Tuesday, January 21, 2014

Sustainable development: If governments don’t, companies should take lead…

By Naren Karunakaran, ET Bureau | 21 Jan,
2014, 02.00AM IST


As governments and politicians dither on issues that could save the planet from going over the brink, companies should take the lead.As politicians fight shy of longterm sustainability approaches and sway to the 'tweet of the day' and the 'poll of the week', the World Business Council for Sustainable Development, a global grouping of prominent CEOs, would like
businesses to step into the void, reorder their business models, and begin addressing some of our most pressing developmental challenges.


Businesses are aptly placed for they can take solutions to scale, with or without governmental support. Moreover, climate change and related challenges can be turned into business opportunities. "All it requires is a different mindset and the urge to foster transformational changes," says Peter Bakker, president and CEO, WBCSD. "Incremental changes cannot be a strategy for sustainability."

Tinkering with corporate philanthropy or CSR, therefore, as is happening in India, will not do. It is compliance-driven, and is not harnessed to the dire needs of the times. The 2% CSR spend mandated recently by the government hasn't impressed the international community; it is, at best, seen as a first step, but inadequate.

What is needed, as sustainability experts have maintained, is the integration of sustainability into everything businesses do; including it into every process or activity they engage in.

Bakker feels it's time for corporations to participate in deeper conversations as governments and politicians across the board are evidently losing the plot on sustainable development. "Why do governments subsidise and incentivise fossil fuels, and not renewable energy?" he asks.

About $40-50 billion is spent on renewable energy innovation while fossil fuel subsidies exceed $500-800 billion annually. Even the most promising of politicians, like US president Barack Obama, is incapable or unable to turn the tide. The WBCSD, a CEO-driven organisation of over 200 progressive companies, with Paul Polman, CEO of Unilever as chair, is therefore attempting to take the climate battle to the boardrooms of companies.

With a view to enthuse greater corporate involvement, the WBCSD lately engaged with over 800 scientists and experts, including those from the pioneering Stockholm Resilience Centre to identify critical areas of intervention and present businesses with an unimpeachable, science-based approach to development.

Marking Boundaries


The fact that Polman is at the high table, crafting the UN sustainable development goals (SDGs) for beyond 2015, the target date for the Millennium Development Goals (MDGs) has helped the corporate world absorb and respond to the burning developmental issues on debate. Under the tutelage of Polman and Bakker, the Council is now advocating Action 2020, with a deep, well-considered developmental focus, unlike the codesand principles-driven corporate initiatives that abound.

The WBCSD plan borrows from the concept of 'planetary boundaries' postulated by the Stockholm Resilience Centre. Planetary boundaries define a science based 'safe operating space' for a world faced with growing developments needs and rising environment risks.

A diverse group of scientists have identified nine boundaries of processes (See chart) that determine the earth's capacity for self-regulation. Breaching these planetary boundaries can be catastrophic for humanity. The world has already crossed three of the thresholds: climate change, biological diversity and nitrogen input to the biosphere. 

Monday, January 20, 2014

Passing sustainability test


Passing sustainability test

A pharma company can use CSR to promote telemedicine — G. R. N. Somashekhar.
 
If industry can come up with innovative ways to deal with social challenges, CSR can become sustainable.

A lot has already been said about the new regulations on corporate social responsibility under the Companies Act 2013. Under the new rules, in addition to the stipulated areas, companies now can consider making their obligatory CSR spends on other legitimate causes as well.

This is a welcome opportunity for profit-making companies to play a pivotal role in social transformation projects, which seem to have languished due to governance, scale and sustainability issues.

The world over, the responsibility of safeguarding the interest of the society has traditionally vested with the government. For many reasons, delivering on these obligations has not been up to the mark. The visibility on social problems is now possibly at levels much higher than ever before, and may well be attributed to the widespread economic development, especially in the erstwhile underdeveloped regions of the world.

Thanks to this growing awareness, several acute societal problems that were hidden are now surfacing. The magnitude of these problems is quite large and demand solutions that are not only sustainable but scalable too.

The inability of governments, and even non governmental organisations (NGOs) to deliver solutions that demand scalability becomes an important discussion point well prophesised by Michael Porter’s maxim of ‘shared value’.

Business as a solution

Business has been plagued with a negative image, courtesy environment and public health issues, and consequently ends up having to persistently balance the adverse forces of profit and the interests of society.

