Fiinovation CEO : Our commitment to India

Innovative Financial Advisors Pvt. Ltd (Fiinovation), is a leading research and advisory firm that offers expertise in the corporate social responsibility (CSR) and sustainability domain. Fiinovation was founded in 2008 by Dr Soumitro Chakraborty, whose main focus is CSR and the sustainability domain.

The main vision of Fiinovation is,“ To ensure that development is not only sustainable and simplistic, but accessible as well”

Fiinovation believes in achieving simplicity in everything to build solutions that are efficient and easy to scale, also believe transparency builds trust and fosters growth and without any compromising in the quality of work because they value their customers. Simplicity, transparency, and quality are three morals shown in every Fiinovation project. This is the reason Fiinovation is positive and more impactful than other firms. Fiinovation work towards bringing dispersal of knowledge among the public in general or to take initiative for the development of the society. They mainly focus on social problems. Fiinovation believes action speaks louder than words. They have mentioned their work in Fiinovation Blogs that explains how solving social problems is their first responsibility.

Dr. Soumitro Chakraborty’s main aim is,

“Being responsible in business is not a choice anymore and we’re racing against time. We take pride in the fact that our company is the catalyst in the process.”

Fiinovation mainly working on some fields, I.e analysts, Grant management, programme management, proposal research laboratory, project optimization, Donor management, partnership management. It conducts assessment studies like SROI, needs assessment, impact assessment, mobilizes funds from corporates to facilitate interventions by CSOs. It facilitates holistic programme management from project design to its monitoring and final dissemination of information. The programme team at fiinovation drafts customized proposals to suffice the needs of both donors and CSOs, The media team at fiinovation enables live tracking of project status using a human and digital interface. Fiinovation always tries to raise more funds, through these it can be helpful for NGOs and their CSR projects. Fiinovation has been revamping the entire value chain of social interventions in both quantitatively and qualitatively. Fiinovation has a partnership between businesses and civic bodies. Fiinovation is partnered with RSDC, Apollo Munich, AROHAN, Godrej, RPG, UFLEX, PIPAVAV Railway, IFCI Limited, PI, NEWGEN, DS group, GCL, Bharti Infratel Limited, CESC Limited, MYTRAH inspiring solutions, LAURAS Labs, Flex Foods limited.

They primarily focus on practise areas like health, education, livelihood skills and environment. Fiinovation provides its services to both corporations and civil society organizations (CSOs) in carrying out field research studies, forging alliances, designing CSR policy of corporations. Fiinovation team always focuses on how their Fiinovation CSR activities make impactful for the developing nation India. Fiinovation has always tried to assess the on-ground implementation of the project. Fiinovation has done many successful projects, the following mentioned projects in their fiinovation projects: COVID-19 Relief Project in Udaipur, Rajasthan, supported by Sandvik Asia, Fiinovation & SMS India Pvt Ltd partner for COVID-19 relief project in Pune, Maharashtra, A COVID-19 Relief and Awareness Project in Mahesana, Gujarat, supported by Sandvik, SMS India and Fiinovation partner for COVID-19 relief project in Khordha, Odisha, Covid 19 Relief Project in Kolkata with SMS India Pvt. Ltd, Fiinovation joins hands with Admitad India to help daily wage earners, Programme Management of Sustainable Agriculture Project in Rayagada, Odisha, Need Assessment For a Consumer Goods Group Company in Mohali, Punjab, Company in Mohali, Punjab, Socio-Economic Study for India’s Only Independent Power Producer, Programme Management for a Rainwater Harvesting Project, Impact Assessment of Mobile Science Labs for a Leading Pharmaceutical Company, Socio-Economic Study for a Leading Cement Company, Baseline Assessment of Safe Drinking Water Project for a Renowned Renewable Energy Producer, Fiinovation Conducts Skill Gap Analysis for the Natural Rubber Growers, Impact Assessment of Leading Rubber Sector Skill Council’s Up-skilling Training Programmes, Impact Assessment of Renowned Automotive Tyre Manufacturers Three CSR Projects in Rajasthan, Impact Assessment of Digital Discovery Paathshala Project in Delhi, Impact Assessment for Kolkata-based Microfinance Institution for Six CSR Projects, Programme Management for WaSH Programme in Paradip, Odisha, Programme Management for a Community Level Programme in Bilaspur, Programme Management for India’s Largest Multinational Flexible Packaging Corporation, Impact Evaluation for a Multi-diversified Conglomerate’s Dairy based CSR Intervention, Impact Assessment of Mobile Health Van Project for a Multinational Pharmaceutical Company, Multiple Need Assessment Studies for India’s Only Independent Power Producer, Impact Assessment for Leading Telecommunication Equipment Manufacturer’s Mobile Medical Units, Monitoring & Evaluation of Three Projects for a Prominent Telecom Company, Perception Study for Kolkata based Power Utility Company, Impact Assessment for a Railway Corporation’s CSR Initiative, On-site Need Assessment Study for a Skill Development Institute, End-line Assessment of Adult Literacy Centres for Leading Tyre Manufacturer, Mid-term Assessment for Skill Training Institute in Barmer, Rajasthan, Mid-term Evaluation of Safe Drinking Water Project for a Pharmaceutical Company, CSR-CSO Partnership for a Patient Care Assistance Project, Mid-term Evaluation for a Renowned Pharmaceutical Company and many more. Fiinovation values their partners and civic bodies and completed these On-going projects successfully with them. Fiinovation family bridges the gap between the NGO and the companies and gives proper guidance to invest in the CSR activities which will benefit the society. Seeing Fiinovation's positive work many Fiinovation CSR activities are appreciated by many corporates and the Fiinovation news about their latest projects is also covered by well-known media channels like ANI News and economic times.

