Return to Previous Page

Emerging Challenges as Facilitator of CSR: JHARCRAFT a New Hope*

CASE STUDY, CORPORATE SOCIAL RESPONSIBILITY
ET Cases - GSMC, 16 pages
AUTHOR(S) : Dr. Shyamal Gomes, Associate Professor, Xavier Institute of Social Service Ranchi

Case Preview

Emerging Challenges as Facilitator of CSR: JHARCRAFT a New Hope

 

The latest annual update of the Global Carbon Budget found that Carbon dioxide emissions are set to rise again in 2014 – reaching a record high of 40 billion tones. The update shows that carbon dioxide emissions from burning fossil fuel are projected to rise by 2.5% in 2014 – 65% above in 1990 levels, the reference year for the Kyoto Protocol. India’s Carbon dioxide emissions grew by 5.1% in 2013, China’s grew by 4.2% and the US’s grew by 2.9%, according to the update. Moreover, the update shows that total future Carbon dioxide emissions cannot exceed 1,200 billion tones carbon dioxide ‘QUOTE’ would be used up in around 30 years. This means that there is just one generation before the safeguards to a 2 degrees Celsius limit may be breached. World Climate Scientists says that to avoid this, more than half of all fossil fuel reserves may need to be left unexploited. But India and China are not willing to take the bait till the developed nations anchored by the United Nations and European Union offer something substantial on funding for the developing world to adopt low Carbon growth trajectory leading to emissions reduction. The Rich nations’ commitment to provide US $ 30 billion between 2010 and 2012 for climate mitigation and adaptation is yet to fructify resulting in the Green Climate Fund remaining a defunct body. Though the Chinese premier Xi Jinping and Indian Prime minister Mr. Narendra Modi decided not to attend the summit called by UN Secretary General Ban-ki Moon to push the Leaders for a climate deal by 2015 in Paris, but this is high time when every citizen of this mother earth (especially China & India) should think seriously about the danger. Now the three most important questions are why Carbon dioxide emissions are set to reach a record high in 2014; who is responsible for this; and finally what best we can do for our future generations? (hindustantimes.com/ climatechangemarch, 2014). On the other hand in world scenario, working for more than 40 hours a week is known to cause stress and dissatisfaction, but researchers have now also been able to establish a link between long working hours and narrowing and hardening of blood vessels that supply blood and oxygen to the heart................

What is Corporate Social Responsibility?

According to the world Business Council for sustainable development, CSR is the continuing commitment by business practices and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Philip Kotler and Nancy Lee define CSR as “a commitment to improve community well being through discretionary business practices and contributions of corporate resources” whereas Mallen Baker refers to CSR as “a way companies manages the business processes to produce an overall positive impact on society”.............

Components of Corporate Social Responsibility

The concept of CSR is constantly evolving. The triple bottom line approach to CSR emphasizes a company’s commitment to operating in an economically, socially and environmentally sustainable manner. The emerging concept of CSR goes beyond charity and requires the company to act beyond its legal obligations and to integrate social, environmental and ethical concerns into its business process. Therefore, the concept of CSR in India advocates moving away from a “shareholder value” to a “multi-stakeholder focus” (www.csrq.org.accessed January 2010)...............

Collaborative/stakeholder approach: CSR is a proactive process of business and not just a onetime philanthropic activity. Philanthropy is certainly an important aspect of corporate planning, but it cannot substitute CSR. The success stories of any corporate in CSR, there are human involvement, either directly or indirectly and nobody can ignore it.................

A Brief History of JHARCRAFT and its Journey of Development

Jharkhand (28th state of the nation, separated from Bihar on 15th November 2000) the land of “Legendry Bhagwan Birsa Munda” mainly comprises of Chota Nagpur Plateau and Santhal Parganas hill tracts, rich in a variety of flora & fauna and a homeland of 30 different tribal communities. The unfold stories of the past frame the window to the present and the future. Stone artefacts of Paleolithic age, Malhore’s Dhokra, ironsmelting culture of Asurs, painted rock caves of Badkagoan in Hazaribagh, all point to early metallic and artisanal traditions................

Mission – Vision and Core Values

Mission - “Creating opportunities changing lives”. Majority of the population of the state lived below the poverty line. Cottage and household industries have the potential to become an important source of livelihood. In such a scenario Jharcraft provided more than 35,000 stakeholders especially the women not only employment but also an opportunity to rise and grow. Jharcraft opened new opportunities of employment by utilization of the available resources..............

