Corporate social responsibility is here to stay - Play by the rules

Play by the rules - Corporate social responsibility is here to stay

Commentarao - S.L. Rao

Corporate social responsibility is a new entry in the Indian Companies Act (under clause 135). Every company with a net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more or net profit of rupees five crore or more during any financial year is to have a CSR committee of the board with at least one independent director. These companies shall aim to spend at least two per cent of the net profit based on three years' average towards discharging their corporate social responsibility. If the expenditure is not incurred, the company's annual report to shareholders should give the reasons. The board committee shall formulate the company policy for CSR. The activities under CSR shall cover those listed out in Schedule VII of the Bill. The committee will also recommend the expenditure to be incurred for CSR activities and monitor it. The activities covered are now known and the ministry has been responsive to requests from non-governmental organizations to add to them. Unlike donations under Section 80G of the Income Tax Act, these expenditures are not eligible for any tax concessions. (But donations to the prime minister's relief fund are so entitled.) When I wrote on this subject in 2012, at the time it was first proposed, I argued against imposing philanthropy on companies. Though it was not yet compulsory, shortfalls had to be explained. The basic duties of a company are to run its operations honestly, follow all laws and regulations, be fair to employees, customers, suppliers, repay debts on time, and give a competitive return to shareholders. Charity and philanthropy should be at the discretion of the company. In fact, many companies in the past years have focused on employees and the local communities they are with, and on causes which give a good name to the company. However, the law now exists and companies have to plan on spending a government-determined part of the profits each year on CSR. Many companies resent the compulsion to spend a given amount and on causes that may not be of their choosing. Obviously, they will try to get mileage out of the spending for the company. Others aim at building local goodwill in their primary locations. Any company required to spend its profits in this way will bring the efficiency norms of its business to get maximum outcome from its outlays. Companies are expected to adopt the CSR policy drafted by a board committee. In family-controlled businesses, these committees are likely to represent the views and interests of the family. Even in other companies, the principal shareholders will aim to determine the policy. Other board members may play a passive role in determining the purpose, implementation agency, monitoring and evaluation. The policy has to state who are the target populations for the proposed CSR activity, and what this activity will be. Some companies might appoint consultants to help define the tasks and monitor the implementation. There are many ways of organizing the CSR expenditure. The company might earmark some of its people for the purpose. In some, CSR activity may be a way of training new recruits in the Indian reality by exposing them to these causes. Some companies even attach experienced managers to the activity for a few months or years. Many other companies might see this activity as a diversion from their basic business and will hire outside agencies, particularly for implementation. In many instances, particularly where the company is related to others with common ownership, all of them might team up to have a single common agency of their own for the CSR activity, its conduct and supervision of the implementation. But a well-run company will be loath to allow its hard-earned money to be wasted. It will decide on its objectives and target beneficiary populations, set up a management information system to monitor achievements in relation to targets, identify constraints and conceptualize how its experience could be replicated by others in India. Company annual reports are now being released for the first year after the CSR provision was inserted in the Companies Act. Companies have to make the first annual report on their CSR activity. The CSR expenditure does not stop at the two per cent of profits specified in the act. Companies have to spend on manpower to ensure that the implementation by a partner NGO or by its own CSR department is being done well. Foreign companies have another problem when they engage NGOs to do the job. Present rules under the Foreign Contribution Regulation Act require that the recipient must be registered under FCRA. This is time-consuming (may take three years). A foreign company has to wait to engage the implementing agency. This puts constraints on its CSR expenditure until it sets up its own implementation department. Tata companies have followed the practice of all their companies pooling their CSR spending. Many years before the recent legislation, each Tata company was working to a set target for its CSR expenditure.The money was given to Tata trusts. This has made Tata the most significant spender on CSR activity in India. Also, these trusts are very professionally-managed and refer to their past experiences in deciding how to select partners, beneficiaries, effective ways of execution, monitoring and evaluation of achievements without interference. An issue that will hound companies is the question of the ethical soundness of their associate NGO. For example, can a company's donations be used for rehabilitating retired terrorists or their families? If a company or an NGO is engaged in activities said to go against national interests, should it be made a partner? Some highly-principled NGOs will conduct diligence on potential donor companies. Thus there are NGOs that do not accept money from aerated soft drinks-producers because of the product's adverse effect on child health. Others will not go near Monsanto because of its connection with genetically-modified food against which there is a protest movement in India. NGOs might refuse donations from companies against whom there are rumours or allegations. Similarly, they might avoid environmentally-polluting companies.There are, of course, many NGOs which do not care about the funding sources and their reputations as long as the money is available. There is also the question of compliance and audits. Well-run companies do not want to see their money wasted. They will set up a strong internal audit system and help the NGOs to keep proper record of expenditures. Donor companies must also ensure that their NGO partners treat their employees in a civilized way, ensure integrity in their work, and so on. This is another cost that the companies have to bear in addition to CSR spends. Rich entrepreneurs like Bill Gates, Tim Cook, Azim Premji, Warren Buffett among others, have applied the minds that built their colossal businesses to philanthropy. Many companies have found (Tata, Wipro, Shiv Nadar, Infosys) that good philanthropy also improves corporate image and share values. Compulsory CSR is here to stay. Companies must prepare themselves to do it well. The author is former director-general, National Council of Applied Economic Research

