How CSR can help in preserving national heritage in India ?

Climate change, global warming, and other natural disturbance have started to affect the historical masterpiece across the world. Though many developed countries take the best conservation measure and restoration of their art and culture, developing countries like India lack funds and willpower to carry out this exercise. While the social and cultural benefits of heritage conservation are important, many communities have discovered that their heritage resources are also valuable economic assets. Investing in the preservation, rehabilitation and ongoing use of heritage buildings and other historic places has economic benefits for both individuals and communities. Heritage conservation can lead to higher property values and increased tax revenue, job creation, revitalized neighbourhood and economic growth. The CSR framework has recently been systematized and structured by the Government wherein a company is required to invest 2% of Net profits towards CSR on projects for 3 years in a particular financial year.

However, CSR is one of the many tools that the private sector can utilize to conserve India’s Heritage.

The Ministry of Tourism in 2017 recognised the potential of a collaborative approach and launched the Adopt a Heritage Program, inviting the corporate sector across the country to identify and commit towards developing a heritage site and various Public Private Partnership made a holistic approach towards developing heritage site by luring international and domestic tourism to outreach activities that enable sensitization about the site.

The Archaeological Survey of India (ASI) under the Ministry of Culture maintains and regulates the monuments, heritage and archaeological sites of national importance as per the AMASR Act 1958. The Central Board of Secondary Education (CBSE) has also taken a giant leap towards this. Companies like ONGC, NTPC, TATA group, GAIL have been assisting ASI with grants for the restoration and preservation works. ASI placed 50 monuments in the list of monuments to be protected. Taj Mahal (Agra), Humayun’s Tomb (New Delhi), Lord Jagannath Temple (Puri, Orissa) and few others are in the ambit of the 50 monuments to be restored. Coca-Cola (India) also helped in the restoration of The Sarai Bawari and Kale Hanuman Ki Bawari (Rajasthan) and creating awareness among the local community. Also, Yes Bank, with the help of its think-tank Yes Institute, organized 73 heritage walks and 50 cycle rides at Delhi’s heritage spots like Lodhi Gardens, Purana Qila, Humayun’s Tomb, Qutub Minar and Hauz Khas as a part of their CSR activities in 2014. The bank spent Rs 29.52 crore on its CSR in 2015-16 and spent Rs 34 crore in 2017.

IT giant Infosys Ltd is also involved in restore monuments and organizing cultural shows in South India. In 2016, Infosys Foundation restored Somanatheshwara temple complex in Karnataka’s Lakshmeshwar and around Rs 5 crore were spent over last four years.

Not to forget, we have a bewildering number of monuments in India (3650 monuments in 2010) divided among 24 circles across the country. Numerous monuments have been encroached upon and need urgent attention. Sensitivity is slowly increasing, but there are a few hurdles. We need more Public-Private Partnership to save our National heritage and CSR initiatives will certainly help.

About Fiinovation Company

Fiinovation (Innovative Financial Advisors Pvt. Ltd.), is a global CSR consulting firm operating in multiple disciplines of the social development sector. It’s emphasises on Corporate Social Responsibility (CSR) and Sustainability initiatives/programmes.

Fiinovation started its journey in the year 2008 under the guidance of Mr. Soumitro Chakraborty (CEO of Fiinovation). Over the past 8 years, it has grown leaps in every aspect of operations in the social sector. Fiinovation has also been successful in bridging the gap between businesses and communities through value based CSR Projects in India by engaging with various corporations and credible NGOs in the field of health, environment, education, livelihood& skills.

The Companies Act Amendment 2019

The Government of India has amended the Companies Act, 2013. The new Companies Act  Amendment bill 2019 was passed in both the Houses of Parliament, and past President's approval on the 31st of July, it became an Act within Section 135. 

Rules Till Now

·         Section 135(1): CSR rules mandate every company with a net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more, during any financial year has to constitute a CSR committee and has to spend 2% of the average net profit (PBT) over the last 3 financial years on certain CSR activities as mandated under Schedule VII of the Companies Act. It also states that every eligible company shall constitute CSR committee of the Board, consisting of 3 or more Directors, out of which at least one director shall be independent. 

·         Until now if the company failed to spend the stipulated amount, the Board members had to specify the reasons for not spending the amount in the CSR report.” Therefore, it was comply or explain. Under Section 135 (5): Board will have to spend at least 2% in every financial year. If not spent, they will have to report and specify the reasons for not spending the amount.