Fiinovation CEO Dr. Soumitro Chakraborty and his team are working for new upcoming projects and are also honoured with many awards for their work. Fiinovation is always ready to contribute to society because their aim is India should be a developed country. Self-reliant India is the dream of Fiinovation. You can contact Fiinovation through their social media sites like Facebook, Twitter, Linkedin as they keep transparency about their work.


Following are the Links:

Fiinovation Facebook

Fiinovation Twitter

Fiinovation Linkedin

Fiinovation Delhi NGO address: 24/30, Ground Floor, Okhla Industrial Estate, Phase III New Delhi – 110020, Delhi, India

Fiinovation CSR - Sustainability of products, people, and planet

In the corporate world the competition became more fierce and widespread and this is the reason as leaders were given less time to deliver results, they had to focus more on corporate strategies and sacrifice their involvement with the workforce but the definition of the corporate world is slowly changing, such as employees are better educated and more aware of their rights, options, and desires, and expect the same to their leaders to be visible, motivated, actively participating, respectful, and most importantly open to suggestions from employees at all levels. Since the last 20 years or so, the concept of corporate social responsibility is gaining more attention around the whole world among business people, media, investors, shareholders, and academics from a wide range of disciplines.

 “Sustainable development implies meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

                                                                    – The Brundtland Commission to the UN, 1987

The corporate world focuses on four aspects of sustainability. 

There are four approaches:

1. Societal influence: as a  measure of the impact that society makes upon the corporation in terms of the social contract and stakeholder influence. 
2. Environmental Impact: Is the effect of the actions of the corporation upon  its geophysical environment.
3. Organization culture: It is the relationship between corporation, stakeholders and  particularly employees.
4. Finance performance: An adequate return for the level of risk undertaken.

Sustainability is a response to the challenges of the modern world which transforms threats and problems into development opportunities for companies from the public and private sectors. The social responsibility and ethical aspects are of great importance in the modern world due to the increasing influence of organizations.

The world faces many environmental crises, and social responsibility helps to improve the environment. How?

Here we go, the world moved towards globalization, and more focus on social responsibility and sustainability or social responsibility and financial performance. Both social responsibility and sustainability or social responsibility and financial performance are the two faces of the same coin. The corporate world focuses more on social responsibilities, such as conducting societal programs that are helpful for the needy. The company’s management encourages employees to participate collectively in social responsibility programs and they try to understand the nature of the relationship between the dimensions of corporate social responsibility concept (cultural, social, economic, ethical, and legal). The concept of corporate social responsibility (CSR) towards society in which it is located, the safety and health,  and contribution to a range of social activities from combating poverty and pollution control and any natural crisis. Definitely, the size of the company matters such as small, medium and large, according to this they establish their strategy of social responsibility through that Companies work to balance their participation in CSR programs. 

