Table of Contents
Chapter:1- Aims & Objectives
1.1. Background Context
1.2. Problem Statement
Chapter:2- Literature Review
2.1. What is Social Responsibility all about?
2.2. WTO’s Scale of Problems
2.3. WTO’s Model of Enlightened Self- Interest
2.3.1. Innovative Business Model for Social Impact
Chapter:3- Case Studies, Analysis & DIscussion
3.1. Case Studies
3.1.1. Cadbury Schweppes
126.96.36.199. Company Profile
188.8.131.52. Social Responsibility Driver
184.108.40.206. Taking Action
220.127.116.11. Business Advantages
18.104.22.168. Company’s Social Responsibility Strategy (Success/Unsuccessful)
3.1.2. Grameen Group
22.214.171.124. Company Profile
126.96.36.199. Grameen Phone
188.8.131.52. Grameen Veolia
184.108.40.206. Grameen Danore
220.127.116.11. Strategic Benefits
18.104.22.168. Company’s Social Responsibility Strategy (Success/Unsuccessful)
3.1.3. TATA Group
22.214.171.124. Company Profile
126.96.36.199. TATA Group & Social Responsibility
188.8.131.52. TATA Steel
184.108.40.206. TATA Motors
220.127.116.11. Company’s Social Responsibility Strategy (Success/Unsuccessful)
18.104.22.168. ASDA & its Social Responsibility Measures
22.214.171.124. ASDA’s Social Responsibility Strategy and its Benefits
126.96.36.199. Company’s Social Responsibility Strategy (Success/Unsuccessful)
188.8.131.52. Company Profile
184.108.40.206. Social Responsibility Practices
220.127.116.11. Company’s Social Responsibility Strategy (Success/Unsuccessful)
Chapter:4- Conclusion & Recommendations
This report is on the topic of “Social Responsibility and the World Toilet Organisation. The scope of this report is broad as it deals with implication of social responsibility in regard to the success of company. In relation to the Scale of Problems faced by World Toilet Organisation, it has been understood there is a huge underlying demand for the affordable solution as there are almost 2.6 billion people who does have access to proper sanitation and thus signifies that there is a desperate need for about one billion affordable toilets and hence rendering it as a significant work stream in the given context. The organisation only needed venture capital investment by 2015 and after that it would aim for massive scale. In accordance with model of self interest it has been outlined that Jack Sim (founder of World Toilet Organisation) oriented WTO as the advocacy organisation with the purpose of enhancing awareness of huge gap existing between the industrialised and emerging economies in the respective area. Correspondingly, WTO has started to involve heavily in the sanitation marketing and this have been made possible through SaniShop program (The World Economic Forum Water Initiative, 2011). It has been believed that in this way, WTO’s activities of business development can be tied up with the traditional communications, training activities and advocacy which has enhanced the organisation’s competence up to great extend throughout the whole decade operations. From the case study of Cadbury Schweppes, it has been discovered that the Community Investment Programme (CIP) is strategically helping the company to focus more on the resources where they could add value. Corresponding, in case of Grameen Group, With respect to TATA Group, the social activities have permitted the company to become most respected company in the history of Indian corporate sector. However, ASDA is able to clinch the success in the very short period as compare to its competitors and it is only possible through the social responsibility activities implicated by the company. And finally in reference to Toyota, the company’s strives toward promoting environmental and educational projected have directed the company towards the way of making its production processes more efficient and also have enhanced company’s reputation.
Chapter:1- Aims & Objectives
1.1. Background Context
There are now numerous cases of enterprise which have been initiated for the purpose of delivering specific development impacts which is usually known as ‘Social Enterprise’ (Matten & Crane, 2013). The concept of social enterprise is appearing to be more favourable than the BOP (Base of Economic Pyramid).as these enterprises mainly have a clear social purpose or social responsibility at their heart. And as a part of these enterprises social responsibilities, it has been observed that these enterprises do not seen poor people as simply a market for making fortune. Searching enterprise solution in relation to the social challenges of all forms is regarded to be a significant approach of social enterprise and it also promises scale without having to rely entirely on the continued charity. The role of social entrepreneurship becomes significant. Social Enterprise is considered to be a most dynamic field in regard to the business- society relations which has been demonstrated in recent years by the enthusiastic contribution in Schwab Foundation and Skoll Foundation forums on social entrepreneurship (Funds for NGOs, 2010).
