Corporate citizenship, or Corporate social responsibility is the way every firm influences on the environmental and social wellbeing. CSR refers not only to the environmental protection groups or social institutions. Every company, large or small is interested in performing CSR. Even though most of the actions do not bring the firm fast financial benefits, still being people oriented is paramount for the business’ success, especially in the innovative market. Based on the company’s approach, there are three main types of CSR defined, namely: (1) Business case model; (2) Social values model; and (3) Syncretic Stewardship model. Thus, CSR becomes an extension of the business strategy (Mohr, Sengupta, & Slater, 2010, pp. 436-440).
The Solar Electric Lighting Company (SELCO) produces and sells solar electric home lighting systems in India’s areas where there is limited or no access to reliable electricity (Mohr, Sengupta, & Slater, 2010, p. 512). Their solar panels cost the same $450 per unit for both, private households and organizations like schools, clinics and seminaries. Moreover, besides offering an affordable price, the company helps clients to get loans from local banks to pay for the solar panels and offers a chain of other supporting services (Mohr, Sengupta, & Slater, 2010, p. 513).
Harish Hande, the founder of SELCO says: “We want to destroy three myths: that the poor cannot afford technology; that the poor cannot maintain technology; and that you cannot make profits while trying to meet social objectives” (Kazmin, n.d., p.28). Which is why, SELCO’s CSR model can be clearly defined as a Syncretic Stewardship that means the company combines and balances interests of all stakeholders. This approach helps to view the market in more details and nuances, hence apply noneconomic options to achieve economic goals. Apparently, SELCO has installed more than 75,000 solar systems in rural areas, and gained profit of $3 million before 2010 (Mohr, Sengupta, & Slater, 2010, p. 515).
References
Mohr, J., Sengupta, S., and Slater, S. (2010) Marketing of High-Technology Products and Innovations. 3rd ed. Upper Saddle River, NJ: Pearson Education, Inc. ISBN-13: 978-0-13-604996-8
Kazmin, A. (n.d.) Lighting The Way. Financial Times. Available at: http://www.selco-india.com/pdfs/lighting_the_way.pdf
Response to Tracey Powell
As it is mentioned in one of the articles published in The Economist, the International Energy Agency predicts that 16% of the world's population will still have no electricity by 2030 (“Power to the people”, 2010). Therefore, SELCO’s business of producing solar batteries is already a social activity focused on the improvement of the living conditions in India. Meanwhile, I absolutely agree, that CSR is the outcomes and effectiveness of the company’s activity, which can be measured by its influence on the society and affects on the shareholders. Benefits available for the society are obvious, but it is also worth mentioning that company’s income continues to grow. Therefore, SELCO definitely represents a Syncretic Stewardship CSR model, which is a combination of socially active and revenue targeted business (Mohr, Sengupta, & Slater, 2010, pp. 436-440). Hence it also can be named as a social entrepreneurship.
References
Mohr, J., Sengupta, S., and Slater, S. (2010) Marketing of High-Technology Products and Innovations. 3rd ed. Upper Saddle River, NJ: Pearson Education, Inc. ISBN-13: 978-0-13-604996-8
Power to the people (2010) The Economist. Available at: http://www.economist.com/node/16909923
Response to Claudia Trejos
I absolutely support the statement that SELCO is the most socially oriented company among others, discussed within this course. Its solar batteries are an essential and vital energy source for many low-income households in India. Moreover, company goes beyond producing and selling the products, it also offers a wide range of supporting services, including installation of the equipment, consultation, helping in getting bank loans, personal assisting (Mohr, Sengupta, & Slater, 2010, p. 513). But what is more, SELCO’s management does not increase salaries regardless recent market tendencies, as they believe that power, especially solar energy should be affordable for each and everyone (Kazmin, n.d., p.28). And that is just a great point, mentioned by Claudia, that their power batteries are also environment-friendly. At the same time, SELCO’s CSR allows company’s shareholders to enjoy an increasing revenue.
References
Mohr, J., Sengupta, S., and Slater, S. (2010) Marketing of High-Technology Products and Innovations. 3rd ed. Upper Saddle River, NJ: Pearson Education, Inc. ISBN-13: 978-0-13-604996-8
Kazmin, A. (n.d.) Lighting The Way. Financial Times. Available at: http://www.selco-india.com/pdfs/lighting_the_way.pdf
Power to the people (2010) The Economist. Available at: http://www.economist.com/node/16909923
