The Emami Gurukul

Book Review: Business the Emami Way

Article first published +BusinessToday Click here 

As a child one heard of an allegorical tale of a village barber. He used to carry out minor surgeries for the villagers. Then came along a crafty quack who said to the barber: "You are so naturally gifted; now if only you had a formal training you could become a top surgeon." The simple barber swallowed the bait and asked the quack to teach him. And that was the end of his practice. Each time he picked up the implements he got scared at the thought of what could go wrong. He could no longer trust his intuition and native skills; the burden of medical theory paralysed his craft. Reading Business The Emami Way reminds me of that fictional barber - for reasons I shall come to in a bit.


R.S. Agarwal and R.S. Goenka are the stuff legends are made of. They are phenomenal entrepreneurs who started small by moonlighting while still working for one of the largest industrial groups. From there, they went on to build an empire taking on formidable FMCG multinational giants. They did with FMCG personal care products what Karsanbhai Patel of Nirma achieved with detergents; then gradually expanded into other FMCG categories like edible oils and retail pharmacy chains. To deploy the surplus of the low capital intensity consumer products business, Emami made lateral forays through joint ventures into healthcare and real estate. Nirma had, on the other hand, ploughed back its cash for upstream industries like Soda Ash and Linear Alkyl Benzene. It may not be sheer coincidence that both Nirma and Emami will soon be battling it out in the cement markets of Eastern India.

What could have been an enthralling saga of their fascinating journey from bean counters to business tycoons - gleaning management and life lessons along the way - has been marred by adopting a guru-shishya dialogue format. The "gyan" that is dispensed may sound to an evolved reader rather elementary, often laced with cliches and time-worn quotes like "Time and tide waits for no one". On how to conduct effective meetings, it is advised that "secretaries of the top bosses should collect all related facts and information for the department or departments and present it before the bosses". To check interruptions, it is suggested the boss hang a 'Do Not Disturb' sign outside his office. But if friends drop in announced, one needs to make time for them (so as not to appear "downright impolite"), but "do not go overboard".


Discourse about market segmentation, socio-economic classification and attitudinal difference between rural and urban consumers are in the same simplistic vein. But, all of it is grounded in strong earthy wisdom, cutting the chase - which is something professional managers and fledgling entrepreneurs can imbibe from the Agarwal-Goenka Gurukul.

The most interesting part of the book lies in "a leaf from my life's book" at the end of each chapter, which by itself could have been a rich read if chronicled in some more detail and depth. There was, perhaps, no need to laboriously plod through management theories like teaching human anatomy to the barber.

How ITC reinvented itself to “a company that also makes cigarettes”

Aricle first published in +Mint Click here to read


Over a decade ago, one of the doyens of Indian business journalism had written an article, “Tale of two companies”, comparing two packaged consumer goods makers — Hindustan Lever Ltd (still not Hindustan Unilever Ltd (HUL) then) and ITC Ltd. Since then much soap and detergent have been washed down the Hooghly and Arabian Sea — as indeed millions of puffs have been blown through human chimneys. While HUL has regained its old act by re-engineering itself, ITC has got its new act together by reinventing itself.

Till the early 1990s, the punch line of all Hindustan Lever chairmen used to be “we are an Indian company whose largest shareholder happens to be a multinational”. ITC, on the other hand, used to be less apologetic about its BAT Plc. parentage. Following the eminently forgettable K.L. Chugh era, when Y.C. Deveshwar mounted the saddle, in a corporate coup of sorts with the backing of institutional shareholders, he decisively cut off the umbilical chord and embarked on a mission to establish ITC’s Indian credentials with a vengeance.

At the same time, with liberalization of the Indian economy, the new generation chairmen of Lever over time shed their trademark khadi silk bush-shirts in favour of bespoke suits when traversing the power corridors of Delhi. However, this piece is not about comparing the two companies but trace the evolution of ITC as an Indian consumer products giant.

It is easy to surmise why Ajit Haksar — the last of the corporate Mohicans — ventured into hotels. It was partly to hedge against the possibility of curbs on the tobacco business and also as a safe haven for the surplus funds of the mother business that could be easily encashed anytime by selling the brand or the real estate. It is to Haksar and ITC’s credit that they nurtured Welcomgroup for a long time before it became truly profitable. Printing and packaging (where Deveshwar first cut his teeth) and paper boards were but logical vertical integration.

Similarly, one would believe the lifestyle and apparel business was started to secure the Wills franchise. But the real serious diversification was kicked off with ITC’s plunge into the foods business — which arose both out of necessity and opportunity. Subsequently, it naturally extended to pure consumer products play.

The story of ITC’s transformation is one of turning a proverbial threat into an opportunity. As the time-worn cliché goes — cigarettes is a “dying” industry in more senses than one. With the intervention of World Health Organization and a judiciary increasingly sensitive to the hazards of tobacco consumption, the tobacco industry has had to brace itself for a premature sunset like its consumers (smokers).

