The Business of Benevolence - An All You Can Give ‘Buffet’

The recent visit of the ‘Oracle of Omaha’-legendary investor and chief executive officer of Berkshire Hathaway-Warren Buffet- to India has sparked a long delayed but highly needed interest in global philanthropy. It is definitely an apt theme to bring up. India is reeling under a series of scams and scandals-some including even the stalwarts of corporate India. In such a situation philanthropy would definitely do a world of good to everyone.

Buffet has appealed to the leaders of corporate India to loosen their purse strings and make a conscious effort to give back to charity. In his own words “It is an act of humanity and you are very humane and rich people...I think when people join the Giving Pledge their act has some influence on others.” Indian billionaires are not a patch on their foreign counterparts in giving their wealth away. Slowly but steadily, however, things are changing and definitely for the better.

Wealth created in post-reform India has given philanthropy a whole new dimension. Last year Wipro chairman, Azim Premji, announced that $2 billion would be transferred to a trust which works for the improvement of the education sector in the country. Another notable example would be the $340 million grant that G.M Rao, chairman of infrastructure conglomerate, GMR had pledged for humanitarian activites. And who can forget- the Tatas charitable trusts which were one of the earliest in the world. No doubt, efforts being made in this direction are commendable; however the numbers still remain abysmally low. A report by Bain&Co. pegs India’s philanthropic contributions at just 0.6% of the total GDP.

There are various reasons why Indians give so little. Firstly, most of the Indian billionaires have amassed their wealth only recently therefore loath to part with their moolah. The inherent sense to look at every initiative in monetary terms and the shrewd motive to maximize the profit through every deal comes in the way of donating generously. Secondly, charity or philanthropy doesn’t really put Indian businessmen on a pedestal (read increased social status). However this does look all set to change with big names of India Inc embracing philanthropy.  But what remains the most crucial factor that impedes charity in our country is the lack of institutional framework and policy support for the most beneficial use of funds. Take the case of the ‘Sage’ (Buffet, for the uninitiated). His philanthropy has not flowed from any nondescript charity but from the Bill and Melinda Gates Foundation. Many rich benefactors wonder whether their funds actually reach the intended beneficiaries or get entangled in the loop of middlemen as is so common in India.

Philanthropy and profit, too are not mutually exclusive to each other. These new age ‘philanthropreneurs’ invest in social outfits that come up with ingenious solutions to problems that affect the community. This new breed of philanthropists ensures that their invested capital generates reforms in the social environment while maintaining a sustainable approach since profitability ensures sustainability.

Whatever form philanthropy  might take, there’s no denying the fact that it has assumed paramount importance in today’s day and age. With problems like poverty, malnutrition, unemployment and illiteracy being a part of routine life in countries like India, it is incumbent upon the rich to do their share and to reduce the ever-widening gap between the haves and the have-nots. India and the world are hoping they do just that.

Enjoy The Journey...

As a famous saying goes "It's the journey which matters and not the destination". This saying doesn't hold more truth than it does today. So caught up are we in our lives moving at such a frenetic pace that we hardly ever pause, reflect on the journey that we are undertaking and take stock of the learning which occurs during the whole process. 

A prime example of this would be the Indian freedom struggle. Though a clear goal-that of India's independence- was clearly established in the beginning, it is the journey that we all reminisce about today and seek to take inspiration from. Under the able guidance of Mahatma Gandhi the country came together as a whole and by peaceful and non-violent means protested and ultimately overthrew the British Rule. It was through these revolutions that the nation understood the meaning of national unity and collective strength.

Now-a-days however things are drastically different. With heavy coursework, impossible targets and far too near deadlines the process has taken a backseat and the result is what everybody wants.

Recently my school hosted a leadership summit (http://www.modernschool.net/international-programme-cdls.asp) where students of more than 20 countries from all over the world assembled in our school for various events. I was selected to be part of the Core Team and started working for the summit two months in advance. The learning which I imbibed during those two months to organise a summit of such a large scale would definitely hold me in good stead in years to come. The actual summit, was, no doubt, a great experience but the process of doing mattered more than the outcome.

Mother Teresa is another such figure who worked tirelessly for the poor and underprivileged not for any award or prize but because she empathized with them. The whole process of interacting with those who were less fortunate than us brought her greater satisfaction than a Nobel Prize or Bharat Ratna ever would.

Thus is today's competitive and goal oriented world where everyone strives to be ahead, we should all pause and reflect on the process. We would enjoy the fruits of our efforts even more.