{"id":122554,"date":"2015-03-03T19:45:06","date_gmt":"2015-03-03T14:15:06","guid":{"rendered":"http:\/\/analyticstraining.com\/?p=6062"},"modified":"2022-10-03T12:32:32","modified_gmt":"2022-10-03T07:02:32","slug":"csr-analytics-quantifying-human-dynamics-csr","status":"publish","type":"post","link":"https:\/\/www.jigsawacademy.com\/blog\/blogs\/csr-analytics-quantifying-human-dynamics-csr\/","title":{"rendered":"CSR Analytics: Quantifying the Human Dynamics of CSR"},"content":{"rendered":"<p align=\"justify\"><span style=\"font-size: medium;\">A few weeks back we had this question put up on our student forum, \u201c<i>Do you see organizations leveraging CSR Analytics as an easy-to-use tool to improve employee engagement and employee self-worth? Describe some instances that you find relevant and educative for the audience.\u201d<\/i><\/span><\/p>\n<p align=\"justify\"><!--more--><\/p>\n<p align=\"justify\"><span style=\"font-size: medium;\">I think this is a very interesting and relevant question and thought to share the response I gave on the forum with all of you as well. Do feel free to get back to us with your thoughts.<\/span><\/p>\n<p align=\"justify\"><span style=\"font-size: medium;\">In India, spending on Corporate Social Responsibility projects is now mandatory for business entities that meet certain criteria of size and revenue<sup><b>1<\/b><\/sup>. Estimates on future spends on CSR in India ranges from INR 8700 Crores<sup><b>3<\/b><\/sup> to INR 20,000 Crores<sup><b>2 <\/b><\/sup>(approx. USD 1.4 to 3.2 Billion as of Nov. 2014 exchange rates), by a total of about 6000 companies<sup><b>2<\/b><\/sup>. As such, the new mandatory CSR regime will unleash a new CSR \u201cmarket\u201d in the Indian socio-economic sphere:<\/span><\/p>\n<p align=\"justify\"><span style=\"font-size: medium;\"><span style=\"text-decoration: underline;\">With any such emerging and high-velocity market comes new sets of challenges and opportunities. <\/span><\/span><\/p>\n<p class=\"western\"><span style=\"font-size: medium;\"><b>Challenges arising from mandatory CSR<\/b><\/span><\/p>\n<p align=\"justify\"><span style=\"font-size: medium;\">India is the first, and so far the only, country in the world to legally mandate, subject to monitoring and penalties for non-compliance\u2014CSR. This legal aspect, along with the potentially very large size (in financial terms) of the CSR \u201cmarket\u201d, creates several key challenges for all CSR stakeholders. These challenges can be analyzed in the following broad categorical terms:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: medium;\">Macro-economic: Excessive liquidity (at least in the initial years of mandatory CSR) in the CSR \u201cmarket\u201d and all the attendant problems characteristic of excessive liquidity.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Micro-economic: Corporate entities having to deal with issues outside their core areas of expertise and core business processes.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Behavioral-economic: A combination of above two types of challenges, giving rise to adverse phenomena, such as CSR fraud or even CSR \u201cfatigue\u201d among employees at all levels, from the shop floor\/cubicle to the C-Suite.<\/span><\/li>\n<\/ul>\n<p class=\"western\"><span style=\"font-size: medium;\"><b>India Decision Management\u2019s CSR Analytics methodology: A client success story<\/b><\/span><\/p>\n<p class=\"western\"><span style=\"font-size: medium;\">A Fortune 100 technology multi-national approached IDM with a mandate to<\/span><\/p>\n<ul>\n<li><span style=\"font-size: medium;\">Identify the key drivers behind the data pertaining to their CSR program.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Estimate if the program processes were performing at peak efficiency and effectiveness.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Identify any signals of fraud or other forms of organizational drag in their CSR process.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Identify if the sectors\/segments and beneficiaries of their CSR program were in line with CSR sectorial tends at national and regional levels.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Help streamline and rationalize their CSR program management processes.