Simultaneously, there was a need to divert public attention from corporate governance and health (tobacco) to being a socially-responsible organization. This, one would suspect, was the genesis of a “we also make cigarettes” strategy.

The ban on cigarette advertising came as a blessing in disguise as it left ITC flush with cash. Not having a majority foreign shareholding allowed it to enter the food sector — then reserved for domestic players (except those such as Nestle SA, GlaxoSmithKline PLC and a few others — who enjoyed the benefits of a “grandfather” clause). Food was largely an open field with no organized pan-India player barring Britannia Industries Ltd. From biscuits, atta, ready-to-cook or heat meals, it has seamlessly moved to instant noodles, juices and now, one hears, coffee is in the pipeline.

For a cigarette manufacturer with low technology and little product innovation except in packaging perhaps, ITC’s most remarkable achievement was in learning the ropes of an entirely different supply chain and gaining mastery of a new product category, not just in terms of marketing but product development and innovation. Equally challenging was building a network which — contrary to popular belief — had little in common with the cigarette retail channel.

The evolution into personal care was even more interesting because here it had to contend with a giant like Unilever with an 80-year legacy in India, international brands and world-class research and development. Making soaps, body-wash and shampoo brands is as different as paneer is from talcum powder. Globally, too, it is rare for companies to be equally successful in both food and packaged consumer products. Neither Unilever nor Procter & Gamble Co. can really be considered to have handled both businesses with the same level of success while traditional food makers like Nestle and General Foods Corp. have by and large stuck to their knitting.

However, ITC’s real success lies in achieving this transformation with existing, home-grown talent with very little (or practically no) lateral hires at senior levels. ITC remains one of the few large companies that still believes in providing long-term careers to its employees. It is a key differentiator in a fast-changing corporate world where “turnover” and “velocity” are the current flavours of human resources management. Changing the corporate DNA and culture is no mean task. If an organization has to reinvent itself so have to its leaders. This is where Deveshwar scores above many of our present day corporate icons. Arguably, he had an extended stay at the top. But Deveshwar leaves behind a new ITC for the next generation.

In contrast, the much-hyped “Project Millennium” of Lever — riding on which many careers were made — lost steam. Among close to a dozen business ideas incubated — just about one (water, that too in a modified form) has survived the genetic implant.

It was generous of Deveshwar to praise Amul and Patanjali in his speech.The jury on the latter is still out. But, what it does underscore is the rapidly shrinking ramp-up time. What took Unilever 60 years to achieve, Amul did in 40 and ITC in 20. Now, Patanjali has managed to scale up in less than five.
A fascinating battle lies ahead between the global giants and the emerging “swadeshi” challengers.

In the age of Social Media companies cannot be ham-handed in handling employee exits

Much before ‘happy exits’ had become fashionable in the corporate world, HUL had learnt the trick to keep its ex’s happy and involved.

Article first published in @hrkatha.com Click here

The catch line of Hindustan Lever (I am advisedly making a distinction with the new Hindustan Unilever or HUL– old Leverites would understand why) at campus recruitments used to be “We don’t have jobs to offer, only careers”. 

The joke within the company was “HLL is a company you worked not for the salary but to die for or retire”. Salaries in those days were a pittance when compared to foreign banks and even other MNCs – the alternative destination for young MBAs. But, HLL’s superannuation benefits were the best in industry. And, in the odd unfortunate instance, when some manager passed away in harness, the company went the extra-mile to look after the bereaved family.

Just like modern marriages – professional bonds had to necessarily become flexible and open ended with changing times. So, from the 90s onwards – it was no longer “till retirement or ‘death do us part’”.

First exodus from Levers happened when Pepsi Co entered India. One lady headhunter who had earned the sobriquet of ‘man-eater’ – made not just a fortune but also her career out of those prized catches. Still such was the level of corporate chauvinism at HLL – those who quit were seen as prodigal sons of the family, who were lured by lucre.

Cynical bosses quipped disparagingly – “it is not Lehar Pepsi but Lever Pepsi”.  Similarly, Whirlpool India was snidely called Leverpool.

This was also the time there was a change of guard at the top at Levers. Correlation was automatically drawn between the new leadership and the unrest below. A business fortnightly was quick to pick up the story with a cover on ‘Lever Leavers’. Some of the people interviewed were understandably not kind to the company. They cribbed about the slow velocity of professional growth – still stuck on the old formula of people moving in ‘batches’. However, significantly what this media coverage brought home was the need for ‘happy parting’ – just as it is fashionable to say in relationships nowadays ‘Divorce – and remain friends forever’.

Cynical bosses quipped disparagingly – “it is not Lehar Pepsi but Lever Pepsi”. Similarly, Whirlpool India was snidely called Leverpool.

