Conscious consumerism has witnessed a slow, yet gradual rise over the past decade.
Consumer perspective has been shifting to a more holistic one, with price now rarely being the only factor predicting the success of a product. The world is witnessing an overall shift of preferences towards businesses that genuinely care. About people, society, environment and economy.
Let's take an example. Earlier, a customer only considered its price while making a purchase. But now, there are many questions lingering around it- is it naturally made? Was child labour involved in its fabrication? Is the production ethical and fair?
As the public grows more aware of the harsh realities surrounding all that they consume, many have been making a conscious effort to support ethical and fair practices. In fact, a recent study conducted by the CapGemini Research Institute states that 79% of Indian consumers are changing their purchase preferences based on factors like social responsibility, inclusiveness, or environmental impact.
Additionally, 57% of the respondents falling under the 18-24 yrs age group have switched to sustainable brands that aren’t mainstream and approximately half the consumers mentioned they had an emotional connection with products and organisations they perceive as sustainable.
The changing consumer mindset is undeniably pushing corporates to take on responsibility through their operations. Corporates are expected to give back to society, not just by mere acts of donations, but by making social responsibility their very core mission.
They need to strive to make a difference, as though it runs through the very veins of their operations.
...but how can these expectations be met?
SDG 17: The Game Changer
The Sustainable Development Goals are a set of 17 goals put together by the UN General Assembly to build a more prosperous, equal and secure world by 2030. All the goals set are vast and interdependent, with their targets varying country-to-country.
SDG 17: “Partnership for the Goals”, the last goal of the lot, emphasises the need for global partnership and mobilization of efforts among the public, private and civil sectors. Its very purpose lies in the transformation of this era into a more collaborative, inclusive and sustainable one.
But why are we mentioning it?
With rising consumer demands for the ethical functioning of corporates, SDG 17 pushes forward sustainable ideologies open for all stakeholders to take up. This goal, by its very nature, enables the execution of the previous 16 SDGs and also urges the involvement of corporates in its pursuit.
Private players seeking to meet these goals would undoubtedly find themselves at the centre stage of not just driving change, but also on the receiving end of public loyalty and trust.
A common misconception in terms of change-making is that the government is expected to be its sole driver. However, SDG 17 broadens the scope of change, encouraging the private sector to also take part in this fight. With both, the private and public sector working hand-in-hand, they can together transform the conception of what lies ahead for the country.
India too has been actively involved in the achievement of SDGs in the country. Home to one-sixth of the world’s population, the country harbours immense potential to meet the SDG targets.
In terms of SDG 17, the country caters to one of the largest Public-Private partnership programmes in the world. However, these partnerships also entail an extensive amount of financing to meet the targets. For this, the government relies on none other than the power of FDIs.
The government encourages FDIs through favourable policies and access to a vast array of sectors. In fact, they had also recently opened up the defence and railway sectors for investments, which were earlier purely state-owned.
They have also been pushing the narrative of raising investments from the developed to the developing, encouraging the former to invest in India’s massive armoury of resources.
Through this, not only do they finance their projects, but they also secure higher productivity, employment and innovation within respective industries.
This, in turn, has a ripple effect, raising the standards of living across the country, along with its GDP and BOP status- eventually developing the country holistically.
Unification of the Private and Public Sectors: PPP
PPP- A contract between a government body and a corporate entity- with the motive of taking up joint projects, driven by the principle of “value for money.”
The entire partnership tends to be driven by the personal motives of the public and private sectors. In most cases, the people, environment and society are rarely even taken into consideration for PPP projects, albeit be its primary focus.
If the parties aligned to not just a profitable, but also an impact-oriented goal, large-scale change is inevitable.
Using PPPs for Good
‘People-first’ PPPs is a relatively new concept, prioritizing the welfare of people above all else.
These projects are undertaken to address the SDGs laid down by the UN on issues like poverty alleviation, education, hygiene and sanitation etc. It shifts the PPP ideology from “value for money” to “value for people”, broadening the scope of pre-defined standards in the market.
In terms of the Indian government, PPP’s help facilitate the involvement of private players in attaining the planned SDG targets. The government offers a variety of benefits for corporates willing to initiate projects focused on the SDGs. Essentially, this promotes collaboration among stakeholders within the system, collectively targeting the sustainable development of the nation.
Such partnerships are equipped with all the resources required to create an impact on a massive scale. Above all, they offer a win-win model, where the government is aided by the expertise and manpower of the corporates and the corporates on the government’s resources.
Taking up partnerships of this kind could be especially useful for corporates trying to raise their core set of ethics. The general notion of a brand in such a partnership takes a positive shift- making them more trustworthy and reliable.
This very change in outlook can strengthen ties with all its stakeholders, right from the government to its very own employees, earning them more respect and a positive brand loyalty.
Ethical Governance and work satisfaction
According to Deloitte, 70 per cent of millennial respondents listed their company’s commitment to the community as an influence on their decision to work there.
Employees are known to exhibit more satisfaction in such companies since they believe their work has a larger, socially inclined purpose to fulfil- that doesn’t just involve filling up their bank accounts.
Creating a brand purpose could potentially transform the very essence of an organisation. It can help differentiate a corporation from its ‘normie’ competitors and raise its reputation to one that is purpose-driven and ethical. Additionally, a brand purpose could drastically impact its brand image- they are viewed as pioneers and inspirations, thanks to their conscious use of resources.
It solidifies a positive image in the minds of its own workforce, transforming them into a huge thriving community of individuals who are now your biggest brand advocates.