Fiinovation  working on the Concentric model as well as Ethical model, it contains four kinds of social responsibilities that constitute total CSR:  economic (products, job, financial stability and growth), ethical (responsibilities to exercise the economic functions with a sensitive awareness of ethical norms), philanthropic (amorphous responsibilities that businesses should get involved with to improve the social environment) and legal (obey the law). fiinovation believes this model provides a wider scope of economic responsibilities, which include: generating wealth to improve the nation’s standard of living, supplying the needs and wants of people for goods and services, selling goods and services at fair prices, providing employment and fair wages and eliminating poverty in a holistic manner and also they  contribute to shaping the public agenda instead of simply reacting to policy choices advocated by others. fiinovation is a most promising corporation because they contribute to the society or the nation, rather than being confined to pure money-making ventures.

Innovative Financial Advisors Pvt Ltd, is a leading research and advisory firm that offers expertise in corporate social responsibility (CSR) and sustainability domain. Fiinovation family bridges the gap between the NGO and the companies and gives proper guidance to invest in the CSR activities which will benefit the society. They primarily focus on practise areas like health, education, livelihood skills and environment. Fiinovation CSR activities are appreciated by many corporates and the Fiinovation news about their latest projects is also covered by well-known media channels like ANI News and economic times. In February 2017 Fiinovation and Uflex Ltd jointly awarded for Best Environment-Friendly Projects and the title of the project was  Natural resource conservation & optimization of ecosystem services’’. The Fiinovation team always focuses on how their Fiinovation CSR activities make impactful for developing nation India. They mainly focus on social problems. Fiinovation believes action speaks louder than words. They have mentioned their work in Fiinovation Blogs that explains how solving social problems is their first responsibility. Fiinovation CEO Dr. Soumitro Chakraborty and his team are working for new upcoming projects and are also honoured with many awards for their work. Some of the Fiinovation projects related to environmental sustainability are Rainwater harvesting, water management projects, developing various strategies for providing safe drinking water, solid waste management etc. We can contact Fiinovation through their social media sites like Facebook, Twitter, Linkedin as they keep transparency about their work.

Following are the Links:

Fiinovation Facebook

Fiinovation Twitter

Fiinovation Linkedin

Fiinovation Delhi NGO address: 24/30, Ground Floor, Okhla Industrial Estate, Phase III New Delhi – 110020, Delhi, India

How mandated "Corporate Social Responsibility" can be wasteful

Suppose you habitually change from your staid normal self into a rollicking Kishore Kumar when you get into the shower, and change back to stodgy you once you emerge from it. Suppose, further, the family makes it a rule that unless you sing in the shower, you would not be served any food at home. You might rebel and leave home altogether or croak like a crow: you would no more sing for joy.

With its new laws on Corporate Social Responsibility (CSR), the government has put companies into your musical shoes. Any company that has a net worth of at least Rs 500 crore, a turnover of Rs 1,000 crore or a net profit of Rs 5 crore is obliged to spend 2% — thankfully not 5% — of its average profits over the last three years on CSR.

This was a change brought to the Companies Act by the previous UPA government, which turned what many companies had been doing voluntarily into a legal obligation. But the UPA-era legal change still lacked coercion: if a company did not comply with the CSR directive, all it needed to do was give an official explanation as to why it was being a heel.

Now, failure to perform CSR duty can invite a fine ranging from Rs 50,0000 to Rs 25 lakh, and the officials held responsible for the company’s CSR deficit can go to jail for three years. Nobody spoke about it but perhaps the slogan, ‘Minimum government, maximum governance’ was part of the payload when Chandrayaan 2 was despatched to the far side of the moon.

What exactly is CSR? Economists such as Milton Friedman were clear that just by doing its business well, a company discharges its duty to society in full. A company converts ordinary folks’ savings into capital and generates returns for them, whether as interest or dividends. It creates jobs, incomes for its employees and investors, pays taxes directly on its profits and indirectly on the goods and services it produces. It meets, through its output, social needs or wants. Often, companies perform research, creating new advances in science and technology. Just by being a successful and profit-making company, it meets its social responsibility.

Yet, many companies have been consciously going beyond their core, corporate mandate and doing things that impact society in a gainful manner. ET Awards for corporate excellence have had a category, Corporate Citizen of the Year, long before CSR entered the Company Law in 2013. The motivation for companies to enter CSR has been varied.

A cigarette/liquor/sugary drink manufacturer could develop an angelic concern for the environment and the underprivileged to mellow public perceptions of their profiteering from sin goods. Public sector enterprises have been doing CSR without ever realising what they were doing, much like lexicographer Samuel Johnson’s friend who never realised that prose was what he spoke.

