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.

Is CSR implementation important for Indian corporates and how Fiinovation helps corporate in Implementing CSR Projects?

The term CSR or Corporate Social obligation turned out to be generally prevalent in the year 1960 in India. It alludes to a business practice that incorporates coordinating social and ecological worries in business activities and associations with their partners. The CSR usage in India is commonly comprehended as a strategy through which an organization accomplishes an equalization of monetary, natural and social objectives, while in the meantime tends to the desires for investors and partners.

Be that as it may, the significance of CSR in India is regularly misconstrued or misjudged. Greater part of Indian corporates trust that only consenting to laws and guidelines satisfies their requirement for social obligation. While, a capable corporate perceive that CSR exercises have more extensive effect on the general public in which it capacities. In this manner, it considers the financial, social, ecological and human rights effect of its exercises on every one of the partners.

As India changes gears of advancement and endeavors to change itself from a rising economy to a created one, the weight of developing dissimilarity between mechanical benefits and in general human improvement file keeps on turning into an obstacle.

However positively, with the new Companies Act set up, benefit influencing partnerships currently to have a chance to assume an instrumental job to defeat the social advancement concerns. "What we take from the network, we should give it back to it." Today, Corporate Social Responsibility (CSR) is never again a matter of order, however an undertaking of duty that organizations view towards the general public on the loose. It denotes the best time for social intercessions to happen, and an open door for the nation to make a feasible future for our childhood. Obviously, India has risen as the nation with the most youthful populace with 65% beneath the age of 35. The CSR order is a trigger for the private segments and allows to contribute towards social welfare.

At Fiinovation, we understand the methodology towards tending to the social difficulties with cost-viability and time-introduction. Absolutely, there is a gigantic development potential in this part, both quantitatively and subjectively. What is essential is that the dedication, regardless of whether they are tiny, are attempted and coordinated towards a positive and sensible effect which is quantifiable and versatile.

Since the year 2009, our association is completely working in the social advancement area and has genuinely comprehended the different complexities that exist in the financial worldview of the world's biggest vote based system. We are successful in redoing the whole esteem chain of social mediations by considering the ground-level needs. Inferable from our exhaustive comprehension, our association is capable to make an interpretation of chances into proposed positive results through suffering organizations among organizations and municipal bodies.

Fiinovation, a worldwide CSR and Sustainability consultancy has gone into an association with People's Forum, a non-benefit association that works in divisions including ladies and youngster improvement, wellbeing and sanitation, job and agribusiness alongside a main Public Limited Company in the matter of assembling of Calcined Petroleum Coke, for a social welfare intercession on Water, Sanitation and Hygiene (WaSH) parts in Paradip.

Fiinovation has completely looked into and recognized a nearby NGO, People's Forum which will sharpen and make mindfulness among individuals while execute different exercises recorded in the task targets.

"Our group at Fiinovation and our accomplices including People's Forum understand the methodology towards tending to social difficulties with cost-viability and time-introduction, and are sure that our reliable undertakings like these will bring an enduring change." As a piece of the venture, the other basic exercises incorporate tree manor in and around the provinces, school grounds, play area and other appropriate spots, planned to lessen the stream of contaminations and residue. To make a feeling of proprietorship and obligation, the current Self Help Groups will likewise be capacitated to complete the execution alongside the NGO.

Fiinovation || Dr Soumitro Chakraborty wins 'CEO of the year' award at the 8th World CSR Congress held in Mumbai

Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was met with 'Chief of the year' grant at the eighth World CSR Congress held in Mumbai on February 18.

The World CSR Congress this year focussed on the mix of Sustainable Development Goals (SDGs) in corporate techniques, advancement, and vital collusions. The honor perceives Fiinovation's commendable work in the social improvement division and significant CSR and supportability programs.

Driven by the need to move creative reasoning and activity prompting practical social change, Dr Chakraborty carefully strategised a few supportability programs crosswise over India in association with various partnerships and common society associations. He left the job of a functioning pilot in 2006 and with a mean to manufacture a foundation that may reliably conquer any hindrance between the private part and common bodies, established Fiinovation in 2009.

Throughout the years, he has demonstrated his assurance by changing over difficulties into circumstances and conveying quality, compelling and vital answers for associations for social activities at a grass root level, going for comprehensive development.

Sponsored by rich sectoral experience and significant order in maintainability and authority as a subject has earned him the respect of being a compelling keynote speaker at different national and global gatherings. He has likewise written articles for driving national productions around the job corporates could play in guaranteeing and building a manageable world.