In relation to the Scale of Problems faced by World Toilet Organisation, it has been understood there is a huge underlying demand for the affordable solution as there are almost 2.6 billion people (WHO, 2010) who does have access to proper sanitation and thus signifies the demand for around 500 million home toilets and inclusively 500 million more toilets for certain places (schools, marketplaces, religious places, workplaces and recreational places). So, this meant that there is a desperate need for about one billion affordable toilets and hence rendering it as a significant work stream in the given context. In accordance with Jack Sim, the organisation has needed grants and sponsorship. The organisation only needed venture capital investment by 2015 and after that it would aim for massive scale. This social enterprise is also in need of designing of suitable technologies for the objective of making mass production of products for attaining the grand economies of scale. WTO’s management has never mixed up the grants with debt or equity for the attainment of organisational funding and development objectives (Lyons, 2012). But now the organisation has realised its need and is now looking for accounting professionals for this specified initiative. Specifically it seems obvious that for the purpose of building market for sanitation products & services and matching exact demand & supply, WTO (social enterprise) would have to ensure the essential and optimal public funding for supporting innovation and creativity through the streamline of capital flow and hybrid funding
In accordance with model of enlightened self interest it has been outlined that Jack Sim (founder of World Toilet Organisation) oriented WTO as the advocacy organisation with the purpose of enhancing awareness of huge gap existing between the industrialised and emerging economies in the respective area (Elkington & Hartigan, 2008). Through Sanitation marketing utilisation, WTO tries backtrack some of harmful (traditional) sanitation practices. The overall goal is to create mindset alteration among beneficiaries. Villagers are forced to pay their own money for buying sanitation and toilet products and it would more likely urged them to use it for the intended purpose. And simultaneously, the local entrepreneurial capabilities are utilised for the support the purpose of improving access to sanitation.
There will be 5 case studies of different companies (Cadbury Schweppes, Grameen Group, TATA Group, ASDA and Toyota) that are discuss in the report in order to evaluate and analysis their central approach in relation to the context of social responsibility. And also to point out that either every company has been successful in adopting and utilizing their specified social responsibility strategy and policy.
1.2. Problem Statement
Now, there are numerous instances of enterprises (Social Enterprises) which have been pursed with the intension of delivering specific development impacts. This concept seems to be more appealing as it urge organisation to keep social responsibility or social purpose at the heart of its operations. But the matter of fact is explore what is the scale of problem which create hurdle for these enterprises for achieving the main motive in the result of which it came into existence. And for this associated purpose the organisation has to evaluate that either its enlightened selfinterest is perfectly aligned with the social responsibility or not.
The ultimate aim of this research study is to explore the importance of social responsibility and also identify the fact that how could company makes it as the differentiating factor because in the knowledge economy the capitalist approach of concentrating only on sales or profit figure is no longer remains a competitive edge. Now consumers also expect from the company to contribute proactively in the social activities as well.
The core objective of this report is to analyse the link between the social entrepreneurship (especially of non-profit organisation) and social responsibility and to how much extend social enterprises are successful in delivering value to the environment for the purpose of which it was established. Social Enterprise named World Toilet Organisation (WTO) will be used as the subject matter in the quest of accomplishing the objectives of this report. The other objectives of this report are listed below:
- To identify the scale of problem being faced by World Toilet Organisation (WTO).
- To evaluate the concept of enlightened self-interest in accordance with the organisational setting of Toilet Organisation (WTO).
- To assess five companies in the case study sections that categorise responsibility at the heart of their operations.
Chapter:2- Literature Review
2.1. What is Social Responsibility all about?
In actual term, it is way of doing business in a way which meets or exceeds all expectations (ethical, legal, public and commercial) that the society has with the particular company or business. More precisely, it has been perceived as more than a combination of discrete practices by the leadership companies. It is taken as a set of comprehensive practices, polices and programmes that are integrated within all business operations & decision making processes which are determined to be rewarded and supported by the top management (bsr.org, 2013).
In general, the social responsibility reflects towards two things, outlined below:
- A combination of companies’ practices and policies which is strongly linked with the three aspects: a) relationship with the major stakeholders, b) compliance of values with the legal requirements and c) respect for communities and environment where companies are operating.
- Companies’ contribution towards the development of sustainable environment.
2.2. WTO’s Scale of Problems
Before moving towards the scale of problems being faced by World Toilet Organisation (WTO), it is vital to understand the nature of the cause for which WTO was established. Precisely access to proper sanitation is very often attached with the availability of clean water which is also known as sources of improved drinking water generally within the health community of global public. An improved water source is regarded as an aspect which usually protects human from the outside contamination (particularly from the fecal matter contamination (Corsi, 2012). Moreover, improved water sources involve the water which is specifically piped into communities or homes from protected sources (tube-wells, spring and boreholes). On the other hand, unimproved drinking water sources are comprised of sources which include unprotected wells, unprotected springs, and surface water from lakes, dams, rivers and streams. Correspondingly, an improved sanitation facility is considered as the factor which hygienically distinguishes human excreta from the human contact. Therefore, it involves the flush water toilet system which is linked to septic tank or piped sewer system. Latrines (pit) with covering slabs and composting toilets. While, unimproved sanitation faculties involves without covers open pit latrines, flush water toilets which have no connection with septic tanks or sewers (Curtiss, 2008).