Be as creative and daring in helping others as you are in business

What to do with all that money? (Reuters/Vijay Mathur)

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Neha HiranandaniFreelance Journalist

July 10, 2015 Quartz India

From Hermes to salvation, you can buy anything in India. And as business has grown, so has philanthropy: the new Corporate Social Responsibility (CSR) Act now requires all large Indian companies to donate 2% of their net profits to philanthropic causes.

The CSR Act is the first of its kind worldwide. Signed into law in 2014, but only now beginning to be enforced, this compulsory philanthropy is set to generate an estimated $3 billion annually in corporate contributions.

That’s the good news.

The bad news is well known: The law represents big money in a country with even bigger problems, from open sewers that contribute to one of the highest disease burdens in the world to infrastructure so crumbling that buildings routinely fall of their own accord. Some problems are even more explicitly life or death: In New Delhi, the abysmally skewedgender ratio of 895 females to 1,000 males is a dark reminder of the city’s selective abortion problem. Indian donors are being strangely timid with their philanthropic spending. 

Every philanthropic dollar is important and cannot afford to be wasted. However, this money will soon begin to disappear down our (open) drains, if we do not find a way to give more innovatively.

Many corporations in India set up foundations that contribute to wings of charitable educational or medical facilities. Part philanthropy and part public relations, “direct giving” is laudable but dwarfed by the scale and complexity of the country’s education and healthcare problems.

Research conducted by consulting firm McKinsey indicates that corporate foundations might be more effective if they focused on “niche issues” such as the rehabilitation of criminals or the promotion of sports. But these issues attract fewer eyeballs than education or health and thus, only a handful of donors venture to pick this relatively low-hanging fruit. Among non-profits, this encourages competition to attract donor attention, which leads to stifled creativity, replicated models and overlapping results.

Overall, Indian donors are being strangely timid with their philanthropic spending. Yet, Indian businesses have historically created wealth using a uniquely Indian blend of creative survival tactics known colloquially in Hindi-Urdu as jugaad. So why are India’s originaljugaadus being so conservative with charity?

Firstly because many of us are jaded.

Since India’s Independence in 1947, corporate India has watched the government consistently prepare Five-Year Plans that set ambitious targets for improvement in every social sector. Year after year, the targets of these plans were missed with the same consistency with which they were laid out. An entire generation of Indians has grown up thinking that social change in India is impossible. Compulsory philanthropy is set to generate an estimated $3 billion annually in corporate contributions. 

The second reason India Inc. gives so conservatively is mistrust.

According to a Times of India report, India has one NGO per 600 people, but even with millions of organisations in operation, donors recently stated in a research interview that they “did not know of a sufficient number ofcredible organisations or foundations.”[Emphasis added.]

Some of this fear is with good reason. It is widely known in India that many unsavoury characters operate under the guise of NGOs, camouflaging extortion and other operations under the innocuous banner of a non-profit. Fraudulent non-profits are so commonplace now that they have ceased to even be newsworthy. The offending organisations are usually noiselessly added to government lists of “blacklisted NGOs.” In the eyes of corporate givers, these growing lists sully the reputation of all non-profits.

