organization, and whether this the poorest socioeconomic groups. is situated social goals or not. In a CSR The second type of social businesses approach these goals are added to the are those that replace existing products overall corporate objectives in different and services with more responsible levels, while for social enterprises, they choices, such as growing organic are the primary objective. An enterprise produce, or offering legitimate and safe should therefore only be defined as working conditions. social if it would accept a significant reduction in its profits in pursuit of its social goals. In this case, a for-profit This perspective of social company would not qualify, as it might entrepreneurship might get confusing, let go of its social aims if its profits as it closely resembles some definitions were threatened. Social enterprises of corporate social responsibility. In exist to serve a direct social purpose, itself, developing a product for the something that not every business BOP market together with an NGO or can do. Manufacturing companies ensuring fair working conditions do may adopt more environmentally not entitle a company to call itself a friendly practices through their CSR social enterprise, as long as its core approaches, but their core objective business is not sustained around a would not be to achieve social impact. social mission. That said, there is no If however, the manufacturing company clear line between where CSR stops employs only marginalized people, and social entrepreneurship starts. such as tribal minorities, it would then “CSR approaches range from it simply being an add-on function (such as be considered a social enterprise. financially supporting an NGO), to taking on a ‘cause branding’ strategy, To conclude, social enterprise consists integrating CSR more into the core of of three distinctive dimensions when it policy (‘strategic CSR’) or adopting a comes to aligning with business. sustainable mission further in their core practice (‘shared value creation’). a) Social enterprise will be a medium Whatever the objective, the motivation through which business connects to engage in these activities is the with social issue or challenge expectation that CSR will ultimately b) Social enterprise exists to create make the enterprise more financially positive impact for community, valuable, increasing its productivity and business and environment, being expanding its markets.” sustainable

23 c) Social enterprise has to be scalable. India, with the new CSR Act and a growing awareness of this duty, it is It is fair to assume that the term social hoped that more companies adopt a entrepreneurship is used to refer to CSE approach rather than simply a CSR the growing number of organizations approach. that have created models for efficiently meeting basic human needs that the “….the work of creating new markets existing markets and institutions have in places where markets have failed failed to fulfill. Social entrepreneurship and aid has fallen short is long, messy, brings together the resourcefulness and difficult. The road to large scale in of traditional entrepreneurship with underserved or nonexistent markets the objective to increase well-being where people earn only a few dollars of previously underprivileged or a day requires not only capital, but marginalized communities. Whereas also leadership, management support, corporate social entrepreneurship and strong systems that help support (CSE) is this same process developed growing companies over time. All of by an existing traditional company, this takes a sort of hard-edged patience CSE represents an evolution and an and a gritty determination to do what is advanced interpretation of CSR. In right, not what is easy.”

Figure 3.1 Social enterprises blur traditional boundaries between for-profit and not for-profit Organizations categorized by PURPOSE Maximize Financial benefit to owners Maximize social benefit

Social earned For-profit CSR, ESG Enterprise Sustainability Business Methods Entrepreneurship Public-Private Partnership Privatization etc.

Non-profit/Govt Contributed Organizations Categorized by INCOME by Categorized Organizations

Source: Adopted from Heerad Sabati, “The Emerging Fourth Sector” The Aspian Institute 2009

24 The interesting thing about social a social business model when it starts entrepreneurship, when compared up, but can integrate this into their to other more traditional forms of structure over time. The important enterprise, CSR or NGOs, is that a point is that social benefit is at the heart social enterprise has the power not of the operations and is in balance with only to provide a solution to a societal the business model. Internationally, problem, but also to continue to do there are multiple experiments in this so irrespective of grant funding or the space linking CSR, entrepreneurship limitations of CSR. If it can tread the and livelihood, including supporting tightrope of mission and profit, a social existing/traditional community enterprise can become a powerful businesses as CSR (e.g. Indian model to combat systemic issues and public sector companies like Oil and problems in the local and global arena. Natural Gas [ONGC]trying to promote local craft); leveraging social innovations as an extension 3.3 The Social Business Model of the company’s business strategy Framework (e.g. U.S. company Patagonia using recycled denim for their textile We are already observing changing products);and linking social innovation consumer patterns in relation to with entrepreneurship, while keeping the global economy, and how the and treating them distinct from millennial generation in particular is core businesses (e.g. Tata Steel / demonstrating changing expectations Jindal Steel and Power’s effort to with respect to how businesses operate, empower local communities through how they source their operations, entrepreneurship).Each of the above their modes of conduct and ethical collaborations has a potential to change considerations. They are more likely social landscapes in the communities, to affiliate themselves with brands and can act as a potent catalyst for that support causes and this will be an change. even more important factor in making purchasing decisions. To capitalize on As defined by Springer in ‘Corporate this, business will have to move forward Social Entrepreneurship and New by imbibing social concerns into their Business Models’, the social business profit-making fabric. model framework is composed of the following seven areas, which include 13 A traditional company need not adopt components:

25 • Offer, which is characterized by the to efficiently offer and distribute value proposition that is the benefit value; offered by the company through products and services; • Surplus, which describes how the company manages the revenue • Market, which includes the surplus. (Does it include dividends market segment, the segments of for shareholders?); customers that a company wants to reach; the relationship, which • Economic profit equation, which describes the communication includes the costs structure and strategy and type of connection revenue model, and; that the company establishes with its customers; and the distribution, • Social value equation, which which describes the various describes the way a company channels that a company uses to generates social benefit (in terms reach its customers; of risks and benefits) .

• Governance, which relates to the A traditional company that wants to governance model of the company access the low-income market, using and includes the set of processes or a corporate social entrepreneurship laws that manage the relationship approach, can do so strategically in the between stakeholders as well as following ways: the goals for which the corporation • Build a subsidiary, internal spin-off is governed; company by forming a strategic social business unit • Ecosystem, which includes the value chain, which refers to the • Alter the mission of the company by chain of activities for a firm adding the social value, i.e., move operating in a specific industry, and from a market-based mission to a the competences, which outline socially based mission, or; the specific range of proficiency • Build an external spin-off company (skill, knowledge, or ability) of a and determine which legal form to company, and the partner network, use (, for-profit, non- which refers to the network of profit) and how to manage the agreements with other surplus (dividends or no dividends organizations that are necessary for shareholders).

26 Table 3.1 The Social Business Model Framework

ECONOMIC PROFIT EQUATION

Costs Structure Revenue model

ECO-SYSTEM SURPLUS MARKET Dividends Management Value Chain Market Segment

OFFER Value Competence Proposition Relationship

GOVERNANCE Partner network Distribution Governance model

SOCIAL VALUE EQUATION

Risks Benefits

Source: “Social Innovation and New Business Models Create Shared Value in low income markets” – Michelin, L.

Companies, which take up a CSE to communities and together, map approach, can be instrumental in out existing social innovations with identifying the social needs of their community requirements for scaling stakeholders, or the communities in up or increasing effectiveness of the which they operate. These needs can product/service. Following this, the be transformed into opportunities as company could facilitate a community- part of their CSR scoping process. It owned social business leveraging provides them a platform to reach out these innovations to improve quality

27 of life. Such incubation gives the social For traditional businesses to adopt business access to corporate expertise, social innovation as part of their systems and processes, which infinitely strategic CSE there needs to be a fortify the community social business, platform for collaboration, where putting them on a path of growth and stakeholders and professionals from self-reliance. diverse fields can come together for effective implementation. For social innovation to scale, consensus on The fundamental purpose of CSE is to multi-disciplinary approach is required. accelerate companies’ organizational These infrastructural setbacks are transformations into more powerful one reason why it might be difficult generators of societal betterment. for companies to adopt CSE, and Bala CSE is not another form of CSR but Vikasa International Center aims to fill rather is a process for invigorating and that gap, by providing the platform and advancing the development of CSR. the multidisciplinary approach.

