A FEW GOOD MEN AND WOMEN - ET EdgeA FEW GOOD MEN AND WOMEN ˝ ˝ ’ 0 ˝ 8 2ˇ ˚ˇ *+,: ! ˛˚˜ ˇ ˙ˇ ˇ ˇ ˆ From a policy perspective, what changes do you feel would help energize

I ndia is a land of strange paradoxes. While it has grown from strength to strength to be one of the largest economies in the world, it is still home to the largest number of people living in absolute poverty and the largest number of undernourished children. That is a fact that cannot be ignored. While CSR is not a novel concept for India Inc., the time has come to stand up and be counted as making a serious difference, for we are standing at the crossroads of real and economic development. True development can only happen if everyone is part of the journey, and so the choices we make today are going to influence our generations to come. It's coming to be close to two years since the Corporate Social Responsibility (CSR) law came to (somewhat ironically) pass on April Fools Day in 2014. In the time since then, companies to whom this law applies have embraced the spirit of the law and set in motion several CSR projects that will benefit the neediest sections of society. CSR in and of itself is not a new concept forIndian companies. Most of these companies did some form of CSR activities in any case, and so they only brought this in law with the letter of the law. It was thus a chance to streamline spends and allocate their funds more strategically in order to ac- commodate the ruling that had been passed. This neces- sitated scaling up the CSR spend massively for some in order to come in law with the law, and they thus replicated their solutions so that it benefits a larger slice of the population. It could also mean that these companies would have to look beyond their catchment areas as they launch some pilot initiatives beyond anything they have done previously. However, most critically, the main story is not about the increase in CSR spends. That is a ripple effect of this law coming to pass. What is critical is that this increased spending should achieve results at the grassroots level, for that is the sole measure of the ef- ficacy of these efforts. More than the letter of the law, the spirit of the law needs to be ad- hered to, and if the commonest of com- mon men are to be beneficiaries of these efforts, then things need to be done more strategically, systematically and thoughtful- ly than before. An interesting development is that the ideas of CSR and sustainability seem to be dovetailing more than ever, the boundaries between them getting ever blurrier. Every company is feeling the pressing need to conduct business in an eco- nomically, socially and envi- ronmentally sustainable manner that is transparent and ethical, in a manner that benefits all. One thing that will have to happen if development is to indeed happen in a suit- able manner is the way in which people come together across partnerships. Whether it is across business, government or society, creating these partnerships for complex development solutions is the key to crafting a sustainable solution that is not just a short-term fix, but one that can be trusted to hold out and blossom in the long-run too. Businesses should not treat CSR as merely a charity, it's not even con- tribution to a good cause. It's about con- tributing to larger goals that benefit the na- tion at large. It is thus heartening to see the rise of business leaders who are embracing the law fully by making CSR more than just a case of opening a cheque-book. Over time, it has grown important to not just be seen spending money on CSR, but also being able to measure the impact of their efforts. Some have even seen the wisdom of collaborative efforts that can create a greater, more sustained impact. Companies are also beginning to see the value in engaging their employees in the rollout of these CSR programmes. Volunteer time is now more valuable than ever, and an increasing tribe of companies are actively seeking to build employee involvement as a core feature of their CSR programmes. Sustainability can also be about creating sustainable employment. Some of the big e-commerce firms that have entered India have 50,000-70,000 merchants with them, and they're providing finance to them at rel- atively lower rates, and while this is not CSR, it is creating a better ecosystem. It helps in the process of creating entrepreneurs at the bottom of the pyramid, and that can only be good any which way you look at it. Another potential key development could be the involvement of SME's in the entire CSR value chain. Since the business activities of SMEs are performed in proxim- ity to the locals, this enables them to be aware of community needs, manage ex- pectations and develop CSR programmes appropriately. Communities are one of the key pillars of the CSR ecosystem, and the interface that SME's have with them could make them invaluable to better engaging India's communities. NGO's also need to translate the efforts of corporates at the ground level. Where NGOs lag are in 5 critical areas, namely Control, Compliance, Governance, Risk Management and Performance Management. Working on these 5 parameters will see these NGOs move up the curve and become much better at deliver- ing services. At the end of the day, the CSR legislation might make CSR mandatory, but it should be more self-regulatory than punitive. It re- quires a mature, collaborative approach that sees companies use their resources to achieve the greatest public good. Companies need to view CSR beyond just charity, for it can be so much more. It can be a means to create self-sustaining communities that look after themselves in the long run. After all, it is only by making every community self-sufficient and empowered to grow can Indian become the force of na- ture it aims to be. AN ET EDGE INITIATIVE A FEW GOOD MEN AND WOMEN The experts at The Airtel and Economic Times Global Business Summit 2016 deliberated on how to make CSR count by understanding how companies can contribute to sustainable development goals From a policy