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The way ahead!

Purab Shah

Business is not only about profits, surely not all the time. A business also has a human side to it. Without the support of thriving businesses, society is like bread without butter.

Due to lockdown many businesses have incurred losses. While some have fired their employees, some businesses have taken it on their chin and have not fired their employees. These organisations are performing a service for society. If the unemployment rate increases due to this pandemic, there will be a lot of hunger, crime, dropping out from schools and other ill effects.

Business comes to the rescue during the Pandemic

Many organizations have come forward to help the vulnerable during this pandemic. Some examples:

i. Tata Group has collected INR 1,500 Crores to donate for Covid. They have also bought more than 1,000 ventilators and respirators, 3.5 million masks and gloves and 350,000 testing kits.

ii. Mahindra Group is using its production facilities for manufacturing ventilators. The Mahindra Resorts are being used as temporary quarantine facilities. Mr. Anand Mahindra has been donating his salary for the people who are most affected by Corona virus.

iii. RF, which stands for Reliance Foundation, is giving 875 beds out of which there are 145 ICU beds.

iv. The Infosys foundation is committing Rs.100 Cr for Covid help.

v. One business donated 1 lakh liters of oxygen by giving up their CRED points.

vi. There are organization where the top management has taken pay cuts while keeping salaries of the lower and the medium level management constant.

Government Policies making Businesses socially responsible

Even if Covid-19 did not exist society would still be dependent on businesses and vice versa. The Government of India has put in place CSR (Corporate Social Responsibility) regulations. Under these regulations companies that have a profit of more than 5 crores or have an annual sale of more than 1000 crores or a net worth of more than 500 crores have to spend 2% of their annual profit for social welfare activities. Indian companies spent 8,191 crores towards CSR in 2019.

The Government has put in place DPCO (Drug Price Control Order) regulations. These regulations help control the price of medicines and medical devices. The idea is to make these items available to people at affordable prices. Businesses are also responsible for the well-being of the environment. Thus, they are using more sustainable processes. For example, McDonald’s is planning to have 100% green and renewable packing while Reliance Power will try to use less water to generate electricity and do 100% recycling.

These measures are likely to cost these business and will mean less profits but in the long run it will be a win-win situation for all.

Why do businesses do so much for the social world? What do they get from it?

Contributing to society gives businesses a good image. Trust is one of the most expensive things to have. By being socially responsible these businesses could get more customers because all the customers feel that the company is doing good work. Big Companies like the Tata Group are a fine example of this. Some organisations have the old thought-process of “Only I should grow, not you”. Now this thought-process is considered outdated.

The new business mantra should be:

“We shall all grow together.”

If you would like a more detailed explanation on this topic you can go through the link below:

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