What makes most Indian corporations different and impressive especially in this global downturn is the extraordinary commitment to social goals that extend beyond the interests of their firms. And they do so while maintaining stunningly impressive financial performance. The Indian economy's overall growth rate is second in the world. It is driven by major corporations, who are growing at rates of 20% to 40% per year, competing and winning in precisely the international markets where the US sees its future: high-skilled service industries. Indian companies have been acquiring foreign companies, and when they do, the studies show those companies perform better.
Most business executives describe main objective of their company in terms of a social mission. They expected to make money, but they expected to do so while doing good. Ex. In the case of Bharti Airtel, the mission was to get cell phones into the hands of people who have no means to communicate; for ICICI Bank, it was to provide financial help to those with no access to banking; for Dr. Reddy's, the pharmaceutical company, it was to address the health care needs of the poor the world over; for Infosys, it is to show that Indian business can lead in technology. Business strategy rests on the social mission.
And the corporations put charitable money behind social missions at a level that dwarfs anything you'd see elsewhere: 65% of the profits of the Tata Group companies, for example, go to charities. Infosys has built and staffed entire hospitals in different regions of the country, rolling out a national curriculum to develop IT skills at the same time. Dr. Reddy's provides for the health care needs for 40,000 children. The list goes on and on.
There is every reason to believe that these companies have done well precisely because they are doing good. Helping poor people pays off when those people get money and become consumers, as millions of Indians have done every year. It also helps in a still regulated economy to get government permissions and approvals.
But the biggest reason, and the one that translates most directly to the capitalists and terrorists, is that social mission creates a powerful means for motivating employees and citizens in general. We have long known that employees do much better when they see how their tasks contribute to the overall goal of the organization, and new research shows that the results are especially powerful when those goals relate to helping people. Other evidence suggests that a strong social mission makes it easier to attract and retain employees. Mission drives employee performance, which drives strategy, and in turn drives organizational performance.
Isn't it great that the world understand what most Indians are upto.. after all, finance has always been a by-product of good work for our society at large, no-one is here forever, maybe this is unique to India, but others do have time to learn if they like it.
Edited by Sudhir Panda of Solution Point
Ref. Harvard Business School Publishing
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