CNV1-I1-11-Sustainability

Corporate houses come out with their sustainability initiatives in their annual report. Companies like ITC go one step further and achieve zero carbon foot print. Global giant in Electrical & Electronics Engineering like Siemens spends considerable amount towards strengthening the government industrial training institutes or ITIs as they are called popularly in India. So I was fairly clear about what Sustainability is and what is Corporate Social Responsibility (CSR)? But one day I was asked this interesting question through a popular research networking website by a Professor in Europe. The question itself was like a proposal with good information and positions about the topic mentioned above and it is as follows:

“Accordingly to European Commission (2002) and ISO 26000:2010 International Standard, Guidance on Social responsibility, Sustainable Development is a concept at global and intergovernmental level, while Social Responsibility is at organizational level and frames its contributions for sustainability.

However, some academic authors have been presenting alternative definitions of CSR and Sustainability, offering a contrasting view between CSR and Sustainability: both focused on social and ecological good, but with CSR aiming to competitive advantages through marginal improvements, Bottom of Pyramid (BoP) as consumers and focus on current stakeholder needs; while Sustainability is focused on durable competitive advantages though revolutionary changes, BoP as producers and focus on current, distant and future trends.

Although, there is no consensus concerning the concept of CSR and Sustainability, literature review allows us to conclude that most definitions take into consideration economic, social, and environmental dimensions. I would be very interested to know your position on this issue:”

Generally I answer questions taking my own time. But this question/ proposal made me to give a quick answer, which is as follows:

“Sustainability and Corporate Social Responsibility (CSR) are not exactly same. But there are common areas particularly with reference to social development. Sustainability also addresses environmental aspects and CSR may not cover environmental aspects as extensively. For example reduction of global warming can be a focus area for sustainability. On the other hand CSR activities typically focus on social aspects such as skills development in case of underprivileged children. A typical corporate house may proactively spend considerable amount for attaining zero carbon footprint. This activity will be considered as contribution towards sustainability and not CSR. Funding for CSR activities should be directed towards external agencies working in social sector. There is a tendency to form an NGO organization working in social/non profit sector such as education by corporate and fund the same. This can be also considered as CSR but should be avoided.

” Other researchers liked this answer. I also started getting other answers and other useful information like research papers published on this topic by other European researchers. It is heartening to note that areas such as sustainability and CSR are generating interest. Indian Government has made it mandatory to spend 2% profit on CSR activities for corporate world. So I feel there are many grey areas and different viewpoints related to this topic and I feel there should be open discussion. All are welcome to share their views/experiences on this topic

Milind Kulkarni, Ph.D., Group Director, Engineering Institutes, ITM Group of Institutions, Mumbai.