But for every extortionist who sets up shop, there are heroes defying the odds.

I have met women in Tamil Nadu manufacturing their own sanitary napkins using banana fibre, Rajasthani groups teaching villagers how to demand change from local government, and Assamese silk-weavers using smartphones to create new markets for their centuries-old craft. Many of these world-class organising efforts are constrained by a lack of funding as well as strategic oversight. They are the ones who could benefit from corporate philanthropy, and furthermore, could grow in partnerships with corporations, which specialise in growing, training, streamlining and operationalising.

After channeling $4 million in funding to eight non-profits, Mumbai’s Dasra Giving Circles have provided over 2,000 days of capacity-building support to such organisations. This support includes assisting non-profits with leadership training, implementing IT systems, devising marketing plans, quantifying success and strengthening recruitment strategies—the nuts and bolts of a sustainable outfit, in other words.

It’s time to think of philanthropy as a strategic investment that can deliver returns with measurable results. But before Indian businesses write the $3 billion cheque that the CSR Act will demand, givers must engage in that most corporate of activities: due diligence. Just as in the normal course of business, it is wise to step off the beaten path and seek opportunities in less crowded spaces.

And for maximum return on our investment, we must roll up our shirtsleeves and get involved.

Almost half a million children under five die of diarrhoea in India every year. A majority of these deaths are preventable with a sachet of oral rehydration salts. Why is it that these sachets don’t make it to the villages, while shampoo and hair oil are available in every corner store? Clearly, corporations know a thing or two about distribution networks and organisational building that could help save countless lives. Would it kill us to work together?

Because it will if we don’t.

CSR - India adopts a new line

India adopts a new line

Rahat Bano, TNN | Jul 13, 2015, 06.48AM IST

I have been critical of the popular notion of "true costing" (which tries to fully account for the impact of companies' social and environmental costs) because it is too complex and expensive to practise, not "incentive-compatible" (i.e. no one wants to do it, except environmentalists) and ineffective in raising money for social and environmental goods. Instead, I thought we can add one additional line to the existing financial statements to align all different stakeholders' incentives to achieve sustainable growth. The key point is this: "What if all listed companies are asked to show their corporate social responsibility (CSR) in one line in the main profit and loss account?" In 2009, I proposed `one additional line' to Salman Khurshid, then Union minister of corporate affairs. Since then, there have been several changes in the ministry and the government. In 2013, Sachin Pilot helped push the addi tional line, although we still faced challenges from those who did not wish to disclose their CSR expenses in a line.

Companies are not forced to pay a penny, but are asked to show how much money they spent for CSR in one line of the main financial statement. How would managers react to it? Knowing that they would be compared across companies, say by the media's eye-catchy ranking tables, companies are likely to spend CSR money because they want to be seen as good citizens. What about investors? For example, many western and socially responsible investors cannot invest in Indian companies because there is no information about their environmental and human right violation risks. Nowadays, codes of good investment practices require fund managers to account for how they choose their stocks. So, if companies disclose their appropriate CSR activities, investors buy their shares.

Financial reporting 

This is an institutional mechanism design developed specifically for large emerging economies like India, China and Brazil. In India, from now, both managers and investors will have to look at the level of CSR against profit and other line items such as sales, capital, etc. They will have to think of the balance between the level of profit and CSR - they will have to strike a balance based on their judgement. Other than the recommended minimum of two per cent, no one will force companies to spend money for CSR, but the market (widely defined, including investors, media, government, consumers, potential employees, among others) will monitor and react to companies' attitudes towards CSR. This is something managers have to be aware of, because research shows that stakeholders (mainly investors, consumers and media) show a strong preference for pro-CSR companies.

The other point is that because one additional line alone cannot explain companies' CSR activities well, there is a natural incentive for companies to explain the breakdown of the line in the form of a report. This way, CSR reports, which have traditionally been merely marketing brochures, become relevant for investment decisions. Of course, auditors have to check these because the additional line is an independent item of a profit and loss account and such certified details of CSR activity reports would be useful for media and local communities to check if the companies are good citizens for them.