perspective, what changes do you feel would help energize a highly regu- lated industry such as the liquor industry? Currently, alcohol continues to be one of the most regulat- ed sectors in the country, at both the federal level and state level. The multiplicity of states creates a complex tax and li- censing environment that lacks transparency and limits economies of scale. We recommend a uniform, harmo- nized state excise policy and reforms that are truly favourable and liberalized with a transparent business environment. This will help grow revenues, lessen com- plexity in the trading environment and reduce illicit activity through strict law en- forcement. We also believe that the in- clusion of the Alcobev industry under the GST ambit will be the biggest game changer and are encouraged by the recom- mendation of the CEA Panel for a comprehensive GST policy. A comprehensive tax reform including all sectors, including alcohol will enhance revenue for the states, reduce tax evasion, and im- prove governance and compliance through transparency. In addition, it will curb the production of illicit alcohol which has serious harmful effects on a consumer's health. What do you feel about the growth prospects of the Indian liquor industry? The Total Beverage Alcohol in India is worth INR 512.3 bn and is forecast to grow at 8-10% CAGR in value over next 5 years. Standing a strong second in the world with approximately 10% global volumes (IWSR 2014), India offers one of the most compelling opportunities for the spirits industry in the world. As social barriers to enjoying a drink are being dis- carded, and with increasing economic prosperity, consumers are clearly moving towards premium and international spirits. Thus, the overall economic and de- mographic opportunity is extremely at- tractive. Raising a toast to future success Anand Kripalu, (MD & CEO, United Spirits) speaks aboutthe road ahead for the liquor industry > From left to right: Deepak Arora (CEO, Essar Foundation), Gayathri Kalia (COO, DDU-GKY, Ministry of Rural Development, Government of India), Namita Vikas (Group President & Country Head, Responsible Banking & Chief Sustainability Officer, Yes Bank), Moderator: Gaurav Taneja (National Leader, Govt Advisory Services, Ernst & Young), Hemant Kanoria (Chairman & Managing Director, SREI Infrastructure Finance), Jaco Cilliers (Country Director, UNDP India) and Loveleen Kacker (CEO, Tech Mahindra Foundation) HEMANT KANORIA, Chairman & Managing Director, SREI Infrastructure Finance "CSR is something we have been talking about for the last few years now, but it is also a part of culture. It is a culture that should be passed on from generation to generation. Now that the government has put a policy in place, it dovetails with whatever the organization is doing." GAYATHRI KALIA, COO, DDU-GKY, Ministry of Rural Development, Government of India "To look at rural development is to look at a space that is central to our national development. Rural development is thus the development of people, it is very real economic development, it is infrastructure development and it is also in some ways catalyzing industries." LOVELEEN KACKER, CEO, Tech Mahindra Foundation "Most businesses doing CSR have been in the business of helping for years before the word CSR was even coined. Traditionally, almost everyone has been in education. What we found was that when you enter into education, you can support islands of excellence that exist all over the country. But the fulcrum of this effort is the teacher; a teacher must teach well irrespective of all else, this is very important." DEEPAK ARORA, CEO, Essar Foundation "One good consequence of this CSR act coming in is that most corporates have been asked to focus on their own catchment area. This allows you to take a much longer horizon rather than looking at a 5 year project with certain deliverables. If you really want to change the life of a person, I don't think a short-term program is really beneficial." S ome call him 'the most influential consultant alive', a man the CEOs turn to when they need solutions to vexing issues. In a world that's trans- forming at the speed of light, Ram Charan makes sense of it all, carefully applying learnings gleaned over a ca- reer helping the world's best CEO's move towards a better tomorrow. Speaking on the topic of 'Developing the Disruptive DNA', the guru was in his element as he stressed how critical it was to define the customer experience in excruciating detail, for this is the groundwork you need before you come down to execution. Listing out algorithm, cloud, software, mobility, and mindset as the key factors that are critical in creating competitive advantage in a digital environment, Ram Charan said that, "It's not digitisation, it is the algorithm that's the new core compe- tence. To succeed, all of these have to be integrated." The consultant par excellence stress- es that, "Millennials need to question your business and you should allow them to question you." This is in keep- ing with the growing trend of businesses and consumers connecting and con- versing more than ever before. While he lauded efforts to increase digitization, he said that doing so without having a blueprint in place would be folly. Businesses should also realise that the ecosystem partners are going to change. "Think globally who should be your partners. Trusting the partners in digital disruption is absolutely neces- sary". Stressing also on the importance of reducing layers in the business sphere, Ram Charan called for a removal of these layers, particularly when it comes to digitisation. "We've got to totally redo the future of work. We have to give up most of the hierarchical structures and use digitisation for that. If you do not do that, you will get left behind. It's going to happen in the next three years. Millennials have skills that older people don't have. " said the management guru as a rapt audience soaked in his learnings. The big daddy of management gurus When Ram Charan (Business Advisor, Author & Speaker) speaks, people