Till that time, in most staid old corporates official ‘farewells’ were reserved only for retiring employees or those who moved on transfers. Resignation was viewed almost as an act of treachery. It was deemed politically incorrect to have ‘send-off’ parties for those leaving the company. Sometimes, a few close co-workers would go out for a ‘parting drink’. Not any longer. Companies now sponsor farewells for employees who quit – celebrating their next ‘big-break’ - even when they are joining competition.

Organisations have realised – every separation need not be bitter. In fact – most separations these days are like divorce by mutual consent. With organisations shrinking, becoming flatter and the pyramid narrowing more sharply at the top – attrition is no longer a bad word, even in the old brick and mortar companies. Firms now have to willingly let go people, while many more – reading the writing on the wall – move on before it is too late.

In the Indian context this is a transitional phase – as companies move from a paternalistic culture to an adult-to-adult relationship mode. For those who have grown up in a benign environment – this sudden shift in gear to an emotion neutral pace can be unsettling. Separation blues are, therefore, natural. Withdrawal symptoms set in easily. Mature organisations have learnt to deal with the process intelligently and, if one may add, caringly.

The potential of damage by a disgruntled ex-employee is immense. Some old-style management and HR practitioners with an industrial relations mindset underestimate the risks of being trapped in the old belief that no individual can take on the might of a giant organisation.

Not every unhappy former executive will take a company to court. But, in an age of social media ‘knowledge workers’ are as empowered as consumers. Besides, there are innumerable ways a hurt or jilted ex-employee can get even with his former employers – even while remaining below the radar, so to speak.

In ‘marketing’ they say, for every consumer complaint – there are a hundred dissatisfied customers who are too lazy to speak up. But, today one tweet or Facebook post can cause an avalanche of protests and many companies have learnt at a cost. In the case of people – one resignation of a star executive can create a wave of exodus. Word gets around in no time. Bitter partings leave behind a stink that also affects remaining employees – who wait their turn for similar step-fatherly treatment.

Growing companies can scantly afford such bad PR is this day and age of ‘war for talent’. Employer Brand – once destroyed – take years to rebuild. Therefore, smart HR leaders realise – taking old analogy of camels in an Arab’s tent – if you must let a camel go, better leave the creature happy and ‘toilet trained’.

The old HLL had the practice of calling its former directors to share the annual performance of the company, to keep them posted of latest developments and seek their counsel. It was routine practice for directors travelling to other cities – to call retired managers and ex-colleagues for drinks and dinner.

One of the first imperatives in working out separation packages – is not to count the small change and be gracious (if not generous) to a fault. Bureaucratic delays – are a major cause of disenchantment. Some organisations – turn cold towards employees no sooner they put in the papers, putting them on a merry-go-round ride of archaic policies and procedures. Unless someone is being fired on disciplinary ground or integrity issues it is advisable to make him/her feel like a member of the family setting out into the larger world and wish them luck. It is always a good feeling – if the employee walks out with a cheque in hand and smile on the face.

Exit interviews count a lot and should not be an exercise of going through the motions. Lot of angst can be dissipated over an empathetic chat – not just one to tick the boxes.

One has seen bosses – who dodge EIs fearing a spill out of their dirty secrets. Good learning organisations treat this as an opportunity to gather genuine feedback – that employees may otherwise be shy of sharing when on the rolls. A dinner or a drink with boss’ boss or the CEO in case of senior executives – followed by a token personalised gift of appreciation – works wonders.

But, progressive corporates don’t stop at that. They make a conscious effort to stay connected with former colleagues creating an alumni association of sorts. Annual get-togethers and invitation to special occasions like new facilities inaugurations and major product launches – help maintain an active positive relationship. Social Media has made this much easier with WhatsApp Groups and Facebook pages creating a fraternity of former colleagues. Very often the HR community subtly inspire these initiatives.

Much before all this became fashionable – even in the pre Internet days – the old HLL had the practice of calling its former directors to share the annual performance of the company, to keep them posted of latest developments and seek their counsel. It was routine practice for directors travelling to other cities – to call retired managers and ex-colleagues for drinks and dinner. These gestures went a long way to keep the fraternal links alive.

Have seen organisations whose former employees turn into their biggest critics. If current incumbents go to seek business from any of them – they are most likely to be disappointed. A good test would be wangling an invite to their homes and see which brands they use now. One can be almost certain they are not of their old company – such is the level of subliminal animosity.

At the other extreme – there are more than a 100 ex-Lever’s managers holding CXO positions across industries. They are, perhaps, the best brand ambassadors of the company – who keep it still at the top of the charts at campuses despite many new flavours – banks, IT, dotcoms, PE firm, International consultancy firms and now start-ups – coming and going each season.


That’s what differentiates an institution from a company.