Lesson for students

I tell students that accounting can change the world. Accounting is usually considered to be the neutral reflection of reality, whereas our accounting scheme is to design or reconstruct the reality. If a shared social goal is set, then accounting can be designed to help achieve it. So, traditionally `uninteresting' bean counters can be much more exciting and important people.

One additional line, in particular, is a line item of the expense traditionally considered to be a negative factor for investment. However, research shows that the appropriate kind and amount of CSR expense, disclosed in an additional line and the CSR report, raise companies' share prices. This means, the traditional "profit maximisation" principle no longer works.Rather, companies will need to maintain a balance between profitmaking work and CSR efforts.

Following the introduction of the new line, accountants will find more jobs through the CSR expense audit. Above all, society as a whole benefits from CSR work.This way, everybody has a private incentive to do the additional line and the overall collective effect has been considered to be more sustainable growth than before.

CSR Regime Begins on Disappointing Note; 2/3rd Companies Miss Target

Press Trust of India | Last Updated: July 13, 2015 17:05 (IST)

New Delhi: In a disappointing start to the much-touted CSR regime, nearly two-third of the top listed companies have failed to spend the minimum 2 per cent of profits on social responsibility activities in the first year.

On the other hand, Mukesh Ambani-led corporate giant Reliance Industries Ltd (RIL) has exceeded the mandatory 2 per cent prescribed limit while spending the maximum amount (Rs 761 crore) among the Sensex companies that have so far disclosed their CSR spending figures for 2014-15 -- the first financial year for which the new law has been in force.

Others who have managed to meet the target include Azim Premji-led Wipro, tobacco-to-fashion conglomerate ITC, FMCG major Hindustan Unilever and auto giant Mahindra and Mahindra.

Infosys missed the limit by a small margin as on March 31, 2015, but said it managed to meet the target after spending the remainder amount of about Rs 3 crore in April.

So far, half of the 30 Sensex firms have disclosed their CSR details for the latest financial year, but the actual CSR spending during 2014-15 for at least ten of them was below 2 per cent of their respective three-year-average net profit -- as required under the new Companies Act.

Together, all these 15 companies spent a little over Rs 2,100 crore on CSR during the fiscal.

The government has also set up a six-member high level panel to suggest steps for improved monitoring of social welfare activities done by them under the companies law.

The companies whose actual CSR spending was less than 2 per cent during the year include HDFC Bank, ICICI Bank, Axis Bank, SBI, Dr Reddy's, HDFC and Bajaj Auto. While giving reasons for their respective shortfalls, all of them have expressed their commitment to the CSR work.

Among others, Vedanta said there was "no obligation for the company to spend on CSR as the average profit computed as per provisions of the Companies Act for last three years is negative". Still, it had spent Rs 25.5 crore (1.3 per cent of its last fiscal profit after tax) in CSR projects and initiatives.

The new law applies to companies with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more or a net profit of Rs 5 crore or more in a financial year.

They are also required to constitute a CSR committee with three or more directors, at least one of whom should be an independent director. If a company fails to spend full or part of the prescribed amount, it needs to explain the shortfall.

Giving update of their compliance status on the new law, which came into force from April 1, 2014, five Sensex firms have so far disclosed CSR spending of 2 per cent or more.

RIL tops the list with total CSR spending of Rs 761 crore (2.85 per cent). The major areas for this expenditure included rural transformation, healthcare, education, environment, protection of national heritage, art and culture and disaster response, the company said in its annual CSR report.

Infosys said the prescribed amount required to be spent on CSR during the last fiscal was Rs 243 crore, while the total money actually spent during the year was Rs 239.54 core.

The 'unspent' amount of Rs 3.46 crore was "spent in April 2015 upon receiving pending documentation," the company said.

Wipro spent Rs 132.7 crore (2.06 per cent), while the total spending for ITC was Rs 214.06 crore (2.01 per cent).

Mahindra and Mahindra spent Rs 83.24 crore (just above 2 per cent), while HUL spent Rs 82.35 crore (2.1 per cent).

HDFC said its prescribed CSR expenditure for the year was Rs 122.61 crore, while total amount spent during the fiscal was Rs 49.18 crore. The unspent amount, after considering the committed and disbursed amount, was Rs 73.43 crore.