Figure 3.2 Vikasa International Center Approach to Change through Social Enterprise

Vikasa International Center Approach to change

Sustainable Community Conjunction of Sustainable Business Community & Business Just & equitable society Positive impact & sustainable business Ability to make impact & Social Enterprise change Equable social branding & impact Sustainable Impact Scalable Innovative & creative ideas Improve social performance – visibility Community resource & potentials Tested prototype Socially responsible business Social, environmental issues & • Incubate Business operations and challenge • Consent sustainability challenges • Ideation

28 3.4 Observations on Social development have also experienced Enterprise Landscape in growth. Nearly half of the enterprises India had been operational for about two years. Most socents are headquartered 3.4.1 Summary of Intellecap’s 2012 in India’s metropolises in the southern Report on Social Enterprise and western regions, but operate Landscape in India across the country including areas with high poverty levels and challenging General background business environments. Half of the socents surveyed make less than INR The industry launched in 2005-6 and 50 lakh in revenue annually, and 64% has expanded rapidly since then. Sector-wise, energy and agriculture have less than 20 employees, but there have been the quickest to grow in is a strong positive correlation between terms of the number of enterprises age and size. Not all these enterprises working in these areas, but health, are able to grow fast, but have made it water/sanitation and livelihood so that expansion is possible.

Figure 3.3 Growth Strategies of Social Enterprises in India

Source: Adopted from Intellecap – “A Study of Indian Social Enterprise Landscape”

29 Relationship with the BoP for them to build and sustain strong business models for underdeveloped Most social enterprises target the BoP markets, and points to challenges they as consumers of critical products face in garnering seed capital. In fact, and services rather than producers, capital seems to be an issue constantly but some do incorporate small-scale faced by socents, no matter at what producers into their supply chains stage they are. Equity is in highest and help to improve their productivity demand, but there is expressed desire and quality of outputs and linkages. for grants and debt. Most start-ups rely Primary education, vocational training, on grants from foundations, incubators, maternal healthcare, clean water and fellowships and competitions, or from sanitation facilities, and solar lighting personal funds collected from family are some examples of goods/services and friends. Because the grant amounts being provided to BoP consumers. are usually small, entrepreneurs need to devote energy and time into securing Social motives vs. profit motives several such grants while also refining their business model. Approximately two-thirds of socents consider social motives as important if The problem seems to not be a limited not more important than profit motives, supply of capital in the market, but showing that entrepreneurs in this socents’ limited access to it, either space are using business as a tool for because they do not meet the investors social impact rather than perceiving prerequisites or because their business social impact as a positive result that models are not yet ‘investor ready’. There appears to be a definitive gap in will result naturally from their business. the start-up phase funding scenario. It has been noted, however, that most Angel investors could potentially later-stage investors prefer the profit- address this gap, but India’s nascent first model, ultimately believing that the angel investment community looks first social outcomes will be enhanced in at the profit potential and typically likes the long run. to see operations on the ground with an annual turnover of INR30-40 lakh Capital and turnover before they will invest.

Majority of the socents examined have A new development is that commercial a modest turnover, primarily because venture capital and private equity funds of their youth. The relatively smaller are beginning to venture into investing size of younger socents hints at the in pilot and growth-stage enterprises, probable longer timeframe needed especially the health care sector.

30 Figure 3.4 Major Constraints to Financing

Source: Adopted from Intellecap – “A Study of Indian Social Enterprise Landscape” Sustainability, scale and impact were financially sustainable. A quarter Human resource identification and of the socents surveyed reported retention, raising capital and building being profitable, while another 28% the value chain continue to be the most said they were breaking even.Despite significant barriers to sustainability the numerous challenges they face, and scale faced by socents, especially there is no doubt that they are making for those in the pilot phase. Despite all an impact in India. Almost one-third these obstacles, more than half of the are serving more than 50,000 BoP surveyed enterprises declared that they beneficiaries annually.

31 Figure 3.5 Legal Structures of Social Enterprises in India

Source: Adopted from Intellecap – “A Study of Indian Social Enterprise Landscape”

Growth of hybrid models 3.4.2 Summary of ADB’s 2012 Report on Social Enterprise The hybrid model is growing in Landscape in India popularity amongst social enterprises. It consists of a for-profit entity that The Asian Development Bank published looks after core business operations another comprehensive report on while a sister the social enterprise landscape in provides support services that benefit 2012, which profiled 120 Indian social the business and community. This enterprises. Some of the findings model makes it easier to fundraise, as presented in that report are highlighted investors are wary about grants and below. equity being channeled into the same entity. There had ostensibly been a recent

32 spike in the growth of capital available for affordable eye care. However, the to socents, and the number of socents growing trend is for many non-profit seeking capital at various growth SEs to evolve into for-profit models stages was rapidly increasing. The as these are better poised to secure demonstrated success of existing financing and scale over time. socents was fueling the enthusiasm of development finance institutions Resonating with Intellecap’ s report, and private foundations regarding the an assessment of the SE financing role of social enterprises in alleviating landscape indicated that the key poverty. sources of capital for SEs were non- institutional debt, equity (mostly self- The report acknowledges however, finance), institutional debt, and grants. the same gap in impact investment as Traditional private equity investments was discovered through Intellecap’s in SEs were rare, and largely restricted research outlined in the section above. to the more developed sectors such as It also states that very few funds have , health, and agribusiness. managed successful exits from the Access to institutional debt was also investments, but that as business very limited. This could be ascribed models evolve and mature, this to the fact that the business models situation is likely to change. were still being refined, the market was still being developed and there was Different types of social enterprise limited data available to understand models and how they raise funds the space. However, both access to equity financing and institutional debt Three-fifths of all SEs leveraged were expected to improve over the next innovative business models with few years, as returns on capital and for-profit entities, which include social impact are being increasingly collective ownership structures such demonstrated. as cooperatives. Waste Ventures is one such organization that “incubates Emerging Policy framework solid waste management companies owned and operated by waste pickers.” A special task force commissioned by About one-fifth of SEs adopted not-for- the Prime Minister of India provided profit legal models, such as Arvind Eye a set of recommendations to create Care Hospitals, which is registered as a an enabling environment for MSMEs. trust, and sustained by charging users They suggested that the task of the

33 government should spend around Affordable and accessible healthcare $1.1 billion over the next 3 to 5 years initiatives utilize innovative operating on augmenting infrastructure and models, and the flow of equity to this technological support for MSMEs; of sector is on the rise, as the sector is these funds, around 20%should be showing rapid growth and returns. set aside for incubation centers within Given the massive potential of demand reputable educational institutions. for this sector, the affordable healthcare Additionally, the Securities and market and number of enterprises is Exchange Board of India (SEBI), the also expected to expand greatly. country’s financial market regulator, floated a policy paper proposing that ‘Social Venture Funds’ should be Vaatsalya Healthcare separately recognized and monitored, • Founded in 2004 by Dr. Ashwin as these funds were for investors Naik who practiced across the US seeking “muted” returns in their for over 10 years and Dr. Veerendra investments in return for social gains. Hiremath who worked with the Hinduja Group and Medicom in 3.5 Sectors of Operations Malaysia. and Profiles of Social • Operates the largest network of Enterprises hospitals providing affordably primary and secondary care in 3.5.1 Health Tier II and III towns; present in Karnataka and Andhra Pradesh Lower income households in India with 17 hospitals spend approximately $6.2 billion annually; the main reason behind such • Quality services; they recruit, train extraordinarily high expenditure is and retain their own healthcare inadequate public health infrastructure personnel and limited access to existing facilities. • Low operating cost by centralized Some 70% of medium-to-large hospitals purchase of equipment and are located in big towns or cities. There consumables. is therefore a tremendous need for enterprises, which provide affordable • Serves an average of 280,000 medical services, and enable access patients per annum, which is to these facilities for the poorest expected to increase as new segments of the population who live in hospitals are being opened. villages.

