A talk on the Indian Railways and CSR

Railway Staff College, Baroda, the national training academy of the Ministry of Railways, caters to the in-house training requirements of all railway officers at various levels. As part of the training curriculum, railway managers are exposed to men and women of excellence from outside the railway environment so that they learn about success stories from different walks of life and imbibe the elements of compassion, leadership and team management. There is also a need to sensitize trainees not only to various responsibilities they have towards their organization but also towards society at large. To this end, the Railway Staff College started a series of lectures by achievers and change makers in society. As part of the flagship program, the Railway Foundation Course for young entrants to Railway service, we were invited to address these trainee officers. The 4th Wheel is an organization that aims at the creation of a socially and environmentally sustainable world and to create a balance between competition and compassion. We were privileged to partake in this series which would add great value to our understanding of the psyche of young public service recruits and would be a part of our advocacy initiatives to propagate and educate various stakeholders in society on the topic of Corporate Social Responsibility. Our presentation comprised of two parts1. An introduction to CSR and 4th Wheel. The gist of the presentation is given below. Capitalism with its various facets is accused of being exploitative, increasing inequalities and making the rich richer and the poor poorer. It is believed to produce externalities which affect large segments of populations, negatively. Critics associate globalization with unfettered market conditions, rising inequalities and income disparities and the breaking of class relations. They believe that MNCs have contributed to labour, environmental, and human rights abuses as they pursue profits, around the globe. CSR as a concept is closely associated to the phenomenon of globalization. Capitalists are now working to resolve two big issues, according to Leslie Sklair (2008); one is The Class polarization crisis which is the simultaneous creation of increasing poverty and increasing wealth between communities/societies and the ecological crisis which caters to the sustainability of the ecosystem. The prevailing form of capitalism has led to an explosive growth in employment opportunities in developing countries, more involvement in global commodity chains, markets being established in rural areas, spurred the growth of small businesses and increased the dependence of populations on businesses and the private enterprise. This lead me to argue that businesses now have an important role to play in facilitating development and catering to social responsibilities. The central argument in the CSR debate at large is that the businesses ought to play a more prominent societal role, given their dominant (economic) position. It becomes clear that a limited number of corporations are responsible for the (economic) prosperity in the world. This prosperity only applies to one fifth of the world population receiving 82.7% of the world income (ENDAP, Human development report, 1992), while the poorest one fifth only receives 1.4%. This leads to a debate around the use of natural resources, inequality, power balances, the role of nations and governments and so forth. Many have criticised CSR for being a marketing gimmick to improve reputations and gain

popularity with officials and bureaucrats. It is sometimes accused of being a faade with no real impacts. Some accuse CSR of being a way to divert the attention of government officials from the companys exploitative and illegal practices. Some companies are also believed to substitute their wrong doings like raising prices uncontrollably or displacing people from land by investing in society. This, it is argued, does not serve the purpose of social responsibility, since the very definition of CSR would be to reduce and work towards the ethical handling of corporate practices. For companies which are believed to be socially contested like alcohol and tobacco, GM crops, to name a few, it is debated as to how they can play a role in participating in CSR. It is interesting to see an increasing realization of the importance of CSR in India. The ministry of corporate affairs released a document, Corporate Social Responsibility Voluntary Guidelines in 2009. This document urges corporate India to voluntarily adopt CSR so that statutory regulations may not be imposed; something that the government seems reluctant to do. In essence, the document is a positive, forward-thinking move by the government as is evident from its view that CSR must not be seen as philanthropy and, in fact, needs to be merged with core business vision and goals. On the other hand, India is trying to mobilize opinion against the proposed international standard on corporate social responsibility that could give legal sanction to developed countries to reject exports from developing countries like India. ISO 26000 sets out the basic minimum goals corporates should achieve in areas such as labour, environment and human rights. Complying with this could increase costs for companies from developing countries, eroding export competitiveness of the products produced by them. This illustrates how there are still vague conceptions about how and to what extent CSR should be undertaken. However, to reiterate, there is no question anymore of whether CSR should be undertaken but is accepted as part of the solution to make sustainable and human development a reality. Many do not agree with the assumption that globalization in its present form can be sustainable and equitable, even if accompanied by the implementation of standards for human rights, labour and the environment. The presentation sought to address this argument by stressing on the fact that the importance and weight age given to the social responsiveness and responsibility of corporations has just begun to gain leverage and in the coming years could prove to be a strong driver of development accompanied with collaborations with the State and Civil Society organizations. 2. The railways and CSR and a way forward The Indian Railways is 150 years old and believed to be the lifeline of the country since it is the biggest civilian employer in the world with over 17 lakh employees. CSR has always been an integral part of the Indian Railways functioning and the activities range from transportation of drinking water & fodder free of cost to drought affected area, enhanced fare compensation for cancer patients, catering to more than 10,000 shelter less people and investments in IITKharagpur to develop the largest research center. The highlights of the recent Indian railways budget in 2011 emphasized economic viability and social responsibility. The main consideration was on inclusive growth and expansion of rail networks for social and economic development. The vision 2020 of the Indian Railways spells out that the Indian railways shall provide efficient, affordable, customer focused and environment friendly sustainable integrated solutions, shall