Explaining the gap, HDFC said it has set up a separate foundation with a dedicated team to focus on activities in the social and developmental sectors of India.

"As HDFC's foreign shareholding exceeds 50 per cent, any amount contributed by it to the Foundation would need prior approval of the Ministry of Home Affairs under the Foreign Contribution Regulation Act, 2010 (FCRA).

"The Foundation received the FCRA approval only in March 2014, hence it was unable to undertake any social initiatives prior to this period. Coincidentally, Section 135 of the Companies Act, 2013 which provides for CSR obligations on specified classes of companies also came into force during this time. HDFC therefore thought it appropriate to conduct a major part of its CSR activities through the Foundation, as the objectives of both were aligned," it said.

The home loan major further said, "After receipt of the FCRA approval by the Foundation, an implementation plan was put in place to meet the development objectives of HDFC as well as the Foundation, which included the hiring of full time employees for the Foundation. In October 2014, the employees of the Foundation came on board."

It added, "Initially time was taken to put in place processes, evaluate desired projects, their execution timelines, travel to project locations and evaluate social investment options.

"Keeping in mind the long-term and sustainable development objectives of HDFC (as well as the Foundation), it is of paramount importance that any funds provided by HDFC be utilised prudently to ensure maximum social benefit and development.

"Considering all the factors stated above, the amount committed and disbursed towards CSR was Rs 49.18 crore in 2014-15. Now that the team is in place at the Foundation for some time, HDFC intends to commit and deploy larger funds across social sectors in the coming financial year."

HDFC Bank said its prescribed CSR spending amount for the year was 197.13 crore, but the total spending was Rs 118.55 crore, leaving an unspent amount of Rs 78.58 crore.

"We have spent 1.2 per cent of our Net Profit as part of our CSR in the reporting period. As a responsible bank, we have approached the mandatory requirements of CSR spend positively by utilising the reporting year to lay a foundation on which to build and scale future projects and partnerships.

"We are currently in the process of evaluating strategic avenues for CSR expenditure in order to deliver optimal impact. In the years to come, we will further augment our effort to meet the targeted CSR spends," the bank said.

ICICI Bank, which spent Rs 156 crore (1.81 per cent) said the prescribed CSR expenditure requirement for the year was Rs 172 crore.

"The amount spent was Rs 1.56 billion, marginally lower than 2 per cent of average net profits of the last three financial years. The lower spend vis-s-vis the budget was due to lower than budgeted fund requirement from implementing agencies and lower than anticipated direct spends," it said.

For Axis Bank, the prescribed CSR expenditure was Rs 133.77 crore, while the total spending was Rs 123.22 crore (1.84 per cent of profit) -- leaving an unspent amount of Rs 10.55 crore.

State-run SBI said it spent Rs 115.8 crore on CSR during the year, which was 1.06 per cent of its profit.

"The bank has a comprehensive CSR Policy, approved by the Executive Committee of the Central Board in August 2011 and earmarks 1 per cent of the previous year's net profit as CSR spend budget for the year. The CSR budget for the fiscal year 2014-15 was Rs 109 crore. Against this budget, the actual CSR spend was Rs 115.80 crore during fiscal 2014-15," it said.

Dr Reddy's, which spent Rs 29.17 crore (1.6 per cent), said its efforts during the year focused on creating additional infrastructure to expand its programs and "on enriching the monitoring and impact measuring systems so as to ensure that CSR Funds are optimally utilised".

Its prescribed CSR expenditure was Rs 36.61 crore, while the unspent amount was Rs 7.45 crore.

Bajaj Auto's total amount disbursed for CSR during the year was Rs 42.91 crore -- about half of the total prescribed CSR expenditure of Rs 86.33 crore.

The two-wheeler maker, however, said, "Taking into account the commitments made by the company for CSR projects or programmes which are in progress, and considering the project mode of CSR activity, where the project at times extends beyond financial year there is no shortfall as such in the CSR expenditure as compared to the stipulated 2 per cent of the average net profits of last three financial years.

"In fact, the CSR spend plus the commitment is higher than the mandated amount for the company," it added.

The company also invoked its famous tagline 'Hamara Bajaj' to stress on its focus on CSR activities of the group.

