Community Development Endeavours Indian and Global Companies Its Role and Realism
Exploring the role and impact of community development programs by Indian and global companies
by Deepti .*, Radhika Sharma ,
- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540
Volume 16, Issue No. 4, Mar 2019, Pages 685 - 697 (13)
Published by: Ignited Minds Journals
ABSTRACT
This chapter includes the detailed literature review on the concept of community development. Chapter is divided into five sections. First section discusses about the concept of community development, and the community development programs. Second section includes the benefits or significance of community development programs for the companies, third section includes the benefits or significance of community development programs to the communities highlighted by various researchers. Fourth section includes the detail of the various community development programs conducted by the companies at national level, and last section includes the various community development programs conducted by the companies at global level.
KEYWORD
community development, Indian companies, global companies, literature review, benefits, significance, programs, researchers, national level, global level
1. INTRODUCTION:
The term community has had wide connotations in academic discussions (Popple & Quinney, 2002). Community, as under the vast ambit discussed by Wilmot (1989), can be viewed in terms of three commonalities: shared local territory, shared history or other interests, or shared issues and conditions. The term ‗Community development‘ has been defined by various researchers in various ways. Following are the main definitions of the community development extracted from literature. Tuck et al. (2005) defined Community Development as process of careful articulation of work toward a particular goal. Researcher also defined that ―community development is a process of incorporating people‘ belief and emotions into the business processes‖. The National Occupational Standards for Community Development defined it as a value based approach built on the foundation of equality, social justice and inclusion for creating a balance in power and brings a change in the community and society at large. It was also stated that Community Development empowers and enables people to choose their own priorities and needs, identify solution for their problems and serve for the greater good of improving their community and lives. Tracy (2012) stated Community Development as a means for community member to engage in a process of increasing their standard of living voluntarily. Researcher also stated that such programs for Community Development builds a bridge between community member and institutions. Ricketts (2005) stated that Community Development process, through the active participation of the members, can build reliance and trust towards various initiatives. Visser (2008) defined Community Development as a social movement, which unifies community members and reflects human values and progress. Tan (2009) stated Community Development as a process where community members unite with various government functionaries to improve social, economic and cultural conditions of the community and society at large. The research revealed that Community Development is a first step towards nation building and start of a movement towards national progress. Padawangi (2009) attribute Community Development as a flexible process, which can be used by people of different political ideological background – Liberals, conservatives and radicals and defined Community Development as a movement not just a mere process. The researcher also stated that the approach of Community Development in placing community members first in deciding their own social and economic empowerment is acknowledged and accepted by many people. Mukherji (2013) view on Community Development is markedly different as the researcher defined it as a change agent changing the power equation. Nembhard (2013) defined Community Development as a dynamic process, which involves a diverse set of community groups. Motherway (2006) stated Community Development as a process to build communities‘ future and involves in identification of tools and conditions to guide the future of community. Marshell and Berry (2015) highlighted the rich diversity of Community Development objectives, (2001) focused on the importance of community peoples‘ participation and the significance of gaining control over the Community Development programs by the people. Athiyaman (2012) defined Community Development as a peoples‘ decision to change their status quo. Community Development is a process that liberates people and gives them various choices and provides a platform to realize their potential and use it for their betterment. Community development is the process of developing active and sustainable communities based on social justice and mutual respect (Ismail, 2009). The widely used meaning of Community Development is the one given by the United Nations (United Nations, 1971) in which community development is an organized effort of individuals who decide that a community be conducted in such a way to help solve community problems with a minimum help from external organizations.