Ronju (Pradeep) Dutt - an uncelebrated legend

Pradeep (PK) Dutt - Guru of Marketing Gurus passed away in Calcutta

Article first published in The Economic Times (click here for link)

An IIT Kharagpur Civil Engineer - he landed at the Backbay Reclamation Office of Hindustan Lever for an opening of Marketing Manager - after changing some 7 jobs (as per his own count) including trying his hand in Transport Business (when he couldn't see his own face on the mirror at night - because of the malpractices in the trade). The great raconteur that he was - Pradeep Dutt (PKD to his colleagues and Ronju to friends) would regale young Management Trainees with the story (perhaps made up) of how the topic of group discussion at the HLL interview was "The Rising Trend of Mini-skirts" - when he stunned the panel by asking whether it meant "Mini-skirts were getting shorter, or more and more women were taking to wearing mini-skirts". This piece of witticism he claimed clinched the job for him among many MBAs in the group.  It is this touch of humour and large-heartedness that set him apart from many of his peers and protégées - some of whom went on to do much better than him professionally.

His rise at Hindustan Lever was almost meteoric. As they say success has many fathers - so while a lot of people claim credit for the launch of Liril Soap and Fair & Lovely - PKD had a major role in both. Though the latter ('FAL' as it was called in Unilever parlance) - is a "politically incorrect" product to talk of now  - PKD (in early 80s) proudly displayed in his room a letter of thanks from someone living in a remote Tamil Nadu village, who thought had it not been for Fair & Lovely his daughter would not have found a good match. From there, Pradeep Dutt went on to become the youngest ever Managing Director of Lipton India - sitting in their old Weston Street Office in Central Calcutta and was the lead player of the company's turn-around story.

It is at Lipton, PKD touched the lives and shaped careers of many. Always a bon-vivant - he was arguably the most magnanimous of the Lever's Marketing doyens - perhaps, with the sole exception of the legendary Shunu Sen. But, ironically, it was also at Lipton's PKD met his professional "waterloo" in the launch of Tree-top - a tetra-pack range of drinks - and '21' an Ice Tea clone - which were perhaps much ahead of their time. But, PKD had the old world leadership values of backing his lieutenants to the hilt - and then taking the blame upon himself if things went wrong - a quality that has gone missing in today's corporate world.

Around the same time - PKD lost his wife Padma to cancer - who was really the anchor of his life. It his from here that his personal and professional world began to fall apart. If one call it hamartia - it was the blind faith he had on colleagues and subordinates. This, many friends and admirers believe, was also the cause of his next professional setback in a multinational company - which he had to leave in a somewhat forgettable circumstances.

His later years were spent between Calcutta and Santiniketan (where he took pride in saying his regular rickshawallah also double up as a boot-legger) - until he sold of his house there. At Calcutta - he was a regular at the Clubs. Always surrounded by friends - he was never spared himself on food, drinks and cigarettes. But, that neither dimmed his wit or took the edge off his sharp marketing mind. Many former colleagues would turn to him for advice on Brands - which he would dispense freely. Anyone else in his place - would have made a fortune out of it. But, PKD was too proud to do that. The outpourings on Facebook - at the breaking of the news this morning is a testimony to the popularity of the man as was the large gathering of friends and associates at the crematorium.  One elderly gentleman who came for the last rites - was carrying a bottle of mineral water. A friend quipped - you haven't come to Ronju's funeral with just plain water but mixed some gin into it - else he wouldn't forgive you. That in a way sums up the man that was PKD.

A mentors' mentor

I didn’t know Tarun Sheth, former Head of Management Development of Hindustan Lever – later mentor at the HR Consulting and Search firm, Shilputsi – that his wife founded and run for the most part by his 2 very talented daughters – Shipa and, later – only, Purvi, too well. I was traveling in the hills of Kumaon last week and missed the news of his death in the papers. I came to learn about it from the email of an old colleague and at once knew that I wanted to attend his memorial service on my return to Mumbai.

the missing "merchants"

So, I went to the Indian Merchants’ Chamber Hall at Churchgate on Thursday evening. It wasn’t a very large gathering. I thought that most people who had come were there not merely to mark attendance. – but, because, they genuinely felt that Tarun had touched their lives meaningfully at some point in their careers. And, this was not limited just to the old Levers fraternity. Apart from family, friends and old neighbours there were few elder IIM – A alumni (he taught there before joining HLL) and some senior corporate professionals whom he would have befriended during his Shilputsi years. The current top-brass of “HUL” were conspicuous by their absence except for Harish Manwani and Shreejit Mishra whom I could spot. But, coming to think of it – Tarun had retired in 1987 and most of today’s stars weren’t – so to speak – even “born” then.


The function itself was understated and dignified in keeping with the personality of the man who was being remembered. A small bunch of people spoke – 6 to be precise including his daughter -Atsi and Ashok Vasudevan who sent a very touching voice-recorded tribute from the US.

the amraas guru

The remembrances marked the measure of the man that visibly resonated with the audience. As in modern high rises, low-ceilings being the order of the new corporate architecture - It’s not just they don’t have room in organizations for professionals as tall – but, as RG (an old friend and associate) wrote in his piece in ET (click here to read) he was a rare HR practitioner with a “humane” side (an oxymoron as it may sound to be).

