Transcript for:
Embracing Social Responsibility in Business

when I first received the invitation to speak at this event I was thrilled very excitedly I asked one of the organizers about the theme for this year and when I was told that it's ex cogitating the unfolding I have to be very honest I actually had to google the meaning as I'm sure many of you did too when both Google and the organizers told me that it meant planning for the future thinking ahead I could not help but think of how the world we live in today is rapidly changing for the better in some ways but also for the worse how new problems are constantly arising and how we as entrepreneurs employees and employers students and even just as citizens can make an active effort towards uplifting our society so with that said with a show of hands if you can tell me if you've heard of these three companies Tom's Tesla and Ben and Jerry's so if you've heard of these companies you also probably know that each of them operates in an industry different from the other and the products that they make a completely different from one another yet there is something common among the three the common factor is the fact that they're built on a socially responsible business model Tom's is a global gold standard for the one-for-one business model which is every time you purchase a pair of TOMS shoes they donate a pair of shoes to the needy Elon Musk invested most of his fortune into founding Tesla a company aiming to reduce the dependence of the automotive industry on fossil fuels and Ben & Jerry's uses 100% non GMO ingredients in their ice creams and source majority of their ingredients from local dairy farmers it is this common thread of being socially responsible that I'd like to talk to you about today and help you believe that you too no matter what position you hold can be socially responsible so why shared social responsibility be a part of your business model from the get-go as opposed to coming to you as an afterthought it's because the problems in today's world are only increasing in number and nature and so is the need to address them sooner rather than later and with increased access to information thanks to the power of the internet and social media people's awareness about these problems has also significantly gone up people are now asking questions about business practices so being mindful and transparent about the way you do business has become more important now than ever before doing business by looking through a socially and environmentally conscious lens can also have an overall positive impact on your business how it can help in increasing your brand equity see when you do social good you create goodwill around in the communities that you serve so that in turn leads to a better brand perception and better brand value it can help in building consumer loyalty a social mission creates a brand personality towards which consumers gravitate especially today's informed consumers because when you when you are socially responsible you're not you're not just selling a product or a service you're giving them an opportunity to believe in something and make them feel good about it a study done by Edelman revealed that 68% of global consumers remain loyal to a brand which practices some form of social responsibility it can help in recruiting and retaining good talent when you recognize social responsibility as a business strategy you instill a sense of pride in the people who work and support your organization in a survey done by Deloitte 70 percent of Millennials said that their organization's commitment to the community had an impact on their decision to work there it can also help in driving innovation in this context I mean product and process innovation innovation in the way you do your packaging even for example sati is a company that manufactures sanitary pads made out of banana fiber it's an excellent low-cost and an innovative solution for women which is not only good for their bodies but also for the environment and lastly let's not forget the government gives tax incentives and subsidies to companies for being socially responsible I think this subject is more relevant to us to India for three reasons India has a wide array of problems illiteracy poverty access to basic health care and education and so on at the same time we have more than 50% of our population under the age of 25 more than 65% of our population is under the age of 35 and it's expected that by 2020 the average age of an Indian would be 29 years as opposed to 37 for China and 48 for Japan so can you imagine what a tremendous resource we have right here at home in the form of this demographic dividend so we has such a young nation have so much potential to unleash in the coming decades besides the government also is now putting forth regulations and policies which is taking us towards a more sustainable future so why not get there before we're mandated to let's be more socially responsible I think a lot of businesses leave this aspect of social responsibility out at the onset thinking that they don't have enough funds or resources and for it's simply mandated by the government a social mission may very well be a lower priority for your organization but it's very hard to wake up one fine day and force fit a social mission it's more genuine and impactful if it has always been a part of your company's culture and business strategy so today let me challenge you to think of ways in which you can be socially conscious from early on and in any capacity let me spark off some ideas in your heads by giving some of my own examples as a mechanical engineering student at Purdue my capstone course problem statement was to solve a global problem any global problem so I looked towards my homeland India and to towards other developing countries places which are not well equipped for the physically challenged me and my team ended up inventing a wheelchair mechanism think of it like an iphone accessory something that goes on your phone right so this is a mechanism that goes on your wheelchair it assists users in navigating better through curbs so that they can be more independent so do students I would say why not take up your class projects and courses and look at them as avenues for solving some of these social problems innovatively last year when I was studying management and entrepreneurship at Babson I co-founded Fassett we chose to base facet on the idea of conscious consumerism wherein we bring fine artisanal products made by some of the world's most skilled artisans to the conscious consumers in the market while doing this we stumbled upon a research study done by Nielsen in 2015 which said over 66% of our of global consumers are willing to pay more for products and services if they come from a brand which is committed to a positive social and environmental impact so to my fellow entrepreneurs I'd say why not look at this data as an opportunity to create a competitive over some of the other players and create shared value at precision foundation where I currently work we've been able to touch the lives of over 700,000 people's lives so far through our initiatives in healthcare education sustainability and social issues precision foundation is actually a CSR arm of precision camshafts limited also known as PCL and it was formed much before it was mandated by the government now PCL as a company apart from having the CSR arm also invests in sustainability projects like treatment of over 200,000 litres of wastewater per day to maintain greenery over its 45 acre campus so to corporate employees I'd say view this as an opportunity lead either look for or create such initiatives around you to have a positive impact I think conventionally doing business has been about maximizing your bottom line which is your profits and rightly so but I think now it's time that we look at ways to maximize our triple bottom line which is make profits while taking care of our people and our planet I know it's not an easy equation to balance to have a positive impact on your environment and your society while generating good financial returns for survival and for investor returns but are we willing to take on this challenge for a better tomorrow let me leave you with the words of Hillel the elder if not you who if not now when thank you you