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Identify feasibility of and key parameters for predictive models for agile CSR management.<\/span><\/li>\n<\/ul>\n<p align=\"justify\"><span style=\"font-size: medium;\">Instead of using vanilla CSR <a href=\"https:\/\/www.jigsawacademy.com\/blogs\/business-analytics\/10-most-popular-analytic-tools-in-business\/\">Analytics tools<\/a>, IDM consultants chose to apply the unique CSR Analytics methodology to address the clients\u2019 requirements. A fine-grained analysis was performed on data representing the choices and actions of employees who were part of the company\u2019s CSR processes.<\/span><\/p>\n<p class=\"western\"><span style=\"font-size: medium;\">The key inferences from IDM\u2019s unique methodology-based analyses were:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-size: medium;\">The flow of the company\u2019s CSR proceeds, and the sectorial categories of beneficiaries, fit well with national trends in CSR allocations<sup><b>6<\/b><\/sup>. <\/span><\/li>\n<li><span style=\"font-size: medium;\">Several measures of employee participation in and contributions to CSR programs conformed to the Pareto Distributuion<sup><b>7 <\/b><\/sup>which describes a variety of natural and sociological phenomena. This indicates that the company\u2019s CSR programs had grass-roots, organic and natural dynamics within the socio-economic space represented by the company.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-size: medium;\">Team and group participation were more significant than individual participation. This evidence re-affirms the idea described in the previous section, that psychosocial and human dynamics are key drivers and success factors of CSR.<\/span><\/li>\n<li><span style=\"font-size: medium;\">CSR activity on particular dates and months of the year indicated the natural rhythm of employee schedules, workloads and other time-related human factors. <\/span><\/li>\n<li><span style=\"font-size: medium;\">Predictive models of the company\u2019s CSR process can be built to enable agile, rational, evidence-based, data-driven management.<\/span><\/li>\n<\/ul>\n<p align=\"justify\"><span style=\"font-size: medium;\">The company had jumped in size from around 8,000 employees to 12,000 employees in a span of 2 years. This explosive growth resulted in a change in the demographics of the employees. With a younger and more group-activity-oriented employee base, some CSR activities were redundant while some newer ones were coming to the forefront.<\/span><\/p>\n<p align=\"justify\"><em>Interested in a career in HR analytics? Check out <a href=\"http:\/\/www.jigsawacademy.com\/hr-analytics-courses\">Jigsaw Academy&#8217;s HR Analytics course<\/a>.<\/em><\/p>\n<p align=\"justify\"><span style=\"font-size: medium;\">The above insights from the analyses will enable the company to:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: medium;\">Embed IDMs CSR Analytics methodology into their CSR processes and tool chains. This will entrench a human-centric, bottom-up and grass-roots approach to CSR.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Make CSR communications between program managers and employees more topical, agile and responsive.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Modify existing CSR processes or institute new ones as needed, to make their data evidence-driven, for increased efficiency and ROI, as well as reduced fraud and other organizational drag.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Build predictive and decision support models, so that the company\u2019s CSR programs can be managed in a data-driven, evidence-based and rational manner. <\/span><\/li>\n<li><span style=\"font-size: medium;\">All of the above will enable the company to shape CSR from just an ad-hoc\/legally mandated activity into an integral, organic part of the company\u2019s DNA.<\/span><\/li>\n<\/ul>\n<p class=\"western\"><span style=\"font-size: medium;\"><b>References:<\/b><\/span><\/p>\n<ol>\n<li><span style=\"font-size: medium;\">CSR in India: A Changing Landscape. KPMG Report [PDF], March 2014.