SAIL would build towns in the middle of nowhere, complete with schools and hospitals that were open to neighbouring communities, whose land it had taken over to open mines and build factories, give scholarships to tribal youth and employ them on the shopfloor. This won SAIL goodwill and freedom from protests and attacks of the kind that companies that were focused solely on their core operations have had to contend with.

The best kind of CSR takes a form that both gives an extra benefit to society and adds to the company’s bottomline. Unilever promotes hand-washing in Africa and Asia. It reduces infections, improves nutrition and sells more soap. But India’s CSR rules prohibit labelling any activity that adds to the company’s bottomline as CSR.

Mandated CSR can be wasteful. Of the amount a company spends on CSR, some would go on publicity, training of staff or searching for the right NGO, travel and staff accommodation at remote sites, besides funding, say education. Put all such expenditure by all companies and the CSR spend on peripheral activity can be huge.

It would be better to take this money as tax and for the government to spend that money in a centralised and coordinated fashion.

But that would boost India’s corporate tax rate to more than double the rate in Singapore. What should we do?

There are benefits to being known as a corporate do-gooder. Ethical investors prefer ethical companies and have trillions of dollars at their disposal to demonstrate their preference (the Norwegian Pension Fund alone is worth $1 trillion). Consumer groups campaign to punish companies that exploit labour or destroy forests, and favour companies that are water-positive, for example. Being sustainable as a company can give a sheen to your soup and snacks, as former CEO Paul Polman showed sceptics at Unilever.

If a company has the imagination to divine a strategy that converges its own profits with saving humanity, let it go ahead. If another company just wants to create lots of jobs and pay taxes and dividends, don’t burden it with do-goodery. This would ideal. In India now, we have Gandhian trusteeship being marshalled to coerce companies to do good. Indian companies now have to make profits, pay taxes, repay loans and do good. Four legs, after all, are better than two, right?

This article is taken - https://economictimes.indiatimes.com/news/company/corporate-trends/view-how-mandated-corporate-social-responsibility-can-be-wasteful/articleshow/70515680.cms?from=mdr

Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood

Fiinovation CEO : Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with ‘CEO of the year’ award at the 8th World CSR Congress held in Mumbai on February 18.

The World CSR Congress this year focused on the integration of Sustainable Development Goals (SDGs) in corporate strategies, innovation, and strategic alliances. The award recognizes fiinovation projects exemplary work in the social development sector and noteworthy CSR and sustainability programmes.

Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi, Delhi 110020

India Inc’s CSR spending grew 17.5% in FY19

India Inc. is doing much more than just lip service towards Corporate Social Responsibility (CSR) and it is evident from the fact that 1,132 companies listed on the NSE witnessed an annual increase of 17.5% in CSR spends at ₹11,961 crore in FY19. According to nseinfobase.com -- a joint initiative of National Stock Exchange (NSE) and PRIME Database, the average net profit of these companies was over ₹6 lakh crore in FY19, up from ₹5.23 lakh crore in FY18. The CSR spend stood at about 1.99% of the total average net profit in FY19, while the average spend per company was ₹10.57 crore.

Back in FY15, these companies spent ₹6,556 crore or 1.57% of their total net profit on CSR; it was nearly 30% lower than FY19 at ₹7.45 crore on an average per company. “CSR expenditure by companies listed at NSE has grown at a healthy compounded annual growth rate (CAGR) of 17% over the last five years,” says Mukesh Agarwal, CEO, NSE Data & Analytics. As per CSR requirements, the amount required to be spent for FY19 was ₹12,018 crore, but the companies decided to spend a bit more at ₹12,461 crore, but ₹1,343 crore eventually remained unspent. While the CSR law mandates spending across 12 prescribed schedules, few companies deployed CSR spends towards community development, infrastructure, social welfare, child welfare, and other activities.

“In line with the previous year, education received the maximum spend (₹4,440 crore) followed by healthcare (₹3,242 crore),” says Pranav Haldea, managing director, PRIME Database Group which has developed and powers nseinfobase.com. “Areas such as armed force veterans, technology incubators, slum development and disaster management saw negligible spends,” Haldea adds. In terms of company-wise CSR spends, the number of companies which spent on CSR went up to 1,055 (93% of the 1,132 companies) in FY19 compared to 1,024 (94%) in FY18. The balance 77 companies, despite being mandated, did not spend anything, according to nseinfobase.com.

