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The prosperity of a country is determined by the quality and the welfare of its various communities. Only when there are balanced growth and sustainability in the community can a nation truly achieve greatness. While most of us are primarily focused on the welfare of our families, we need to be equally responsible for the development of our communities. The Government of India has launched several programmes over the years to address the needs of various communities across the country. But the problem is gigantic and hence it alone cannot solve the problem. This is where CSR can be an effective tool for creating sustainable development with a strong focus on social performance. In fact, last year in 2020, as coronavirus continued to spread across India, many private and public sector companies stepped up CSR efforts to help struggling communities fight the pandemic. According to research by CRISIL, 84 out of 130 companies analysed had contributed Rs 7,537 crore, just between March and May 2020. However, there are many areas of intervention on which CSR spends could focus for a holistic approach.   Improving the standard of living of villagers: As India is going through the process of globalisation and modernization, many villages are left behind, while the urban centers get the major chunk of attention. Improving the standards and self-reliance of the villagers at the same time preserving their lifestyle, can add great value to the larger development of the country. Organisations can focus their CSR strategies by partnering with successful NGOs and community based Organisations (CBOs) and work towards upliftment of rural societies. Wipro is well-known for its large contribution to society through its Wipro Foundation. Many of their projects are long-term multi-year programmes that are focused on build the capacity of the communities in terms of higher awareness and developing a higher degree of self-reliance to handle their own requirements.   Empowering them with employability: Youths in villages and slums face extreme hardships in terms of opportunities for being useful to society, as they do not have the necessary skills to be employed or be entrepreneurial. Focusing on setting up long-term projects, where students after school or college can train themselves to be productive members of society, can uplift the morale of the economically weaker communities. Mahindra & Mahindra in partnership with Naandi Foundation initiated Mahindra Pride School. The idea was to recruit semi-educated youth from the villages and urban slums, train them and get them corporate jobs.   Educate to recycle:   When resources are hard to come by, recycling is the best method to adapt. Especially in rural, marginalized and unprivileged communities, adapting to renewable energy, waste management and resource conservation initiatives can make big difference. Tata Power runs a programme called the Adhikaar which aims to inform, enable and empower marginalised communities. In collaboration with Rockefeller Foundation, they set up the Tata Power Renewable Microgrid Limited (TPRMG) to enable access to reliable and renewable electricity for 25 million Indians. In another example, the Hindustan Unilever Foundation (HUF) manages the ‘Water for Public Good’ programme. The objective of this programme is to empower local communities to govern water resources and enhance farm-based livelihoods through the adoption of judicious water management practices. Since 2010, HUF has supported grassroots interventions in 53 districts with 23 NGO partners across over 4,300 villages in India.   Innovative farming methods Although India is an agriculture-based country many farmers in villages still use outdated and ineffective methods that bring them very low yield. Educating them with innovative methods and providing them tools will empower them and enrich the whole community. Over the past years, Coca-Cola India has built significant inroads into the farming community with its focus on good agricultural practices that provide forward linkages to the Indian farmers. Fruit Circular Economy (FCE) is a step towards addressing the issues of low farm productivity, poor technology adoption and fruit wastage by harnessing the higher productivity potential of fruits – both at the farm as well as processing level. To truly put meaning behind any CSR project, the objective should be set on long-term development of aiming to empower weaker communities. Strategies inclusive of both aspects can deliver a much prosperous and equitable sustainable society that can help India to grow better and sustainable.