The short-sighted approach of the general business community over the years in exploiting society has misplaced the understanding on objectives of business.

This, however, appears to be changing now in a fast globalising and digitising world. Businesses are becoming more conscious and responsible, and can better appreciate the role of a healthy society in sustaining sales and profitability.

Society is the fundamental pillar around which business is based, and more companies are now coming around to accept that reality. Besides helping the cause of the general community, solving social issues may well be the next big opportunity for business.

When business creates sustainable solutions, it makes profits, generates resources and, hence, is best equipped to deliver highly scalable solutions.

The new CSR regulation opens an interesting window for companies to reflect on their social responsibility in an objective light. There has to be a way for business to work socially and for CSR to work commercially for it to be sustainable.

The biggest challenge that traditional CSR forms of philanthropy grapple with is that it delivers short-term benefits and fails on relevance and sustainability.

If one were to identify some relevant social challenges and innovate ways for the industry to address them in the normal course of business, there is a larger likelihood of CSR becoming sustainable. A benefit to society may actually save costs for the donor company and improve profitability.

Higher benefits could convert into higher margins and larger resources for the business to scale up solutions across a wider societal coverage.

The Schedule VII to the Companies Act 2013 lists out activities that may eligible for CSR contributions. The biggest challenge, however, will be to identify and prioritise the most relevant issues impacting the society at large.

Viable and sustainable

While the Centre may have the responsibility of data collection on social indicators at district levels, States are likely to have a much clearer picture of the ground reality across the 600-plus districts in India.

The State machinery and local NGOs can adequately complement this by identifying relevant problems. Once clear on the type and magnitude of such problems, these may be prioritised and listed out publicly so that companies can develop solutions that not only help address the challenge but may also be commercially viable.

For instance, the village community in remote areas without access to medical care can benefit from the platform of telemedicine for a real-time diagnosis of medical problems to help the patient decide on the urgency of a visit to the doctor in the closest town.

A pharmaceutical company could use its’ CSR corpus to create a telemedicine platform in distant villages without access to primary healthcare.

Not only will it help patients get immediate help, it could help the donor company digitally keep a real-time tab on the regional incidence of disease and cut the primary data collection costs.

Similarly, a bank can tie-up with a mobile operator to combine the CSR corpus and create a platform to promote retail banking and microfinance among unbanked communities.

Besides helping deliver on the social objective of making banking inclusive, it affords a good opportunity for the bank and the telco to develop a prospective retail base of end-customers that can be commercially tapped as loyal customers over the long term.

An interesting example would be the state of Gujarat that has a large number of profit-making companies with substantial share in Corporate India’s CSR obligation. It will help the State government to identify some pressing social challenges and encourage local firms to develop innovative business solutions to address them.

The author is Partner, KPMG in India.

 

Saturday, January 18, 2014

Company Act 2013: CSR and Corporate India

Company Act 2013: CSR and Corporate India

Sunday, Jan 12, 2014, 13:12 IST | Place: Ahmedabad | Agency: DNA

 
Changing nearly six decades old regulations for corporate reporting, the new Companies Act makes it mandatory for certain class of profitable enterprises to spend profits on social welfare activities. Such collective expenses are estimated to be about Rs15,000-20,000 crore a year.

Scheduled to be implemented in 2014-15, the relevant section 135 saw extensive public consultations, debates and the exercise is now nearing completion. Several reports from the houses of Grant Thompson and KPMG have been circulated both defining, outlining and show the path for strategising the CSR both form the regulatory perspective as well as the company implementation perspective.

CSR activities shall include: eradication of hunger and poverty, promotion of education, promoting gender equality and women empowerment, reducing child mortality and improving maternal health, combating human immunodeficiency virus (HIV), acquired immune deficiency syndrome (AIDS), malaria and other diseases, ensuring environmental sustainability, employment enhancing vocational skills, social business projects, contribution to the Prime Minister’s National Relief Fund. 

Considered first of its kind, the new legislation requires certain class of companies to spend at least 2% of their three-year average annual net profit towards CSR activities. Companies having net worth of at least Rs500 crore or having minimum turnover of Rs1,000 crore or those with at least net profit of Rs5 crore, have to make CSR spend.

