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Photo courtesy Kama Schachter.
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In most countries, companies work independently toward
individual goals of their own choosing on social causes. But in India, the gems
and jewelry industry works in sync toward common goals of corporate social
responsibility (CSR). The industry’s involvement in numerous community welfare
and development activities under the CSR label has been encouraged by new
government requirements that make such activities mandatory for Indian
corporations.
As of April 1, 2014, every Indian company, whether private
limited or public limited, that has a net worth of approximately $84 million or
a turnover of approximately $170 million or net profit of approximately
$845,000 is required to spend at least 2 percent of its average net profit for
the preceding three years on CSR activities within India. The 2013
legislation specifies the acceptable activities.
“Having conquered many important business frontiers, we now
want to devote some time, attention and resources to another long-cherished
dream that we have held — that of giving back to the society at large,” says
Mehul Choksi, chief managing director of The Gitanjali Group.
Ghanshyam Dholakia, managing director of Hari Krishna
Exports Pvt. Ltd., reveals the guiding principle behind the various CSR
activities undertaken by his company: “We have always believed that it is only
in giving that one receives and it is our ethical duty to give back to the
place, state, country and people from whom we have received. CSR is not only
about philanthropy or charitable work. It refers to something much more
fundamental. It is all about how companies take responsibility for their
actions in the world at large.”
Describing the journey the Indian gems and jewelry industry
has traveled in terms of social welfare activities, Dholakia elaborates: “In
the beginning, the companies in India concentrated on providing additional
employee benefits, such as medical care for their families and education of
their children. Slowly, the circle widened to cover their surroundings, such as
free electrification of towns in which their factories are situated, free water
supply to the nearby villages, etc. Later, improvement of literacy, child
welfare, medical care of the aged, etc.,
gained prominence.”
Some companies in the industry have designed programs to
recruit, train and employ members of specific sectors of Indian society. Choksi
has always been vocal about the importance of educating and empowering
disadvantaged female children through the BETI Foundation — Beti means daughter
in Hindi — and training of underprivileged youth for jobs in the industry has
also been a cause. But his company has put a special focus on aiding the
disabled and providing them with employment opportunities without
discrimination.
The Gitanjali Group is in the process of designing a manual
for sensitizing the jewelry industry about the benefits of training and
employing people with disabilities (PwDs). The aim is to spread awareness among
the industry and boost training facilities so that recruitment of PwDs can be
further enhanced. Similar institutes are being planned in other important
industry hubs such as Surat and Mumbai. Choksi’s vision is that at least 5
percent of the workforce in the gem and jewelry industry could be recruited
from among PwDs. “Due to the specific nature of the manufacturing processes in
the gems and jewelry industry, there is a huge potential for employing people
who suffer from disabilities,” Choksi says.
Like Choksi, Colin Shah of Kama Schachter Jewellery has been
interested in assisting people with disabilities and his company has made a
commitment to employ them. “The physically challenged group remains a largely
untapped labor pool even today, despite its potential,” he says. “The major
barrier to employment for people with disabilities in our society continues to
be attitudinal barriers. The truth is far from this. The range of abilities of
persons within any disabilities group is vast — 10 percent, and increasing, of
Kama’s workforce is powered by people with disabilities, whom our company terms
‘specially abled’ — and they are our strength. They are trained on the job for
months in the various skills required on the production floor, such as casting,
filing, polishing and wax setting.
After this, they are assigned a specific department based on their aptitude
for the needed skills.”
Other Indian gems and jewelry companies have directed their
CSR efforts toward specific areas of special interest. At Venus Jewel, many
humanitarian activities have been initiated by the company’s founding partners,
the Shah family, without the barriers of caste, creed, age, sex and religion.
Generous contributions are primarily routed through charitable trusts
established by the Shah family itself, as well as through government
institutions functioning in noble causes and humanitarian activities. The group
also makes regular contributions to charitable programs undertaken by the Gems
and Jewellery National Relief Foundation run by the Gem and Jewellery Export
Promotion Council (GJEPC).