India is home to some of the richest people on the earth, and ironically, it is also home to the poorest of the poor as well. According to the Brookings report, about a decade ago, India had approximately 73 million people who were living in extreme poverty. Extreme poverty equates to a severe lack of access to even basic livelihood like proper shelter, good food, clean water, sanitation, healthcare, education, etc. However, the Indian government over the years has taken great strides in pulling out literally millions of Indians out of poverty. From 54.7% in 2005, they helped reduce it to 17% in 2020. Yet there is still a long way to go, and they cannot do this by themselves. Indian organisations have definitely pitched in and have been addressing various livelihood issues relentlessly. According to an analysis published by CRISIL Foundation, the main focus for many companies in the past year was on improving education, healthcare and livelihoods. In fact, these accounted for 75% of the total spend on CSR. In the financial year 2019-20, in terms of both, number of companies spending (1,030) and proportion of total spend went up to 36.16% from 35.03% of the previous year. Here are some of the issues that require more support. Restoring livelihoods In an increasingly crowded world, some kind of disaster is always around the corner. Earthquakes, cyclones, floods, forest fires, pandemic, you name it, we’ve seen it all in barely last 5 years. Any kind of disaster always strikes the poor in the worst possible way, destroying their meagre livelihood. That’s why having a committed project that aims at restoring some dignity back into their lives is important. Aspire Systems India has partnered with World Vision India to support one of their landmark project, ‘Restoration of livelihood’ and focus on COVID-19 affected households in few small towns in Tamil Nadu. The programme aims to help 100 beneficiaries with livelihood options based on their needs, such as the supply of agriculture inputs, livestock, setting up of small shops, etc. The restoration efforts will help the beneficiaries in enhancing cash flow in the community to meet the daily consumption expenses and improve food and nutrition security among affected and reverse migration households Empowering women with equal opportunities For long women have been suppressed and held back citing various patriarchal reasons. It is time we create an inclusive society and change our attitude towards women as a weaker sex and provide them equal opportunities. Empowering women will transform individual lives, families ,societies and nations in a broader context. Hindustan Unilever’s ‘Project Shakti’ is an initiative that aims to financially empower and provide livelihood opportunities to women in rural India. The Shakti Entrepreneurs are given training for familiarisation with many of the company’s products and basic tenets of distribution management. This programme has helped Shakti Entrepreneurs gain selling skills, become self-confident, improve their self-esteem and learn communication skills. Creating self-reliance through skill enhancement Being a country with more than one billion population and having a significant under-skilled youth is just a recipe for disaster. Setting up long-term skill enhancement programmes will not only empower the poor to a better livelihood but also uplift the society greatly. National Aluminium Company Limited, (NALCO) has set up various skill enhancement centres in different parts of the country it operates, to improve the employability of women and youth. Some of the training are beautician course, food and nutrition, tailoring, motor winding, pump maintenance, farming etc. Welfare of the farmer is welfare of the nation If agriculture goes wrong in a nation, everything will eventually fall. That’s why farmers are one of the most valuable members of the society. In India, agriculture is the source of employment for more than 50% of the population, accounting for nearly 16% of its GDP. However, in the last few decades, India’s focus on investment has shifted from farming to IT and other sectors. Thus, the Indian farmers have been lagging behind in many areas are not educated and thus are not adapted to technological development. Mahindra & Mahindra has launched the Krishi Mitra project, in partnership with several NGOs, where it helps small and marginal farmers by educating them in updated techniques in farming. The project also provides various services leading to improvement in agricultural productivity, for the advantage of the farmers. Besides initiating several individual projects aimed at improving livelihoods, many organisations from various sectors have come together to create a first-ever multiagency partnership called India Livelihoods Collective (ILC). Its sole objective is to scale-up livelihoods interventions in farm, non-farm and urban jobs ecosystems. It will also facilitate innovative solutions in rural livelihood opportunities in partnership with technology incubators and social businesses.   Image Source & References: https://frontline.thehindu.com/ https://timesofindia.indiatimes.com/ The start of a new poverty narrative (brookings.edu) Annual Report (brookings.edu) Sustainability in CSR Projects for Village Development – India CSR Network Home | India Livelihoods Collective (ilc.org.in) Infographic: Education, livelihood draw most CSR spend | India News – Times of India (indiatimes.com) Opportunities for women | Sustainable Living | Unilever global company website National Farmers Day 2020: Top CSR Projects for Farmers’ Welfare in India – The CSR JournalIndia Development Review (idronline.org)

How do you solve a problem like livelihoods?

Sustainable livelihoods: Where donors need to focus

Project Shakti- CSR Projects India (csrbox.org) CSR Initiatives Benefitting Farmers in India – The CSR Journal