2. LITERATURE REVIEW:
Community development is a process where local people can not only create more jobs, higher income and advanced infrastructure, but also help their community become fundamentally more capable to manage change. It is through participation in their community that people rethink their problems and expand contacts and networks; building social capital. They also learn new skills, building human capital. Furthermore, they develop new economic options, building physical and financial capital. They also can improve their environment. Sometimes, however, community development endeavours are also shaped by contemporary political scenarios. In United Kingdom, early community development models evolved from its use as a colonial tool- to further the domination of local communities (Popple&Quinney, 2002). The study was a reflection of the top-down approach in community development that could be seen in the benevolent paternalism shown by churches, universities or bourgeois philanthropists towards the working classes. The top-down approach is associated with the principles of 'rescue' and 'charity', where the dominant groups are called upon to bring stabilization and sustainability by providing aid to the disadvantaged communities. On the other hand, the bottom-up approach is based on 'activism' and 'revolution' tendencies, where disadvantaged communities raise demands for change in policy and practice to achieve equality of rights and opportunities. In America, community development endeavours found a significant push by the Roosevelt administration in the 1930s, which strove to bring progressive reforms dedicated to rural regions. The community development initiatives came in the shape of electric power dams, public housing projects, advanced agricultural awareness, and town planning (Hoffman, 2012). Other theories that guide community development endeavours offer
development endeavours that are shared between these differing views can be listed as- public participation, community partnership, sustainability and ethical conduct (Latopa&Saidu, 2015).
Community development can be made effective through careful participation of all stakeholders. Companies look at the importance of community development programs as value-creation opportunity for its stakeholders, as vital to its operations as training for employees and product quality for customers (Porter and Kramer, 2011; Serafeim, 2013; Jain, 2014). Meanwhile, governments around the globe view community development endeavours as the fulfilment of the social contracts that forms the basis of their relationship with the citizens. Governments have been tasked with unending missions of maintaining law and order, and providing better standards of life for people at a mass scale. The success of community development plans, such as subsidies, tax regulations, guidelines, or public schemes- forms the milestones that enable governments to secure public faith (Nidasio, 2004). Tuke et al. (2017) have examined community development initiatives as picked by local government authorities in Ethiopia. Researchers highlight that development practitioners, foreign donors and government officers are in consensus about the role of government bodies as valuable contributors to community development. According to the study, local government bodies serve as the centre of economic, cultural, social, technological, and environmental development which effectively leads to community development. Individual sub-groups within the larger social community can also play important roles in initiatives for overall growth and advancement of the community. Such sub-groups are also seen as communities in themselves; researchers have looked at community development through the lens of educators (Brouwer et al, 2011), or virtual communities (Li, 2004). Community development is also brought on by institutions that preserve culture and heritage, such as libraries, museums and art centres. Thus, artists and local inhabitants are also included as important agents of community development (Tjarve and Zemite, 2016). Another stakeholder in community development initiatives is the corporate sector, which has witnessed a growing trend of community- centric projects of development through initiatives undertaken as part of corporate social responsibility (CSR). Companies' contribution to growth of community is not merely through profit- maximization, but also as proactive engagement with the social interests and issues of their stakeholders (Jamali&Mirshak, 2007). Visser (2006) states the importance of corporates as among the most well- equipped institutions to significantly contribute to improvement in social and environmental conditions of a community.
Ismail (2009) has linked CSR and community development in terms of employee engagement. Vastradmath (2015) has also called corporate efforts towards CSR as contribution to external community by fulfilling the needs of internal stakeholders such as employees. Thus, it is evident from existing research on this topic that to understand the factors that make community development endeavours successful, it is important to look at their significance for all major stakeholders- including corporates, governments and communities. However, every category of stakeholders has faced its own unique challenges and hurdles in achieving the optimum effectiveness of community development endeavours. For instance, researchers (Tuke et al., 2017; ) have pointed out that governments face several issues in bringing widespread community development, such as, gap in community involvement, non-availability of funds, corruption, lack of training, and slow bureaucracy. In the case of corporate involvement in community development initiatives, researchers (Arevalo&Aravind, 2011) have claimed major hurdles to be in the form of lack of adequate funding, profit maximization challenges (Arato et al, 2016), or absence of a dedicated CSR team (Vastradmath, 2015). Schutte (2015) has studied the residents of a small community in Lebanon, to list the issues faced by them. Researcher discovered that a large number of people resignedly strived for economic survival, especially pensioners, or provision of common facilities like electricity, cheap public transport and medical care. Learning about these challenges and hurdles specific to every group is essential to identify the correct approach and solution to creating effective community development programs. Measures like good governance and autonomy to local government have been recommended to increase the success of community development endeavours. As per Loutit et al (2016), meaningful community involvement must be ensured in the decision- making process of initiating community development projects, especially where indigenous communities are involved as major stakeholders. However, corporate sector has much to contribute to the improvement of community development initiatives. Corporates that understand the responsibility of business that exists beyond the economic gains can prove to be an equipped caregiver of the community. Bhardwaj and Kumar (2014) have emphasized on the point that environmental scanning must bring in it the scanning of community perception towards the developmental activities of the organization • To study the conceptual framework of community development of community on national and international level. • To analyze the impact community development of company on national and international level.