34 • Has won several awards including India has more than 25 developers Inaugural Porter Prize in India for involved in providing affordable housing Value Based Healthcare in 2013 that offer apartments costing between and Frost and Sullivan Award for $6,600–$15,500.These developers Healthcare Excellence in 2010. create economic value by minimizing construction cost and completion time Forus Healthcare through integrative technical solutions • Flagship product is 3nethra, a and process innovations. The main medical device that can detect challenge in this sector is procuring five ailments that cause 80% of all land, which is strategically situated, as blindness. the location determines the uptake of housing units. • 3nethra can be operated by a minimally trained technician Value & Budget Housing Corporation and can be deployed in remote (VBHC) locations for a fraction of the cost of other devices. • VBHC intends to develop one • More than 250,000 people have million homes across 10 cities been screened in rural areas in India for preventable eye diseases. • Launched Vaibhava, a construction project 30 km from central • 3nethra is being used in 14 Bangalore. The apartments countries, and more than 6 million are available in a variety of eyes have been screened globally. configurations– a studio apartment is priced at Rs. 7.7 lakh and there 3.5.2 Affordable Housing are one, two and three BHK flats available for sale at affordable The gap in the urban housing market rates. has varied estimates, but ranges • High quality construction, with between 18.8 – 25 million units, necessary amenities such as almost all of which are accounted for a primary healthcare center, a by the working poor .The government school, a shopping complex, and is expected to meet these needs but community center. despite schemes in place, it is unable to satisfy the incredibly high (and growing) • With projects in Chennai, Mumbai, demand for affordable housing. Today, and NCR, VBHC has attracted Rs.

35 100 crore from the Carlyle Group procurement, storage, transport, in August 2011. Previous investors processing and retailing - while include HDFC and India Financial ensuring economic profits for all value Inclusion Fund. chain actors. Field Fresh Food, Mother Earth, and Star Agri are SEs operating in the post-harvest space. Enterprises 3.5.3 Agriculture also seek to incorporate small-scale farmers into their own supply chains, The major setback in the agricultural such that the economies of scale sector is chronic inefficiencies that ensure better profits for the farmers. exist in the current value chains. Cold storage and food processing are Socents, which operate in this space, other elements within the post-harvest tackle these inefficiencies and attempt value chain that are gaining popularity to eliminate them, by supporting small- with investors. scale farmers in the pre-harvest, post- harvest and dairy value chains. SEs High levels of market regulation pose operating in the pre-harvest category challenges to socents working in attempt to increase agricultural yield in the post-harvest phase, and these an economically and environmentally operations typically require significant sustainable manner, by forming farmer’s amounts of capital. The government collectives, distributing important has initiated capital subsidy schemes information, supplying farm equipment to promote investment in this space. and enabling access to quality inputs such as seeds and fertilizers. 3.5.4 Education Companies such as Kisan Kraft Machine Tools are trying to address Earlier in this publication, the concept the growing trends of mechanization of the demographic dividend was in agriculture by supplying all kinds of mentioned as one of India’s strong farming equipment. Organic farming is points. However, the education sector is also gaining traction, and increasingly struggling to educate the largest young socents are beginning to teach population in the world – 542 million ecologically sound farming practices under 24 years old. The government’s while assisting farmers in getting per capita public expenditure on organic certification for their produce. education as a percentage of GDP is Enterprises in the post-harvest space one of the lowest in the world. Although attempt to eliminate supply chain primary education is now free and inefficiencies – through improving

36 accessible to all, the standards of Project’; presently reaches over education remain low with high teacher 4,600 children through these two absenteeism, insufficient infrastructure models. and corruption. This has led to a • Awards for Ms. Mistri- Ashoka demand amongst poor households Fellow (2001), Global Leader for for affordable private education; it is Tomorrow at the World Economic estimated that there are around 73,000 Forum (2002) and Asia Society 21 such affordable schools across the Leader (2006). country.

3.5.5 Energy Since formal schools require substantial access to capital, this poses Much of rural India is still not electrified. constraints for SEs. In order to attract Approximately 75 million households equity capital, many affordable schools do not have access to electricity, and operate a split enterprise, in which the they depend on kerosene for lighting school is a not-for-profit entity, but the and biomass or wood for cooking school management company is a for- which cause several environmental and profit entity; equity investments take health problems. Despite India being place in the for-profit entity. Still other endowed with massive renewable schools depend on debt capital for energy resources, the access to this scale. energy remains one of the lowest in the world. There is also a need for Akanksha Foundation additional units of power capacity to • Based in Maharashtra, with offices satisfy its growing energy demand in the US, the UK and Canada.15 and improved distribution systems to centers and 15 schools in Mumbai minimize transmission losses. and Pune. The scope for social enterprises in this • Non-profit with the vision to equip market is immense and offers endless all students with the education, opportunities for product innovations. skills and character they need to SEs enter this space with the objective lead empowered lives. of enabling access to environmentally • Addresses non-formal education friendly, affordable energy. They needs through the Akanksha center primarily focus on off-grid/distributable and formal education by initiating renewable energy (especially solar) and school reform through ‘The School waste-to-energy projects.

37 Kiran Energy Solar Power cent to 20 per cent, show the latest Census data. Socents in this space • KESP is Mumbai-based grid- broadly operate in two categories: connected solar energy producer. those that promote livelihoods and • Building a portfolio of grid those that facilitate skill development. connected solar photovoltaic Livelihood promotion projects primarily power plants within high insolation include organizing the informal non- zones in India. farm/farm activities sector and facilitating market linkages. Service- • Has set up a 25MW solar plant based enterprises train and employ in Gujarat and Rajasthan, and a rural youth in programs, which include 50MW plant. business process outsourcing and • Capacity may go to 25 GW by 2020 courier delivery. if the government’s goal to produce 3 per cent of power from solar is Skill development activities mainly fulfilled. are engaged with enhancing the employability of unemployed youth • KESP optimistic about its through structured training courses. commercial viability. These include language training, Earthen Life job specific training, soft skills, and technical skills. • Provides a sustainable and a decentralized waste management Samasource solution by converting organic waste to renewable energy at • Non-profit organization founded source in 2008 that utilizes a unique and inclusive micro-work model that • Integrates the waste pickers and provides dignified employment in other low-income communities in the digital economy by breaking the value chain. down small computer-based tasks 3.5.6 Livelihoods Promotion from larger projects. • Headquartered at San Fransisco, As the population of India’s youth (aged California and provides employment 15-24 years) more-than-doubled during with in-country partners in Haiti, 2001-2011, the unemployment rate India, , Pakistan, South Africa among this section rose from 17.6 per and Uganda. Has support from

38 individual donors and philanthropic growth, the demand for safe drinking organizations including The water is growing and the need for MasterCard Foundation, The widespread sanitation facilities is Rockefeller Foundation, Ford urgent, for rampant disease related Foundation, the U.S. Department to waterborne diseases and open of State, Cisco Foundation, eBay defecation kills millions each year. Foundation and Google.org. Socents operating in the water sector Desi crew fall broadly into three categories, which address inefficiencies in the • For-profit organization employing water infrastructure: water harvesting over 300 people that are focused and storage, water supply and on creating knowledge-based distribution, and piping and waste livelihood opportunities in small management. Areas of SE activity towns and rural areas. are mainly comprised of rainwater harvesting, small-scale water networks, • Initiated in 2005 in Tamil Nadu as community water treatment, and an incubated project at the Rural point-of-use filtration. These projects Technology Business Incubator are undertaken in close collaboration (RTBI) of IIT-Madras with the beneficiary communities. • It establishes delivery centers in Most socents that launch into this rural India and services clients space need very high amounts of worldwide. Services of DesiCrew capital and only a few have managed include Data Management, Digital to successfully scale, and generate Supply Chain and Customer revenue (one example of this is the Bala Experience Management Vikasa Community Water Purification . social enterprise detailed below). In the 3.5.7 Water & Sanitation future, more innovative and profitable models will have to be developed. Only a tiny percentage of urban households have access to clean, Bala Vikasa Community Water piped drinking water and more than Purification Project half the households in rural and urban areas have no access to any kind of Bala Vikasa has innovated a unique sanitation infrastructure. With prolific community owned and operated social urbanization and rapid population enterprise to address access to safe