Overall, 653 companies, or 64%, increased their spending as compared to FY18, while there were 488 companies (43%) which exceeded their prescribed spending in FY19. There were also 37 companies, which despite reporting a loss, spent on CSR. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. The CSR spends from PSUs touched ₹3,198 crore from 57 PSUs in FY19, as compared to ₹2,710 crore spent by 54 PSUs in FY18.

Link: https://www.fortuneindia.com/investing/india-incs-csr-spending-grew-over-175-in-fy19/104026

(Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood

Fiinovation CEO : Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with ‘CEO of the year’ award at the 8th World CSR Congress held in Mumbai on February 18.

The World CSR Congress this year focused on the integration of Sustainable Development Goals (SDGs) in corporate strategies, innovation, and strategic alliances. The award recognizes fiinovation projects exemplary work in the social development sector and noteworthy CSR and sustainability programmes. 

Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi, Delhi 110020

How will changes in the law affect companies CSR?

Parliament has passed amendments to the Companies Act to strengthen laws governing corporate social responsibility (CSR). Mint delves into the changes that have left Indian companies unamused as they face higher compliance and management costs.

What are the laws governing CSR?

The laws governing CSR come under the Companies Act, 2013, and became effective on 1 April 2014. These laws state that companies with a net worth of ₹500 crore or revenue of ₹1,000 crore or net profit of ₹5 crore during the immediately preceding fiscal should spend 2% of their average net profit in the last three years on activities related to social development such as sanitation, education, eradication of hunger, poverty and malnutrition, conservation of heritage, art and culture, and vocational training such as setting up grooming outlets or training centres for sewing.

What are the changes in the law?

Till now, if a company was unable to fully incur the CSR expenditure in a given year, it could carry this amount forward and spend it in the next 12 months, in addition to the money for that year. Under the new laws, any unspent amount will have to be deposited into an escrow account within 30 days of the end of that fiscal. This amount will have to be spent within three years from the date of its transfer, failing which it

will be put into a fund, which could even be the Prime Minister’s Relief Fund. The government also plans to include a specific penal provision in the Companies Act in case of non-compliance with CSR.

What are the penalties?

Companies violating CSR norms will attract fines ranging from ₹50,000 to ₹25 lakh, with the officers concerned liable for imprisonment of up to three years, according to the Companies (Amendment) Bill, 2019.

What are the objections to the proposed amendments?

The proposed changes come in an environment where profit has become a dirty word. Starting from the budget, which increased taxes on the rich, this is seen as another move aimed at penalizing the private sector. There’s a sense that the government is unloading its responsibilities on the private sector. The new provisions are also tantamount to raising taxes on companies as they would be penalized for not spending the full CSR amount. The move will also increase costs for companies.

What paraphernalia do companies need to ensure CSR compliance?

Listed firms need to disclose their CSR activities, amount spent and framework created to ensure adherence to norms. They have a CSR team that provides a regular progress report and updates to the CSR committee of the board. The committee is also given a report of the activities undertaken each quarter, along with targets and reasons for variance, if any. All this needs to be submitted to the corporate affairs ministry. The list of activities constituting CSR and what does not is subjective.

This article is taken from https://www.livemint.com/companies/news/how-will-changes-in-the-law-affect-companies-csr-1564592308806.html

(Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood.

Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi, Delhi 110020 

Fiinovation impact assessment for dairy-based CSR intervention in Rajasthan

Innovative Financial Advisors Pvt. Ltd. (Fiinovation) has partnered with a rapidly growing multi-diversified conglomerate to assess the impact of its ongoing CSR intervention in Sikar and Dungarpur district, Rajasthan.

The project focuses on improving dairy output and enhancing milk productivity in rural households. Under the project, Artificial Insemination (AI) services, veterinary care and treatment are provided through trained livestock assistants.

The project is also building the capacity of dairy farmers in order to take up better cattle management practices. To help the farmers better their livestock management, services like 24/7 helpline, health camps and tools such as chaff cutters are provided under the project.

The project has identified 240 Champion farmers from Dungarpur and 200 Champion farmers in Sikar district and is being projected as role models. These farmers are adopting new approaches to enhance milk productivity that include improved feed and fodder practices, scheduled vaccinations, regular veterinary treatment, improved sheds for cattle, procuring better breeds for higher milk production and adopting artificial insemination for improving the breed of existing livestock.