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Handbook on Corporate Social Responsibility in India. <a href=\"http:\/\/www.pwc.in\/assets\/pdfs\/publications\/2013\/handbook-on-corporate-social-responsibility-in-india.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">PWC-CII Report<\/a> [PDF].<\/span><\/li>\n<li><span style=\"font-size: medium;\">Mandatory CSR spend to cost India Inc Rs 8,700 cr a yr <a href=\"http:\/\/www.business-standard.com\/article\/companies\/mandatory-csr-spend-to-cost-india-inc-rs-8-700-cr-a-yr-111071100217_1.html\" target=\"_blank\" rel=\"noopener noreferrer\">Business standard, July 11, 2011<\/a>. <\/span><\/li>\n<li><span style=\"font-size: medium;\">The Role of Human Resource Management in Corporate Social Responsibility. A Strandberg Consulting Report [PDF]. By Coro Strandberg.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Beyond corporate social responsibility: Integrated external engagement. McKinsey &amp; Co. Article. March 2013. By John Brown and Robin Nutall<\/span><\/li>\n<li><span style=\"font-size: medium;\">Education tops corporate social responsibility spends, community development next. <a href=\"http:\/\/economictimes.indiatimes.com\/news\/company\/corporate-trends\/education-tops-corporate-social-responsibility-spends-community-development-next\/articleshow\/45165954.cms\" target=\"_blank\" rel=\"noopener noreferrer\">Economics Times (Online Edition), 16<\/a><\/span><a href=\"http:\/\/economictimes.indiatimes.com\/news\/company\/corporate-trends\/education-tops-corporate-social-responsibility-spends-community-development-next\/articleshow\/45165954.cms\" target=\"_blank\" rel=\"noopener\"><sup><span style=\"font-size: medium;\">th<\/span><\/sup><span style=\"font-size: medium;\"> Nov 2014<\/span><\/a><span style=\"font-size: medium;\">.<\/span><\/li>\n<li><span style=\"font-size: medium;\">Pareto Distribution. <a href=\"http:\/\/en.wikipedia.org\/wiki\/Pareto_distribution\" target=\"_blank\" rel=\"noopener noreferrer\">Wikipedia<\/a>.<\/span><\/li>\n<\/ol>\n<p>Related Articles:<\/p>\n<p><a href=\"http:\/\/analyticstraining.com\/2010\/indian-companies-using-analytics\/\" target=\"_blank\" rel=\"noopener noreferrer\">Indian companies using analytics<\/a><br \/>\n<a href=\"http:\/\/analyticstraining.com\/2014\/managers-dont-be-deaf-to-analytics\/\" target=\"_blank\" rel=\"noopener noreferrer\">Managers \u2014 Don\u2019t be Deaf to Analytics<\/a><br \/>\n<a href=\"http:\/\/analyticstraining.com\/2015\/using-google-fusion-tables-maps-home-insurance-case-study-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">Using Google Fusion Tables Maps: Home Insurance Case Study<\/a><\/p>\n<p>Image courtesy: <a href=\"http:\/\/www.freedigitalphotos.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">http:\/\/www.freedigitalphotos.net\/<\/a> Stuart Miles<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A few weeks back we had this question put up on our student forum, \u201cDo you see organizations leveraging CSR Analytics as an easy-to-use tool to improve employee engagement and employee self-worth? Describe some instances that you find relevant and educative for the audience.\u201d<\/p>\n","protected":false},"author":105,"featured_media":122330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[294],"tags":[83,571,99,633,528],"form":[1499],"acf":[],"_links":{"self":[{"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/posts\/122554"}],"collection":[{"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/users\/105"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/comments?post=122554"}],"version-history":[{"count":3,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/posts\/122554\/revisions"}],"predecessor-version":[{"id":254216,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/posts\/122554\/revisions\/254216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/media\/122330"}],"wp:attachment":[{"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/media?parent=122554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/categories?post=122554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/tags?post=122554"},{"taxonomy":"form","embeddable":true,"href":"https:\/\/www.jigsawacademy.com\/wp-json\/wp\/v2\/form?post=122554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}