The world is currently facing an environmental crisis on a mammoth scale. The so-called ‘modern development’ has exerted so much pressure on our environment and its natural resources, that we are now facing a mass global degradation like never before. There is no doubt that India is suffering the worst of it, with its best cities ranking in the bottom-most of the environmental index. Hence, for any company, CSR initiatives that focus on environmental protection should be a top priority. Several organizations are starting to realize this fact and are slowly adapting their strategies. Since the damage to the environment has been huge, the area of focus for an organization also is diverse. Where companies can focus their CSR activities? 1. Clean air to breathe India’s air quality is one of the worst in the world. In fact, more than half of the world’s 20 most polluted cities are in India. Air is after all a fundamental need for survival, and hence all businesses have a responsibility to keep the quality of air suitable for life. To tackle this, Cummins India initiated the ‘Creating Oxygen Hubs’ program. Under this program, they decided to fight against this pollution by partnering with various NGOs, communities and civic authorities in the city of Pune, to create oxygen hubs by creating forests. So far, they have planted more than 35000 trees across the city. Image Source 2. Forests cover must increase India’s forests are one of its key environmental factors that makes it such an agriculturally rich country. But this is erasing rapidly with ever-increasing encroachment and depletion of forests. What was once vast green lands, stand today as wastelands. There is a need to bring them back under vegetative cover. ITC Limited has been working towards this area with its ‘Social Forestry’ program. Under this initiative, they have greened over 33,982 acres. Together with this initiative, Farm Forestry program and Agro-Forestry initiative, the company has not only been increasing the forest cover and tackling climate change but also enhancing farm level employment and generating incomes among the tribal community. 3. Save our rivers In India, rivers were once considered goddesses. However, this is a fading reality. Currently, India is facing one of the worst water crises in history. Many of its major cities are running dangerously dry and coming close to Day Zero. That’s why companies need to focus on restoring the water quality of our rivers and other water bodies. Companies like Infosys has been actively involved in improving the local water bodies of Karnataka with their ‘Water Bodies Rejuvenation’ program, committing Rs. 15.32 crores every year. Image Source 4. Clean energy for a greener planet ‘Global warming’ – what was once just an idea has become a living reality today with many parts of the world reaching high temperatures like never before. Due to this, clean energy is getting a lot of attention from industrialists and governments across the globe. Investing in alternative energy like solar, hydroelectric, biomass and wind power, is something corporate houses can explore for their CSR activity. India has a target of installing 100 GW of solar capacity by 2022 and is still 72 GW short of it. To achieve this ambitious goal, India needs an investment of almost $65 billion. Some top corporates in India have been making substantial commitments to include renewable energy in their CSR strategy. For example, Tata Steel has installed a 3 MW solar project at Noamudi in Jharkhand. Hindustan Aeronautics Limited has provided solar streetlights and solar water heaters in select villages of south India. Sasken Technologies Limited has powered up the entire village of Belagavadi in rural Karnataka with inverter-less solar DC technology covering about 250 houses. Image Source 5. Keep the soil alive One of the major threat India is facing is the erosion of our soil. India has a rich history of agriculture dating back to pre-historic times. But due to many negligent and ignorant practices, the soil is being polluted by solid and liquid waste from the industries and large-scale farm business. Soil determines the quality of the food we consume, and food security is a precondition for any kind of sustainable development. That is why sufficient CSR spending for the protection of top soil in India is the need of the hour. It is the only way to assure food security for a healthy population and the future of India.   Conclusion  These are just some of the issues that need immediate attention. However, there is a whole world of issues to tackle when it comes to environmental activities. Many experts predict that if the current trends continue many parts of the world will become uninhabitable in merely 10 to 20 years. Therefore, protecting and saving the environment shouldn’t be just a mere CSR strategy but rather a core feature of any organization. That is why it is necessary for organizations to partner with governments and other NGOs to bring about a sustainable change. And CSR is an essential way to address the numerous that India faces.