New Amendment - Section 135 (6)

·         After the amendment, every company is now entitled to explain the expenditure on CSR. If the amount is unspent during the one year window, the companies will have to transfer the money they fail to spend in that year to an “unspent Corporate Social Responsibility account”, from which they can draw within the next 3 years to spend on CSR activities. This transfer has to be done within 30 days of completion of the financial year, wherein the money was supposed to be spent. This special account has to be opened in a scheduled bank. If a company is still unable to spend the amount within that period of 3 years, it can transfer it to a govt fund specified in Schedule VII of the Companies Act, such as the PM's National Relief Fund, within a period of 30 days of the 3rd financial year-end, failing which fines and imprisonment clauses will be levied.

Fines and imprisonment clauses: Section 135 (7) 

·         The Amendment states that “if a company contravenes the provisions of sub-section (5) and (6) of Section 135, the Company shall be liable for fine, which is between Rs 50,000 to Rs 25 lakh. Officer of such company who is in default is liable for 3 years imprisonment or a fine between Rs 50,000 to Rs 5 lakh, or both.

About Fiinovation:-

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. 

MSMEs - The growth engine of India's Economy.

The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as a bulwark for the Indian economy. It has provided resilience to ward off global economic shocks and adversities. The development of this segment is extremely critical to meet the national imperatives of financial inclusion and generation of significant levels of employment in urban, and rural areas across the country. Further, it can nurture and support the development of new-age entrepreneurs who have the potential to create globally competitive businesses from India.

There are around 63.4 million units throughout the geographical expanse of the country, and nearly 20% of the MSMEs are based out in the rural areas, which indicates the deployment of significant rural workforce in the MSME sector and is an exhibit to the importance of these enterprises in promoting sustainable and inclusive development as well as generating large scale employment, especially in the rural areas. In spite of its contribution to the socio-economic growth of India, MSMEs face several challenges, such as inadequate access to finance and credit, poor infrastructure and utilities, lack of innovation, and inability to adopt the technology.

Creating a robust MSME Sector will require efforts towards strengthening the credit structure to help MSMEs amplify their operations. The absorption and upgradation of technology are critically important aspects of the MSME ecosystem. Considering this, centres that offer skill upgradation, consultancy and prototyping training of futuristic technologies such as IoT, artificial intelligence (AI), virtual reality and 3D printing among others must be initiated across the country. 

Further, various stakeholders like banks and financial institutions, industry sector majors and MNCs, trade associations, and regulators across ministries at the centre and state level etc, will have to join hands and create a forward-looking framework and ecosystem for the MSMEs. 

Data Speaks 

1.       SMEs contribute 6.11% of the manufacturing GDP, 24.63% of the GDP from service activities and 33.4% of India's manufacturing output.

2.       120 million people depend on India’s MSME sector to earn their livelihood. 

3.       MSME related products value 147,390.08 million dollars. 

4.       48% of India’s export comes from the MSME Sector.

How Corporate social responsibility intervention can sensitise the people on Water, Sanitation and Hygiene practices.

Water, sanitation and hygiene initiatives by Fiinovation

Water, health and sanitation has been a major concern in India for quite a long time. According to a report published in the Huffington Post, 3 infants die every 2 minutes in India due to lack of access to water and sanitation. In India, almost 26% of rural people live below the poverty line. Poor sanitation affects the health and overall development of the country. Women are the most affected by lack of proper sanitation. For example, in India, a large number of girls drop out because of the lack of separate toilets in the school for girls. Only 22% of them manage to complete class 10.

Various initiatives have been undertaken by the govt to achieve the goal of improving India’s sanitation and curb the problem associated with it. However, the goals require combined action and efforts from government, corporates and non-government organisations.

Despite making massive sanitation drives across the country, 50% of India still defecate in the open. The initiatives and cleanliness drive though seemed ambitious, there is an urgent need to involve Corporate Sector to promote WaSH components and sensitise people about WaSH practices. Corporates can implement WaSH component through CSR Initiatives in India. Corporates through their innovative ideas can plan CSR projects and implement WaSh Components among the poor and aware masses of the country. Corporates can reach to the interior parts of the country and benefit the people through their innovative approach.

In this regard, Fiinovation Company has partnered with People’s forum for a social intervention on Water, Sanitation and Hygiene (WaSH) components in Paradip, Odisha. The CSR Project intent to benefit around 700 households in the district by sensitising the locals on Water, Sanitation and Hygiene (WaSH) practises. The program will ensure access to safe drinking water by installing community Reverse Osmosis (RO) plants in the locality. The activities will include the installation of storage tanks for the collection and storage of the purified water. Every household will be enabled to collect 20 litres of safe drinking water each day through this initiative.

Fiinovation Team investigated the prior condition of the area and concluded that the local people faced immense problem in fetching safe drinking water due to the scarcity of resources. Through the project, Fiinovation intends to improve the quality of health care with access to clean water which is important to maintain good health. In addition, it also aims to create community-level awareness session on the prevention of waterborne disease and combating malnutrition by conducting frequent awareness drives and health camps.