The amount of impact created by one decision.. is mindblowing.
Offering shelter & rehabilitation for the homeless- Infosys Foundation
The Infosys Foundation, the not-for-profit wing of Infosys, is widely recognized for its proactive approach towards supporting the less privileged sections of the society, led by renowned writer and philanthropist- Sudha Murthy.
The Foundation operates on her vision to help people create their own change, equipping them with all they need to make a conscious difference in their lives. It extends support to not just the poorest of the poor, but also to the fields of science and mathematics, as a means to develop the scope of future innovations in India.
In the foundation's 19 years of existence, it has spent over 450 crores on multiple developmental projects and initiatives across the country. Of their many initiatives, their alignment with Chittadhama is one that particularly stands out.
Chittadhama- a home for the homeless with mental illnesses, is an initiative to rehabilitate those who have been disowned or isolated by their families. Their overall vision is to reintegrate the residents with their family and society along with assisting them to live a life with dignity.
Driving down history lane, Chittadhama was first initiated in 2009, by an NGO called the Chittaprakasha trust. The Infosys Foundation, on sharing the same vision, offered support by partnering with the trust and bearing the expenses of the building. It turned the dream into a reality.
What’s truly different about this centre is its style of rehabilitation, many say it resembles that of an ‘ashram’, thanks to its peaceful atmosphere and an all-pervasive culture of equality and freedom amongst those residing there. Regular psychiatric camps are also held, not just for the resident but also all the surrounding communities, offering them free consultations and medicines whenever needed!
Infosys foundation soon began offering 95% of the medication required at the centre for free, under its ‘Manomaligi’ scheme. The scheme attracted a large number of outpatients seeking treatments, breaking taboo and misconceptions of mental health, empowering citizens right at the grassroots level.
Through this initiative, more than 30 residents have been reunited with their family- truly signifying the amount of impact a corporate could have, just by utilising its resources for social missions, much bigger than itself.
Empowering Indian Farmers- ITC’s e-Choupal
India’s pillar of growth- the agri-sector- is not just known for its immense contribution to country-wide employment and GDP, but also for the numerous issues, it struggles with- right from the lack of technology to vulnerabilities caused due to climate change.
To counter the multitude of problems faced by the sector, ITC's ‘e-Choupal' is an initiative offering internet kiosks to thousands of villages across the country. These kiosks offer highly valuable information to farmers- best practices, localised weather reports, market prices, scientific management, and so on!
All this information is disseminated by the ‘Sanchalaks’, a villager who’s trained to understand the working of the kiosk along with relevant information and advice to offer to the locals of his region.
Apart from just benefitting from the information, farmers can also visit ITC’s ‘Choupal Saagar’- a hypermart located in multiple rural areas across the country, where they not only gain access to high-quality inputs for farming but also get to sell their produce at great rates and receive the income within hours, as opposed to days in the normal system.
The Choupal Sagar also includes multiple advisors specialising in all-things agriculture- guiding farmers on the best practices and products for the type of help they’re looking for.
Beginning in the early 2000s, the initiative has empowered almost 4 million farmers in over 35000 villages across the country!
It has helped farmers double their incomes and are constantly improving and evolving the system as per current local and global market needs.
This initiative, taken up by ITC’s Agri-Business division, has truly set a benchmark for sustainable and responsible business models in the market. In order to facilitate the growth of responsible businesses, ITC E-Choupal will also be supporting novice Agri and sustainable startups by adding their information and products onto their kiosks.
Apart from this program, ITC has also changed the lives of multiple communities in need, with their comprehensive people-oriented strategy and large-scale CSR initiatives. They have truly set an example of the drastic impact created by a single private entity alone urging other businesses to join the force.
Improving the cityscape of Thiruvananthapuram, Kerala
An example of the impact of a People-first PPP could be attributed to the large-scale transportation infrastructure development in Thiruvanthapuram, Kerala.
Road infrastructure had to keep up with the rapid pace of urbanisation of the city, however, the state was under a budget deficit. Roads were now too narrow and traffic became an everyday nuisance, leading to higher CO2 emissions in the region.
In order to counter this, a people’s first PPP was formed between the Kerala Road fund and the Thiruvananthapuram Road Development Company Limited (TRDCL) along with financial assistance from IL&FS Transportation Networks Limited.
This partnership offered a sustainable solution for the infrastructural problem, some of them being-
A high-quality road built to address the growing traffic.
Energy-efficient street light fixtures of high durability.
Solar-powered traffic signals through the route.
Addressing CO2 emissions with the development and maintenance of greenery native to the city, helping increase environmental biodiversity and well-being.
Through this, the alliance addressed a few of the SDG goals as well, namely,
SDG 9, by building resilient, high-quality infrastructure keeping in mind future population forecasts.
SDG 11, by setting up sustainable infrastructure to counter the growing number of vehicles.
SDG 13, by creating green traffic islands contributing to the plantation of over 2200 native trees to facilitate a greener economy.
As seen above, corporations with a social mission invariably play a major role in designing and maintaining the landscape of our society.
With People-first PPP’s slowly gaining momentum, the public-private dynamic is gradually transforming.
The sustainable development goals are no longer just achieved by the government, rather its attainment is fuelled by the collaboration of all sectors alike.
Increased cooperation between the public and private sector encourages corporates to contribute to the holistic development of the country.
Ethical business partnerships may not yet be the norm, but their commitment towards multidisciplinary goals definitely helps lay the foundation for a bright, sustainable future.