In case the firms are unable to spend the money, they have to provide reasons and disclose the same. The regulation makes it mandatory for the Directors of the company to supervise these spends and to set up a CSR committee to plan, strategize, implement, document and disclose the activities. Failure to comply could lead to consequences but the implications have not yet been outlined.

The Indian concept of CSR translates to philanthropic activities. It is more about giving donations, and about uplifting the poor. CSR, however, has a larger manifesto and fold. It is more to do with shared value and about distribution of wealth. The previous idea was about after making and then giving away some of it, CSR relates also to ‘how’ that money is made. Companies currently may have a few programs and initiatives going here and there, what is needed is to create an integral CSR strategy.

CSR is often called the triple bottom-line approach — Sustainability in Environment, Social Community & Business. The law is here and so is the implementation mandate. However, it remains to be seen how long India Inc takes to redefine the concept and how corporate India moves away from philanthropy to a world of redistribution of wealth.




Manjula pooja shroffThe writer is  an entrepreneur and educationist

Large companies report corporate responsibility work: Survey

Large companies report corporate responsibility work: Survey

PTI Jan 16, 2014, 06.57PM IST

NEW DELHI: Most large companies carry out reporting of corporate responsibility activities but the quality of information provided needs to be improved, says a survey released today.

KPMG India Corporate Responsibility Reporting Survey 2013 also reveal that companies believe responsibility of this agenda lies with the board or the CEO.

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The findings also come against the backdrop of the government making it mandatory for certain class of profitable companies to shell out at least two per cent of three year average annual net profit towards social welfare activities.

"Reporting on Corporate Responsibility (CR) is evolving as a standard business practice in India, undertaken by almost three quarters (73 per cent) of large Indian companies," the survey report done by the consultancy.

CR also referred to as 'sustainability' or 'business responsibility' looks at the ethical, environmental and social aspects of business beyond the financial parameters, the report said.

The findings are based on an analysis of reporting by covers top 100 listed companies by revenue (N100).

As per the report, 45 companies surveyed use standard frameworks to do CR reporting while 31 have separate reports comprehensively covering aspects of CR strategy, governance, targets and commitments, and performance.

"Only one in four N100 CR reports (26 per cent) establish the linkage of how stakeholder inputs are considered in identifying critical issues for long term sustainability of the company," it said.

Further, the survey found that almost half of the top 100 listed companies' CR reports identify board or CEO as holding the "ultimate responsibility for CR agenda".

However, reporting is low when it comes to linkage of CR performance and executive remuneration.

"Only 1 in 5 (19 per cent) CR reports are more balanced with in-depth discussion on key challenges and dilemmas," the report said.

In terms of sector, Information Technology leads the way with all N100 IT companies producing separate CR reports.

"71 per cent of CR reports reckon climate change as a key environmental and social change that will impact businesses," it noted.

Various aspects including strategy, risk and opportunity; targets and indicators; and stakeholder engagement, were taken into account.

"Regulations like Clause 55 (Business Responsibility Reporting) of the listing agreement and CSR disclosure under the new Companies Act will drive the reporting agenda in India.
"It is no more a choice for companies to report or not to report," Head of KPMG Climate Change and Sustainability Services in India Raajeev Batra said.

Thursday, January 9, 2014

India Companies Act 2013: Five Key Points About India’s ‘CSR Mandate’

India Companies Act 2013 : Five Key Points About India’s ‘CSR Mandate’

After years of debate, the Indian Parliament passed its first update of the country’s corporate law in more than 50 years, which includes several important provisions that modernize India’s corporate governance rules. The Companies Act 2013 requires that one-third of a company’s board comprise independent directors, and that at least one board member be a woman. It also requires companies to disclose executive salaries as a ratio to the average employee’s salary, and it allows shareholders to file class-action law suits.

The provision that has gotten the most attention is the so-called “2 percent” requirement, which made India the first country to mandate CSR. Complete details are available in the 294-page act; what follows are the five key points that all companies must know if they have business interests in India.

1. What is the 2 percent requirement?

The act requires that companies set up a CSR board committee, which must consist of at least three directors, one of whom must be independent. That committee must ensure that the company spends “at least 2 percent of the average net profits of the company made during the three immediately preceding financial years” on “CSR” activities. If the company fails to spend this amount on CSR, the board must disclose why in its annual report.