1. Women empowerment: Women have the power to give life and Jharcraft believes that she is naturally empowered to change lives as well. Playing important roles in a family she forms a better half of the society. The golden history of the nation points to the fact that the future of the nation cannot be directed towards ‘Glory’ without women participation...............

2. Employment generation: the second value fulfilling cumulative dreams through creation of sustainable livelihood models based on sericulture, handloom and handicrafts. Through maximum utilization of natural resources and labor power available in the rural areas of the state, Jharcraft aims to provide each hand its value and add to employment and income generation.

............................

............................

The Work Culture

Jharcraft is a professionally managed organization under the guidance of its Board of Directors and Managing Director. Jharcraft has an efficient professional team of accountants, financial & legal advisors, marketing managers, production and design unit which contribute to the management of the organization............

Achievements

National & International: Jharcraft has been making waves in India and abroad for over eight years, for its quality and spirit of innovation. The MD Mr. Dhirendra Kumar and his team have left no stone unturned to make this a successful and profitable PSU in Jharkhand. While their biggest gift comes in the form of customer appreciation, it is always special to be recognized and appreciated. The Institute of Economic Studies (IES), New Delhi, honored both, Mr. Kumar and Jharcraft for their contribution to the industrial sector of the state as well as of the country.............

Argument – Making sense of CSR

The question may be asked “has the Jharcraft a Government undertaking organization can really take a broad social responsibility: changing lives of the underprivileged and deprived community like women”? The answer can be found in the counter questions like, is it just and right on the part of an organization to destroy the traditional fabric, and devastate the state economy and global environment for their personal profits/benefits?..............

Beyond the Bottom line: Jharcraft understood right from its inception that there is existence of big/medium corporate and organizations, they do have fund in large amount to spend in CSR field, but they have three major constraints like 1) Traditional CSR (Charitable approach)..............

CSR Assistance: It was a new intervention of Jharcraft for various organizations within and outside the state to support the organizations & underprivileged as CSR mentor. Basically in CSR assistance, Jharcraft provides supports & facilities of planning, organizing, evaluating and continuously improving the training, production, and marketing............

....................

Major Challenges faced by Jharcraft during CSR

As mentioned earlier CSR is not philanthropy or charitable based, today it demands the resource integration of socio-economic – environmental responsibility in the entire business process. Therefore, the history and current position of the nation, the initiator and implementing agency all have become extremely important while designing P-CSR (Perfect CSR) Policies. A good Governance of “Public-Private Partnership (PPP) with well defined controls and processes for the best use of resources for initiating social change in the newly formed state like Jharkhand, itself a challenge...............

A Way Forward to Sustainable Development

1. To make Jharcraft a listed Company.
2. To market products on small scale through franchisees and on large scale through Mega Stores. And to
encash every opportunity in terms of new franchisees and store ventures.
3. Establishment of Bamboo Treatment Plant in Godda and Bamboo Livelihood Promotion Institute.
4. Establishment of Silk Park at Ranchi, Kharsawan, Deoghar and Rajanagar.
5. .................

Exhibits

Exhibit I: Business Strategy

Exhibit II: Core Value of Jharcraft

Exhibit III: TSL (Trident Sustainable Livelihood) Model – Jharcraft

Exhibit IV: Timeline/The Milestones

Exhibit V: CSR Management (Organizational Structure) of Jharcraft

Exhibit VI: The Jharcraft Way of CSR

Exhibit VII: Integrated Training Process

Exhibit VIII: Method of Integrated Handloom Training Model under One of the CSR Division at Jharcraft

Exhibit IX: Monitoring & Supervision Mechanism

Exhibit X: Jharcraft – A Women Empowered Growing Organization

Exhibit XI: Number of Artisans/Weavers/Reelers /Spinners Trained under CSR Facilitation

Exhibit XII: Number of Artisans/Weavers/Reeler Spinner Trained in the year 2013-14

Teaching Note Preview

Emerging Challenges as Facilitator of CSR: JHARCRAFT a New Hope

 

Synopsis

The World Business Council for Sustainable Development (WBCSD) defines CSR as “the continuing commitment of business to behave ethically and contribute to economic development while improving the quality of life of their workforce and their families as well as of the local community and society at large”. Therefore, CSR must follow a ‘collaborative strategy’ that needs to uphold the ethical standards. The design, communication and implementation within the organization and society should be geared for support and motivation of all stakeholders. ‘Social Responsibility’ means resource integration to improve the well-being of the community to support and encourage positive social impacts, which do not occur in a vacuum or single hand. It is a process, which is susceptible, in collaboration with Initiators/promoters, facilitators and the beneficiaries.