39 and extremely affordable drinking a team of community leaders; enabling water on a sustainable, scalable the community to raise funds and basis. BalaVikasa’s safe water social resources; implementing monitoring enterprise uses an innovative blend mechanisms to ensure sustainability. of social, technological and delivery Each Water Purification Plant is self- mechanisms to break the cycle of unsafe reliant and community managed. drinking water among low income households. Today we cater to over By pairing need and scope in areas 1.5 million poor households at the BoP such as product design, delivery, and from across 675 villages. Bala Vikasa market promotion with local knowledge has accomplished this by providing and networking, Bala Vikasa is able to necessary technology and equipment; maximize both scale and impact by giving training in project planning, having a six-step process in place. implementation and maintenance for

Table 3.2 Six Step Process of Bala Vikasa Community based Water Purification Enterprises

Steps Process Community and Resources Delivery & Technology

Step 1 Feasibility Asses community needs, water Identification of most Assessment quality and quantity need Community participation and Step 2 Organize & Functional committee Motivate organizing committee

Step 3 Build capacities Trainings for committee Knowledge and skills

Volume, quality, efficiency and Capacity and Step 4 Design economical appropriate technology 20% of unit cost community Community Step 5 Raise resources contributes, identifies space contribution of money (room) and bore well source and place

Step 6 Deliver Availability, Quality, Price(Rs. 2-3 ATW 24/7 per 20 lts)

Scale Cost of 500 lph bellow 2.00 lacks Federation with 675 enterprises

40 3.6 Conclusion models to deliver products and services in a cost effective manner This section has attempted to provide a • Usage of appropriate technology working definition of social enterprises, in design, production, and service summarized through the lens of Bala delivery to improve efficiency Vikasa International Center as entities, which aspire for three outcomes: • Consumer ability to pay via variable sustainability, measurable social pricing or financing impact and scale. Although there • Aggregation of multiple suppliers, is an apparent distinction between especially in rural areas social enterprises and corporate social responsibility, the emerging concept of ‘corporate social entrepreneurship’ However, despite the relative success encompasses the ethos of social of certain socents, many others are still enterprises within the corporate fabric, struggling at various stages of growth and outlines how companies can adopt to access the requisite capital needed social business frameworks into their to properly launch and sustain their structures and processes. business, while refining their models for greater efficiency. efforts Through collating research on the consume crucial time and energy that social enterprise landscape in India and could be spent on advancing their social profiling certain buoyant organizations missions and the socents’ continued in various sectors, some observations ability to provide these important can be made that may point to reasons value-driven services and products is for success: dependent on erratic capital availability. Most socents cannot fund themselves entirely through sales or investment, • Customization of product and and are not profitable enough to access service to meet the needs of target financial markets. While enterprises are market vocal and clear about their need for • High product and service quality equity, relatively few are able to tap into angel or institutional funds. There is a • An asset-light infrastructure to clear gap in the funding landscape, and minimize capital expenditure and the thesis of this publication proposes maintenance costs that this source of equity can come from • Innovative outreach or distribution earmarked CSR funds of companies

41 who are seeking to channel these funds into fruitful and socially relevant ventures. Bala Vikasa International Center provides a juncture for CSR and social enterprises to collaborate for a more prosperous and equitable society.

42 CHAPTER FUSION OF BUSINESS RESPONSIBILITY AND SOCIAL ENTERPRISES 4

What is becoming increasingly 4.1 The Growing Importance clear is that there are multiple ways of Sustainability on the Global that business can support global Business Agenda development and sustainability, and a diversity of mechanisms through which There are several forces affecting the speed and direction of global they can engage with social enterprises: capitalism. As mentioned previously, through funding, but also through other consumer trends are changing, kinds of support (employee volunteer especially the perceptions and buying programs, management consultancy), habits of the ‘millennials’ being more and through incorporating the goods attuned to responsible, ethical choices. and services they provide into core There will therefore be millions (or even business operations. They can also billions) of consumers that shall be set up social enterprises as a separate exerting ever more influence over the unit of their company, providing decisions that corporations make. BoP consumers with healthcare, In turn, corporations worldwide are education, affordable housing and grappling with the challenge of meeting renewable energy through for-profit the needs of the present generation models. Furthermore, companies can without compromising the ability strengthen the entrepreneurial capital of the next generation to meet their in the areas where they work, through own needs. They are increasingly capacity building and providing seed required to take responsibility and be capital. The returns might not be accountable for the ways in which their immediate or necessarily financially operations impact communities and profitable, but the impact would be the natural environment. Guidelines genuine and set the foundations for for sustainability have been developed and adherence, together with progress. reporting of measures taken to ensure

43 sustainability, is slowly becoming the 4.2 Framework for the norm. A corporation can no longer Corporate Contribution to work in isolation from the stakeholders Development impacted by its actions, and although many businesses do want to contribute Business working with social enterprise is not a silver bullet, but it can be the right to a better world, it is not always easy to path. There are multiple ways in which translate this wish into action. the private sector can help achieve the internationally established Sustainable There is however little doubt that Development Goals (SDGs). Through business in the most powerful agent of inclusive business models and what is change on the global stage right now. being referred to as ‘creative capitalism’, Religious organizations, governments, corporates can mobilize their non-profits and other institutions all innovative technologies, processes and have a role to play, but none have skills to build collaborative alliances the resources to confront the set of with communities, stakeholders, social enterprises and non-profits. problems we face as a world today. The following are some of the ways The form of business itself is changing, these companies can contribute to morphing into more complex alliances sustainable development, as outlined and interlinked webs of relationships. in the IBLF-UNDP 2008 publication, Both large-scale companies and small ‘Business and the Millennium enterprises are operating in increasingly Development Goals: A Framework fluid environments where boundaries for Action’. The suggestions in this are fading fast, connectivity improving document remain pertinent today, for constantly and transparency inevitable. the achievement of the SDGs over the All this provides for the perfect next decade. laboratory for a fusion between CSR and 4.2.1 Providing affordable social enterprises. Businesses that look products and services. beyond corporate social responsibility

(CSR) and NGOs that are introducing Companies in the water, energy, credit, entrepreneurial values into their insurance, pharmaceutical, nutrition organizations are experimenting with and informational technology sectors the concept of social entrepreneurship can develop new products and services and moving towards each other. or increase access to existing offerings

44 for poor communities by expanding the improved the use of inputs, farming distribution networks and outreach. techniques, planning and commercial skills of 2800 small soybean farmers. • Utilities companies can participate The company managed to capture 9% in public-private partnerships to of the local cooking oil market in less increase access to clean water, than two years. Another example is energy and telecommunications. of Madagascar , which hires For instance, Endesa has been labor from one of the poorest regions trying to increase access to in the country to produce flooring electricity by allowing low-income and other furniture items for export. customers to exchange their Sustainability is ensured because recyclable waste for credits on bamboo grows back rapidly, and the their electricity accounts. use of this material reduces scope for • Energy companies can promote illegal logging in the tropical rainforests research and efforts to develop of Malagasy. renewable energy sources, especially in rural communities. 4.2.3 Invest in social entrepreneurs

• Construction companies can Being the main proposition of this provide affordable housing in urban publication, the potential of the centers. private sector to help socents grow is • Financial service companies can vastly underexplored, and yet these develop banking and insurance kinds of alliances have worked in the products and services, including past. For example, the Abdul Latif micro-credit and micro-insurance. Jameel Group, one of Toyota’s largest distributors, has collaborated with the 4.2.2 Operating on a small-scale, Grameen Foundation to establish the entrepreneurial basis. Grameen-Jameel network to support microfinance intermediaries in the The majority of the business sector region. In another instance, consists of small and medium sized SC Johnson has worked with social enterprises, and they should not be enterprise KickStart in Africa to source excluded from participating in the raw materials from small-scale farmers contribution to development. In Ghana, while distributing affordable irrigation for instance, 3K&A Industries took on technologies. a capacity-building project where they