4. WHAT IS COMMUNITY DEVELOPMENT:
4.1 Definition-
Moir (2001) defined CDP as a corporation‘s moral side which includes values that guide the socially beneficial programs are a product of normative systems. The research further highlights that the property of normative nature of the Community Development process makes it complex. Woodruff et al. (1992) defined Community Development Program as an advantage to promote good among the community and at the same time restrain from harm. Petkus et al. (1992) stated that corporate takes Community Development Program as a method to reduce harm and build up a beneficial and sustainable society. World Business School of Sustainable Development defined Community Development Program as a commitment by the businesses to coordinate with its employees and community people to build a sustainable and resourceful society. Business of Social Responsibility considers Community Development Program as an enabler to businesses in not only meeting their commercial goals but also ethical, moral, legal and societal goals by building a sustainable community. Kaur (2015) argued that business should evaluate its impact on the society and make sure to have a positive result in economic, social and environmental aspects. Connelly and Limpaphayom (2004) defined Community Development Program, as a tool for corporation to address societal needs. Anarde (2015) described Community Development Program as a way of channelling resources for the increasing sustainable economic and employment. Lois and Mohr (2005) stated that Community Development Program is an additional activity, beyond the legal and business purpose of the corporation, for the benefit of community and society. Dahl and Lavack (1995) defined Community Development Program as a process to bring people together to solve their problems using their resources and capabilities. Besley, Timothy and Ghatak (2007) stated Community Development Program is a set of social activities and not just activities of an individual. It is a collective effort of a group to bring about a change. Combat Poverty (2000) defined Community Development Program are a gift for the downtrodden as it empower them and encourages
to show their honesty, trustworthiness, respect and commitment to its community. Blowfield and Frynas (2005) stated Community Development Program as a platform that companies must embrace to develop solution to social and economic problems. Basu and Palazzo (2008) stated that the high level of interaction of an organization with its stakeholder will help in contributing highly towards the society in a positive manner. The World Business Council for Sustainable Development defines CDP as an ethical path an organization or company choose towards the approach towards community. Friedman (2009) defined Community Development Program as an ethical commitment of the corporation towards society and as a means to promote social, economic and cultural equality and empowerment. Salim (2014) defined Community Development Program as a commitment of corporation‘s resources to the betterment of the community. Elhauge (2005) stated Community Development Program as a measure to enhance groups and communities‘ capacity, bring about a change, improve economic well-being and develop institutions. The researcher also stated that these factors will ensure bringing a change in the community by their own people. Spilling (2011) stated that Community Development Program brings consistency in community forces and results in actions that cause large number of benefits to community. Vargas &Noruzi (2010) stated Community Development Program is of interest to both academicians and practitioners. Academicians viewed Community Development Program as a process of unification of community member towards a common goal of improvement in standard of living and practitioners view Community Development Program as an outcome that enables social, economic and environmental success. 4.2 Benefits of CDP to Companies
Following are the major benefits or advantages to the organizations from community development programs based on the literature review: 1. Positive impact on customer responses: During last decade there is a huge growth in the community development programs organized by both the Indian and Multinational companies. Holmes (1976) stated that all type of community development programs helps the business in increasing its profits both in long run and short run. The main purpose of community development programs is to reduce the social problems or conducting the business in such a way that it will not create any social problem to the society. 2. Positive Image: Community development programs help in increasing the reputation of the company in the market and it also helps involved in community development programs it shows that company, consider itself as a part of society and fulfilling its moral duties towards the society where it is performing its business operations. According to the study of Gangopadhyay (2012), customers always prefer the brands or even ready to switch to the brands of the companies which participate in the development activities of the society or give donations to the NGOs for the community development. It was also highlighted by the researcher that customers prefer to buy the products of those companies which work for removal of social evils such as; campaigns against alcohol, domestic violence, girls‘ safety, gender biasness etc. 3. Competitive Advantage: Community development program gives competitive advantage to the company for their long term survival, and to compete with the other companies on the basis of their ethical behavior or corporate citizenship practices. In this competitive era, customers are becoming aware and their expectation from the companies have