Fiinovation in its capacity has undertaken a comprehensive detailed impact assessment and way forward study of the project in the districts. The study aids in evaluating the design and planning structures of the project, status of on-ground implementation, and internal controls through monitoring mechanisms and assessment of the sustainability of the program.

"With the increasing population, the demand for milk and dairy products will continue to rise. In order to meet the demand, the country needs to upgrade its infrastructure at the village level and adopt advanced techniques to improve livestock production", said Dr. Soumitro Chakraborty, CEO Fiinovation.

"The project in Dungarpur and Sikar, aims to fill the gap in infrastructure and adopt advanced methods to improve milk productivity. The project will not only meet the increased demand for milk and milk products but will also fulfil the objective of doubling the farmer's income"', he added.
Story is provided by NewsVoir.

Ground rules for undertaking CSR activities in India

The enactment of the Companies Act of 2013 has completely transformed the CSR landscape in India. The revolutionary act mandated companies, fulfilling specific criteria, to carry out CSR activities in India. While there are some companies whose CSR initiatives predate the enforcement of this law, however, this act has radically altered the way the social sector is looked at by making CSR an indispensable part of the business discourse. Besides mandating CSR, the act has played a pivotal role in ensuring its own compliance by incorporating key provisions of monitoring, evaluation, and annual disclosure.

For starters, the act has made it compulsory for a company with either a net value of 500 crores, a turnover of 100 crores, or a net profit of 5 crores, to devote at least 2% of their net profit on CSR activities in India. And it is not all about pouring money in some social welfare. It is equally essential for these organizations to create functional CSR strategies while simultaneously overhauling internal systems that can decisively turn those visions into reality.

It is important to be acquainted with one’s proficiencies and shortcomings when taking actions to turn things around. This is the reason why companies undertaking CSR activities in India should have a prudent vision to visualize needs and outcomes and plan the execution of initiatives accordingly.

The probability of errors and omissions increases significantly when the initiatives are based on desired outcomes. However, the case is entirely different when initiatives are based on well-researched facts and figures. Some of the factors to be taken into account while doing the groundwork for CSR initiatives are mentioned below.

Determining the right partners
Forging and cementing a working relationship with NGOs is one of the ways through which an organization can get the intrinsic knowledge of the area that one intends to cater to. Although, the big corporations have the capital, they are more or less oblivious to the problems affecting the lower strata of the society on a regular basis.

This is exactly where the role of a CSR-CSO consulting company comes into play. |In spite of limited financial resources at their disposal, they are well versed in dealing with the problems of the society. Corporations can integrate themselves with the community that they intend to serve by tying up with local CSOs.

Monitoring of progress
Efficient tracking is critical to comprehend the progress being achieved as well as to determine the distance to be traversed to reach the ultimate goal. Parameters must be set to specify the short-term and long-term goals so that they can efficiently map out their progress. It must be noted that while short-term goals are easier to achieve, long-term impacts are the true indicators of a successful CSR campaign.

Data collection
Data collection is an essential factor in mapping the progress made in achieving short-term and long-term CSR goals of an organization. Data collection revolves around mapping fields relevant to the need assessments and is pivotal in zeroing in on the direct beneficiaries of the CSR strategy. These beneficiaries could be impacted by CSR activities in terms of healthcare, primary, secondary and higher education, skill training and the environment where they live.

Quality analysis
Post data collection, the Qualitative Analysis is the next step to classify data in terms of criticality levels. Statistics collected on the needs of a community must be classified on the basis of their criticality to the community. For instance, a playground might be needed for the holistic growth of children of a community, however, precedence must be given to a maternity ward if the community has high maternal and infant mortality rates. The aforementioned illustrates the importance of analysis while undertaking CSR activities in India.

Output to Impact
It must be thoroughly studied whether the intended intervention for the community is feasible and financially viable within the stipulated budget or not. The outcomes must be measured against long-term impacts. Only when outcomes transform into long-term social impacts, an organization can claim CSR activities in India as effective and everlasting.

6 criteria to be considered to select an effective CSR consulting firm from a list of CSR Consultants in India.

According to the Companies Act which came into effect in 2013, companies with a net worth of Rs 500 crore on revenue of Rs 10,000 or net profit of Rs 5 crore on revenue of Rs 10,000 or net profit of Rs 5 crore should spend 2% of their average profit in the last three years on social development such as health and sanitation, poverty alleviation, among others listed in Schedule VII of the rules.