stop and listen, as they did at the Airtel and Economic Times Glboal Business Summit 2016 NAMITA VIKAS, Group President & Country Head, Responsible Banking & Chief Sustainability Officer, Yes Bank "India has large developmental challenges, with about 21% of the population below the poverty line. We really need to look at the wider economic, social and environmental parameters as far as the delivery is concerned. We need to come up with unique solutions that are scalable and sustainable." JACO CILLIERS, Country Director, UNDP India "Sustainability comes down to 4P's really; people, in terms of addressing their social needs and bringing them out of poverty; prosperity, in terms of generating income for everyone; the third P is the planet, because business can't profit on a dead planet. Profits must be made, but we must think of the generations to come; lastly, we need partnerships that contribute to larger causes." How do you feel we could achieve India's solar vision of 1 lakh MW by 2022? First of all, let us understand that we need to change the terms with which we refer to solar, wind, hydral and all other forms of renewable energy. It is different from thermal or nuclear energy where there is a fixed amount of generation based on some parameters. Renewable energy is based on climatic conditions. Hence, we need to convert the MW into units generated or kWh. Power generation in India from April-November 2015 stood at about 740 BU, of which coal based generation was about 561.42 BU. In 2014-15, India generated about 1048.4 BU. The target is to generate 2000 BU by 2019, to pro- vide electricity to all. Hence we are looking to double generation, which does not nec- essarily mean double the capacities installed. Hence, in the case of renewable energy, especially solar energy, we need to talk in terms of units generated rather than MW installed. Solar generation peaks with electricity consumption in the summer months, and India has enough irradiation to supply electricity to the entire planet through solar alone. Hence the target of generating about 150 BU through solar by 2022 is very much achievable. (1 MW of fixed tilt solar systems generates about 150 million units per year). Seeing the climate changes we are fac- ing, and the effects of pollution of thermal generating plants, Renewable energy is no longer a luxury nor can it be called "alter- native energy" but is "essential energy" or "preferred energy". We need to decide what legacy we want to leave for the next generation. There is no point in having huge amount of installed solar panels, if they do not generate the number of units they are sup- posed to. We should hence not be talking installations or installed capacity, but be re- ferring to generation capacity in terms of units because that's what counts. And mind you there are lots of non operational solar plants not generating due to various rea- sons. Hence what we need is: a. to focus on restarting stalled or inoper- ational solar plants. b. Focus on Increasing efficiencies of panels and installations. c. Implement Mandatory Renewable Power Purchase obligations. d. Have Supportive and simple policies of the Government. e. Adequate and preferential financial support to the segment. A few weeks ago, India's Cabinet Committee on Economic Affairs (CCEA) approved amendments to the National Tariff Policy 2005, where promotion of renewable energy has been added as a key objective of the policy. Since all the basics are in place, what is required now is implementation, which though could be a challenge, but is very much doable. We need to bring in yearly targets and look to achieve them rather than looking at it as a block. How can we ensure energy for all? Electricity to all by 2019 is the vision of the Government, especially the Hon'able Prime Minister, who last August asked that all the villages be electrified in 1000 days. However, more than 300 million people in India yet do not have access to electricity, and this is a huge number. Electrifying every village, every nook and corner of the country would require not only huge investments, but also out of the box thinking and solutions. We require to ensure that the huge amount of revenue which goes into T&D losses and theft, has to be controlled. That would require investments, as well as a huge political will. But this will stop losses of Rs. 60000-80000 crores a year, which is huge by any standards. Efficiency improvement, cost reduction, strengthening of national grid, as well as implementing micro grids and mini grids at various levels would have to be under- taken. Huge amount of electricity is going in pumping water from 200 metres below the ground, and this is a national waste. Hence solar pumping solutions, and a more efficient water handling system and start- ing a feed in irrigation system would help in making electricity available to all, and would also lower the consumption of kerosene and diesel. What policy changes would you like to see to catalyze the power sector? The Government has brought in the UDAY scheme, which already has been ac- cepted by about 15 states. This will give financial resurrection to the Electrical industry, which is struggling with cash and mounting losses. Plus, what I see is that for the first time, after so many decades of desponden- cy in the power sector, we have a Minister who is energetic, knowledgeable, proactive, and most of all committed to change the power sector. And we have a Government who is willing to listen to industry. Not taking away anything above, what I would like to see is that the sector has a much bigger push than what it is getting currently, in terms of growth and support. More power to the energy sector Vijay Karia (Chairman & Managing Director, Ravin Group of Companies) discussing ways and means of energizing the power sector

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A FEW GOOD MEN AND WOMEN - ET EdgeA FEW GOOD MEN AND WOMEN ˝ ˝ ’ 0 ˝ 8 2ˇ ˚ˇ *+,: ! ˛˚˜ ˇ ˙ˇ ˇ ˇ ˆ From a policy perspective, what changes do you feel would help energize