"For society... Bajaj is more than a corporate identity. It is a catalyst for social empowerment. It is the reason behind the smile that lights up a million faces. Its goodwill resonates in the two simple words that live in the collective consciousness of Indians - Hamara Bajaj," it said.

It said the total amount committed was Rs 119.25 crore.

The Prospects of Women CSR Heads

The Prospects of Women CSR Heads By Riddhi Ghosh

Thursday, July 9th, 2015 | 

By Riddhi Ghosh

Two issues play in mind as we pen the article. Firstly the CSR seed just planted in Indian corporate soil, getting watered and nourished to bear fruits with time (Section 135 of Indian Companies Act 2013). As a must have for certain sized companies, mandated by Companies Act 2013, formation of a CSR committee is a new entrant.

The second one is a new mandate in the domain of corporate governance; for appointment of women director in boards of listed companies to create a balanced gender diversified board (Section 149(1)).

It only signifies the emphasis that the state is trying to impose on board level responsibility and senior management involvement in internalizing CSR in business operations. Against this backdrop of a fresh evolution in Indian corporate world, Indian businesses are stressing on CSR being an essential ingredient to robust corporate governance model. Can this be a point to explore if the mantle of CSR be entrusted to a woman director or viewed in a different perspective can a women director in India successfully collaborate to execute CSR in true spirit?

In their book, The Female Vision, Sally Helgesen and Julie Johnson discuss a survey finding that women are more inclined to value work for the daily experience it provides than for how it impacts their career progression.

For many (generally for men), that level of uncertainty isn’t desirable in a job description, with eyes fixed to personal career advancement. Thus the involvement factor in daily work befitting a woman, give them an extra edge in CSR roles.

With varying details in job description of CSR professionals in Indian companies, a quick list of most sought after traits in a candidate maybe as follows:

Connectedness
Collaboration
Team work (calling it ‘giving credit’ to fellow members)
Intent to a positive social impact
Sense of empowerment

In a complex country like India, plagued with a plethora of social ills and infrastructural deficiencies, it will require qualities beyond normally enlisted in a job listing. It’s not about the degrees earned in technical schools and management theories that can suffice this directorial position.

Added to academic qualifications, it requires understanding of the fine threads connecting socio-political deficiencies to attitudinal stubbornness and religious dogma being ingredients in functioning of the society to function. In a world fiercely torn by competition, businesses cannot afford to stay ignorant to impending social, environmental and economic perils that can devour business at the bat of an eyelid.

A quality that must be possessed to any CSR professional in India is being empathetic to the country’s problems. In the words of Kathrine Winkler, CSO at EMC, ‘credit is a strong currency’ and forms the very basis of a successful CSR drive.

So an empathetic person with capability to connect and collaborate as a team, giving due appreciation and inspiring fellow members, is essential to success. There are quite a few reasons why we chose to explore women director in a key CSR role maybe as:

•The available pool of qualified, ‘sensitive’ women to be referred to for directorial assignments is apparently limited. Women with certain level of work experience and business acumen need to be trained for career advancement. Professional CSR being quite a niche segment till date may offer promising career advancements.

•The fine balance of leading and empathy can perhaps act well to craft innovative socially responsible projects.

•Women in general and more so for Indian women, tend to be shying away from asking for personal benefits and rights in social life. But they are portrayed as sacrificing and fighting for others rights. This is a character trait that can be an advantage towards successful execution of impact generating social projects.

While trend indicate growing number of women directors in global as well as Indian corporate (See Fig 1), a lot of brows have been raised off late on the background and capabilities of women directors chosen on board by companies seeking to comply with regulation

Country and Percentage of Women Directors

Norway 36.7
France 29.9
Sweden 24.4
Italy 22.3
Finland 22.1
Germany 18.3
USA 12.2
China 8.5
India 7.7
Russia 5.7
Indonesia 3.7
Indonesia 3.7
Japan 2.4
Republic of Korea 1.7

(This List indicates percentage of women directors globally)

A quick run through the list of notable CSR women heads globally establishes that it’s all established renowned names in business that have chosen a lady to head CSR operations (Karen Hamilton, Vice President, Sustainability, Unilever, Pamela Alabaster, SVP Corporate Communications, Sustainable Development & Public Affairs, L’Oreal USA., Andrea Thomas, SVP, Sustainability, Walmart etc) Beyond professional qualifications, each is charismatic personality and has been trained through years in different responsible roles in the organization.