The eighth release of World CSR Congress saw cooperation from 33 nations and perceived the endeavors of people and associations.

"I feel lowered on getting the CEO of the year grant. This has a place more with Fiinovation family than me. No pioneer can accomplish only anything. This is the productive aftereffect of all the diligent work of every individual from the family. This acknowledgment will additionally fortify our determination in building a superior feasible world", said Dr Chakraborty on the event and ascribed the success to his group.

Self Help Groups – Instrumental in empowering women || Fiinovation

Women comprise practically half of the all-out populace in India. They are the key specialists to accomplish monetary, natural or social development of the nation. In spite of this, ladies are segregated and thought about frail when contrasted with their male partners, particularly in the rustic and semi-urban regions. Regardless of whether she wants to break the discriminatory constraint and improve her societal position, restricted access to credit, training and human services surface as a prevention. In spite of the fact that the requirement for ladies strengthening by giving equivalent rights to take an interest in the public eye, instruction, aptitude advancement and work can't be denied any more.

Understanding this need, Govt tried endeavors to develop the possibility of Self-help gatherings (SHGs) from the Gramin Bank show in Bangladesh around late 1970s. In India, it was first started by National Bank for Agriculture and Rural Development (NABARD) in 1986-1987, encouraging continued access to money related administrations for the unserved individuals. Further, the state legislature of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala set up independent associations. Strikingly, another plan was presented in 1999, named Swarn Jayanti Gram Swarozgar Yojana (SGSY) that advanced independent work in country zones through expertise improvement inside SHGs. The program advanced as a national development in 2011 and changed into National Rural Livelihoods Mission (NRLM), the world's biggest destitution mitigation program.

The arrangement of Self-help gatherings (SHGs) include individuals, particularly ladies from comparative financial foundation to sort out themselves into a gathering. The capacity of Self-help bunches in India, is to draw in with individuals and to make joined reserve funds till the gathering assembles sufficient assets to begin a loaning procedure for the gathering individuals.

Throughout the years, the job of SHGs in rustic improvement has developed. Today, the Self help Groups not simply teach a propensity for reserve funds among ladies yet stretch out microfinance to help start work open doors for them. In addition, they likewise work in uniting different gifted partners and go for building limits of ladies, update their abilities and give them satisfactory preparing to business. One such successfulexample is the incredible activity embraced by Pangwala ladies in Pangi District, Himachal Pradesh.

The tribals of Pangwala is an underprivileged network. The state of ladies in the locale was hopeless previously. The greater part of them were uneducated, loaded with social standards and limited by male centric standards. Be that as it may, things changed for better when multi year old Nain Dei rose to change their in the territory. After much battles, in 2016, Nain Dei alongside 1200 other ladies effectively shaped 75 self improvement gatherings.

Moreover, Collective Efforts for Voluntary Action (CEVA), a non-government association bolstered these ladies to team up with National Bank of Agriculture and Rural Development (NABARD). The thought was to give them monetary help and sharpen their enterprising abilities, further to which, they were offered with satisfactory aptitudes to adapt to the changing business sector requests. Ladies in the gatherings began to make innate woolen handloom, crafted works, ancestral specialities and unadulterated natural items. In the long run, the items got acknowledgment and notoriety in the nearby market. Nonetheless, there was a need to make showcase linkages for these items to reach crosswise over India. CEVA helped these ladies to enroll their items with the brand named "Pangi Hills".

Today, the wollens, healing herbs, and natural items from the brand "Pangi Hills" are in a colossal interest. Six-Seven ladies in a single gathering procure between Rs 2 lakh to 2.5 lakh per annum through their deal in displays and exchange fairs. Pangi Hills additionally has a site to cook its online clients. A genuine case of how innovation can be conveyed for a bigger decent.

Like Pangi slopes, a few ladies crosswise over India have improved their societal position with SHGs. Such gatherings have encouraged the procedure of self-strengthening by conquering imbalance, improving cooperation of ladies in basic leadership process. The gatherings go about as a discussion for ladies to start participatory occasions including trainings and mindfulness battles on significant subjects like maternal wellbeing, AIDS, Child wellbeing, tyke marriage and help break generalizations on sexual orientation jobs.

So as to increase reliable development and accomplishment of self improvement gatherings, there is a requirement for NGOs, Micro-financing gatherings to approach and render support in upgrading the job of these gatherings. Corporates can assume a key job in propelling, preparing and managing the SHGs and exchange mindfulness on different Govt Schemes, and advertising linkages that can help set up an economical hierarchical structure.