Apart from Singapore (WTO’s central base) which has comparatively high per capita income and other industrialised economies (US, Japan & Western European countries), access to clean water & proper sanitation facility is not equivalently available to significant proportion of world population (about 6.7 billion residents in 2010). It meant that there is a contrast start between the developed economies and emerging & considerably poor economies (Molotch & Norén, 2010).
In reference to World Health Organisation (WHO), about 2.6 billion world populations have lack of access to basic sanitation facilities. In relation to this estimation it has been inclined that one out of six people globally (almost 16% of world population) does have access to proper sanitation facilities at all (WHO, 2010). So, it has been determined these individuals are being intended (forces) to defecate in open areas (fields, rural areas’ waterways, urban locations’ open drains and in roadside sewer). It has also been analysed that of these 2.6 billion about 800 million individuals have only access to the primitive latrines (The World Bank Group, 2009.). It has also been understood that all of these people are predictably potential carriers of disease due to the fact that they does not have access to piped water for washing their hands or for drinking (UNICEF, 2010). It has been found out that diarrhea is the prevalent cause of child deaths. And correspondingly suggested that simple hand washing with clean water and soap after the use of toilet, would significantly lessen the diarrheal disease (cholera and respiratory infections) transmission.
In general, Sanitation is classified as non-existent aspect in the very poor areas of African and Southeast Asian countries (Molotch, 2012). And massive percentages of deaths in areas are directly linked with the poor sanitary conditions. As the responsibility of health & education and other related services are given to the local government authorities, one can point out that such poor sanitation situation is also attributed to the lack of knowledge of local people in response to the need for good sanitation (Crouch & Pearce, 2012). It has been urged that poor understanding in such area in turn directs them towards unhygienic sanitation habits which is also against the healthy behaviour of such communities and thus leads towards the unclean toilet facilities emergence. Meanwhile, one can blame the local governments’ lack of capacity factor as the associated reason for poor sanitation situation. In turn, it also reflects the local officials’ inability in regard to the formulation and implementation of appropriate solution in response to the poor resource environment.
Collectively, there are broad range of factors which are responsible for the poor sanitation environment around the globe and particularly in many countries of Africa and Asia (Gibson, 2013). It has been seen that rural areas of these countries have made massive strides in an attempt to enhance sanitation access from the past two decades but still plenty of things to be done so as to provide poorest of these area with the basic sanitation facilities which are readily available to the people residing in developed countries.
In a nutshell, there is a huge underlying demand for the affordable solution as explained before there are almost 2.6 billion people who does have access to proper sanitation and thus signifies the demand for around 500 million home toilets and inclusively 500 million more toilets for certain places (schools, marketplaces, religious places, workplaces and recreational places). So, this meant that there is a desperate need for about one billion affordable toilets and hence rendering it as a significant work stream in the given context (UNICEF, 2010).
Despite of such magnitude of demand, it has been intended that the sanitation market still requires to be structured in order to make inclusive impact. World Toilet Organisation is seemed to play vital role to meet the sanitation demand (Pryce-Jones, 2011), And it has been determined that WTO is pursuing to focus more on structuring and advancing in the sanitation field (Cheng & Mohamed, 2010). The organisation is seeing itself as responsible for all given toilet issues and solutions and perceived it as a movement collectively with other involved stakeholders (Lye, et al., 2010). The organisation is emerged as the (de-facto) social entrepreneurship voice for the sanitation (King, 2010). The organisation is serving as a global and major network and platform for the toilet associations (Held & McGrew, 2007).
Under the massive unmet demand, WTO is generally pursuing different hybrid financing strategies with the intention of scaling up the sanitation solution provision precisely (Mahajan & Banga, 2005). The organisation is seems to work on specific product solutions as with the financial support of Rockfeller Foundation, Singapore Economic Development Board (SEDB) and Index Awards, it has established a SaniShop (franchise model) which would intended to make possible for poor people to produce & sell comparatively small and affordable sanitation system at the price of below $40 per family. Through this model many of its clients are becoming entrepreneur for SaniShop project as the project is offering commission on each sale with the flexible payment terms and the model is supporting their revenue stream with simple and considerably effective marketing tools (Hanks, 2012).