increased. Now customers don‘t expect only low priced and quality products but also demand the products that cause less harm to the society and the natural environment. Customers shows positive attitude towards the companies which shows more responsiveness towards the society and the environment. Thus, companies are making use of CDP to fight against the competition in the market. It is the natural rule, whatever you give, you will receive the same. Thus, if a company will perform something for the development of the society, society will also show positive attitude towards the company and will help the company in its development. Community development program helps the companies in framing its strategies keeping in view the complete environment. According to Basu and Palazzo (2008), community development program adds competitive advantage to the companies and affect its organizational performance also. Thus, every business strategy for target market should add some value to the society development process, to convert business strategy into competitive advantage. 4. Value of the firm: Researchers have conducted various studies to establish the relation between community development programs and the value of the firms. It was found from various studies that value of the
Dacin (1997) found in their survey that respondents were ready to higher price for the company‘s product which are following ethical practices and making efforts for the society. For customers it is an important factor that influence their decision making or buying behavior. Thus, the value of the firm directly gets affected by the community development programs. Mohr et al. (2001) also found the significant relation between the community development program and the firm value. It was found from the study that the attitude of the people towards the quality of the product get influenced by the value of CDP. If a company is highly involved in the community development program, then the attitude of the people towards the quality of product will be positive and it will help in increasing the sale of the company. Thus, the community development programs help in increasing the value of the firm. Davies (2002)found that CDP has a positive and significant impact on the value of firm, and the support given by the firm for the development of society. Connelly and Limpaphayom (2004) highlighted that firms which support social cause will have positive image in the market and attracthuge customers, which help in increasing the sale of the company and the firm value. 5. Product differentiation: Product differentiation is another benefit of community development program which firms can avail. Product differentiation is a strategy under which companies try to create value by adding unique features to the products or services with a purpose to increase the customer value and their level of satisfaction towards the products and services. Product differentiation strategy helps in competitive advantage to the firm and helps in outperforming than other competitors in the market. Community development program helps in differentiation strategy. Companies who are involve in the community development program can add the unique feature to their products or services in terms of the socially responsible, making the products environment friendly, using a percentage of share from the sale of product for the development of the society, adding features to the products which can cause less harm to the health of the customers or to the natural environment. This type of differentiation strategies can help the company in getting competitive advantage in the market (Besley, Timothy and Ghatak, 2007). strategies which are used by the companies to have competitive advantage in the market. Cost leadership can be achieved by reducing the advertisement expenses, increasing the scale of efficiency, and controlling overhead expenses. Community development program can help in cost leadership strategy. Under this strategy companies focus on reducing the cost of advertisement of the products, and instead of spending the money on advertisements and then attracting the customers. 7. Corporate Legitimacy: Community development program has a significant impact on the legitimacy of the companies. Ho (2013) stated in their research that organizations face difficulty in maintaining the legitimacy in the inside and outside the organizations. The major factors or components of the corporate legitimacy are namely; operating the business which is permitted by law, producing only those products which comply with the law, applying the new laws as soon as possible, and developing new standards for the regulations in the company, (Hess and Dunfee, 2007). Corporate Legitimacy has been defined as the need to gain validity, or acceptance from the society, or the degree up to which existing culture of an organization accepts the organization (Heal, 2008). Community development program helps in establishing the corporate legitimacy. Companies who involve in the community development program can easily get acceptance from the society and easily make their place in the market. 8. Corporate Reputation: There are number of researchers who have found positive and significant impact of community development program on the corporate reputation. Community development program helps the corporates in increasing its reputation in the market. Companies which are highly involve in the community development programs, considers as responsible and the philanthropic aspect of the company helps in getting attention from the society. Corporate reputation can be defined as the results of the past and present actions of the company which represent the ability of a company in delivering value to its customers and other stakeholders (Heal, 2008). Corporate Reputation can also be defined as the perceptions of its stakeholders towards the product or services of the company, strategies, performance, practices and the performance of the company towards the environment, towards the society, and external stakeholders. Holmes (1976) stated that corporate behavior towards the social issues have a strong impact on its reputation in the market. Corporates who shows concern towards the social issues, and support in the development of society usually enjoys high goodwill in the market. 