The healthcare sector in India is one of the largest and fastest growing industries in India. In 2017, the industry stood at US$ 61.79 billion, and by 2023, it is expected to double by US$ 132.84 billion. Yet, the Indian healthcare sector is in an ailing condition, as a majority of the investments do not reach the population that is in dire need. The problem in India is, private hospitals provide excellent care but are beyond the reach of most people. And public hospitals are affordable but are overcrowded and lacks responsiveness. While the government seems to be doing a lot by allocating a larger budget yearly, it is still far cry from what the country actually needs. In fact, India spends less than 2% of its GDP on healthcare, 1.4% to be exact, making it one of the lowest investors in the sector globally. This is where investments from private sectors as Corporate Social Responsibility (CSR) in healthcare can make a big difference to society at large. What’s the current trend in CSR for healthcare in India? While healthcare does receive a significant amount of funds from the corporations, much of it is focused on health camps and building hospitals or upkeeping its facilities. All these solutions are merely temporary patches. The country needs solutions that will eradicate some of the fundamental problems. 1. Imbalance in infrastructure and population ration Given the growing population of the country, the current infrastructure is greatly imbalanced. To the point that the doctor-patient ratio in India is 1:1700. This is dangerously low. Major investments in India primarily focused on urban centres while in rural areas are left with a bare minimum. Under its ‘Comprehensive Healthcare Initiatives’, the NHPC Limited has been providing medical facilities, qualified doctors and medical attendants, in many rural areas of Assam. They also actively partner with government agencies in bringing awareness regarding many diseases. 2. Rural areas need more doctors Besides infrastructure, the country is short of doctors, particularly in rural areas. While many companies are working in improving in this area, there still a huge gap that needs to be filled. People in rural areas need access to quality healthcare and the government can provide incentives to doctors to spend time in rural/remote areas and take healthcare where it is desperately needed. Hindustan Petroleum Corporation Limited runs ‘Project Dhanwantari’ across the country. Through this project, they provide basic medical needs for people in remote rural areas by door-to-door with Mobile Medical Vans (MMVs). 3. Contribution to medical insurance Quality healthcare for many is unaffordable in India. Rather than offering assistance with one-time or temporary treatments, companies could rather offer health insurance in a brand agnostic way, or tie up with pharma companies and provide cheaper medicines. 4. Focus more on mental illness Support and awareness for mental illness are almost unheard of in rural areas. While the government offers very little support, many organizations like Infosys, TCS, and IDFC are taking up this cause slowly and even those are focused on urban areas only. There is a lot that organizations can do to make quality healthcare available to all. There is a lot of money and a lot of intent too. All we need is proper channelling. 5. Reaching the unreachable India is a country with more than 60% of the population living in rural areas and a low level of health facilities. Many villagers are forced to travel hundreds of kilometres to access basic medical treatments and follow up check-ups. In this case, telemedicine can be a great way to help these communities get the best treatment or diagnosis possible. Parimal Enterprise, a pharma company, has taken up telemedicine as their corporate social responsibility to help the poor and rural households in remote areas. With their initiative like Dox-in-Box, Piramal’s telemedicine projects help people in remote areas access trained doctors. They have set up over 44 telehealth centres across the country, many in partnership with state governments. And help provide relevant information, screenings and follow-ups to patients. 6. Quality healthcare to remote areas Rural healthcare is one of the biggest challenges the Health Ministry of India is facing. Though the government implementing a lot of policies and programs in trying to reach out to remote places, the effectiveness of these programs is questionable. Wockhardt Foundation’s MOBILE1000 initiative is one program that has been spearheading in this area.  Their aim is to provide free primary healthcare to poor Indians in rural India. With a fully equipped Mobile Health Van, an MBBS doctor and medicines providing ADCR (Awareness, Diagnosis, Cure, and Referral), they have helped over 171.47 lakh patients in different villages across the country. 7. Make India more healthy India is known for having one of the largest populations of undernourished children in the world. So much so that even basic human rights are denied to millions, leading to stunted growth. Corporate houses can channelise their CSR fund towards building a healthy nation. Dabur India’s ‘Nutrition Program’ is aimed at eradicating hunger, poverty and malnutrition through provision of food, nutrition supplement, clothes etc. Through this program, they have partnered with various government agencies and NGOs to supplement the nutrition needs of the poor and needy. Health is a responsibility for one and all. For a country to be prosperous it requires its citizen to be in a healthy condition and think beyond basic survival. While the government is working on many projects, and a helpful hand from the corporate houses can make a huge difference.

Since the time India got its independence, the government of India has taken great strides in improving the quality of education in the past 40 to 50 years. But, despite decades of reforms and government initiatives, a big chunk of the population remains uneducated. For reasons like lack of quality education, proper facilities, teacher quality, irrelevant curriculum, and pedagogy. This is where India Inc can step in and help close the gap. In fact, after implementation of the Section 135 of the Companies Act 2013, many organizations have indeed played their part. Corporate leaders have come to realize that the resources spent on education are bound to impact social equity. As a result, education has taken the lion’s share of their funding in their corporate social responsibility (CSR). According to an analysis conducted by CSRBOX, over 88% companies in India invested CSR fund in one or more education projects. In fact, for the year 2019, 613 companies contributed to CSR through 8501 projects and a consolidated spending of INR 12143.77 Cr. Although official reports for the year 2020 is yet to come out, the CSR spending will surely top 2019. For instance, Infosys alone has spent nearly Rs 360 Crore as part of its Corporate Social Responsibility programs in the years 2019-20. While the numbers may seem big, there are still many persisting challenges and issues the country is facing. Persisting challenges in education Given the size of India’s population, there are simply too many hurdles for anyone to solve. That’s why the corporates need to understand India’s education landscape, so they can target their spending accordingly. While many organizations are focusing on larger issues like basic infrastructure, free education and health & nutrition, there are still other issues that need to be addressed.  1. Improving quality and adequacy of teachers Oftentimes, even if there is sufficient infrastructure, there is a shortage of qualified teachers who are ready to take up the job. Due to this, quality education still eludes most school-children. Few organizations have taken up this responsibility, yet this is one space where more can focus their CSR activity. Companies like Tata Teleservices has done its best in providing education to students from the underprivileged community in government schools. Ther teacher training programs have enhanced the quality of education in many government schools across the country. 2. Assessment of student achievement Many CSR projects offer initial stage support, however, what is required is a long-term assessment of students’ achievements. A system of understanding their needs and offering them support to improve themselves is relatively low. Tech Mahindra is one company that has an extensive portfolio of CSR in just education. Their initiative like ARISE (All Round Improvement in School Education) are long-term school improvement programmes, in partnership with local governments and partner organisations. They have also adopted more than sixty schools across India and is working with 18 partners to turn them around completely into model schools of excellence.   3. Lack of maintenance The CSR funds are usually spent on improving the basic infrastructure and amenities. However, there is a lack of continued maintenance, and due to that any development towards infrastructure only seems like a cosmetic change at best.  4. Lack of consensus on implementation Lack of consensus is one of the main issues that local agencies face regarding CSR projects. This often results in duplication of activities by one or more corporates, which takes on a competitive spirit rather than a collaborative approach.   These are just a few areas of interventions that require immediate attention that corporates can focus their CSR on education. However, India Inc. has not forgotten that access to quality education is fundamental to the growth of India, and they are opening many windows of possibilities, where there were none. But with the right guidance and partnerships with government and other local agencies, they being to close the gap efficiently.  