45 4.2.4 Strengthening women’s products in small, affordable sachets economic capacity as to 70 million rural consumers. entrepreneurs, employees and producers. 4.2.5 SME Social Responsibility

One of BalaVikasa’s 10 Development With the introduction of the new Rules states that ‘Development is Companies Act, 2013, several small Women’, identifying that women’s and medium sized enterprises will be active participation in the development brought into the eligible bracket for process is vital for balanced and CSR spending. Their challenge will be equitable progress. Through ‘employing to implement impactful programs while more women and supporting workplace keeping their operational costs low. The diversity programs, or developing pooled resources of SMEs, who function business linkages or credit programs in a geographical cluster, as they affect with female entrepreneurs, companies the same community, can create a can develop technical and marketing sizeable CSR fund. Using already skills, strengthen negotiation and established associations and shared bargaining tactics, increase access to resources, they can come together to and influence over new technologies, design programs where they support build networks and business local small-scale entrepreneurs in the associations and identify new market areas they operate in. opportunities.’ By functioning as a single unit, Some illustrations of private sector their management and operational contributions in this context include expenditures are kept to a minimum. the Consortium of Central American A further benefit is that through Women’s Maya Nut Producers, which this collaborative method, they comprise six women’s community can undertake long-term projects, businesses from four Central American because they would not have to rely countries. The Consortium processes on a fluctuating performance, which and markets nutrition rainforest tree in turn results in unreliable annual BSR food, within the countries and for budget allocations. Investing in social export. Project Shakti, sponsored by entrepreneurs at the micro-level would Hindustan Lever, works with 15,000 be a good long-term initiative, which underprivileged women to reach their lead to better community relations and hygiene, personal care and nutritional fewer instances of community unrest.

46 4.3 New Models - BSR Cyient Foundation Promoting Social Enterprises Cyient Foundation is supporting an Innovation Center at LV Prasad 4.3.1 CSR-SE Alliances in India Eye Institute, with the vision to provide infrastructure to support Corporates in India are increasingly research, develop new practices, interested in tapping into the BoP tools and capabilities in the field of markets to sell their products as ophthalmology, To this end it has services, a profit-oriented goal that committed Rs.250,000,00 over a comes with the possibility of social period of five years. It also leverages impact. They are also beginning to work engineering capabilities to support in with social enterprises and non-profits developing new products for diagnosing in not just charity-based initiatives, but eye diseases. activities geared at actually creating sustainable change.

Table 4.1 Examples of CSR driven SE in India

Theme/ Partnership Large Organization Social enterprises/small between organizations

Aditya Birla Group Crux Power – Canyon Consulting CSR to fund projects ACC, UltraTech Cement Envirofit Fullerton India E-Hands Energy PSUs TERI Total Greenlight Planet Marketing & distribution Fullerton India E-Hands Energy Sahaj e-village d.light Technology & product Bosch Solar Energy Gram Oorja, Husk Power portfolio Fullerton India E-Hands Energy

Fullerton India Greenlight Planet, Envirofit, E-Hands Energy End-user financing ESAF Barefoot Power

Enterprise development Shell Foundation Envirofit, Intellegrow

47 Intel Corporation communities. The Forum empowers NGOs, social enterprises and citizens by Empowering Girls and Women: Intel helping them to refine their innovations launched a pilot project to create through special thematic challenges, livelihoods linked to Information awards, seed grants and mentoring. Technology for women in insurgency- Significant partners include Genpact affected “Red Corridor”districts of India CSR and Mphasis. The Forum India. They are also working to create aims to impact 100,000 beneficiaries in sustainable market linked enterprises 2015. for disadvantaged women affected by the devastating floods in Uttarakhand. The Forum’s strategic interventions include: Mindtree 1. Identifying high potential “I Got Garbage”with an aim of enabling innovations from across the country dignified livelihood for rag pickers through national level searches and reducing the number of landfills. and awards, and improving their It is a first-of-its-kind initiative in the visibility. They receive over 400 country where around50 engineers applications each year from which are developing real-life customized eight good projects are selected for technology solutions, enabling each the ‘support to scale’ program. rag picker to get access to professional tools and operate in a robust 2. Provides online and offline marketplace. interaction with development experts; helps selected social 4.3.2 NASSCOM Social Innovation entrepreneurs cultivate a deeper understanding of the development Forum landscape and social challenges. The ‘support to scale’ program The NASSCOM Social Innovation Forum hosts workshops and industry led attempts to enable and strengthen mentoring to build capacities of innovations that empower and impact individuals, social enterprises and lives at the bottom of the pyramid, NGOs to help them refine their through enhancing delivery of basic processes, plans and products and services like education and healthcare provide testing grounds for pilot to rural populations and underserved projects.

48 3. Though carefully constructed to accelerate the innovation process in impact metrics, the Forum social problem-solving monitors and guides innovative projects to increase reach and augment beneficiary impact. 4.4 Recommendations for a Vibrant Social Enterprise 4.3.3 DBS Bank Eco-system

The DBS Bank, which refers to its There are several ways in which heritage as a ‘development bank’, India could build its social enterprise supports and nurtures social eco-system, to make partnerships, enterprises across Asia as their core collaborations and alliances easier to CSR operation, with the belief that forge between cross-sector actors/ commercially sustainable solutions enablers. One way is to leverage human as epitomized by social businesses capital from Indian companies, by have the power to change the Asian connecting these skilled staff members development landscape. DBS focuses with social enterprises. Volunteer on cross-sector collaboration, by programs, where employees can investing in multiple programs that devote a certain period completely to bring people and corporations on the consulting for a socent, are a relatively same platform to discuss challenges easy way of facilitating this valuable faced by social enterprises, and offer assistance. Incubators would then act support for their causes. DBS is unique as the intermediaries, ensuring that the and innovative in that they offer virtually expertise of the employee meets the free transactional banking services, requirements of the enterprise. business loans at reduced rates, grants and volunteer services by their staff for A second way to build the ecosystem social enterprises. is to actually organize the forging of partnerships, which are integral to the The bank works in partnership with functioning of socents, because they Tata Institute of Social Sciences (TISS) depend on these for everything from by supporting young, driven graduate distribution to consumer education. social entrepreneurs by engaging in Helping to build these partnerships, capacity building through knowledge through real world meetings or online creation and dissemination activities forums, needs the creation of a

49 comprehensive database first, linking infrastructural deficit will need huge CSR programs, NGOs, consultants amounts of funds, and CSR programs and social enterprises. Strategies for can easily channel funds into public- identifying potential partners as well private partnerships. as distinguishing the need for partners could be two activities done through Finally, investors are struggling with this initiative. how to structure the ROI for a social enterprise because of the dualistic “Samhita is a philanthropic initiative of nature of the business. Similarly, the Nadathur Trust, the philanthropic companies grapple with the legal arm of Nadathur Group. Since 2009, validity of channeling designated CSR Samhita has provided structured funds into a ‘social business’, which and professional services to enable may be profitable. The issue of how companies, donors and NGOs the traditional investment paradigms to collaborate with each other. need to change, in the context of Through the “Samhita ecosystem”, legalities involving CSR expenditure, the organization provides a credible and sensitization of the corporate platform and thought leadership sector towards these newer paradigms, to enable NGOs, companies, donor is mandatory to enable a vibrant social agencies, individuals, philanthropists, enterprise ecosystem. foundations and researchers to achieve their specific goals and make informed decisions that translate into purposeful 4.5 Corporate Benefits from action and large-scale social impact.” Getting Involved with (http://www.samhita.org/about-us/ Social Enterprises mission-model) 4.5.1 Consumers more likely to Thirdly, investment in physical buy from a social cause infrastructure development, especially in rural areas, would exponentially It has been noted previously in this improve the efficiency, reach and publication, that consumers are impact of social enterprises that would increasingly making purchasing then lead to lower transportation decisions with motives that have to do costs, fewer power and water outages with factors unrelated to the product and better internet connectivity. This itself. A recent study cited that 83%

50 of Americans wish brands would be associated with the company can support causes, and 41% have bought only be a boon for profit making, and a product because it was associated ultimately satisfy the shareholders. with a cause. That figure had doubled since 1993, according to the study. In 4.5.3 CSR: Global Perspective, addition, 94% said that given price and Competitiveness, Social quality was the same, they were likely to Entrepreneurship & Innovation switch brands to ones that represented a cause. As outlined in Joshi’s publication, the following are benefits of companies 4.5.2 Making the most out of your CSR adopting a triple bottom line approach: spend (Policy Watch: India’s new Companies Act and Corporate 1. It would help to avoid the excessive Social Responsibility website). exploitation of labor, bribery and corruption.

