Enterprises show a willingness to co-operate with the competitive entities, but they more and more often create intersectoral partnerships too. These variants are not only a chance to gain new markets, but also to form a co-operation culture between the entities and to provide a great space for businesses’ social responsibility actions (CSR – Corporate Social Responsibility).
Since the practices of Polish entities show that CSR seldom goes out beyond our country’s borders, the partnership in a form of international co-operation is perfect material for the realisation of business purposes beyond the borders, and for implementing actions in the scope of businesses’ social responsibility.
The main barrier in implementing the CSR strategy is still the lack of employee and manager awareness. Most companies express a conviction that the politics of social responsibility is only for the greats and it generates high costs. Furthermore, there is a noticeable perception that CSR actions are only about marketing, and from what is known, budgets for these purposes are low, especially in the small and medium enterprise sector.
Even if companies carry out social activities, they do it in an extemporaneous way through short actions, which do not constitute part of a strategy, resulting in a weak or absent effect. A limited knowledge of this issue among Polish entrepreneurs can contribute to the implementation of previously unconsidered actions, generating only the organisational costs.
For business partners, non-governmental organisations are a reliable source of information about social problems, and bridge builders of dialogue between enterprises and their customers. They enjoy the trust of the public, they are characterised by the high levels of philanthropy, they have a great knowledge in the field of identifying and solving social problems, they are sources of detailed studies, and have well-shaped relations with public sector. Enterprises, however, for social organisations, are the source of capital, knowledge and managerial competencies.
Business partnerships and non-governmental organisations give a new sound for every organisation and cause specific consequences for the partners, stakeholders and for the entire market. They notably affect the competitive surrounding, providing the market with the new trends and gaining advantage.
What if we take a look at other cultures and look for the relationship between good practices and religious and cultural determinants? Let us look at India.
India is one of the fastest developing countries in the world. It constitutes a great economic power. It is also characterised by a high rate of social stratification – the world of unimaginable wealth of the great conurbations of Mumbai, Bangalore, and New Delhi, as well as the world of slums and extreme poverty, mainly in rural areas, where most of the population lives. These rural areas need special attention in the field of solving problems of poverty, malnutrition, and illiteracy, as well as the lack of access to medical care and the problem of the high death rate.
Decreasing contrasts and evening chances in society are the main challenges faced by the Indian government. Currently, solving these problems lies primarily with non-governmental organisations, which, due to a lack of access to public funds are often inefficient. Although formally these duties belong to the Ministry of Social Equality and Equal Rights, in practice these regulations remain dead.
In a country which has an illiteracy rate of over 65%, social organisations not only try to make access to education for children possible, but also ensure basic nourishment and medical care, as well as creating space for regular growth.
For instance, in the areas of Bangalore – a large and modern city in the south of the country – over 3 million children live in the slums, deprived of access to the drinking water, food and basic education. In the whole of India there are 8 million children who do not go to school, and breaches in child protection laws occur wholesale, starting with child labour and child trafficking for commercial sexual exploitation, as well as many other negative phenomena.
Approximately 12.6 million children are engaged in labour on dangerous positions. It has been recorded there that India has the greatest number of working children aged 14 in the world. Although poverty is often listed as the main cause of children working, it is also influenced by other factors, such as discrimination, social exclusion, lack of access to education, and the negative attitudes of their parents, including the low value placed on education. Generally, the parents decide for children, so they undertake a job giving in order to bring the family extra income.
In states such as Bihar, Mizoram, Rajasthan and Uttar Pradesh, over 60% of girls do not continue learning after five years of primary education. Child trafficking is also a serious problem in India. Studies show that over 40% of women providing sexual services enter the world of prostitution before they turn 18 years old. The negligence of the government and loopholes in human rights protection regulations are a serious cause for concern. The problems of this country are the subject of interest among many organisations around the world, including volunteers and journalists. Particular support is focused on those fields concerning education and the futures of the children.
Cultural determinants have a special impact on CSR development. Both great international corporations and small companies support the local environments as permanent elements of their business philosophy.
Small and medium enterprises (SMEs) have a great meaning for the Indian economy. SMEs in India contribute to the GDP growth at 8% annually. Most good practices, which they implement, find a direct basis in culture and religion. According to the opinion of managers of small and medium enterprises, good practices in business are only the result of companies’ owners’ attitudes, and of ethnic orientation. For many years, companies’ owners and managers have been engaged in support of local societies and have co-operated with non-governmental organisations, and thanks to this they have a direct impact on solving local problems.
There is widespread mecenat (patronage, sponsorship) in India, which mainly has a significant contribution in the sectors of healthcare and education. Good practices in small and medium business are often encountered, and the human face of the company is an ambition of every entrepreneur.
A multitude of good practices has been bringing great hope for development of CSR awareness, and hence, there are a growing number of enterprises implementing socially responsible business in orderly fashion corresponding to binding CSR regulations.
During previous years there has been much attention devoted to CSR in India, though it was still on the level of awareness raising and popularisation, due also to the scientific environment, and a visibly immature technical services market. However, bearing in mind cultural and religious determinants as well as the multitude of practices implemented, the future of CSR seems to be highly optimistic.
Taking into consideration a global viewpoint as the strategic variant in the model of an international co-operation, enterprises show greater concern about customers and their growing expectations as well as differential preferences, because customer satisfaction is an overriding purpose for every enterprise aiming for long-term success. The customers expect a dialogue with enterprises, they want to participate in processes of production, and partners from non-governmental organisations might play an important role in communication.
The intersectoral partnership is undoubtedly a new tool for competitiveness in an era of progressing globalisation, and at the same time it is a perfect form of good practice development.
Photo © Eliza Taworska