Charitable activities that Venus Jewel has prominently
contributed to are in the fields of health, education and rehabilitation of
people affected by natural calamities, as evidenced during the 1994 pneumonic
plague epidemic in Surat. Despite the mass exodus of a majority of the
population, S. P. Shah, one of the founders of Venus Jewel, remained in the
area to assist in whatever way that he could, in spite of considerable pressure
to leave the city. His calm response during a time of extreme crisis played a
key role in stemming the general panic and motivated many company employees to
also stay in the district. In fact, S.P. Shah was the first person from the
city to be interviewed about the epidemic by BBC radio, in a broadcast heard
around the globe.
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| Photo courtesy The Gitanjali Group. |
CSR programs for the future seem to be heading in new
directions, including basic education, increasing employee involvement in CSR
efforts and the environment. “The industry must enhance its initiatives in the
fields of education and health,” says Choksi. “There must be due attention
given to the regions in close proximity to our factories as well as to regions
from which the majority of the workforce is recruited. At the same time, the
industry can also identify and support key projects in other parts of the
country as well.”
For Ishu Datwani, founder of Anmol Jewellers, the focus
“should be about using ethically mined diamonds and gemstones and providing
employment to talented artisans.” At Anmol, about 3 percent of the company’s
marketing budget is allocated to CSR activities, somewhat higher than other
industry players.
Anmol was one of three jewelers that participated in the
Craft to Jewellery initiative that promoted and marketed jewelry produced in
rural India. The company also designed a piece of jewelry that was sold to
raise funds for the Project Blossoming program to educate underprivileged
female children in India (see “Jewels to Empower” story).
“Charity and philanthropy have been a part of the activities
of some of the larger companies in India for many decades,” notes Choksi, “and
the gem and jewelry industry, too, has a long history of such work. However, in
the past decade or so, the industry has moved toward getting involved in
organized social activities with a focus on sustainability. Projects that are
mutually beneficial for both industry and the community are now at the center
of our efforts. All of these projects reflect a new approach — more companies,
including ours, now walk hand in hand with government and nongovernmental
organizations (NGOs) for the development of the nation and the creation of
meaningful community projects that enhance the quality of life. Companies have
become promoters of social growth alongside the economic growth that they have
always stood for.”
“The Gitanjali Group has been involved with different social
initiatives for many decades,” Choksi continues. “In 2009, a separate CSR
division was set up and all these programs were brought under a single
structure. The activity became more organized and focused. At the same time, it
also enabled us to boost employee involvement in such activity. We now have a
number of programs under which employees are encouraged to participate in
activities with a social dimension.”
Dholakia feels that it is only recently that the concept of
CSR has become understood in its full sense. Companies are now looking at the
bigger picture by paying attention to such environmental issues as conservation
of water, rainwater harvesting and pollution control.
Commenting on the CSR actions undertaken at his company,
Colin Shah elaborates: “Seventeen years ago at Kama Schachter, we decided to
make a difference in our community, and we’ve learned a lot about business and
life in the process. Some of our initiatives include: Empowering Special Needs,
Responsible Manufacturing and Metals of Integrity.”
“As conscious capitalists,” Colin Shah goes on to say, “it
is expected that our performance results in financial success. However, our
capabilities can extend far beyond just generating profit. We can make a
lasting, positive difference in the lives of those around us. And yet, the
argument at large is that while there is an advancement of social
responsibility in the corporate field, it is simply not enough.”
Vipul Shah, chairman of GJEPC, concludes that “More than a
few decades ago, when CSR was not even at a conceptual stage and the role of
industry was seen as limited to spearheading economic development, providing
employment and generating profits for further expansion, the gems and jewelry
industry began its foray into the field of social development. Initially, these
initiatives were focused on the all-around development of the areas from which
the bulk of the industry leaders came — the districts of North Gujarat.
Companies established trusts and devoted money and time to create an
infrastructure for the development of educational, health and other related
sectors. In the decades since then, the focus has widened and in the past two
decades, the gems and jewelry industry has played an exemplary role in various
parts of the country.”
Article from the Rapaport Magazine - July 2014. To subscribe click here.