CSR does not need to be seen as a 2. Companies would know what burden for businesses, because CSR is expected of them, thereby activities can indeed yield tangible promoting a level playing field. business benefits such as cost savings (via recycling or resource efficiency), 3. Many aspects of CSR behavior increased productivity, capacity are good for business (such as building, and better working conditions reputation, human resources, for employees. branding and making it easier to locate in new communities) CSR can also enhance a company’s and legislation could help to brand value by being seen as a improve profitability, growth and business, which incorporates a sustainability. corporate social entrepreneurship 4. Some areas, such as downsizing, philosophy, and promoting better social could help to redress the balance and environmental business practices. between companies and their CSR networks and alliances not only employees. enable cross sector relationships, but also provide knowledge, expertise, 5. Rogue companies would find it and build trust. Making customers more difficult to compete through and employees happier and proud to lower standards. The wider

51 community would benefit as improvements tend to be long-term companies reach out to the key before influencing stakeholder value. issue of underdevelopment around “Therefore, let corporations focus on the world. creating stakeholder value as measured by profits, but in a socially responsible However, the triple bottom line (TBL) manner. Let us not add on a “surplus concept does come with its own set fewer deficits” approach based on of difficulties, including the fact that environmental or social considerations. profitability cannot usually be placed on A company that does poorly on one the same level of importance as social line, namely profits, but wonderfully on and environmental considerations, as the environment or social component a company cannot survive on losses. of TBL, is not going to last long in a Furthermore, social and environmental competitive world.”

Figure 4.1 The Triple Bottom Line Core Stream

Provide products and services that Create new and enhances people’s rewarding jobs lives People

Beneficial Equitable

Sustainable

Planet Profit Viable

Produce products Manage business that are friendly that provides to our planet good return for shareholders

52 4.6 Measuring Corporate responsibility for their lives rather Social Responsibility than becoming dependent on external aid. A business’s CSR initiative should be regarded as a standalone social 2. Whether the solutions provided enterprise, which deploys disruptive by a CSR initiative promise to be innovation and is customized to a self-sustaining and the up-front specific community and geographic funding is true ‘capital’ rather than location. If the corporate sector a philanthropic gesture. begins to view CSR not just as a legal obligation, but as a way of contributing The framework for measuring/ to sustainable growth which can only evaluating a community centered benefit them in the long term, this kind development approach of a CSR of perspective can be integrated into initiative ensures that a social initiative the entire spectrum of their operations. maximizes limited resources in The impact of their CSR initiatives can pursuit for scaling up its operations be measured by gauging: to reach the masses. Earlier in this publication, social enterprises were 1. Whether the project actually defined as entities, which fulfilled drives sustained improvements three dimensions: sustainability, social in people’s lives and livelihoods impact, and the ability to scale. The because individuals are making success of CSR initiatives can be their own choices and taking measured against the same standards.

Figure 4.2 Process of measuring CSR impact

Capital Evaluation Successful Inclusivity Structure Sustainability + + + Model + Metrics = CSR

53 4.7 Conclusion capabilities and models as to how can corporates position for maximizing The fusion between business and profits and social impact. Bala Vikasa social enterprises is a timely endeavor, International Center plays a key role in considering the increased scrutiny the above context. and interest of businesses to imbibe sustainability into their core operations, and to associate themselves with genuine social causes. There are several ways in which the private sector can collaborate with social enterprises, from using them in their supply chain to investing in them as venture capitalists. There will be a growing category of social enterprises that are geared to maximize social impact while also delivering a financial return. They will become increasingly ‘professionalized’ as the emphasis moves towards ‘investment readiness’, and impact reporting. This growing supply of investable social enterprises will lead to mainstream financial institutions offering social investment products, partly as a way to rebuild their reputation.

Further, investment will move from innovation towards replication of proven models; from short-term outputs to long-term impact. Before this phase could take place, we need to address the implications for corporates involved in solving social issues,

54 CHAPTER

CONCLUSIONS AND RECOMMENDATIONS 5

As illustrated in the preceding four sector when it comes to market chapters of this publication, the opportunity. Many companies are stage is set for a new and potentially in need of an orientation to social transformative collaboration between value creation and ‘doing good’ while business and social innovation meeting their own profit targets. They solution providers. Multiple forces are also need to be brought into a newer converging to make this synergy a way of perceiving CSR, not merely realistic and achievable one. Regulatory as grants for short-term projects, but frameworks and growing pressure as a source of investment for social on business to be responsible and innovation and smart solutions to accountable to its citizens consists of endemic issues in the communities one force. The increasingly vibrant social they work in. Fundamentally, business enterprise landscape in India is another needs to integrate development and force, which has exemplified the power sustainability concerns into its core of a business-centered development strategy. approach. The poor are beginning to be regarded as consumers, producers Social entrepreneurs, on the other hand, and actors in diverse value chains. Yet continue to grapple with sustainability, another force is embodied in consumer scale and impact while sourcing talent, habits and attitudes that are converting streamlining their business models and the marketplace into a more socially accessing scarce capital. Socents are conscious arena where products and just reaching that stage in their journey services gain an added edge if they are to prove that they can remain profitable associated with standout causes. while fulfilling their core missions of social change. However, many, if not However, there is a lot yet to be done. most, social enterprises cannot fund This is still an unfamiliar territory, themselves entirely through sales or especially for businesses, who still investment. They are not profitable do not consider the poor as a priority enough to access traditional financial

55 markets, resulting in a financial-social all the more relevant, as are impact return gap. The number of investment- assessment metrics, measurement worthy SEs is on the rise, but limited tools, and financial advisors to support access to growth capital remains a such transactions. key constraint. This growing supply of investable social enterprises will lead Bala Vikasa International Center to mainstream financial institutions (BVIC) is positioning itself as a key offering social investment products, player in the fusion of CSR and partly as a way to rebuild their reputation. social entrepreneurship by initiating As the SE space in the country steadily discussions on this topic at public expands, the ecosystem to support conferences, industry association will need to grow as well. With a rise forums, and through curated research in the number of interested investors, reports. Concurrently, BVIC is setting SE-focused trading platforms are up an independent incubator that will provide the following services.