Objective of the Case Study

1. By preparing a case, examine the socio-economic impact of collaborative strategy in the line of successful implementation of CSR and how an organization like JHARCRAFT (who practicing its own methods for sustainable livelihood and Integrated development, based on Sericulture, Handloom, Handicrafts and other allied activities) act as a CSR facilitator for empowering women and poor in the entire state of Jharkhand
2. Find out the challenges Jharcraft is facing and how it is overcoming as a win-win situation

Introduction to Organization

Jharkhand Silk Textile & Handicraft Development Corporation Limited (Jharcraft) a Government undertaking organization established in 2006. “Creating opportunities and challenging life” of poor and women is the mission of this organization. Jharcraft is practicing its own methods for sustainable livelihood and Integrated Development, based on Sericulture, Handloom, Handicrafts and other allied activities..................

$7.31
Rs 0
Product code: CSR-1-0001, CSR-1-0001A

Abstract


The World Business Council for Sustainable Development (WBCSD) defines CSR as 'the continuing commitment of business to behave ethically and contribute to economic development while improving the quality of life of their workforce and their families as well as of the local community and society at large' Therefore, CSR must follow a 'collaborative strategy' that needs to uphold the ethical standards. The design, communication and implementation within the organization and society should be geared for support and motivation of all stakeholders. 'Social Responsibility' means resource integration to improve the well being of the community to support and encourage positive social impacts, which do not occur in a vacuum or single hand. It is a process which is susceptible, in collaboration with Initiators/promoters, facilitators and the beneficiaries. Although, there are enormous cases and literature on CSR practices, but specific facilitator's role, its participation and leadership in developing a global socio-ecological enterprising juncture; the obstacles in supporting CSR activities and their root cause analysis are still very few.

In this backdrop an attempt has been made to do a micro-level Case Study using both primary and secondary data of a Government undertaking organization named Jharkhand Silk Textile & Handicraft Development Corporation Limited (JHARCRAFT) which is not only supporting in the implementation of CSR activities of various organizations like THIESS Minaces, SAIL Bokaro, SAIL Gua Ore Mines, NTPC Hazaribagh, JINDAL Power-Patratu, TATA Power, Adhunik Groups, etc., as a facilitator for empowering women and poor in the entire state of Jharkhand, but also practicing its own methods for sustainable livelihood and Integrated development, based on Sericulture, Handloom, Handicrafts and other allied activities. This case reveals that to strengthen its mission 'creating opportunities and challenging life' of poor and women, CSR assistance as a facilitator is a strategic move of Jharcraft to create a new benchmark in the domain of Corporate Social Responsibility and Sustainable Development. It has also been observed that Jharcraft team not only provides quality training to the beneficiaries/needy for skill development but it also acts as a 'Trident' - community organizer, linkage developer, and marketer for their beneficiaries so that the final product is continuously supplied people’s adequate regular income/earnings. This is the way towards sustainability of their venture and makes them self-reliant. This means, doing business in India has to go beyond the 'bottom line' in 21st Century.

However, this is primarily a qualitative study and as such the focus of the study is to identify and formulate a policy framework of right implementation of CSR, therefore the research methodology is based on Stratified Random Sampling, Personal Interviews, Focused Group Discussion and analyzing the data.



Pedagogical Objectives

  • To get an overview of the concept of modern business and its social responsibility
  • To understand the importance of good governance ( Public-Private Partnership)
  • To get a glimpse of the concept of CSR – The triple bottom line approach
  • To learn the taxonomy of stakeholder/collaborative approach
  • To learn the unique Trident Sustainable Livelihood (TSL) model in successful CSR facilitation

Case Setting and Positioning
The case study is suitable for MBA and Executive MBA for the following courses:

Socio-economic impact of collaborative strategy in the line of successful implementation of CSR – Their Challenges strategies to overcome through a win-win- situation



* GSMC 2014, IIM Raipur

This Case Pack Includes:
 - Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$7.31
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)