9. Corporate Financial Performance: Community development program are not just a social movement for the benefit of the society, it also serve as an enabler for businesses. It can be wisely used to develop trust among people and establish the corporation‘s brand. It can be used as an agent for revenue generation and profitability. Mohr et al. (2001) stated that CDP can influence consumer choices toward the organization‘s product/services and can lead to profitability. Tan (2009) gave statistical evidences to consumer choices and states 49 percent of consumer attribute their choice in choosing a product based on the corporation‘s action towards a good cause. The researchers also states that 54% will choose a product in the future based on the corporation involvement in CDPs. Brown et al. (1997) studied how CDP and corporation‘s CSR affect the evaluation of a company in the eyes of a consumer. The researcher concluded that positive involvement of a company in CDP and CSR results in positive evaluation of the company and its products. 10. Corporate Creditability: Corporations need to project their high ethical, moral and social standards to their consumers as well as society. This will build up credibility on the products, services and operations of the company. Credibility will automatically lead to better consumer engagement and influence their preferences. Blowfield and Frynas (2005) stated that CD increases credibility of a company and positively impacts purchasing attitudes of the consumer. The researcher studied the effect of donations for CDP by companies and found a positive correlation between donation value and consumer perception of company‘s credibility. Friedman (2009) signified that corporate credibility plays an important role in consumer choices in choosing a brand. Zeithaml (1988) stated that consumer look for companies that can provide them with positive social identity. Lafferty et al. (1999) found in their research that positive credibility can be developed by company‘s contribution towards community
quality. The researcher also highlighted the importance of a regulation mechanism for CDP to ensure inappropriate marketing of CDP for profitability of companies. 4.3 Benefits of CDP to Community
Following are the major benefits or advantages to the communities from community development programs based on the literature review: 1. Economic Development: Economic benefit is a major contribution of the Community Development Programs (CDP). The Economic Development of the community will result in increased standard of living, increased average income and increased quality of life. Gough (2015) states that local economic development constitutes of three components – Economic growth of the community, Development of the community and relationships of the community. Kapilashrami (2000) argued that businesses need to be evaluated on the basis of contributions they make towards community development. The economic growth brought by these programs in many cases brings down economic inequalities between highly developed regions to under developed regions. Study of Wallace & Cornelius (2011) revealed that the Community Development Program has evidently reduced the inequality in health care benefits got by people in the community. Lois and Mohr (2005) stated that these programs also bring about a change in labor practices in developing countries. Any change in bringing down inequality will result in economic progress for the community people. 2. Community Empowerment: Main mission of many CDPs is to enable and empower the community they serve. Blunt (2014) stated that community empowerment leads to reduction of inequality and ensures uniform distribution of resources for the benefit of the community. Israel et al. (1994) stated that empowerment leads to realization of power and control by the people, which can be directed to gain efficiency and social equality and justice. Britto (2011) argued that CDP act as a change agent in many communities by identifying problems and solutions to common community problems. Albert et al. (2012) stated in United Kingdom, CDPs are used as a medium to empowerment
3. Quality of life: Improving quality of life includes not just providing economic and physical infrastructure of all basic facilities but also promoting cultural, social and environmental equality, harmony and protection. Lois (2001) stated that quality of life is measurement of happiness people require. Margarita (2004) stated that business managers need to participate in CDP and work towards improving the quality of life of people in the community. Hulchanski (2010) stated that certain business groups‘ managers see promotion community peace and harmony as a major goal for their CDPs. Hess (2002) argued that CDP of organizations target various aspects of life of the community people like education, health care, environmental protection, providing basic amenities, sanitation and bringing in equality and good labor practices. 