Figure 5.1 Bala Vikasa International Center’s Incubator Services

Mentoring and coaching

Business IPR partnerships facilitation

VIC Incubator Access to Training seed funding

Ideation Physical and concept space to test developemnt and validate ideas

56 The fusion between business and well be the future of CSR implementation. social enterprises, will lead to evolving Bala Vikasa International Center Corporate Social Enterprises (CSE). envisions this taking place through This concept brings together the appropriate channeling of earmarked best of both worlds, and ideally, every CSR funds into social enterprises, business should be a corporate social especially those that are just launching enterprise, keeping social, economic and desperately require seed capital. and environmental concerns at the Corporates can also contribute in other heart of their operations. Before this ways, for instance through mentorship, phase becomes a reality, we need to or the provision of human resources address the implications for corporates and physical infrastructure needed to to be involved in solving social issues, set up a business venture. At a later by developing their capabilities in stage, the CSR team should be capable maximizing profits while creating of identifying and linking markets to measurable social impact. goods and services produced by these businesses. This will enable socents to Using social innovation and incubating create a strong brand of their own. community-led social businesses could

Figure 5.2 Bala Vikasa International Center’s approach to social enterprise

Vikasa International Center Approach to Social Enterprise

• CSR Awarding & • Govt. DST/NSTEED/Others Exhibition of • Others Donors & Partners SE’s

Capacity building Incubation Support Prototype Tie up Concept Training Monitoring development Ideation with Development Imparting Tools Practice & Exposure Testing Mode Investors Skills Business modeling Testing and Plan Assumption

Demo Day

• CSR Sponsorships/ adoption of specific type of Social • Corporate CSR Enterprise • Seed investor • Impact • Other Donors and Partners investor

57 Social businesses, if supported by the The Venture Creation Approach (VCA) government and linked to markets, is one of the refined thought process could bring significant change in the in building effective entrepreneurship. quality of life of communities. Further, VCA as “primary learning vessel” the scalability and replication of social substantially holds body of knowledge, enterprise models through franchising concepts and tools. It is a product mechanisms, is not only a method of experience and considerable through which an individual social research in this field, rooted in real- enterprise can grow and diversify, but world applications. The BVIC argues this can also lend momentum to the that the existing approaches, focusing social enterprise movement itself. on traditional lectures or simulating CSR, then, could become an agent enterprising, are not sufficient for this of change in the social landscape of matter. BVIC emphasis on a venture India. Appropriate financial solutions creation approach, adding reality as well developed under the gamut of business as reflection-in-action to the education, responsibility can adequately finance is essential when having the objective the eco-system for social enterprises. of creating both entrepreneurs and social ventures. Further, the profile of social enterprises in India and other developing countries, specifically in South Asia, vary greatly Figure 5.3 The Venture Creation from those in the West. There are distinct Approach (VCA) as primary vessel of BVIC needs faced by indigenous socents in terms of subsistence, sustainability and socio-economic challenges. The Cognition sector therefore requires customized (knowledge) and localized tools and processes to help promote social enterprise, without blindly borrowing practices from European models, but instead taking Entrepreneurship through Venture into account cultural and contextual Creation Approach aspirations. Bala Vikasa International Affection Conation (feelings - Center aims to draw best practices (actions and emotinal skills) from internationally successful models, leanring) and distil them into localized solutions.

58 The above action-based • Learning objectives emerging entrepreneurship education built through reflection upon a venture creation approach • Combination of problem-oriented complemented by the three recognized and solutions-focused constructs: cognition, affection and conation already in use almost as such BVIC believes in integration of positive (knowledge, skills, change of attitude). psychology, action learning, and learning by doing with behavior focused, • Focus on reflection-in-action and participatory centered methods • Learning facilitated by integrated in entrepreneurship development environment approach. The following figure depicts • Multiple learning stimulators the core applications and its integration as BVIC WAY. • Participants seeking and co- creating knowledge

Figure 5.4 The BVIC WAY

Neuro linguistic Asset Based Community programming (NLP) Development (ABCD), (PRA, AI) &(TBL)

SOCIAL ROLE OF POSITIVE ENTREPRENEURSHIP; PSYCHOLOGY FOR HOW TO BUILD A SOCIALLY MOTIVATION IN MINDED ENTERPRISE ENTREPRENEURIAL AND MOBILIZE THE DEVELOPMENT COMMUNITY

BUILDING AND UNDERSTANDING MANAGING IMPACT THE ENTERPRISE ENTREPRENEURIAL PROCESS

Result based Management Learning by doing (RBM), & LSM

59 The BVIC WAY differentiates us from targets in the developing world. BVIC rest of the conventional models and takes this one-step further, with the approaches in entrepreneurship hypothesis that if the corporate sector promotion. begins to conceptualize strategic CSR as a way to create societal value through • VCA becomes the “anchor” concept investing in social enterprises, spurring at BVIC’s Social Entrepreneurship a culture of innovation, collaboration Incubation process and inclusive growth, change will be • VCA approach complements BVIC exponential. On the other hand, strategic “specificity” (social, ethical, positive CSR will help to bring valuable business psychology, etc.) perspectives into the social sector, and accelerate its professionalization and • Application of Lean Startup effectiveness. In conclusion, if this Methodology with integration of synergy is to be recognized, realized field based approaches and formalized, millions of citizens • Learning by doing could be transformed into economic agents, allowing India to become the To this end, the Center offers training powerhouse it has the potential to be. and capacity building programs to support and facilitate social innovation focused on rural and tribal social innovation. Additionally, BVIC prioritizes further research to better reflect social enterprise in national statistics collection to increase general understanding and visibility of the sector. Heightened visibility will address the contribution of socents to creating social value, and they will therefore be included as stakeholders in the development dialogue.

The World Summit on Sustainable Development positioned the corporate sector as a vehicle for delivering national and international poverty reduction

60 ANNEXURE CASE STUDY Urban Housing Project 1

Scenario is vibrant and well serviced by public transportation and the least expensive Although India has robust residential house is sold for Rs. 2,50,000. construction and housing finance industries, developers and financial The NGO, Ashayen, worked with Bakeri institutions overwhelmingly prefer to line up both customers and financing to focus on the higher-income urban even before the building plans were markets. The vast majority of urban been approved. Bakeri built mock-up low-income families live in poor quality model apartments that wowed the rentals, typically single rooms of 100- financiers and buyers alike. Aashayen 250sq.ft, often badly ventilated and approached the prospective buyer’s lit, with shared toilets and bath, in bad formal employers, who were happy neighborhoods. They face constantly to provide the residential faculties for rising rentals, unreasonable demands the employees by deducting monthly from property owner and pressure to mortgage payments from employee move every 2-3 years. paychecks and to transfer those directly to the financing bank. Solution Note: Telco adopted a similar model In this context, TaralBakeri, a respected in association with HDFC bank for Ahmedabad developer, collaborated providing low cost housing facility for with Aashayen, a development its employees. Government of Gujarat advocacy NGO, to build 800 apartments has also recently started a program for in two well-designed floor plans – a slum resettlement under similar lines. 210-sq.ft one-room efficiency and 300 Large Corporation, particularly those sq.ft single –bedroom units all with that have sprawling plants in under- indoor plumbing – for purchase in a developed regions, can look into this nearby suburb. The neighborhood arrangement as their CSR initiative.

61 Analysis

The assured-demand model answers the toughest question easily: it is eminently scalable because it is profitable to all parties:

1. Customers: low-income group got good quality permanent houses.

2. Suppliers: Bakeri, the builder in this case, got a profitable business proposition with less risk (he had pre-financed customer pool and signed contracts before even breaking ground, which nullified the risk of long sales cycle and cash flow issues).

3. The financer: Bank, in this case, got assured loan payments, effective collateral and potentially highly profitable business.

4. Employer: perceived benefit was in the form of reduced absenteeism due to employee or family illness.

5. Urban labor: many more construction workers found employment in this low-end market for decent houses.

62 ANNEXURE CASE STUDY Synthesizing Technologies for Medical Emergency Management 2

Scenario Analysis

Several ambulance companies operate 1. Serving the un-served: The goal in large cities and while they serve was to help victim’s survive the people well, they remain small and golden hour, the first 60 minutes, invest little in innovation. Given India’s since 80% of deaths in hospitals environment – physical, cultural and take place in the first hour of language barriers – a pan India service admission. In addition to providing to deal with emergencies does not number to call, EMRI sought to exist. Further, India does not have teach Indians to recognize and reliable GPS-based mapping, so the react to emergencies (only 10% of primary critical task is to pinpoint the Indians face emergences but either emergency’s location. Moreover, since do not recognize them or have the government owns most hospitals, nowhere to call). the service provider needs to tackle policy makers and bureaucrats to 2. Reach: EMRI is offering its services prevent them from interfering in the to 366 million people in seven offered service. states across India, making it the world’s largest emergency- Solution management entity. It handles around 80,000 calls a day, attends GVK’s Emergency Management and 7000 emergencies per day, saves Research Institute (EMRI) in 2004, for the first time in India, has woven together 110 lives a day and employs 11,000 the latest in telecommunication, people. computing, medical and transportation technologies to provide affordable 3. Fostering Innovation: One recent (almost free) emergency service in experiment consists of sending tribal, rural and urban areas. a team ahead on a two-wheeler,

