As India looks towards a brighter tomorrow, the determination to help those in need should never waver and commitments to the support the society should never falter.
The Covid-19 pandemic has forever changed the world. There has been a paradigm shift in how corporations perceived their ecosystem. During this era of uncertainties, corporations have shown resolute commitment towards community welfare programmes. As businesses find themselves in a changing landscape, it is encouraging to take note that corporate firms have pivoted their CSR models to better address the urgent societal challenges facing our country. The response to this changing CSR landscape has been demonstrated not only by companies of Indian origin but even foreign corporations who have mobilized support and initiated targeted campaigns to mitigate the impact of this unprecedented crisis. Going forward while companies with grassroot penetration will look to contribute through individual programmes and relief efforts, others will begin to partner with local authorities of respective state governments and scale their initiatives to cater to the needs of local communities.
As businesses continue to learn and adapt to the new normal, the coming year will see new trends as corporate firms explore new and diverse opportunities to expand their CSR footprint. With a commitment to fortify the health infrastructure during the pandemic, various corporations have already begun to deploy resources towards endeavours aligned with unconventional and unchartered areas of relief. These include efforts for promoting mental health and harnessing technology to create awareness. Going forward into the new year, the areas of prime focus for CSR initiatives will be preventive healthcare, food security, education, environmental sustainability, rural development and donations to government agencies. Pursuing a hybrid approach, we now see that corporations are directing their CSR efforts more ubiquitously through multiple welfare domains.
According to government reporting, a total of INR 1,00,864 Cr has been spent on 1,44,843 CSR projects from FY-2014 to FY-2020. We also note that significant CSR funding go to states with higher levels of industrialisation. This was best exemplified by the statistic that Maharashtra, Karnataka, Gujarat and Tamil Nadu receive more than 30% of the total CSR expenditure annually. However, the flipside of this sees that underdeveloped states with poor socio-economic indicators like Jharkhand, Bihar, Chhattisgarh, Madhya Pradesh and Uttar Pradesh receive only 9% of the total expenditure from CSR initiatives. In fact, the states with the most need for CSR initiatives, do not even feature in the top 10 CSR state beneficiaries. For CSR to be truly effective, this imbalance will need to be rectified. To address this challenge, there needs to be dedicated channels for the identification and redirection of CSR projects across the country. This will not only facilitate the deployment of CSR funds to areas that most need it but will also save valuable time and effort in the long run. Amongst the primary issues faced in the deployment of resources towards their CSR initiatives, corporations invariably cite ‘logistical challenges’ as one of the greatest challenges they usually encounter. As businesses look to expand their CSR footprint, a unified CSR platform will facilitate companies and their implementation partners to assess where their CSR funds would be most impactful across diverse domains. One of nascent steps to overcome this impediment in the coming year is the proposal by SEBI for the creation of the ‘Social Stock Exchange’, which will facilitate the efficient deployment of CSR funding. This government regulated body will also enable trading of excess/deficient CSR between companies. Working under the guidance of SEBI, the Social Stock Exchange, will go a long way in verifying the impacts of CSR projects on various at-risk communities.
Even as new trends and innovations spur businesses to realign their CSR offerings, there are still several bottlenecks observed in the execution of the CSR. Going forward, these need to be dynamically addressed so that CSR efforts can be leveraged to their full potential. There needs to a fundamental change in the approach by corporate firms. CSR should not be seen as a statutory obligation, rather it should be perceived as an opportunity to give back to the community that sustains these corporations. By generating positive impact initiatives through social welfare programmes, corporations will be able to create long-term sustainability for their own businesses. Creating synergy with their ecosystem will always benefit the business that depends on it. Looking towards future horizons, there is a dire necessity to ascertain that CSR initiatives have a multiplier effect on social, economic as well as environmental dimensions at the grassroot level. Corporate firms can accomplish this by evaluating the results of their CSR expenditure across a fixed timeline. Contributing in sectors that have the potential to generate high impact is another way to achieve this objective. To this end, various corporations have now begun to fund research and technology incubators. In the aftermath of the pandemic, it is expected that these efforts would exhibit highly diversified social impact in the perceivable future.
The pandemic has forever transformed how CSR will be viewed across the corporate landscape. From domestic start-up ventures to multinational conglomerates, businesses from all domains have come forward to contribute to the nation by pivoting their CSR strategies towards Covid-19 relief efforts. Although the full magnitude of the pandemic is difficult to fathom, it is abundantly clear that when the dust settles, the pandemic would have left an indelible mark on various marginalized communities. Thus, it is crucial that these efforts be sustained even after we come out of the shadow of the pandemic. As India looks towards a brighter tomorrow, the determination to help those in need should never waver and commitments to the support the society should never falter. By honouring their CSR commitments, corporations must ensure that they meaningfully give back to the society that sustains them.
Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.