give due considerations to Inclusive development both geographically and socially and pledges to reduce carbon footprints. We ended the presentation by asking how CSR could be incorporated into the Indian Railways business operations and here is some of the ideas and suggestions generated !! 1. Increased plantation of trees to compensate for new railway line projects 2. Afforestation programs 3. Organize the unorganized sector involved with the Indian Railways (IR) 4. Construction of houses and slum rehabilitation centers for disadvantaged stakeholders 5. Livelihood and employment creation for disadvantaged stakeholders 6. Land from unused IR areas, should be allocated for agriculture and fruit plantations which shall generate revenue. Convert waste dumping lands into habitats with greenery and fauna. Unutilized lands nearby railway tracks can be used in bio-diesel plants like jatropha thus gaining carbon credits. This land can also be used for shelter, schools for girls, hospitals, etc. 7. Collaborations and revenue models like Highway 4 expressway concept should be explored 8. Options of cause related marketing and advertising for corporates to ensure cleanliness and advocate other important social causes 9. Ensure an eco friendly waste management system in addition to educating the masses and enforcing rules for waste disposal 10. Promote the use of biodegradable materials- switch to biodegradable packaging in place of non biodegradable packaging like polythene 11. Use bio fuels and other renewable sources (for supply inside coaches and for traction if possible) like solar, biogas, extensively 12. Follow pollution norms 13. Incorporate regenerative break system which can utilize the energy obtained from the system like the Delhi Metro 14. Build toilets in villages through which the line is going so that they dont use rails for the purpose 15. Idle accident relief medical vans can be used for conducting health camps in rural areas 16. Healthcare facilities and education programs for disadvantaged stakeholders should be extended by IR services 17. Specific disposal of waste from rails, toilets and wagons and use of separate dedicated dustbins in coaches for collection of waste 18. All india campaigns like polio vaccinations, India heritage awareness, Anti alcoholism campaigns, HIV Aids, child labour, missing children and beggars, etc. may be conducted by using railway networks 19. Invest in new technology for cleaner ecological outputs 20. Provide technical support to training schools and colleges in tribal belts or other disadvantaged places. 21. Railways should ensure labour laws are adhered to 22. Connect remote areas to the existing train network 23. Improvement in human resource management specially regarding Class IV and II employees 24. Invest in environment friendly infrastructure 25. Invest in villages along the railway network (Adoption of some villages/pockets) 26. IR must be apolitical with reference to irrational political intervention and the organization

should be restructured internally which will make the administration more efficient 27. Priority should be given to micro and small enterprises in any outsourcing activities 28. Progressive fare structure with discounted schemes for students, elderly, handicapped, etc. One of the reasons for IR making losses is the low fares of passenger traffic. So the railways need to be more commercial as other PSus or corporates, rather than emphasizing its CSR to an extent that its operations wont remain economically viable 29. Prohibition of use of plastics anywhere on railway property 30. Railway passes through many tribal areas and villages and can be involved in collection of handicrafts and other artisan products which can be sold in towns for economic benefits thus playing an important part in reducing the connectivity issues of the rural areas to the market We also had opposing views like Railways has done and is doing a lot of social responsibility and cannot be overwhelmed with so-called inclusive growth/development. IR is doing enough by serving the poor, catering to environmental issues, ensuring economic growth, employment provision, etc. This is one group we targeted to generate opinions and ideas regarding CSR and hope you can share some of your experiences and provide us suggestions and ideas as to how CSR can be used as a tool to ensure a sustainable and equitable world by businesses incorporating CSR initiatives into their core business operations and competencies.