Corporate Social Responsibility (not necessarily the mandatory 2% spend under the Companies Act) plays a very vital role now more than ever. With the rampant spread of the Coronavirus, much like the spread that knows no borders or divisions, businesses   are demanded to show loyalty to every stakeholder . Identifying with CSR-equipped business  – The ‘Was’ and ‘Is’ Was- What earlier proved to be good for business  was to meet the altruistic needs of goals that were worthy, to a society that was mostly working towards combining all the business and social goals. Is- While 2020 started off good, COVID-19 happened. So what IS, is a very different scenario that has to face long term and short term challenges created by this epidemic that leaves no business unaffected. Which is where learning the benefits of CSR plays a vital role now more than ever.

CSR starts at home

While we focus on catering to our consumers, it is easy to let our staff slip our minds. But, CSR during COVID-19 demands a newer approach where employees benefit too. Start off by ensuring your employees’ safety and security, allowing them flexibility and lesser job-related stress. Extending your helping hand to ensure their mental safety as well is crucial too.   To keep your employees comfortable and ready-for-work in an environment that is new to both entities is by listening to them, just as you’d listen to your customers.   Support small business and give them a leg up. This will be a bucket of its own under CSR as across the nation, there are so many small businesses that have already been shut down and some of which have been capsized due to tumultuous waters. Some businesses are somehow managing to hold on and it takes good CSR to lift them up with the necessary funds that will keep them afloat. Companies like Intuit have joined hands with Indian Fundraising organisations like Milaap to help uplift small businesses who suffer the worst hit. While milaap has constantly been working to help individual communities and businesses in the past as well, the COVID-19 situation has given the organisation fuel to help fight the pandemic. On the other hand, The Embassy Group of Companies brought together a consortium of companies to help support students facing SSLC exams. Many companies have contributed what they can in similar ways to uplift our society, understanding the need of the hour and realising their social responsibility.     So what are the key takeaways?

1. Support mental wellness and consider that the highest priority to maintain good relations with your employees.
2. Provide financial security and try not to lose out on valuable additions to the organisations.
3. Give small business a leg up and keep them afloat.

CSR and Brand sensitivity during tough times

While it is important to self-promote and stay in the minds of people, it is also important to keep sensitivity in mind. People wouldn’t want to see you market your brand/business during these times whatever it be. So how do you find the balance?   Humanizing brands during a period of major dislocation   While It is important to let the world know what you are up against and how you are facing it, it is also important for us as people and as brands to address others with humanity, empathy and financial assistance to whoever needs it the most.   Stick to communicating about CSR via a single platform   Brands that blow their own horns are not the reassurance people are looking for. While the world falls apart, it doesn’t stand well to brand without humanity. Which is why branding about your socially responsible activities should be kept to the minimum and done with empathy, reminding people what we stand for during the most devastating change in the ways of the world. It is important to comfort them, yet remind them of the implications and the sustainable solutions.

What is the biggest takeaway from COVID-19?

REASSURANCE. The public feels like they are in safe hands when there is any form of reassurance. When someone reads a simple article about how a man fed the strays or fended for the downtrodden during a plight will uplift their spirit. But what comes with reassurance from a buisness  of any size, is BRAND LOYALTY. And thus CSR can work on multiple levels for business of different sizes now more than ever.   Continue being patient, continue being a socially responsible business. And that means more than fulfilling the statutory obligations.