I didn’t spend much time in Lever House between 1983 (when I joined HLL) and 1987 (when Tarun left) – so didn’t get the opportunity to know him very closely. I have a rather sepia tinted recollection of him in his corner room on 2nd Floor West Wing (which was later appropriated by Amy Kharas and successive Heads of Administration) – that was like an in-house shrink’s cabin of sorts before it was turned into a police station interrogation room in times to come.

{I didn't have the privilege of being invited for any of his fabled "Amraas" parties and, so, had no idea of his legendary capacity for mangoes (believe he could down 25 katoris in a single sitting !!). I do remember a funny incident though, when a new recruit – taking his offer to help him “settle in” too literally – went to him for getting a gas connection that rattled even his most unflappable self.}

I was there at the condolence meeting because, for me Tarun embodied much of the values that, the old HLL – that youngsters joined with stars in their eyes - stood for. If today, Lever can boast of the maximum number of CXOs to have come out of its stable spreading across industries in India and, now, even overseas– a large chunk of the credit must go to the likes of the Sheth - for laying the foundations of the HR system which withstood the ravages of time till the 'age of deconstruction' began.

In a way – therefore - I felt, I was representing in a small way many old compatriots - whose careers he had helped to shape - who wanted to be there but couldn't make it - either because of distance or some other reason.

Masti ka Pathshala

We were late parents. So – the kids of many dear friends and contemporaries are either well into college enjoying their share of young adult-hood or preparing frenetically for their school leaving examinations. And, the slightly older ones are getting ready for their nuptials – while our darling daughter is just about beginning to discover the joys and tribulations of her early teens – tucked away in the pristine preserves of the Sahyadri hills .

It’s examination season and with nearly 15 lakh kids appearing for CBSE alone, the TV Channels and Newspapers have been whipping up a frenzy for anxious parents – to fill in their prime time slots before Election fever grips the country. We had none of this in our times - so it’s all quite alien to me anyway. But, at a very different level, I have been drawn in over the past few weeks into a conversation on a fellow bloggers site (Cuckoo's Cosmos….click here to read ) between parents who are contemplating putting their children into Rishi Valley – the original Krishnamurty (KFI) institution. The obvious question – which we are asked very often in the context of our sending Jaya to Sahyadri – is, whether children studying in such “non-conventional” schools lose their competitive edge, which most parents – justifiably – believe is so essential for surviving in today’s cut-throat world.

Frankly, I don’t have a strong view either way – each I’m sure has its own merits and downsides. Neither Nina nor I come from a boarding school background. Apart from the children of a few close friends, the only ones in our extended family circle who have studied in a “public school” away from home are my dear cousin (2nd – as she never fails to point out) Tush and her brother Papu. We known a few Rishi Valley “products” – but that was just about it. We were also not steeped in Jiddu Krishnamurty’s philosophy or his ideas on education. But, when we decided to send Jaya to a boarding, we were very clear in our mind that it had to be a school like Rishi Valley.

In what appears like serendipity now in hindsight – we had visited Sahyadri soon after the school was set up in the mid 90s at the behest of a senior colleague of HLL. We had come away very impressed with what we saw. Jaya had just about come into our life and we had no clue at that point that we would ever consider sending her to a boarding. We wanted Jaya to be in a “non-pressure” environment. So Sahyadri was a natural choice. (Read Back to School by clicking here)

For us it wasn't a giant leap of faith (unlike an uncle of mine who pulled his two sons out of school on the instruction of their spiritual 'guru' and taught them at home. Both kids, incidentally, have done extremely well in their chosen fields of academics). We put Jaya there for our own set of considerations which we recognize may not apply to others. Though I’d be less than honest if I were to say that, we don’t have our moments of doubt.

Such moments of self-questioning arise – especially while visiting friends around the time of their children’s exams (not necessarily those in their last years of school but also those in the junior classes) when the atmosphere of tension is almost palpable in the house. Similar thoughts also cross my mind at the Parents Teachers Meeting – when I compare by distant recollection what I studied at her age and worry if they are being taught at a level – that’s a notch lower than what the Board syllabus would warrant for the class.

But then, I also think of the myriad other things they are learning - that we never had the opportunity for in a city school. The results of the previous batches – which though not skewed towards the high nine-tees are not at the bottom of the scale either - also bolster confidence. So they must have cracked the code somewhere and built a method into their system - otherwise, it’s not for nothing that the KFI schools have been around for over 75 years now with alumni straddling different walks of life.

The kids, of course, love it once they get over the initial joining pangs. Till the 7th Standard – it’s virtually a ‘masti ka path-shala’. It is only in the 8th when the hormones and exams kick in – does one notice a few spells of blue that come with the first intimations of reality. But then, like the hormones I am told this too is a passing phase.

But I think it is not just English and Maths or Physics, Chemistry, Bio that matter. Nor is it the Games, Arts and Music. It goes much beyond studies and the extra-curricular add-ons. In fact, the high-end Boarding schools have much more to offer in comparison.