4. Community Participation: Padawangi (2009) defined community participation as a mechanism by which individual members in the community take ownership and responsibility of the welfare of the community and take actions to identify problems facing the community and solutions to address them. It also includes them to take ownership of capacity building. Motherway (2006) stated that the community participation makes people of the community to actively involve, govern and direct the course of CDPs rather than just being a mere receiver of benefits. This develops a two-way communication and management channel in CDPs in which the managers of the organizations and community people interact and govern the projects together. Moir (2001) stated that community participation‘s success and functioning results from the active participation of members or citizens. Korten (1980) explained that community participation results in people themselves identifying their problems, coming up with solutions and utilizing the resources to address their problems. 5. Community Health: Many CDPs of organizations focus on providing healthcare facilities to people in their community. As part of these initiatives many organizations have built hospitals and primary health care centers in their communities. This directly affects the lives of the people of the community and society at large. The affordable and quality healthcare, which were earlier a distant dream, improves the conducting free medical camps and general checkups for the people of the community. All these, along with physical infrastructure given to improve sanitation facilities like providing clean water supply, safe drains, sustainable garbage disposal and toilets for the poor, help the community to thrive healthy without any break of epidemics. Wilson (2012) stated that companies have focused on providing better sanitation facilities to community and clean drinking water should be the central focus of various health programs as this alone will make sure epidemics does not spread through.
4.4 Community Development at National Level
There are number of studies available on the community development programs which are conducted by Indian companies. All the major community development programs have been discussed in detail in this section. 1. Educational Development Programs: Education is the basic foundation for community development. Education brings knowledge, and knowledge and skills help the people in getting jobs and earning money for their livelihood. Thus, educational development programs are the main initiatives that can be taken by the companies for the community development, for making the community members self-dependent and removal of poverty from the country. Under community development programs, companies focus on educational development of the society members. Educational development programs mainly include charity or donation to schools, or educational institutes, providing scholarships to talented or meritorious students, fixing various facilities in the school premises such as; water coolers, water purifiers, construction of toilets in schools, fans, donation for books, establishing computer labs in the schools, donation of old computers, or laptops for schools (Salim, 2014). Companies also conduct campaigns for making people aware about the benefits of being educated. Under community development programs companies make efforts for increasing the level of rural education as also, (Gangopadhyay, 2014). 2. Environmental Awareness Programs: Environmental awareness among community members has become the need protect these resources. Community members need to be educated towards the environment, activities which need to be reduced by community members to make less harm to the natural environment and its resources. Under community development programs, companies organize various campaigns for making people aware about the environment; companies can promote green marketing of its products as a contribution towards the environment (Mishra and Suar, 2010). Companies can make proper arrangements for preventing air pollution, noise pollution, and water pollution. Recyclable products, eco-friendly packaging, eco-friendly disposal system, and eco-friendly production process all are the efforts which can help in reducing the harm to environmental resources and natural resources around the community area (KPMG, 2010). 3. Community Health Initiatives: Health is wealth, development of any community completely influenced by the health of its members. Medical facilities available in the community define the development rate of it. Thus, companies can work towards the community health under community development programs. Various initiatives included under the community health are providing free medicines, donation to cancer hospitals, arranging free campaigns for the eye checkup, full body checkup, establishing hospitals in the premises of organization and nearby societies. Organizing blood donation camps by the employees of the company, organizing campaigns for cancer awareness, AIDS awareness, campaigns for child nutrition, donating hearing aids and wheel chairs to physically handicapped people and safety of pregnant women. Community health programs aims to keep the community members mentally and physically fit so that they can live their life happily. 4. Consumer Awareness Programs: Consumers of a business are important members of the community, who helps in the growth of any business. It is the duty of the business to make consumers aware about the quality of the products, rights of the consumers, educating customers about selection of right products at right price from right place. Under community development program, companies made efforts to educate customers about the products, its usage, quality, various distribution places, information about after sales services and warranties available on products. Making consumers aware about new trends, new consumer exploitation and safety from hazardous products. Companies also make campaigns for preventing customers from false and misleading claims by marketers (KPMG, 2008). Companies under community development program, also provides the feedback facilities to the customers, to improve their processes and services quality. All these practices leads to satisfy the customers and helps in development of community members. 