63 which slides through traffic faster 7. Measuring metrics: Along with than an ambulance, enabling focusing on margins, EMRI also critical care to start sooner. In measures its efficiency in providing order to pinpoint the emergency the services. Dispatching the locations, the Emergency Relief ambulance and patching the Operators route ambulances using distraught caller with a medical dynamic optimization algorithms. technician takes 80-90 seconds, but the organization aims to reduce 4. Collaborations: with organizations this waiting time to 60 seconds. such as National Emergency Another metrics is a target of Number Association, Carnegie reaching patents in 30 minutes. Mellon & , Against this target, EMRI reports Germany’s Geomed Research, an average response time of 14 Singapore Health Services, minutes for the cities, 31 minutes American Academy for Emergency for the villagers and 28 minutes for Medicine in India. Realizing the the tribal areas. importance of PPP, EMRI is closely working with states, fire and police 8. Other impact on community: EMRI departments. archives all the calls it gets and has analyzed the data to compile 5. Ownership: Although EMRI is a regional public health profile and private foundation in legal terms, for the first time in India, data on 95% of its funding comes from the seasonality timing and nature state governments. In this way, of medical emergency is available. the entity ensures government support in its initiatives and use government channels in educating people.

6. Costs: EMRI spends only 50 cents per person treated to build the infrastructure in India. Compared with $100 in US. The expense per ambulance visit is less than $15, versus $600-800 in the west.

64 ANNEXURE CASE STUDY Health Care Model -Naya Jeevan, Pakistan 3

The problem

approximately USD 1,780. Naya Jeevan South Asian governments spend embeds the core health insurance plan less than 3% of their annual GDP on in a package of high-touch value added public health programs. Access to services for clients, including annual high-quality health care is prohibitively medical checks, preventative care expensive for the vast majority of workshops, and 24-hour phone access South Asia’s one billion low-income to their “family physician” for medical population and leaves them vulnerable consultation or claims assistance. to medical catastrophes and resulting financial indebtedness. Lack of proper Naya Jeevan is expanding its efforts health care has prevented millions from to engage the Pakistani diaspora to escaping poverty. cross-subsidize the health care of their relatives in Pakistan. Naya Jeevan will The Naya Jeevan model target diaspora communities in the developed world (USA, UK, EU, and UAE) Naya Jeevan partners with multinational to enroll their designated beneficiaries corporations to cascade its health (family, low-income domestic staff, insurance plan up and down their etc.) in the Naya Jeevan Health Quest supply chains targeting low-income plan. Investment funds will be used to workers making less than USD 6 per hire and train a sales and marketing day. This target demographic includes team that will be deployed strategically drivers, nannies, cooks, waiters, security in South Asian-dense neighborhoods guards, and factory employees, who in the USA and EU, while concurrently can be insured at USD 2.50 per month piloting the Naya Jeevan business per adult with a yearly coverage limit of model in a few major Indian cities.

65 Cost of project

The expansion model requires USD 1.8 million in the form of equity or grants.

Impact and target region

Naya Jeevan estimates that 500,000 people in Pakistan and India will enroll in the health plan within three years and 5,000,000 will enroll within ten years.

66 References

1. Raman Agarwal ‘How Should You Measure Corporate Social Responsibility’, CRISIL, 2010, pp 10-13 2. India and the MDGs- Towards a Sustainable Future for All, United Nations, 2015 3. Aarti Srivastava, https://aartishrivastava.wordpress.com/tag/vnl/ 4. Nelson Moses, Why India Needs Social Entrepreneurship to Succeed 5. Handbook on Corporate Social Responsibility in India, PWC 6. Organizing for Success on Corporate Responsibility: The Path to High Performance, Accenture-FICCI Report 7. Do it Right, The Economist, 2008 8. CSR & Sustainable Business, Amato et al, 2009 9. India Corporate Responsibility Reporting Survey, 2013, KPMG 10. Business Responsibility India Survey, 2013 11. What will Social Enterprise look like in Europe by 2020? , British Council 12. Springer, Chapter 2, CSE and New Business Models 13. Yunus, Muhammad, 2008, Social Business is the Solution 14. Springer, Pg 22, Corporate Social Entrepreneurship and New Business Models 15. L. Michelini, Social Innovation and New Business Models, Springer Briefs in Business, 2012 16. On the Path to Sustainability and Scale, Intellecap, 2012 17. Seelos, Mair, Social Ent, Creating New Business Models to Serve Poor 18. Novogratz, 2013 19. Fiorentini, 2006 20. Austin and Reficco, 2009 21. Health Care Reform Update: An Evolving Landscape, ADP 22. India Social Enterprise Landscape Report, ADB, 2012

67 23. Business for Sustainable Community Driven Development, SRS 1, Vikasa International Center 24. Business and MDGs, 2008 25. Catalysing Change through Corporate Social Responsibility, BCG, 2015 26. Tom’s, Start something that Matters 27. Manoj Joshi, CSR: Global Perspective, Competitiveness, Social Entrepreneurship & Innovation 28. Agarwal, Raman, 2010, ‘How Should You Measure Corporate Social Responsibility?’ 29. Yunus M, (2008), ‘A world without poverty: social business and the future of capitalism’. Public Affairs, New York 30. Laura Michellini, (pp22), 2012, ‘Social Innovation and New Business Models: Creating Shared Value in Low Income Markets’ 31. IICA (2013), “Corporate social responsibility: The new game changer 32. “Catalyzing Change Through Corporate Social Responsibility”–NASSCO Foundation Feb.2015 33. “The Emerging Fourth Sector” The Aspian Institute 2009 34. “Social Innovation and New Business Models Create Shared Value in low income markets” – Michelin, L 2012

68 Websites

1. http://www.nextbigwhat.com/india-social-entrepreneurship-to-succeed-297/ 2. http://www.thehindu.com/news/national/undp-brackets-india-with-equatorial- guinea-in-human-development-index/article4510390.ece 3. http://www.business-standard.com/article/companies/an-overview-of-csr- rules-under-companies-act-2013-114031000385_1.html 4. http://www.epw.in/web-exclusives/analysis-corporate-social-responsibility- expenditure-india.html 5. http://www.economist.com/node/10491124 6. http://www.thebrokeronline.eu/Articles/The-emerging-social-enterprise 7. http://blog.up.co/2015/03/17/social-enterprise-matters/ 8. http://www.oifc.in/social-entrepreneurship-india (case studies) 9. http://zeenews.india.com/news/nation/75-crore-indian-households-without- access-to-electricity-report_907188.html 10. https://hbr.org/2012/01/a-new-approach-to-funding-social-enterprises 11. http://hbswk.hbs.edu/item/5988.html 12. https://www.cvent.com/Pub/eMarketing/Pages/WebEmail. aspx?emstub=70bdbf7f-3fe5-46e3-8af5-a50b6b1b212d 13. http://www.business-standard.com/article/economy-policy/jobs-fail-to-catch- up-with-india-s-growing-youth-population-114070300112_1.html 14. http://www.thebrokeronline.eu/Articles/The-emerging-social-enterprise

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Bala Vikasa is a secular, non- partisan, non-profit organisation working in the field of community driven development and capacity building for the last 38 years, mainly in Telangana and Andhra Pradesh. Its Bala Vikasa International Center provides comprehensive support in the form of knowledge and tools to corporates and social entrepreneurs with the aim of equipping them to actively participate in the sustainable developmental process towards a better society.

Bala Vikasa International Center (BVIC) Rampally Dayara (Vill), Keesra (Mandal), Hyderabad, Ranga Reddy District Email: [email protected] l Website: www.vikasacenter.org ISBN 978-93-83190-03-4 Copyright © December 2015