The model of SaniShop is designed to sustainable and profitable and also creating jobs for poor individuals while delivering public health & dignity (Elkington & Hartigan, 2008). In conceptual sense, the role of hybrid financing is pretty much straightforward. Although within the donor model one cannot expect enough mobilisation of resources but still it appears that this particular marketing mechanism is not working for WTO. It has been apparent that WTO’s market based model (SaniShop) is in the initial stages and also needed grants and technical assistance in order to become self-sustainable (Society for Environmental Communications, 2007). According to Jack Sim (the founder of WTO), this phase would take between 5-8 years for reaching towards sufficient economies of scale for the purpose of developing self-sustainability. Since the inception, SaniShop has sold about 5400 toilets in different regions of Cambodia with the sponsorship of Credit Lyonnais Securities Asia. SaniShop had begun its sales in India with the support of various sponsors. Up to now the organisation has trained 120 sales agents and sold approximately 5400 toilets in India which made possible for 26000 clients to have access to proper sanitation, But it has been believed that the organisation still have much ground to cover to accomplish the WTO’s vision of selling 10 million toilets globally by 2016 and thereafter 50 million by 2020.
To signify the pace of change under the given enormity of challenges that the given social enterprise is targeting after the decade of operations, WTO sill view itself as within the seed phase and is looking desperately for grants. In accordance with Jack Sim, the organisation has needed grants and sponsorship. The organisation only needed venture capital investment by 2015 and after that it would aim for massive scale. The organisation is making profit only up to the franchise level and the organisation’s senior management is intended on operating at profit on consistent basis and seems aggressive in term of making reinvestment of profits for the purpose of training designing and productisation The given social enterprise only needed to create strong distribution branding before the profit exploitation of manufacturing at the large scale level or volume (Lye, et al., 2010). The organisation has already built a main brand (WTO) itself around the globe and is extending such brand transfer in to the Base of Economic Pyramid (BOP) distribution. It has been appeared that the given model is open to bring in and open source master franchisees that have extensive distribution network and piggy back on them with the ultimate aim of bundling that specified franchise with the related products, emptying services and supplies. This social enterprise is also in need of designing of suitable technologies for the objective of making mass production of products for attaining for attaining grand economies of scale as the WTO’s next targeted countries will be China, Vietnam, Indonesia, Bangladesh, Nigeria and South Africa.
It has been analysed that WTO is in the area of social entrepreneurship from the last 11 years and the surprising factor is that the organisation has strived that period without any borrowings and equity injections. Since the inception, the organisation had cumulative grants of almost $1.2 million (Sim, 2008). And in regard to hybrid financing strategies, the management has never mixed up the grants with debt or equity for the attainment of organisational funding and development objectives. But now the organisation has realised its need and is now looking for accounting professionals for this specified initiative. Specifically it seems obvious that for the purpose of building market for sanitation products & services and matching exact demand & supply, WTO (social enterprise) would have to ensure the essential and optimal public funding for supporting innovation and creativity through the streamline of capital flow and hybrid funding
2.3. WTO’s Model of Enlightened Self-Interest
With the deep understanding about sanitation situation across the globe, Jack Sim (founder of World Toilet Organisation) oriented WTO as the advocacy organisation with the purpose of enhancing awareness of huge gap existing between the industrialised and emerging economies in the respective area (Sim, 2010). The decision regarding operating an advocacy organisation was implicated in 2001 as in beginning Jack had the shortage of funds and staff members and also found it better to do most of advocacy work by him and at considerably less cost. However, the ultimate goal was to spread the message of WTO:
“Clean toilets for everyone by working at different society levels and also through the targeting of different customer groups (Peters, 2012).”
The first from these groups was general public. In Singapore, Jack focused more on the citizens’ self responsibility to have clean (smart) toilet facilities at the public places (shopping malls, offices and buildings). For making this motive appealing to Singaporean he utilised his skills and capabilities with the attention of gathering attention towards WTO (Beech, 2008). He participated in various events and was very successful in persuading audience and even multinational companies for making investment to get rid of given cause (Lancet, 3007).
The second group which was targeted by WTO were officials and workers linked with the sanitation sphere. Traditionally it has been perceived as very low status among Asian to work with such individual groups (Cordes & Steuerle, 2008). But Jack was successful in launching a drive and professionalises such sanitation related work. With the unique collaboration with the Singapore’s main union for toilet cleaners, WTO instituted the World Toilet College (WTC) in 2005. The union in this regard helps WTO through financial funding for the purpose of organising a certification program for its existing and potential members. And for such reason WTO made contract with the Japanese experts working in this area and offer courses to enhance professionalism and skill level of toilet trainers (Anthony & Dufresne, 2007). This project also included the introduction of toilets with motion sensor technology in Singapore. Moreover, at the end of training programs all candidates receives certificates.
- Quote paper
- Junaid Javaid (Author), 2013, Social Responsibility and the World Toilet Organisation, Munich, GRIN Verlag, https://www.grin.com/document/282340