Schneider Electric in Rural India: Integrating Social Responsibility with BOP Strategy

Schneider Electric has focused primarily on urban customers in the energy management space. The question is the extent to which it should prioritise rural opportunities for meeting the energy needs of the bottom of the pyramid, and whether these initiatives can be transitioned from subsidised social responsibility projects to self-sustaining businesses.

Starting out as a stand-alone social responsibility programme to serve villages with no electricity, Schneider Electric?s BOP efforts are being increasingly integrated with a for-profit rural business venture. This prompts discussion of whether and how social responsibility initiatives should be tied into the core business activities of a multinational company.