5. Infrastructure Development: Infrastructure development shows the real development of a community. Infrastructure includes the transportation, accommodation, civil infrastructure etc. Under community development programs, companies used to work for developing infrastructure for community people which includes developing roads, construction of community halls, gym, parks, hospitals, educational institutes, training centers, old age homes, working women hostels, residential complexes for staff and their families, temples or other religious places, constructing sewage, or drainage, and helping in establishing ATMs or banks in the premises of organization (Karnani, 2013). Infrastructure development in a society will help in the overall development of that society. Infrastructure development helps in raising the standard of living of community people, making their life easy by providing them various facilities. 6. Basic Utilities: For the development of any community the basics needs of the community should be met in systematic way. The basic needs of any society are drinking water, electricity, and source of earning to survive. As a community development programs companies have involved in various activities of fulfilling the basic needs of the society such as; provisions of clean drinking water, constructing pipe lines for drinking water, providing electricity, are providing free LPG connections to the people, and the solar stoves (MCA, 2014a, 2014b). Companies also conducts the training programs for making people trained in various skills which they can use to earn their livelihood. Conducting self-skilled programs, promoting self-help groups, providing free training to drivers, plumbers, repairing work of computer hardware, electric equipment, or assembling work. 7. Women and Child Development Program: Women are an important part of
companies focus on improving the standard of living of women by conducting various development programs such as; financial assistance to women, supporting women entrepreneurship, supporting women education, and women empowerment (MCA, 2009). Companies also provide various equipment to women who are involved in the self-skilled professions such as; sewing machines, handicrafts machines. Companies also conduct training programs to develop the skills of women entrepreneurs, provide marketing assistance and conducting campaigns for women empowerment. Companies also conduct awareness about women rights in the society (MCA, 2011). Thus, overall it can be said that women development is the part of community development process. Both the women development and the community development are interrelated. 8. Rural Development Programs: Majority of the Indian population lives in villages, or rural areas. Thus, for the overall community development it is required to put efforts for the rural development (PWC, 2013). Under rural development programs, companies have made efforts for the development of rural areas through various activities such as; construction of rural roads, promoting rural education, providing assistance to rural area children for education, construction of high water tanks and rain water harvesting in order to solve the problem of water scarcity, prevention of mosquito related diseases through pest control, LPG connections to reduce lungs related diseases, free treatment for poor rural people, skill development programs for rural entrepreneurs, drinking water supply, conducting free veterinary camps for cattle, promoting rural sports or cultural events, marketing assistance to the rural entrepreneurs (Zile, 2013). 9. Hygiene and Sanitation Programs: Hygiene and sanitation is a part of community health program. In order to improve the health of the community members and inculcating the habits of cleanliness and hygiene companies have done various efforts such as; construction of toilets, setting garbage boxes in the society, recycling waste water, setting bio gas plants, recycling of garbage, construction of covered toilets, distribution of sanitary napkins to women (Sundar, 2000). Companies also conduct the campaigns for promoting the hygiene and sanitation among community 10. Digital Literacy Programs: In modern world, digitalization has covered all the aspects of life. Digital literacy program is one of the initiatives taken by companies for the development of community (Manohar, 2013). Under Digital literacy program companies provide free computer education to students, training to enhance their technical skills, donating computers to the schools, and awareness about government functionaries which are digitalized such as; online banking services, online postal services, and online reservations system (Shah, 2013). Creating awareness about social security id such as; Aadhar card, public provident funds, investing in government securities etc. Other than these there are various other programs which are conducted by the companies for the community development such as; establishing labs for promoting research and development activities, awareness campaigns about human rights, campaigns against social evils etc (Narwal, 2012, Vohra, 2002). Thus, overall it can be said that there are various areas or aspects of community which are covered by the companies under community development program and the most important among these programs is educational development, rural development, women development and the environmental awareness. Most of the companies in India, are working in these areas.
