One of the significant achievements in the second half of the 20th century in the corporate sector has been a shift in focus from neoliberal capitalist way of generating profit for shareholders towards the advanced neoliberal concept of making profit in a sustainable manner for the stakeholders. Milton Friedman's concept of business—"there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud"—is being modified as corporations becoming more responsible towards society through its corporate social responsibility (CSR).Though CSR has been around for more than half a century, its popularity has predominantly been felt since the 1990s, with the end of the Cold War and economic globalisation. By popularity I mean, on one hand it has gone through intense scrutiny, with transnational corporations making headlines from tax scandals to child abuse, and on the other hand, corporations and the state perceive it as a tool for social change.
Given the paucity of research in CSR in Nepal, this article will explore Buddha Air's CSR initiatives, to what extent it is helping the betterment of the community and if CSR is a rhetorical façade or a reality.
Nepal is one of the poorest countries in the world, as 'over 30 percent of its population live on less than US $14 per person, per month, according to the national living standards survey 2010-2011, and about 80 percent of the population in rural areas depend on subsistence farming. Almost three-fourths of Nepalis still depend on traditional household chores and 34.1 percent of the population is still uneducated. Since the government of Nepal is finding it difficult to get the country's macro-economic situation right, small initiatives of individuals, communities and corporations can be of immense help.
Civil unrest had subsided after the monarchy was abolished in 2007. However, it has again flared up after the promulgation of new constitution. This has amplified pressure on the unstable and feeble government for structural development and it has severely damaged local corporations and discouraged multinational corporations.
As usual, there are two sides of the a coin: either the corporations are evil creatures that exploit natural resources and labour; or they are virtuous institutions which not only make their shareholders happy, but are also proactive and demonstrate their responsibility towards other stakeholders in the society. Corporations and intellectuals define CSR from their own ideological perspective. It is voluntary for some and mandatory for others.
World Business Council for Sustainable Development (1999) defines CSR as the "continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large."
On the contrary, Fauset claims that CSR "evolved as a response to the threat anti-corporate campaigns pose to companies licence to operate" (2006). She believes leaders of CSR are highly unethical companies, the voluntary code does not work and the socially responsible investment is not enough.
CSR at Buddha Air
Buddha Air, like other corporations in Nepal, started its 'so called' CSR with minor initiatives of promoting staff welfare activities, and writing charity checks, donating in bits and pieces to NGOs for sports and social activities. It can be claimed that Buddha Air's CSR then was more of a rhetorical façade than reality. However, things changed as Buddha Air started becoming economically more affluent and started initiating agriculture projects through its CSR.
Moreover, in this regard, Birendra B Basnet, Managing Director of Buddha Air, acknowledges that, irrespective of what Buddha Air was doing earlier, it started its CSR primarily from 2006 and was further restructured in 2012, with the formation of Nepal Krishi Company (NKC) and channelizing the CSR activities through it and 31 cooperatives in four districts—namely Morang, Sunsari, Jhapa and Saptari, with more than 6,400 households as beneficiaries.
Why agriculture?
The driving factor for taking CSR into agriculture sector, where no one has ventured, was Basnet's obsession with the agriculture sector and his commitment to do something substantial for farmers. He has experienced the precarious working conditions himself, along with these farmers, but also sees the potential in the agriculture sector and wants to bring about a paradigm shift.
Agriculture sector was chosen as two-thirds of Nepal's population depend on it for their livelihood. World Bank Report 2014 states that "agriculture has a key role in promoting growth and poverty reduction, as the second greatest source of value-addition in the economy, and is the largest source of employment and poverty reduction. It makes up over one-third of the GDP while employing over three-quarters of the population." Hence it is important to invest in agriculture and help Nepalis emerge from the poverty trap.
Gender empowerment
Similarly, women in Nepal have progressed socio-economically, but they still need to get into the mainstream of development activities. Nepal still has a dominant patriarchal culture and society.
To challenge this, NKC started by selecting 15 women from Tanmuna and neighbouring village for its 'Women Empowerment Programme' (WEP). These women belonged to marginalised tribe and very poor community. They relied on daily wages for everyday meals. NKC systematically trained them so that the women could use machineries. The women did an excellent job. They started using machineries with little difficulty; they planted seeds and grew them on trays, the way it is done in a nursery, drove the planter to plant seeds and used the weedier to pluck weeds. Now these 15 trained women would become the 'ambassadors for change'.
Conclusion
The CSR of Buddha Air has changed the socioeconomics of poor households. The poor beneficiaries can now afford two meals a day, schooling for their children, medicine, and most of all it has given them confidence to lead decent lives. The program is more of a 'pilot project' that could be replicated throughout Nepal and to other underdeveloped countries.
Hence, the CSR is neither rent seeking nor a rhetorical façade. It is a participatory approach with the private sector, cooperatives and the public. It is neither a public relation stunt, nor strategic philanthropy. It is rather an initiative that is genuinely working for the welfare of the society above and beyond the call of profit. Buddha Air's CSR challenges the traditional discourse by revolutionising agriculture and enhancing the lives of beneficiary farmers.
This article has been extracted from research work of the author for the International Institute of Social Studies, The Hague
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