2. Who must follow this requirement?

The requirement will apply to any company that is incorporated in India, whether it is domestic or a subsidiary of a foreign company, and which has (1) net worth of Rs. 5 billion or more (US$83 million), (2) turnover of Rs. 10 billion or more (US$160 million), or (3) net profit of Rs. 50 million or more (US$830,000) during any of the previous three financial years. This means that about 8,000 companies will spend a combined total of up to Rs. 150 billion (US$2 billion) annually on CSR activities.

3. How will the requirement be enforced?

The board committee is responsible for reviewing, approving, and validating the company’s investments in CSR. Prior to each annual meeting, the board must submit a report that includes details about the CSR initiatives undertaken during the previous financial year. The board’s independent director helps ensure the credibility of this process. However, the act does not provide any guidance on what constitutes acceptable reasons for which a company may avoid spending 2 percent on CSR.

4. How does the act define “CSR”?

The act defines CSR as activities that promote poverty reduction, education, health, environmental sustainability, gender equality, and vocational skills development. Companies can choose which area to invest in, or contribute the amount to central or state government funds earmarked for socioeconomic development. While this definition of CSR is broad and open to interpretation, it clearly emphasizes corporate philanthropy rather than strategic CSR. The act does, however, specify that companies “shall give preference to the local area and areas around where it operates.”

5. Will this positively or negatively impact CSR in India?

In a country such as India, where one-third of the population is illiterate, two-thirds lack access to proper sanitation, and 400 million people still live on less than US$2 a day, the passage of the Companies Act should be hailed as a positive step forward in ensuring that business contributes to equitable and sustainable economic development.

But there are also a number of reasons to think it may not greatly improve CSR. Indian companies still equate CSR with corporate philanthropy rather than considering CSR as a holistic view of the impacts business has on society and the environment through its operations. By reinforcing this view, the bill could distract business leaders who are ready to embrace strategic CSR.

Also, by making CSR mandatory, companies may treat it as a “check the box” exercise rather than looking at ways to innovate and generate a return from doing social and environmental good. And most companies will comply by channeling funds to community organizations that are addressing one of the priority topics mentioned. There is no shortage of organizations that will be willing to accept these funds—there are an estimated 3.3 million NGOs in India—but few organizations have the capacity and the skill to effectively manage projects that can have a large-scale impact. In an effort to meet the spending obligations, companies may not do the right due diligence to select high-impact, credible organizations.

It’s too early to say what the real impact of this act will be, especially given that passing it and enforcing it are two different things. But with the controversy around the CSR provision, and the lack of specificity and detail, there is an opportunity for leading companies to influence the way the CSR mandate is interpreted. Given the immense need and tremendous business opportunity in India, this can only be a good thing.

 

Monday, January 6, 2014

Corporate Affairs Min seeks tax benefits for CSR activities

 
 
            
Corporate Affairs Ministry has sought tax benefits for social welfare spending which is compulsory for certain class of profitable entities under the new companies law.

Industry has been seeking tax benefits on spending towards Corporate Social Responsibility () activities.

Sources said the Corporate Affairs Ministry has written to the seeking tax benefits for CSR spending by companies.

The Corporate Affairs Ministry, which is also in the process of finalising CSR rules, is awaiting response on the tax benefits issue from the Central Board of Direct Taxes (), they added.

Considered the first of its kind, the new requires certain class of entities to shell out at least two per cent of their three-year average annual net profit towards CSR work.

Going by estimates, the total spending on such activities is estimated to be around Rs 15,000 to 20,000 crore annually.

Under the Companies Act, 2013, firms having a net worth of at least Rs 500 crore or a minimum turnover of Rs 1,000 crore or a net profit of Rs 5 crore are required to make CSR spend.

Such eligible companies should set up a CSR committee that has at least three directors including an independent director.

Those companies, which fail to spend the requisite money, should disclose the reasons for the same.

In case of a failure to make necessary disclosures on CSR expenditure, it would be considered as a "serious offence", Corporate Affairs Minister had said recently.

"There are some compulsory reporting (requirements)... If you don't spend and you don't report, then there is a trouble for the company," he had said.

The Minister has always maintained that government would not want to be the judge and jury on how to spend the CSR money.

According to him, CSR rules are exhaustive and efforts have been made to include as many areas as possible.

Besides, a provision has been made under which any activity deemed as CSR by the board of the concerned company would qualify for the same, provided a disclosure is made.

