A blueprint for social responsibility

• The Muthoot Group’s approach to CSR involves active participation from family members, who are deeply involved in overseeing and participating in the CSR initiatives, ensuring they align with the company’s values.
• CSR at Muthoot is implemented through a hands-on approach, where the company manages its own CSR projects, ensuring that every resource is directly utilised for the benefit of the intended communities.
• The group’s CSR efforts are strategically focused on three key areas: education, healthcare, and the environment, addressing critical disparities and ensuring sustainable development in the communities they serve.

For almost 800 years, the Muthoot family have been heavily involved in business and philanthropy in and around Kerala, India. Since its formal establishment in 1887, the Muthoot Group has become a multi-layered conglomerate focussing on financial services, healthcare, agriculture, housing, media, education and more.

Here, 19th-generation family member and current chairman George Muthoot George, talks about what Corporate Social Responsibility (CSR) means to him, how he has made sure that it is embedded in the organisation and how he can make sure that CSR will remain at the heart if the Muthoot Group for the next 19 generations. 

Why do you see CSR as important for Muthoot, I mean, what does it mean to you?

George Muthoot George: India stands out as the only country in the world where Corporate Social Responsibility (CSR) is mandated by law for companies exceeding a certain turnover. This approach has brought significant benefits to Indian society, particularly in uplifting communities. But why is CSR given such importance by the government, and why should it matter to businesses?

I firmly believe that CSR should be an intrinsic part of every business. No company operates in a vacuum; a sustainable business thrives when the communities around it flourish. Supporting these communities is not just a moral obligation but a foundational element of building a resilient and enduring business.

For us, CSR is deeply woven into the fabric of our company’s ethos. It’s not just a corporate policy; it’s a reflection of values passed down through generations. My family has an 800-year history, and I am the 19th generation in line. Throughout this, one of the key values that has been preserved and transmitted is the desire to contribute to society. Our focus has never been solely on wealth creation but also on wealth distribution.

In the post-COVID era, we witness growing disparities in income, with the gap between the rich and the poor widening. This is neither sustainable nor healthy for society. If businesses focus only on accumulating wealth and monitoring stock prices without considering the well-being of the communities around them, they risk fuelling social unrest and perpetuating inequality. This is not a viable path for the future.

Our commitment to CSR goes beyond mere compliance with government mandates. Although the government requires companies to allocate 2% of their top line to CSR, we consistently exceed this requirement. This is not just a matter of fulfilling a legal obligation; it is a core value for us, both as a family and as a company. Our commitment to doing as much as we can for society is a reflection of our deep-rooted belief in the importance of giving back to the communities that support us.

Does CSR come from the top? Is that the best way to make it work?

George Muthoot George: CSR is ingrained in our family’s ethos and it’s clear how deeply committed we all are to these initiatives. Despite the demands on our time across various divisions and fields, CSR remains a central focus for each of us.

What’s crucial to understand is that, even though we have a dedicated team working on CSR projects day in and day out, every family member is actively involved. We are not merely overseeing these efforts from a distance; we are part of the committee, dedicating our time and energy to every project. We pay close attention to every progress report, ensuring that the work aligns with our values and delivers the intended impact.

This commitment is something we want to see reflected throughout the organisation. We want everyone to understand the importance of CSR and the significant role it plays in our collective success. Over the past few months, I’ve been advocating for an increase in the mandated CSR contribution from 2% to 4%. While this suggestion might not be universally welcomed, I firmly believe that we can and should do more.

However, it’s not just about increasing the financial commitment. The true measure of success lies in how effectively we can support and uplift those around us.

We want everyone to understand the importance of CSR and the significant role it plays in our collective success. 

It’s one thing you giving a speech, but it’s another thing to push into every subsidiary. How do you then make sure that it is embedded all the way through an organisation? 

George Muthoot George: Often, companies offload their CSR obligations by simply donating to an NGO and allowing the NGO to handle the rest. We have a dedicated CSR team that operates across the length and breadth of the country, mirroring the extensive reach of our business operations. With over 6,500 offices nationwide, we undertake every CSR project ourselves. While we do collaborate with NGOs, we ensure that we work alongside them. This hands-on approach guarantees that every last rupee, dollar, or pound reaches the intended beneficiaries without any intermediaries.

We have developed what we call Individual Social Responsibility (ISR). This initiative ensures that local office employees are actively engaged in CSR projects happening in their vicinity. They are encouraged to leave the office for a day or half a day to participate in these projects, allowing them to meet the beneficiaries and ensure the project’s success. By involving our employees directly, we make sure that the benefits reach those who need them most.

This approach also fosters a strong sense of connection and pride within the organisation. Through our internal communication channels, we keep everyone informed about the various projects happening across the country. Employees often identify with these initiatives, especially when they are happening nearby, and they appreciate being part of something larger. 

The inequalities that have come in societies in every country after since covid, have been dramatic. How do you make sure that the CSR programmes are appropriate?