I remember – the time we had gone for the interview the parents sat around the matted floor of the assembly hall for an open question and answer session with the Principal. One of the parents remarked – “But Sir, you will agree that the ultimate test will be ICSE”. The young Principal chuckled a little and said with a smile – “ICSE is an important test – but I am not sure if it’s the ultimate test. They will have to face many other tests in life and hopefully we prepare them for those in some small way”. He couldn’t have summed up our expectation better.

Related Blog Post: "Back to School" (click here to read)

When is CSR Sexy?

Being a born drifter, after sailing through some choppy waters in the last few years – I floated into the world of Corporate Social Responsibility (CSR) sometime back. I saw in it an opportunity to dip my toe into the social sector – something I had been contemplating for long as a post retirement career option. Unlike some contemporaries who took a plunge into the NGO world only to jump out with a start, it has been – thus far - a rather fascinating journey for me.

Over the years – a veritable industry has spawned around CSR. Now with all brouhaha over Climate Change, Carbon Emission and Sustainability – it is mega business really. Not a single workday passes without my receiving a call or invitation for sponsoring or participating in a conference or seminar on CSR (paid, of course). Consulting firms have also jumped into the bandwagon starting their practices – to advise companies on how to develop their own CSR Strategy and roll out CSR programmes. NGOs big and small come up with proposals for “partnerships”.

Green-wash, Blue-Wash or White-wash?

Without a doubt CSR has come a long way from the days of Merchant Charity and Gandhian Philanthropy to responsible corporate citizenry. It is – understandably – still largely driven top down by the CEO or the owner-promoter, often goaded by a conscientious Board of Directors. Much of it, many would argue, is just lip service for the purpose of publishing in Annual Reports or for making presentation to industry bodies and the government. At times, it is also with some collateral motives - what has come to be known as “Blue-wash”– (where companies aim at distracting attention from the social and environmental consequences of their production and products) or “Green-wash” (polluting industries trying to buy their ‘license to operate’).

Of course, the UN Global Compact and MDG (Millennium Development Goals) have been pushing corporations towards re-organsing their businesses along sustainable lines. But, even otherwise, the movement is beginning to gather steam across the world. A lot of this is because of pressure coming laterally from external stakeholders (Communities, NGOs, Government and share-holders in some instances) and also, very often, from below – i.e. the employees.

The Satyam Effect

Increasingly employees – especially the younger ones – are becoming conscious of the kind of organizations they join and work for. Though’ the discounted head-count of Satyam is still a whopping 40k, socially responsible organizations like Infosys and TCS still command a premium in the employment market. Another phenomenon , which seems to be catching up is employee volunteerism – with more and more people within the organization wanting to contribute their skills and time to the community. Earlier this used to be just a few good souls wanting to do their bit for society, putting in some work for charities in their spare time. Today it is happening in a much more organized form - with groups of employees coming together to help communities around their immediate sphere of activity using their own and the organization’s core competencies. Overseas many organizations have a clear policy for employer-supported volunteerism – where companies encourage its employees to do volunteering work by giving time-off or by making matching monetary contributions for their efforts etc. In India too this trend is picking up. A band of young, passionate social sector professionals are making the difference.


Just Hot Air ?

It’s fashionable these days to try and make a business case for selling the concept of CSR. The standard line is ‘why CSR is good for your business ?’ and the common arguments used are CSR helps in creating employee motivation, brand premium, consumer loyalty etc. While these can certainly be incidental benefits – the logic is far too tenuous to hold water for today’s CEOs who being hostages of the ‘street’ can’t look beyond the quarterly numbers. Therefore, you can’t quite fault Stefan Stern who in a recent column in the Financial Times (Read "The Hot Air of CSR" by clicking here ) writes “now that recession’s here we can forget all that nonsense about CSR and get back to making some money”.

But, CSR need not be through Cheques alone. In fact – some of the best CSR programmes have a very small monetary component, if at all. Good corporate governance, taking care of minority shareholders, promoting work-place diversity are by themselves good CSR.

Much before the term CSR gained currency – way back in the early 80s, Hindustan Lever (not HUL!!) had a Rural Training Program under which every Management Trainee of the company had to compulsorily spend 2 months in a village, in the very backward District of Etah in UP, where the company had a Dairy Unit. During this period the trainees (“Manager Saab” as they were lovingly referred to by the gracious villagers) were expected to provide managerial inputs for the development of the villages. The motive was not entirely altruistic. The visionary Chairman of the company had seen that the survival of the Dairy Unit and economic upliftment of the District were closely inter-linked. A collateral benefit was the solid “grounding” it gave the Management Graduates in the basics of rural marketing.