 

                             

Innovative finance for the development sector

International development is primarily based on two major shifts in the world today. The first being the increase in collaboration between the public and the private sector, and a need to focus on developmental programs to achieve the United Nations – Sustainable Development Goals (SDG).   The diverse frameworks for innovative finance are designed to aid the traditional international flow of resources like funds, foreign direct investments and remittances, to name a few. The macro layer of goals is to de-risk human lives & environment by raising living standards, protect the environment and eliminate poverty.   Innovative finance is about defining standards and establishing different mechanisms to increase participation in the sector. There are a variety of financial instruments and assets like securities, derivatives, results-based financing, voluntary or compulsory contributions. The idea is to create ways in which different sectors can contribute with an increased purpose.   A successful innovative financing system can help mitigate risks related to market failures, create political momentum to generate more revenue and resources for the development sector. The allocation of risks goes to institutions that are better equipped to bear those. Apart from mobilization of resources, innovative fundraising approaches are also appearing to align with the current goals of innovative finance.   Following are the core drivers of growth in the sector:

                                 

 

1. Increase in use of established financial instruments

Instruments and existing risk frameworks like green bonds will help attract new participants like pension funds and institutional investors. The proceeds of these towards development goals will create a new approach in understanding more effective and impactful use of these funds.    

2. Expansion into new markets through replicity

Replicable approaches to expand into new markets will lead to improving the scale of innovative finance. For instance, the International development community has been experimenting with performance-based contracts. While these kinds of approaches at present don’t attract institutional investors, they are however potential opportunities for them to adopt to as these start to show success.    

3. Creation of new financing products

Introducing new financing products is critical for evolving the methods and the process. While it won’t create momentum for a large term in the beginning, but opportunities for the early adopters in the process, validating the products that are successful. These can be then taken forward to continue and mature into imperative assets in the future.   As we see the world gearing up towards the United Nations Sustainable Development Goals (SDGs), these drivers of growth will be even more useful. While at one end, there is political uprising across the globe towards nationalistic values, on the other hand, there is an equally critical voice against it. This sure has created a disturbance in the equilibrium in the world, where the idea of sustainability comes in to establish balance, with an equal passion.   In the coming years, business and governments are forcefully working towards harnessing all possible sources of financing to address economic, social, and environmental challenges. While this requires immense financial resources, it also needs smart approaches to allow collaborations with all kinds of stakeholders involved. This would help in creating solutions that solve problems for everyone in the chain.    

 

Sustainable Development Goals – For the People and the Planet

The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Endorsed by all 193 United Nations Member States in 2015, the 2030 Agenda and its Sustainable Development Goals focus global efforts and attention on 17 pressing issues. These 17 Goals build on the successes of the Millennium Development Goals including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. Reaching these goals is essential, and it needs distributed and equitable participation from various stakeholders that have an impact on the world and know the functions, be it from notable industries, non-profit sector, government bodies or mere individuals. However on the other hand for- profit industries, create a significant and much more concrete impact on economy, environment and culture, making them the core participants to perform responsibilities aligned with the SDGs.  

Corporate Social Responsibility (CSR)

CSR was introduced in The Companies Act mandating certain class of companies to spend 2% of the profits on defined social sector projects. This was intended to utilize the private sector expertise in designing, managing & measuring impacts which would impact society. The role that was primarily performed by the State & Non Profit sector was sought to be professionalized by the involvement of the corporate sector participation. This has brought into focus Responsible profits, Sustainable business practices and good corporate citizenship. This has also enabled changes in social enterprises, venture philanthropy and the way funding to the Non- profit is being channelized. Fact: Environment, Sustainability & Governance are currently the buzzwords in Corporate India.

SDGs and the Private Sector

United Nations has been instrumental in delegating the appropriate roles that non-profits, academic institutions and the private sectors need to play in realising the goals of SDG. These three entities were essentially taken in consideration when SDGs were being designed and adopted. The 2030 agenda has given the private sector a significant role to play. In many countries, the engagement of the private sector in the SDG implementation is part of official policies. Governments and the UN are striving for increased commitment of the private sector to finance the implementation of SDGs. Governments are also influencing corporates to bring about systemic changes in their business strategies to incorporate social and environmental awareness.    

Why Linking CSR work to SDGs is essential?

