Eyes on the cause, not any spouse!

For decades, the success of a business globally and in India has been measured almost exclusively by its profit margins. Philanthropy, if it existed, was an afterthought, a box to tick rather than a genuine priority. Today, even as the world is slowly changing, India has not yet embraced it despite CS initiatives, going by the 70-90 hour work week demands by business leaders.

When customers demand accountability and employees seek purpose in their work, businesses can no longer afford to focus solely on financial gains. More so in India where poverty is growing and income disparity is forever rising, the corporate world has to recognise its potential to drive meaningful social change. This is not just ethical; but a business imperative. Companies should try employee-driven philanthropy to address the most pressing challenges facing their communities.

With growing awareness around issues such as climate change, income inequality, and education, stakeholders – ranging from employees to customers – must demand more than just generating profits. And it should not be in the form of just the mandatory CSR, which should evolve from a compliance requirement into an opportunity to drive meaningful employee engagement and create lasting social impact. It will be best to integrate employee-driven philanthropy into their core values, empowering the workforce to lead charitable initiatives.

In a country where social disparities are stark and the need for change is immense, employee-driven philanthropy will be a game-changer. It bridges the gap between corporate profits and grassroots impact, and gives employees a sense of purpose and ownership in addressing critical issues. Infosys, through their Foundation, has actively involved employees in community service initiatives like providing education to underprivileged children and constructing public toilets. 

Empowering employees to direct philanthropic efforts is a way to attract and retain top talent in an increasingly competitive job market. Millennials and Gen-Z professionals, who now make up a significant portion of the workforce, prefer working for organisations that align with their values. According to a study, 71% of professionals in India are willing to take a pay cut to work for a company that has sustainability and social responsibility as core values.

How can you create an employee-driven philanthropy programme? Here’s how to get started:

Align with the CSR mandate

Under the CSR provision, certain companies are required to spend 2% of their average net profit on CSR activities in specified areas. Taking this as a starting point, businesses may go a step further by involving employees in deciding how these funds are utilised. For instance, Tata Steel employees are invited  to participate in its community initiatives, which include healthcare camps, vocational training, and environmental conservation projects. By aligning CSR spending with employee interests, companies can amplify the impact.

Leverage technology for seamless implementation

Managing any impact programme in India will be problematic with the last mile delivery. Technology can streamline administrative tasks and ensure transparency. SaaS-based CSR and sustainability platforms can enable companies to manage and track their giving initiatives efficiently. For instance, Goodera allows employees to participate in virtual volunteering opportunities such as teaching children or mentoring small businesses, breaking geographical barriers and increasing accessibility. Tech infusion can make philanthropy  more inclusive and scalable.

Encourage grassroots participation

Employee-driven philanthropy works best when it reflects the unique needs of local communities. Encourage employees to identify causes they care about and take the lead in planning initiatives. HDFC Bank’s "Parivartan" programme empowers employees to contribute to projects focused on rural development, financial literacy, and women’s empowerment. Employees are motivated to volunteer in their local communities, creating a direct and meaningful connection between the business and the beneficiaries.

Make giving a part of culture

Don’t treat philanthropy as a one-off activity but as an integral part of the corporate culture. Incorporate giving into their day-to-day operations through initiatives like:

Donation matching: Matching employee donations to amplify their impact.

Paid volunteer days: Offering employees paid leave to participate in community service activities.

In-kind contributions: Organising drives for essentials like food, clothing, or school supplies, particularly during festive seasons.

Wipro allows employees to donate a portion of their salary to charitable causes, which the company then matches. 

Celebrate and share success

Recognise and celebrate employee contributions and motivate others to get involved. Document the philanthropic efforts through photos, videos, and impact stories. Share them internally and externally. Mahindra regularly showcases the achievements of its “Nanhi Kali” programme, which provides education to underprivileged girls. By highlighting the role of employees in such initiatives, they inspires others to participate and reinforces its commitment to social change.

The power of employee-driven philanthropy lies in its ability to create real, measurable impact. Both Bajaj and HUL have shown this impact: Bajaj during the COVID crisis and HUL with its Project Shakti.

Indeed, there are numerous socio-economic challenges and many opportunities for businesses seeking to make a difference. Embrace  employee-driven philanthropy to address pressing issues, from education and healthcare to environmental sustainability. As businesses align with the values of a new generation of socially conscious professionals, the impact will be felt far beyond the workplace. Involving employees will strengthen morale and contribute to a more equitable and inclusive society.

In the words of Ratan Tata, “What comes from the people has to go back to the people.” By empowering employees to lead philanthropic efforts, India Inc can honour this ethos while paving the way for a brighter future.

Instead of demanding 90-hour marathon weeks and stealing Sundays, the L&T chairman could have simply asked employees to spare a couple of hours from their regular workweek for some good old community service – preferably without turning it into a spouse-staring contest! Imagine the ripple effect: happier employees, healthier communities, and zero awkward HR interventions. Now that’s what I call a real Corporate Social Revolution!