Often tiny innovations make for great CSR. A chain of Cafes in Kathmandu employ only speech and hearing impaired waiters. Many years back – I remember a small snack bar at the end of Prabhat Road in Pune used to engage needy students. A placard on the table requested customers not to hurt the dignity of the boys by offering them tips. But, instead – if they wished – to put in their contribution into a box, the collection from which would be used for subsidizing the cost of their books and tuition fees. I wonder how many Corporates would think of engaging physically challenged individuals in their pantries and canteens – jobs they can easily do.

Heart, Head or Condoms ?

But, CSR is not just a matter of the heart it’s a function of the mind as well The real answer to Stefan Stern’s provocative thesis, therefore, lies in how CSR can be woven into the fabric of the organization – where it is not an ‘add-on’ or ‘stand-alone’ activity but an integral part of the operations to yield visible and tangible benefits. Strategically conceived, good CSR practices can actually help companies deliver better bottom-line results – which can look especially attractive, when the chips are down. HLL (sorry, HUL)’s Project Shakti and ITC’s E-Choupal are 2 such examples , – which even after discounting the ‘hype’ have significant top-line potential for the 2 companies. The ICICI Foundation’s foray into Micro-financing and Social Entrepreneurship is another good model to emulate.

In the 70s and 80s, consumer product companies like HLL and ITC used to sell Condoms (marketed under the Government's Family Planning Programme) through their Distribution Channels – which, to my mind, was also a form of CSR. So, when CSR is not just ‘good for business’ but it becomes a part of doing business, does it begin to look sexy !!

A weekend of awards

Suddenly Omar Abdullah has become the poster boy of Corporate India. He has certainly got “star appeal” and India Inc, as it has come to be fashionably called, seem to have made this great ‘post-Obamatic’ discovery of “younger politicians” as potential agents of change (keeping the butter warm and soft, ready for application on another scion in waiting – should the contingency arise after the forthcoming general elections, à la circa 1984 - if you understand what I mean!!). Otherwise, it is difficult to explain the choice of this third generation Kashmiri “lion” cub as the Chief Guest for an award function of a respected Business Weekly, in Mumbai last Friday (which I had to attend on a call of duty). His only tenuous link with the city, we were told, was that, he went to college at Sydenham and his “corporate” credentials come from his having been a trainee at ITC and a Manager at the Oberois (who then ran a property in Srinagar, by the Dal Lake)before he took his plunge into the family business of Kashmir politics.

The corporate brass turned out in full strength – including a few odd numbers like a leading Urologist, who probably holds some little secrets of their inside tracts. And, strangely young Omar arrived not just with his wife (which would be understandable) but also his father in tow – like protective mothers of young starlets, who accompany their nubile daughters on out-of-town shoots, presumably to keep predators at bay or to ensure that they are not short-changed on pay and perks.

the Pandit and the Sheikh

Personally, I was never enamoured of the Abdullahs. I find them a bit like the Koirala family of Nepal – on whom successive Governments in Delhi (I am advisedly refraining from saying: the ‘Indian Government’) have over-invested in the past 60 years. Until very recently, New Delhi always thought that the Koiralas were our ‘best bet’ – and continued to back them covertly and overtly through the years. But, everytime the Koiralas came to power - Delhi became a distant friend and they found virtue in other neighbourly and regional ties – be it across the Himalyas to the North or a bit further beyond the western borders of India. The Indian establishment tried to retro-justify this ‘lack of reciprocation’ as compulsions of local politics – only to repeat the folly again in future.

Politics on the Golf Course

The long saga of the Nehru-Gandhi family’s fraternal foibles with the old Sheikh is well known. And, one still remembers the National Conference’s minor flirtation with the BJP and NDA. The ascent of the motor-biking Farooq was greeted with as much enthusiasm as we now see over his son – only to realize in no time that, he is a better partner on the Golf Course than in the political mine-fields of Kashmir. Therefore, I am a bit skeptical about this euphoria over the anointment of Omar as the heir of the ‘riyasat’ and was not in the least surprised, when he declared at the same august gathering ( in the course of an otherwise very impressive speech) - “Pakistan is not an enemy of India …but there are elements within Pakistan ( comprising about 99.9% of the population, I would reckon) who do not want normal bi-literal relations with India”.

The Corporate ‘Dada Saheb Phalke’

If the choice of Omar Abdullah as the G-o-H was intriguing, the selection of Bikki (P.R.S.) Oberoi as the “Businessman of the Year” was equally baffling. I wouldn’t have had a problem if he was awarded a “Dada Saheb Phalke” equivalent award of the Corporate world for his “Lifetime Achievements”. But what was his special achievement in the last year to merit this recognition ? I couldn't simply get it. From the various laudatory speeches, one almost got the feeling that he was being honoured for the 26/11 attack on his flagship property – which, by their own public admission, was the favourite haunt and watering hole of many of jury members (some, infact, had their offices and homes right next to it and, so, had witnessed first-hand the events of those 3 fateful days). By the same token Ratan Tata should be nominated for Bharat Ratna for the onslaught withstood by The Taj.