Understanding the organization and aligning CSR ‘interests’ are critical foundation steps to drafting a CSR project which promises to deliver. Further CSR in India is getting launched in a brand new avatar and will require commendable doses on part of the executive to choose a path and stay focused on it awaiting desired impact – a trait again associated with women. It’s a bet worth taking, by focusing to create CSR women directors that maximize the chances of success in combating business uncertainties, a step towards creating a discipline of sustainable future.

Swachh Bharat Mission picks up momentum in urban areas

 AUTHOR: NITI PIB BOT - JULY 7, 2015

Implementation of Swachh Bharat Mission in urban areas of the country has picked up momentum during the first three months of current financial year.

Applications have been received from the States and Union Territories for construction of 30,41,097 individual household toilets as against the target of construction of one crore such toilets by the year 2019 out of which the Ministry of Urban Development has sanctioned 13,64,814 toilets. Regarding construction of over 5 lakh community and public toilet seats, the Ministry has sanctioned 82,438.

Under the Swachh Bharat Mission in urban areas, 17,411 community and public toilet seats have been built during April-June, 2015 as against 1,222 during October-March of the last financial year. During the said period, 1,13,000 individual household toilets have been constructed as against 2.70 lakhs built during the six months of last financial year.

Since the launch of Swachh Bharat Mission in October last year, a total of 3.83 lakh individual household toilets and 17,411 community and public toilets have been constructed. In respect of Solid Waste Management, 28,908 wards out of the total of 78,003 wards in all the States/UTs have reported 100% door to door collection of solid waste. About 21% of municipal solid waste is being processed as against the target of 44% for March,2016.

Regarding construction of individual household toilets, Gujarat is way ahead of others having built 2,64,331 followed by Madhya Pradesh with 99,151. These two states together account for 94% of the total toilets built till the end of June,2015. These two States are followed by Andhra Pradesh, Karnataka, Punjab and Maharashtra.

Delhi leads the list of performers in respect of community and public toilets having constructed 5,776 toilet seats followed by Chattisgarh(3,570), Maharashtra(2,520), Chandigarh((2,424) and Karnataka(1,680). These five accounted for 86% of total number of community and public toilet seats constructed so far.

Tamil Nadu is way ahead of others in Solid Waste Management with 9,935 wards out of the total of 13,667 wards reporting 100% door to door collection of waste. It is followed by Karnataka(3962/5252), MP(3024/6855), Andhra Pradesh(2295/3276), and Gujarat(1506/1730).

In all, Gujarat, MP, Karnataka, Andhra Pradesh, Chattisgarh, Maharashtra, Tamil Nadu and Telangana are in the forefront of implementing Swachh Bharat Mission in urban areas. The Ministry of Urban Development is constantly monitoring the programme having held three video-conferences with States/UTs last month.

AARJuly 7,2015

Has Corporate Social Responsibility become a mere marketing tool? - Dr Subhash Chandra Show

Dr Subhash Chandra Show: Has Corporate Social Responsibility become a mere marketing tool?

Sunday, 5 July 2015 - 7:50pm IST | Agency: dna webdesk

There are several sectors in India, like education or health, where government intervention alone is not enough and hence CSR must be encouraged.

• 

The philosophy of philanthropy might be an old one in Indian society, but in the modern world, the concept has taken on several hues. Many companies today run social endeavours called Corporate Social Responsibility (CSR). 

But has CSR reduced to a mere marketing activity these days? That's the question that this edition of The Dr. Subhash Chandra Show explores. Do companies use CSR just to be seen as doing good, or do they actually make an effort to make a difference? 

The Companies Act, 2013 states that it is mandatory for any corporation having a net worth of over Rs 500 crore, a turnover of over Rs 1,000 crore or a net profit of Rs five crore or more to spend at least 2% of its average net profits over the three years on CSR activities.

However, CSR should be more than just clicking a few 'feel good' pictures and uploading them on social media. "It is more important to become a good corporate citizen before you get into CSR activities," Dr Chandra said. 