With the implementation of Corporate Social Responsibility (CSR) in India, not much has been changed in patterns of spending by the top 100 National Stock Exchange (NSE) listed companies. While the education and healthcare sector has been rapidly attracting eyeballs of CSR Funding, Maharastra still sees the maximum inflow of CSR spends. The top listed companies still account for almost half of the total CSR Spends.

In the recent years, India inc. has increased its CSR spending in 2017-18 to Rs 9,034 crore, including activities such as the promotion of education, vocational skill development, environmental sustainability and development of slum seeing an increase in expenditure. Notably, CSR expenditure by the companies towards poverty alleviation and promotion of healthcare and sanitation has witnessed a drop in 2016-17, as the total spends on the activity fell to Rs 549 crore or 18.6% from 2,944 crores in 2015-16 to Rs 2,394 crore in 2016-17 according to a report published at The Indian Express.

According to a report from PRIME Database, the CSR Spending statistics of India states that while 1,091 listed companies spent amount to the tune of Rs 9,034 crore towards CSR in FY17, implying that Indian corporates under CSR expenditures are giving more priority on education and vocational skills. 2016-17 witnessed a Rs 591 crore rise in CSR spends from Rs 2,793 crore in FY16 to Rs 3,384 crore in FY17. Education and vocational skills account for 37% of the total CSR spend by the Indian Corporates.  

Based on the CSR strategy of Corporates, other sectors that have seen a significant increase from education and skill development sector is the expenditure towards benefiting the armed forces veterans, war widows, and their dependents have registered the biggest increase in percentage terms. The spend has almost seen a jump of three times from Rs 24.5 crore in 2015-16 to Rs 73 crore in 2016-17.

According to report, the CSR spend growth towards armed forces veterans and dependents of martyrs is in accordance with the Government’s decision in November 2016 to double the compensation for widows and families of soldiers. Apart from these sectors, community development, infrastructure, social welfare, sports and slum development have also registered a significant increase in CSR spends.

As the companies have implanted Corporate Social Responsibility into their businesses, the value of working with CSR consultant is not always clear. In many cases, Corporates interested in CSR and are looking to attain sustainable goals, don’t feel the need to hire CSR consultants from outside. For them merely conducting an employee engagement activity will suffice the cause.  However, there are some exceptions to CSR activities conducted for social development, as these include areas such as social audits of supply chains, environmental impact assessments, and measurement of social outcomes where third-party verification/assurance is appropriate and necessary. Overall, the objective should be to build internal CSR capacity wherever possible.

As there is a rapid rise in the CSR initiatives in India, finding suitable CSR consultants is equally not possible. There’s now so much choice that Corporates while searching for a perfect CSR consultancy have a hard time selecting the right CSR advisor.  

However, a checklist for Corporates to keep in mind while selecting that right CSR consultant will definitely help to understand and conduct the best CSR activities in India. Here are the six criteria that are important.

1. Work experience: One important aspect to keep in mind while selecting a CSR consultancy is the past record and work experience of the company. Have they worked for corporations and not-for-profit organizations? What kind of businesses have they worked with? A clear understanding of these is important while selecting the CSR consultant.
2. Research Methodology: Understanding the method of research used by the identified CSR consultant is also important. Systematic study and analysis of collected evidence and data points with a linked and inclusive perspective to support the policy level decision making must be the specialty of the consultancy. It should be based on learning, analysis and should be action-oriented.
3. Proper CSR-CSO partnership: A well captivated civil society organization with the required experience to implement the initiative must be given utmost priority by the consultants. Building a credible network of civil societies is crucial. A consultant must identify and select credible implementing partners with relevant experience for the programme and hold a command on community mobilization while also mitigating the risks when required.
4. Understand your Social return on investment: Only having academic credentials and practical experience in business is not enough. CSR is all about bridging the gap between profit and purpose which means that the advisors must be capable enough to provide you an in-depth knowledge on how social change works. An efficient CSR consultancy helps the corporate identify how effectively the organization uses its capital and other resources to create value for the community.
5. Diversity: Identifying the work scope and areas of work is equally crucial for a CSR consultant. One must understand that CSR consultants reflecting the internal and external audiences one needs to reach and influence. This means the consultant must have access to a wide range of different opinions and to people of different ages, genders, and culture.
6. Building capacity: The best CSR consultants places itself to the highest degree of priority on putting themselves out of priority and concentrate on delivering outputs.