Rules for the new companies law are being finalised after extensive consultations with various stakeholders.

Wednesday, January 1, 2014

CSR rules to be finalised by January first week: Sachin Pilot



NEW DELHI: Moving ahead with implementation of the new companies law, government will soon begin notifying detailed rules for its various provisions, beginning with the much-awaited CSR norms in first week of January.

Replacing the nearly six-decade old regulations for corporates, the new Companies Act makes it mandatory for certain class of profitable enterprises to spend money on social welfare activities and such expenses are estimated to total about Rs 15,000-20,000 crore a year.

The rule-making process for Companies Act, 2013, saw extensive public consultations and the exercise is now nearing completion, while CSR regulations would be among the first to get a detailed set of rules.

"The Ministry has finalised the CSR (Corporate Social Responsibility) rules and we have send it to the Law Ministry for vetting. In about a week's time, we will notify these rules," Corporate Affairs Minister Sachin Pilot told PTI in an interview.

According to him, the rules are exhaustive and efforts have been made to include as much as possible, including health care and environment. Besides, a provision has been made under which any activity deemed as CSR by the board of the concerned company would qualify for the same, provided a disclosure is made about that for the benefit of shareholders.

Considered first of its kind, the new legislation requires certain class of companies to spend at least two per cent of their three-year average annual net profit towards CSR activities.

Companies having net worth of at least Rs 500 crore or having minimum turnover of Rs 500 crore or those with at least net profit of Rs 5 crore have to make CSR spend.

In case the firms are unable to spend the money, they have to provide reasons and disclose the same.

When asked what would happen if companies fail to make necessary disclosures on CSR, Pilot said then it is a "serious offence".

"There are some compulsory reporting (requirements)... If you don't spend and you don't report, then there is trouble for the company," the Minister said.

Asserting that any activity should be approved by the company's CSR committee and the board, Pilot said the government only wants "full disclosure".

Pilot has always maintained that the government would not want to be the judge and jury on how to spend the CSR money.

In response to a query on whether creating electoral awareness would be considered as CSR, the Minister said if a company is interested in doing so they can do it but with the approval of its board.

"Any CSR activity, whether it is in the rule or not, has to be approved by the CSR committee of the board," he said.

The Corporate Affairs Ministry, which is implementing the new legislation, had issued draft rules in six tranches for public comments.

The new Companies Act has many provisions for stronger protection of investor interests besides stringent measures to deal with corporate misdoings.

Ending years of wait, the new companies bill was passed by the Parliament in August and became an Act after it received the President's assent the same month.

All provisions of the new Companies Act are expected to come into force from the next fiscal, beginning April 1, 2014.

Some provisions that did not need detailed rules have already been notified. The government plans to notify rules for different provisions in tranches, starting with CSR norms.

Par panel asks govt to ensure mandatory CSR spend by pvt firms

The funds earmarked and utilised on CSR activities by these private coal blocks developers should also be reflected in the annual report

Disapproving the "casual" approach by the government in ensuring activities by firms, a parliamentary panel has asked it to initiate immediate steps for mandatory such spending by private companies, which have been allocated captive .

"Immediately take up the necessary steps to ensure that CSR (corporate social responsibility) activities are undertaken by all the private companies to whom coal blocks have been awarded and where production/excavation of coal/lignite have started," Standing Committee on Coal and Steel, chaired by Kalyan Banerjee has asked the government.

The funds earmarked and utilised on CSR activities by these private coal blocks developers should also be reflected in the annual report of the mining and coal from next year, it has said in its latest report.

As on date, of the about 200 blocks alloted so far, 38 captive coal blocks have come under production and the production achieved is 21.740 million tonnes (MT) - 13.6 MT for private companies and 8 MT for government companies.

The Committee has also expressed unhappiness on Steel Ministry's reply to it that so far there is no provision of CSR activities by private companies.

"The Committee are unhappy to note that though the Parliament has passed a new legislation Company Act, 2013 and the same was notified on August 30, 2013, the Ministry of Steel in their action taken reply on September 20, 2013 has referred to companies Act, 1956 and stated that there is no provision for CSR activities by private companies.

Under the new Companies Act, 2013, which has replaced nearly six-decade old legislation governing the way corporates function and are regulated in India, all profitable companies with a sizeable business would have to spend every year at least 2 per cent of three-year average profit on CSR works.