Let’s get to the point. The SDGs are imperative to bringing about substantial changes in our global scenarios, impacting individuals. Organisations, institutions and individuals at different levels are responsible for the contribution they make to meet these goals. India has been one of the few countries to mandate CSR to select corporates. The threshold limit of Rs. 50 million in profits has ensured that not only the large corporates include responsibility initiatives, but also the growing number of medium & small corporates. An analysis of  the CSR interventions areas reveals close linkages with SDGs. In fact, a single area chosen for CSR program could impact outcomes in multiple SDG goals. Education could impact outcomes in SDGs relating to Education, Gender Equality, Decent Work & Economic Growth, Reduced inequality etc. A study of 218 companies by IIM Udaipur and Futurescape indicates that the companies are gradually incorporating SDGs into their responsible business actions. Around 35% companies at the aggregate level reported that they have mapped their goals with SDGs but only 30% shared their mapping. Of the 218 companies, 60 companies have mapped their responsible business actions to SDGs. Nine of the top 10 companies mapped their goals with SDGs. The leading sectors are IT, Telecom and Energy where majority companies have mapped. In order to aggregate the outcomes and the impact it becomes imperative that all stakeholders collate the results and efforts in order to present the consolidated results. The government has a system in place to capture the data. However as SDG’s and CSR are also being impacted by efforts of the private sector, it is necessary to put in a framework which will facilitate credibility in any such linking and reporting. We at Vardaan Advisors Pvt Ltd ( www.vardaan.co) seek to assist in linking the CSR activities of an organisation to these SDGs which in turn will provide the strategic inputs to plan, map & undertake focused interventions resulting in better impact and  ensure a better social return on investment, at the same time enabling the nation to meet the Sustainable Development Goals.

There was a time when it was believed that the sole purpose of a business is to make money. That belief ensured that all actions that businesses take are constrained by the focus on short term profitability and delivering shareholder returns. Businesses that had additional purpose outside profitability were seen with a degree of scepticism and were commonly grouped with NGOs and social enterprises. However, that is changing now as profit with purpose is set to become the norm. More than ever before, businesses are under pressure to have a meaningful purpose for the business and communicate it with their customers and the society in general. So, what is driving this change? According to 2018 Edelman Trust Barometer, 64 percent of people globally expect CEOs to lead on social change rather than waiting for government directions. Overall trust in business at 52% is higher than the trust in government at 43 percent. Even the younger generation which is set to redefine the consumption story are posing questions to CEOs about the purpose of their business. According to Deloitte’s Global Millennial Survey 2019, only 55 percent of millennials said that business has a positive impact on society, down from 61 percent in 2018. Why purpose matters and it’s connection with profitability Consumers are becoming more selective today about the companies that they buy products or services from. They are no longer just buying a product or service, but are buying into a company’s purpose. Accenture Strategy’s 2018 global survey of nearly 30,000 consumers found that 62 percent of customers want companies to take stand on current and broadly relevant issues like sustainability, transparency or fair employment practices. CEOs of large and small companies have started to pay attention now. We have seen the rise of the B Corporation movement for businesses that balance purpose and profit. Certified B Corporations are legally required to consider the impact of their decisions on their workers, customers, suppliers, community and the environment. While it might seem aspirational to be a socially conscious business, one question that CEOs often have is whether it makes good business sense. According to the popular book “Built to Last”, a group of visionary companies between 1926 and 1990 – those guided by a purpose beyond money – returned six times more to shareholders than profit-driven competitors. There are several reasons why this is true. Customers are likely to stick with companies and become ambassadors for companies that live by a purpose and communicate it clearly. Companies that are centred around a purpose are also employee friendly which makes it easier for them to attract and retain the best talent. Such companies also tend to give their employees a greater financial stake in the organization which leads to better financial outcomes. Purpose-driven companies are also conscious of their environmental footprint and are the preferred choice of consumers who prefer environmentally friendly products. Lastly, in a dynamic market as a company grows, they enter new markets, acquire companies, and divests businesses. Purpose and values which are at the core of the company’s identity can serve as a glue for the sub-businesses and guide the organization while exploring new avenues. What purpose should be and should not be Most companies in spite of having good intentions get their purpose wrong. They wrongly approach it as a one-time CSR program or philanthropy event supported by a PR campaign with the intention of letting their customers know that they are doing their bit for the society. Like it or not, modern corporations command a lot of resources and the actions they take impact the lives of their customers, employees and their partners on whom they depend. For purpose-driven businesses, society and the people who are associated with the business are not an afterthought but are fundamental to their purpose. While defining a purpose for the corporation, good corporate leaders seek to balance the broader societal interest with financial logic. The actions that they undertake are grounded in societal interests, irrespective of whether they are directly linked to the core functions of the business.  So, instead of launching a pompous CSR program or throw in a few environmentally friendly policies, ask yourself some hard questions. What problem does my organization seeks to solve? How do we make people’s lives better? How can I get my customers and other stakeholders to be part of the purpose? How is the sustainability of my Company related or contributing to the sustainability of the mankind itself? Once you have a purpose that is shared by your customers and employees, you can take the relationship from merely transactional to a life-long one. It’s time for CEOs to take a lead on change rather than wait for government intervention – after all purpose means good business. Hope this article provides an understand why a purpose-driven business is a necessity in today’s world. At Vardaan, we offer Business Responsibility Consultancy services through which you can seek guidance for crafting your organization’s purpose and aligning your organization to this purpose.