George Muthoot George: What I would emphasise is the importance of adopting a strategic approach to CSR. While the needs of different countries, regions, and communities vary, our CSR initiatives are strategically divided into three key areas: education, healthcare, and the environment. We’ve found that nearly 99% of our projects fall within these categories. This focus allows us to address some of the most critical disparities that exist, particularly in developing nations.

When we look at the challenges faced by many countries, we often see gaps in areas like re-skilling. For instance, in developed countries, the rapid advancement of technology is making traditional jobs obsolete. While this might not yet be a pressing issue in India, it is something we anticipate for the future. Therefore, we prioritise empowering communities with the right education and skills, ensuring they are equipped to adapt to a changing world. Education is one of the strongest pillars of our CSR efforts because it lays the foundation for long-term, sustainable development.

We are committed to providing the right level of education and skill development across all the communities we work with.

The second pillar of our CSR strategy is healthcare. If a community lacks access to affordable healthcare, it hampers their ability to work and thrive. This is a universal issue that affects communities worldwide. Physical and mental well-being are essential for any workforce, and without proper healthcare, the foundation of any community is weakened.

Lastly, we have the environment as our third pillar. The environmental challenges we face are global, and addressing them is crucial for the future of all communities. By focusing on these three pillars – education, healthcare, and the environment – we believe we can create a more sustainable and impactful CSR strategy. 

How do you measure the impact that Muthoot makes? At the crudest level, how do you make sure that you’re getting value for money?

George Muthoot George: This is a great question, as it highlights a common issue in CSR efforts: the lack of follow-through. Often, people initiate projects but fail to monitor their long-term impact, assuming that their work is done once the initial task is completed. Our CSR team remains actively involved even after a project has been implemented. We work closely with individuals across our various offices to continuously monitor the assets we’ve provided to communities, ensuring they are being properly utilised.

In addition to this ongoing oversight, we also collaborate with universities to conduct impact studies. These studies are designed to assess the effectiveness of our projects over time, typically six months, a year, or even two years after completion. This helps us understand what changes have occurred within the community as a result of our efforts.

For example, one of our projects that earned a spot in the Guinness Book of World Records involved distributing the largest number of women’s sanitary products in 24 hours. While the record was a nice bonus, it wasn’t our primary goal. The project was part of a broader initiative to educate women on the use of menstrual cups, addressing key issues across all three of our CSR pillars: education, healthcare, and the environment.

The project took months of preparation, but we didn’t stop once the distribution was complete. We’ve continued to study the impact of this initiative, examining how many women have continued to use menstrual cups, how it has benefited their health, and what effect it has had on the environment.

This is just one example, but it reflects our broader commitment to ensuring that our CSR projects have a lasting impact. 

Am I right in saying that sustainability is, by default, embedded in every project that you do?

George Muthoot George: Sustainability is woven into everything we do. The emphasis on sustainability is crucial because when we assess the impact of our projects, we want to ensure that the benefits truly reach the end users in a way that they find meaningful and practical. 

This commitment to sustainability is not just an afterthought; it’s ingrained in our approach. We don’t see our projects as one-off efforts because that would reduce them to mere acts of charity. The word “charity,” in fact, feels inadequate, even problematic, in this context. It suggests a one-sided act of giving, which doesn’t align with our philosophy.

For us, giving back to society is not charity – it’s a responsibility. It’s about acknowledging and reciprocating what society has already given us. We believe that helping others is not an act of charity but a moral obligation. It’s about contributing to the well-being of the community that supports us, ensuring that our efforts are part of a continuous cycle of growth and improvement. 

It’s obviously impossible to talk to you without talking about legacy. To what extent is your CSR a continuation of what started with the company and how you putting the pillars in post so that it is in place in 180 years? 

George Muthoot George: There is no foolproof system for ensuring that our values endure, but what I do know is that we work tirelessly to uphold the principles that have been passed down through generations. These values – honesty, integrity, reliability, and trustworthiness – are the very foundation upon which our company is built. They guide not only our CSR efforts but also every aspect of our organisation. Anyone who joins our team quickly understands that these are the non-negotiable principles we operate by. If someone deviates from these values, they simply won’t fit within our organisation.

What’s more important than anything else is the impact these values have had on society. As a family, we are committed to instilling these principles in the next generation. We’ve made it a point to document them, to clearly lay out what we’ve done and what we hope to continue. This record serves as a legacy, a guide for future generations, urging them to stay true to the path that has sustained our family for more than 800 years.

The future is uncertain, of course, and there’s always a chance that the next generation might choose a different direction. But by leaving this legacy on record, we provide them with a blueprint of what has worked for us, what has kept us strong and unified for centuries. Our hope is that they will recognise the wisdom in these values and carry them forward. If they do, I believe it’s unlikely that they will falter, even over the next 150 years. This is the best we can do – pass on the principles that have guided us and trust that they will continue to serve as the cornerstone of our family and our company’s success.