Throughout the years, the possibility of SHGs has gone about as an impetus to enable ladies and reduce destitution. India, to advance comprehensive development and inspire the situation of ladies in the general public, need to grow the idea of Self-help gatherings, particularly in the unserved regions.

Imaginative Financial Advisors Pvt. Ltd. (Fiinovation) is a worldwide counseling firm working in numerous orders of the social advancement area with accentuation on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers start to finish CSR counseling administrations and streamlined arrangements that has helped different companies channelize their assets for the upliftment of network on societal, financial and natural angles in agreement to their CSR contract. Since 2008, Fiinovation has developed amazingly and has made a benchmark in the segment through its administration quality. It has possessed the capacity to conquer any hindrance among organizations and networks through esteem based CSR programs in relationship with valid common society associations on skillet India premise in the field of wellbeing, condition, instruction, and business.

Future of CSR in India? Are corporates taking CSR seriously? How Fiinovation helps corporate in Implementing CSR Projects?

It is important to understand its intent and evolution.

a) The CSR law was established as a purpose of the administration to guarantee that organizations are unmistakably contributing back to the networks in and around their networks. They don't really need organizations to share the taxation rate as such as the all-out commitment of organizations through CSR is a unimportant division when contrasted with the financial plans of the administration for social welfare plans.

b) The first of its benevolent control of CSR on the planet requires organizations not exclusively to burn through 2% of its benefits towards the welfare of the general public yet in addition track and screen its use according to its organization CSR strategy. Just marking a limitless ticket to ride to your well-disposed neighborhood NGO isn't CSR. It must be as a program with definite results.

c) Next the law right presently is relevant to more than 12,000 organizations. Uncovering the Tata's and Birla's of India, the majority of the organizations have never done CSR. They do not have the committed labor, learning about the areas instruction, wellbeing and so on and need information about the CSR law itself and it's anything but a need for them. It is done just and just for the reasons for compliances.

d) The CSR law IMO is toothless. There are numerous escape clauses and there is no corrective arrangement because of which organizations can undoubtedly escape without spending a dime. It can without much of a stretch set up its own establishment and park the assets in the establishment as it would be regarded to be CSR if the organization chooses to do as such.

In summary, as long as there are no compulsory audit and reporting guidelines, monitoring and reporting standards, stricter penal provisions, CSR will not be a significant game changer as the media or government expects it to. I believe the first few years are experimentation years and it will gradually evolve as the companies themselves become aware and make more strategic decisions about CSR. 

Fiinovation, a worldwide CSR and Sustainability consultancy has gone into an association with People's Forum, a non-benefit association that works in divisions including ladies and youngster improvement, wellbeing and sanitation, job and agribusiness alongside a main Public Limited Company in the matter of production of Calcined Petroleum Coke, for a social welfare mediation on Water, Sanitation and Hygiene (WaSH) segments in Paradip. The Corporate Social Responsibility (CSR) program will plan to profit 700 family units in the area, by sharpening local people on Water, Sanitation and Hygiene (WaSH) rehearses. Obviously, the program will guarantee access to safe drinking water by introducing network Reverse Osmosis (RO) plants in the territory. The exercises will incorporate establishment of capacity tanks for accumulation and capacity of the filtered water. Through this activity, every family will be empowered to gather 20 liters of safe drinking water every day in jerry cans.

Fiinovation and our accomplices including People's Forum understand the methodology towards tending to social difficulties with cost-viability and time-introduction, and are sure that our reliable undertakings like these will bring a dependable change." As a piece of the venture, the other basic exercises incorporate tree estate in and around the provinces, school grounds, play area and other reasonable spots, expected to lessen the stream of contaminations and residue. To make a feeling of proprietorship and duty, the current Self Help Groups will likewise be capacitated to do the execution alongside the NGO.

About a yearlong task, it expects to profit around 3500 recipients and contribute towards a superior life by tapping on some key difficulties saw in the zone.

About Fiinovation

Creative Financial Advisors Pvt. Ltd. (Fiinovation) is a worldwide CSR consultancy which offers ability in segments like Healthcare, Environment, Education, Skill Development and Livelihood with accentuation on Corporate Social Responsibility and Sustainability. Begun in the year 2008, the association's grass-root level methodology in Need Assessment, Baseline Survey, Project Implementation and Impact Assessment has effectively spanned the holes among organizations and networks.

A portion of it's accomplices incorporate real enterprises and associations, for example, Bharti Infratel, Uflex Limited, Flex Foods, PI Industries, Laurus Labs, IL&FS-Skills, JK Tire, Mytrah Energy, Pipavav Railway Corporation, RPG Foundation and KEC International, among others.