But, the real entertainment of the evening was 6 top businessmen coming on stage to offer their prescription on how to tackle terrorism. It was hard to believe that, people of their stature with extraordinarily sharp minds could come up with such puerile analysis of and even more banal suggestions. I thought, 6th grade students would have done better if they were asked to write an essay on the subject. The first – an young steel baron – talked of how industrial development was the only way to solve the terrorist problem and offered to fly down with some of his business cronies to suggest ways of industrializing the state. (In his speech – Omar was quick to point out that, he hadn’t come to invite people to set up industries in Kashmir – as his state couldn’t offer the infrastructure and skilled manpower required for it. He would, instead, like them to provide vocational training that would help Kashmiris find jobs in main-land India. A sure conduit for Pakistan to export terrorists from across the border and infiltrate our industries – some security experts might argue!!)

This reminded me of an apocryphal anecdote that used to do its round in my old company. A project team had gone to Srinagar – at the behest of the GoI – in the early 80s to explore the possibility of setting up a Detergent Packing plant in the Valley. On asking about the security situation – it seems a government official told them nonchalantly (he was joking - I’m sure) – ‘what’s your problem? You are a multi-national – so your plant will either belong to Hindustan Lever or will go to Lever Bros Pakistan”.

Tackling terror with paranoia and wazwan

The second was a top banker – who provided a brilliant 3P formula for tackling terror: Pillars, Paranoia and Pakistan. First – he said we need to strengthen the ‘pillars’ of society (very original !!), then we need to create enough “paranoia” and finally tackle Pakistan. Tauba, Tauba !!. ( For a moment – when he mentioned 3Ps – I thought he was referring to the Pakistan Peoples Party).

Then came the flamboyant liquor baron turned air-line tycoon and part time politician (who, incidentally – as I gathered from an impeccable source - had just returned from a ‘self-financed’ junket to Srinagar and Gulmarg – gorging on the fabulous ‘Wazwans’ - to celebrate the accession. Some say, he is angling for a rajya Sabha ticket from the state). Speaking with his familiar élan, he didn’t miss the opportunity to plug his airline and spent some time discussing the problem he has in docking his yacht at the Gateway – from which he surmised that the terrorists couldn’t have landed there without the complicity of the locals. He also shared his worry on the very ‘real’ possibility of one of his airliners being hijacked or blown-up. Both fair points – but not particularly luminescent in my limited view.

But that’s all that I could take. I decided to make a quiet exit (seated on one of the last rows being the habitual back-bencher that I always was). While walking out - I reflected that it’s not the business of corporate honchos to hold discourses on terrorism, just as politicians should desist from lecturing on Corporate Governance.


Part II: 'Scams' accha hai

Yesterday was the mother of all corporate awards – the ET(Economic Times) Excellence Awards (which was originally scheduled for October 28th – at The Trident) for which the Prime Minister had flown down. Needless to say that, anybody who is somebody in the corporate galaxy was there. Obviously, I was not one among them. Have been to some of the earlier ET Awards by default - and found them to be exceedingly boring affairs (like most corporate award functions usually are) despite getting the 'glam-quotient' up with the likes of Katrina Kaif to making star appearances (don't forget VJ's clout in Bollywood and the Glamour world) as Corporate 'item numbers'. In this mornings newspaper I read, the PM spoke at length on Corporate Governance apropos Satyam and Corporate India listened in "rapt attention". I'm sure he must have made some very pertinent observations and recommendations (not for nothing Raju Narisetti - former Editor of MINT and now Managing Ed of Washington Post - had written that he would make an excellent 'op-ed writer). But, Singh is not the most inspirational orator even at his best - so I wondered how many in the audience were actually listening.

It was a wonderful gesture - though, on the part of ET to honour The Taj staff - Karambir, Kang, Hemant Oberoi , Raymond Bickson and Mahavir Rathore (the Head of Security) for the 26/11. On behalf of The Oberois, I believe, the award was received by - who else ? - P R S Oberoi himself. But, it was quintessential ET to claim that, Oberoi had specially flown down from Delhi only for the awards !!


Instead, I went for a very different kind of award function in the suburbs billed as the ‘Product of the Year (POY)” Awards. It was more of lively, 'high-voltage' entertainment and the awards were almost incidental. POY works broadly on these lines. They run some kind of a market research (totally “independent” and “not rigged”, Charu – who heads POY in India, assures me) for the Brands that register and on topping the category they are awarded the “Product of the Year” certificate – which the company can use on the payment of a “fee”. (Click here to read the concept) I asked Charu - "isn’t it a 'scam'?". A ‘scam’ it may be – she threw it back at me with her signature laughter - but a “scam that works”. It seems that, empirical evidence has shown, on an average the winners witness a 10 per cent to 15 per cent upwards increase in sales. “Come for the awards”, she told me, “I promise it will be fun”. And, fun it was for sure.

While driving back home I concluded that, 'scams' are far more interesting than the real awards.