4.5 Community Development at Global Level
This section discusses the community development programs at global level. It includes the community development programs of various countries such as; United states, United Kingdom, Canada, Europe, Norway, Denmark, Scotland, British Columbia and Iceland. 1. Establishment of regional agencies: In foreign countries community development is done through regional development agencies (Reinhardt et al., 2008). These agencies are experts in planning and execution of developmental activities for the community. Regional development agencies address specific situations and provide solution to all the problems of society in various ways such as; support to the economic development of the society, conducting capacity building programs and 2. Business Development Programs: Under this programs, community members are provided the assistance related to marketing, expansion of business of micro and small scale industries, giving subsidized and unsecured loans to the self-help groups, and training programs for the development of skills, and knowledge. Small business ideas are supported by startup loans or seed capital (Ronald, 2007). Community Business Development Corporations help in providing financial assistance to both the technical and non-technical projects. 3. Infrastructure Development: Under these programs, funds are provided for the development of infrastructure facilities in the country (ITO, 2011). Infrastructure development aims to improve the standard of living, quality of life, and providing job opportunities to the people for their livelihood (Van, 2009). High level of infrastructure development helps in sustainability of the community members. 4. Research Oriented Programs: Under this programs, financial assistance is provided to set up labs, or other research agencies which can promote the innovations in the country or to promote the research and development activities (Visser, 2008). Financial assistance is provided for the commercialization of the products, services or processes which are based on the latest technology. It also includes the financial assistance to the universities or the research institutes (Matten& Moon, 2008). 5. Three Stages approach for the community development: In foreign countries three stage approach is being used for the purpose of community development. These three stages are mainly innovations or research, entrepreneurship and the sustainability of the community (WBCSD, 2000). Financial assistance is being provided to the community people to improve their standard of living. Community development is achieved by providing the employment opportunities, educational development and the expertise in the business. Research based community development help in attracting investment from the investors through innovative avenues (Margolis and Walsh, 2003). 6. Community Mobilization Programs: This program aims to promote community development through community mobilization which means to mobilize the tourism development. In Europe the main programs for community development are rural development programs to foster the growth of rural areas, agriculture, and the farming. Other community development programs include the training to increase the competitiveness among community members, protecting the natural environment and increasing the quality of the life (Matthew and Moon, 2012). United Kingdom focuses on empowering communities for the overall development of the communities and also focuses on providing best services to community members (Saarinen and Lenao, 2014).
CONCLUSION:
It can be concluded from the chapter that community development is a value based approach built on the foundation of equality, social justice and inclusion for creating a balance in power and brings a change in the community and society at large. Community development program helps in economic development of the communities, raising standard of living, improving quality of life and developing healthy relationships between community members and the business organizations. Community development has found to be positively and significantly related to the financial performance, firm value, reputation, corporate legitimacy, corporate credibility, and customer responses. Community development programs conducted by various organizations include mainly; educational development programs, environmental awareness programs, consumer awareness programs, rural development programs, women & child development programs, digital literacy programs, hygiene and sanitation programs etc.
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