In order to identify the key problem within the community, Team Fiinovation conducted a rigorous need assessment study which resulted in some important observations and essential requirements. Insufficient and unsafe drinking water was a major concern in the area. Due to the presence of many industries in the area, air and water pollution was a major issue in the region, resulting in respiratory and skin diseases. Non-availability of primary health care services added to the woes of the people. People’s forum realised the need to sensitize and create awareness amongst people and implement various initiatives listed in the project activities. As a part of the project, other activities like tree plantation in and around the colonies, school campus, playground and other suitable places, aimed to reduce the flow of pollutants has been initiated. Also, the existing Self Help groups have been employed to carry out the execution along with the NGO.

India can truly achieve the target and surge towards becoming a developed nation. All we need is a collective effort between all stakeholders, adequate funding and determination to achieve the goal.

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

A check list for Corporates to keep in mind while selecting the 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 speciality 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 consultant places itself to the highest degree of priority on putting themselves out of priority and concentrate on delivering outputs.

Regardless of which CSR consultancy a corporate opt for from a List of CSR Consultants in India, make sure the approach should be prolonged and should sustain momentum.

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, economical and ecological aspects in accordance to their CSR charter. Since 2009, Fiinovation has grown phenomenally and has made a bench mark 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.

Is corporate social responsibility a one-time activity for your company?

If the answer is ‘yes’, you’re missing out an opportunity to increase goodwill for your brand and attract new customers for your business.

Social responsibility has witnessed an increased importance among companies over the last few years. As per a recent PWC Global CEO Survey, 64% of CEOs now consider CSR as an integral part of their business strategy. Whether it's by empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. There are many reasons why a company might engage in social responsibility, few of them are outlined below for ready reference.

Improves Company’s Brand Image

The public perception of a company is vital for customers and shareholders. Being socially responsible bolster a company’s image and builds its brand image. By being active in community, a company projects a positive image for not only being profitable but for also being socially aware.

Expands Customer Base

Having a social responsibility policy strengthens & impacts the buying decisions of customers. Building relationships with customers is the cornerstone for any business. For example - a bank that offers loans to marginalized section of the society, will be viewed positively by the community and it might boost the sales for the company.

Creates A Differential

When corporates are involved with the community, it generates a trust among the community for them and a differential is created making the company stand out. For example, Tesla Inc. reduced the gap between the corporate world and social responsibility by offering electric-powered cars and products that are environment friendly.

Coca-Cola in 2010, started by 20 initiative to empower 5 million women entrepreneurs across the company’s value chain by 2020.

In a nutshell, both company and community benefit from CSR initiatives. India is a country which with its inequalities, operate in first, second and third world simultaneously. The government is obviously doing its share but organizations have a larger responsibility because their success depends on the society they operate in. The CSR and sustainability strategy should be drawn in congruence with the company's business goals.

CSR can only be driven when people working at the ground level recognize it and the community that is targeted accepts it.

Fiinovation works towards empowering youth through skill development and education.

A leading private sector health insurance company in India entered into a strategic partnership with Fiinovation Pvt. ltd, a global Corporate Social Responsibility (CSR) consulting firm, and Pinnacle Skills India, an NGO that works towards empowering youth through skill development and education.

The programme's key objective is to provide skill development opportunities to women from financially disadvantaged communities in 36 districts across 8 states of India. Under this collaboration, Fiinovation and Pinnacle Skills will extend their services to facilitate the corporation's social welfare project for training the youth to take up the roles of General Duty Assistants (GDA).

The project's mandate includes community mobilisation through awareness activities, setting-up training centres for skill development, and ensuring employment opportunities. The complete CSR portfolio will be managed and monitored by Fiinovation team. Pinnacle Skills India took the responsibility to arrange for 'On-Job Training' of the beneficiaries, in hospitals, and multi-speciality clinics.

Upon completion of the training, the beneficiaries will be duly assessed and issued certificates by National Skill Development Corporation (NSDC) and Sector Skill Council and provided with job placements as GDAs.

Speaking on the launch, Dr. Soumitro Chakraborty, CEO of Fiinovation stressed on the need and importance of women empowerment and their skill development. He stated, "There is a serious decline in women workforce participation due to lack of opportunities, safety and other social stigmas. We want to contribute towards making a social and economic change."
"Percentage of working women has declined over time. With 36% of women being employed in 2005-06, the number has decreased to 24% in 2015-16. This decline must be a major concern for economy and society at large. Owing to the high gender inequality at the workplace, there is an urgent need that calls for an overhaul. It goes without saying that we need to shift focus towards education, skill development and employment opportunities for women, more aggressively than before.