Corporate Social Responsibility or CSR is a way to ensure that companies conduct their business in an ethical way. It shows a company’s commitment towards the community and environment while being accountable to its employee, stakeholders and public. According to a KPMG survey, among the largest 250 companies in the world, 92% produced a CSR report in 2015. India has taken it one step further than any country. With the enactment of the Companies Act in 2013, India became the first country to make CSR mandatory. It mandates a CSR spend on 2% of average net profits for all companies meeting specified financial thresholds. Companies are finding that being socially responsible and treating their stakeholders well makes good business sense and leads to strong financial performance. Consumers and employees are more likely to stick with companies that adopt sustainable practices. So, why has this movement that depended solely on voluntary activity is being mandated through legal rules? The government intervention is primarily because of problems such as companies taking advantage of CSR benefits without actually spending, greenwashing to appear environmentally friendly, and false disclosures. So, how has India fared with its push for mandatory CSR spend? Let’s have a look. State of CSR Spending in India Spending on CSR by India’s largest firms stood at Rs. 7,563.30 crore (around $1 billion) in the financial year that ended in March 2018, according to a survey by KPMG India. This was 47% higher than what it was in 2014 when the company act was enacted and companies now are spending more than the prescribed 2%. In 2018, the average amount spent on CSR stood at Rs. 81 crores, up 9% from 2016. This indicates that although it is legally mandated, large companies are proactively spending on CSR. Companies in the energy and power sector were the top CSR spenders followed by Banking and Financial Services Industry and IT Consulting. Two sectors that have received over 50% of all CSR spend in the last financial year were education and healthcare followed by rural areas and environment-related causes. Positive trends in mandatory CSR spends: It can be observed that the mandatory CSR push has led to many positive outcomes. Firstly, before the legislation many small and a few large companies made little or no investments in social development which has changed now. Additionally, the focus on being socially responsible has pushed companies to relook at their overall vision and policies and how their activities impact the society as a whole. The increase in adherence by large companies can be attributed to their improved ability to surmount the challenge of large-scale interventions and use of implementing agencies such as NGOs. As per CRISIL CSR Yearbook, an analysis of 4,887 companies listed on the Bombay Stock Exchange, 84% of companies with over 10,000 crores in sales and 67% with 500-10,000 crores in sales used implementing agencies.  This has resulted in increased efficiency of  implementing agencies, mainly the NPOs and helping in creating high impact social organistions. Interventions by Corporates through the mandatory CSR spends has also helped in mitigating conflicts amongst the business stakeholders. The human side of dealing with various societal issues and challenges are now being addressed by the business, This can have a huge win-win results on all sides. Shortcomings of mandatory CSR Spending Legislation According to CRISIL CSR Yearbook, only one-third of the companies met the criteria stipulated in the Companies Act. As per CSR requirements, the amount required to be spent by 1,019 listed companies was Rs. 9,669 crores in 2017. While companies had decided to spend Rs. 9,936 crores, the final CSR expenditure by these companies was Rs. 9,034 crores. The reasons cited for the underspend by companies included inability to identify the right projects, right organizations to partner with or right in-house team for implementation. The high CSR spending on education and healthcare means that other socially important areas such as child mortality and eradicating hunger and poverty are ignored. There is also the issue about geography-based equity. While industrialized states with large corporate presence such as Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamilnadu top the list of highest CSR expenditure, the most backward districts of India receive little in terms of CSR spend. Indian laws related to CSR are also quite vague which also means that they are open for interpretation. For example, a number of companies transfer CSR funds to government programmes such as Prime Minister’s Relief Fund. This ends up becoming a one-time cheque signing exercise rather than proactive engagement with the community. Another issue has been non-compliance by firms primarily due to poor understanding of social needs of the society and lack of implementation capacity or expertise. In 2018, the government sanctioned prosecution proceedings against 284 companies for not fulfilling CSR expenditure norms. A key shortcoming noticed is that while CSR funds are being made available to the projects, not much attention is being paid to earmark funds exclusively for the orgnaisation building of the implementing agencies. Taking care of this crucial aspect will go  along way in creating huge impact. In summary, the last few years of mandating CSR has seen active participation, particularly from large corporates. But there are several issues such as lack of clarity on rules, working models and information about collaboration opportunities which if addressed can lead to better participation. If you are a firm that is looking to comply with CSR Spending and need an implementation partner, just give us a shout out.