This would apply to the companies with turnover of Rs 1,000 crore and more, or networth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.

The new rules also requires the companies to set up a CSR committee of their board members, including at least one independent director.

"While deprecating the casual approach of the Ministry in not furnishing the updated information to them, the Committee would like that the Ministry should immediately take up the necessary steps to ensure that CSR activities are undertaken by all the private companies to whom coal blocks have been alloted," it said.

Around Rs 22,000 crore to enter social sector as India Inc steps up CSR plans


MUMBAI: Surgeon-social entrepreneur Devi Shetty of Narayana Health is agonising over an issue of the nonmedical kind these days. The electricity bill of his expanding hospital complex in Bangalore has spiralled to Rs 1.2 crore a month, straining his financials. Shetty is now reaching out to corporates to help him tide over this energy emergency through deploying of energy-efficiency interventions and their corporate social responsibility (CSR) monies.

Around Rs 22,000 crore is expected to gush into the social sector from the next financial year onwards as Indian companies ramp up CSR spends in keeping with provisions under the Companies Act, 2013. It stipulates certain companies — with a net worth of Rs 500 crore or a turnover ofRs 1,000 crore or a net profit of Rs 5 crore — to spend at least 2% of their average net profits made over three preceding years on CSR programmes.

At a conference last week in Mumbai to link up companies with social sector players, Shetty told an eclectic gathering of corporate decisionmakers, foundation heads, and NGOs that the idea of "disassociating healthcare from affluence" could indeed come true, given the new circumstances. "We need 2 million heart surgeries a year," he said, urging companies to devise partnerships or seek out patients from under-privileged sections directly.

Companies had sunk into complacence as the Companies Bill traversed through the laborious legislative process through the year. Now, with April 2014 looming large, many are staring at the woeful inadequacy of the CSR initiatives they had been flaunting over the years.

After an initial phase of indifference and, later, even sly attempts by a few at gaming the rules — fitting in what they are doing currently as CSR or looking for loopholes to avoid doing what they ought to be doing — companies are now preparing for a new era or a new genre of CSR interventions.

On sensing the corporate hurt at 'being told what to do', the government too has been changing its stance: from citing Section 134 — which talks of fines and imprisonment — to a more liberal view of defining what constitutes CSR, and implementation methodologies.


 


  "All the governmental sabre-rattling of the recent past has given way to 'let the company board decide' mode," says Shankar Venkateswaran, director, Pricewaterhouse-Coopers. "The government is more flexible in its approach now."


A few weeks ago, in Mumbai, Bhaskar Chatterjee, director-general of the Indian Institute of Corporate Affairs (IICA), an arm of the ministry of corporate affairs, even endeavoured to dilate on the essence of 'comply or explain' nature of the law. If a company fails to achieve CSR targets, all it is expected to do is put out the reasons, in its annual report and on its website.

The challenges, however, are real. Over 16,000 companies — ranging from large ones like Reliance Industries (CSR spend of Rs 285 crore in 2012-13, or 1.36% of its net profit) to small ones like financial services firm JM Financial (Rs 2.16 crore, or 1.21%) — will have to ramp up, re-organise and tweak their CSR approaches. ETIG data shows that three-fifths of the top 100 CSR spenders in India Inc in 2012-13 spent less than 2% of their net profit for that year.
For example, by the new yardstick, JM Financial, which spent Rs 2.16 crore on CSR in 2012-13, will see its annual CSR budget balloon to Rs 5 crore. A spokesman for JM Financial confessed that in the past, what the company attempted was "ad-hoc giving" and that it will now take a re-look and identify causes where it can make a real, lasting impact.

"We are telling companies, while on philanthropy, they can choose to be strategic as well, by aligning CSR with their core strengths," says Priya Naik, founder and joint managing director, Samhita Social Ventures, a CSR consultancy supported by NS Raghavan, a cofounder of Infosys, that had put together the conference where Shetty made his remarks. A host of companies are, therefore, now in the exploring, reassessing, and even reclassifying mode.

Her colleague Krishnan Neelakantan, Samhita's MD, cites the case of a PSU that runs 23 hospitals with a substantial financial allocation. When the hospitals began operations years ago, they were employee-centric but eventually metamorphosed into community hospitals. Yet, the company did not treat it as a CSR activity. "The spend is still categorised under employee welfare," says Neelakantan.