There are several sectors in India, like education or health, where government intervention alone is not enough and hence CSR must be encouraged.

However, these initiatives must not be hypocritical. "CSR is hypocritical if it is not solving a real issue or problem which exists in society," Dr Chandra said. Having adequate audit systems in place that monitor whether the money being allotted is being properly utilised is also important.  Watch the whole episode here: 

Govt gives nod to mega irrigation scheme Pradhan Mantri Krishi Sinchayee Yojana

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03 JULY 2015

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Govt gives nod to mega irrigation scheme Pradhan Mantri Krishi Sinchayee Yojana aimed at convergence of investments in irrigation, expanding area under assured irrigation and improving water-use.

Govt gives nod to mega irrigation scheme Pradhan Mantri Krishi Sinchayee Yojana aimed at convergence of investments in irrigation, expanding area under assured irrigation and improving water-use.

In order to reduce farm sector's dependence on monsoon, the Government approved a central scheme for providing irrigation facility to every village by converging the ongoing schemes being implemented by various ministries.

The 'Pradhan Mantri Krishi Sinchayee Yojana' was cleared by the Cabinet Committee on Economic Affairs which has approved funds amounting to 50,000 crore rupees over the five years to ensure the success of this Yojana.

Govt also approves National Agricultural Market scheme connecting farmers and traders via e-platforms for ease in sale or purchase of produce at optimal prices.

The scheme will help in convergence of investments in irrigation, expand area under assured irrigation and improve water-use.

PMKSY will be monitored by National Steering Committee chaired by the Prime Minister and concerned Union Ministers will be the members.

The Yojana seeks to promote extension activities related to farm water management and crop alignment for farmers and grass root level field functionaries.

NATIONAL

Gujarat govt to help firms use CSR funds

Darshan Desai  Ahmedabad, June 13, 2015 | UPDATED 06:40 IST

Gujarat CM Anandiben Patel

The Gujarat government has been hardselling the state as an ideal industrial investment destination while simultaneously drawing allegations that the same is at the expense of human development index. It is now out to prove it can go beyond.

The government has now set up the Gujarat Corporate Social Responsibility (CSR) Authority, the only one from a state government in the country, to create an exclusive agency to channelise contributions to finance projects like construction of toilets and tackling malnutrition, besides several other themes.

"It is Chief Minister Anandiben Patel's idea, which has been spruced up by the official machinery," Maheshwar Sahu, who is a retired IAS officer and the chairman of the CSR Authority created in April, told Mail Today

"We have created this authority to facilitate companies to channelise their mandatory two per cent earnings for social infrastructure." He says there are 14,000 companies, including some 13,500 forming the small and medium scale industrial units, which are supposed to park funds under CSR activities.

Sahu says the idea is to create a channelising body where the companies investing in CSR can donate or park their funds for effective social development initiatives of the state government. "Several companies don't know where to put their mandatory CSR funds, so our idea is to help them," Sahu said.

"So, once a company approaches us seeking guidance on where to invest, we will put it through an implementing agency at the grassroot level working on the particular subject. The companies can also directly contact the agencies, which will largely be non-government organisations (NGOs)," he says.

Sahu says that as per estimates for 2014-15, the corporates registered in Gujarat are expected to release around Rs. 700 crore to Rs. 800 crore in mandatory CSR funds by July.

"We have taken up pilot projects for construction of toilets in rural and urban areas, tackling malnutrition and diagnostic healthcare," Sahu added. He said the initiative was not to put state government funds but those of the corporates into social initiatives.

Sahu played a pivotal role in the Vibrant Gujarat Global Investment Summits initiated by Prime Minister Narendra Modi.

"We have started registering companies across the state to collect donations. This will also help companies fulfil their mandatory responsibilities as well as help in achieving the government's target of creating better social infrastructure. All the state public-sector units (PSUs) are also participating in their CSR funding," Sahu said.

Going by the Companies (Corporate Social Responsibility Policy) Rules, 2014, every company, private limited or public limited, which either has a net worth of Rs. 500 crore or a turnover of Rs. 1,000 crore or a net profit of Rs. 5 crore, needs to spend at least two per cent of its average net profit for the immediately preceding three financial accounting years, on corporate social responsibility activities.

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