Indian CSR (Corporate Social Responsibility): In COVID-19 Times

   

"Money belongs to you, but resources belong to the society".

Corporate social responsibility (CSR) is a type of international private business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

CSR: Historical Background

CSR (Corporate Social Responsibility) is one act of Businesses, which has been in existence since long time but more as a faith element and has been a elements of practice in recent times only.

India has a glowing and rich tradition of CSR since ancient times. The term CSR might be relatively new but the practice dates back to the Mauryan dynasty, where philosopher Kautlya (Chanakya sound more familiar); one of the best economist ever produced has emphasized about the conduct of ethical and principled business practice for the wider good of society. 

प्रजासुखे सुखं राज्ञः प्रजानां तु हिते हितम् ।

नात्मप्रियं हितं राज्ञः प्रजानां तु प्रियं हितम् ॥

(प्रजा-सुखे सुखम् राज्ञः प्रजानाम् तु हिते हितम्, न आत्मप्रियम् हितम् राज्ञः प्रजानाम् तु प्रियम् हितम् ।)

प्रजा के सुख में राजा का सुख निहित है, प्रजा के हित में ही उसे अपना हित दिखना चाहिए । जो स्वयं को प्रिय लगे उसमें राजा का हित नहीं है, उसका हित तो प्रजा को जो प्रिय लगे उसमें है Iकौटिलीय अर्थशास्त्र, अध्याय 18

     

     ॐ सर्वे भवन्तु सुखिनः।सर्वे सन्तु निरामयाः।
     सर्वे भद्राणि पश्यन्तु।मा कश्चित् दुःख भाग्भवेत्॥
     ॐ शान्तिः शान्तिः शान्तिः॥

सभी सुखी होवें, सभी रोगमुक्त रहें, सभी का जीवन मंगलमय बनें और कोई भी दुःख का भागी न बने।हे भगवन हमें ऐसा वर दो Iगरुड़ पुराण ,(35.51)

All aspects of Vedic life, namely acquiring wealth( Artha), fulfillment of desires(Kama), and attaining liberation(Moksha) are part of Dharma, which encapsulates "the right way of living" and eternal harmonious principles in their fulfillment.

Brief History of CSR in India:

1947-1960	Socialism, protectionism	Five year plans	Support new state; launch own rural initiatives
1960-1990	Heavy regulations	Licence raj; development failures	Corporate trusts
1991-2013	Liberalisation	Shrinking in production; expanding in social provision	Family trusts, private-public partnerships, NGO sponsorship
2013-present	Globalisation	Need to manage inequality; new reforms to liberalise further	Introduction of mandatory 2% rule

Religious traditions of daan, seva, daashaant and zakat operated in India for centuries helping to shape the relationship between the privileged and the dispossessed. The vast majority of philanthropy in India has always been to religious institutions and that continues to be the case. The earliest industrialists of the 19th Century launched the practices of corporate giving via trust, and endowed institutions controlled by the members of the business families.

CSR: Technical Ground 

On April 1, 2014, India became the first country to legally mandate Corporate Social Responsibility. The new rules in Section 135 of India's Companies Act make it mandatory for companies of a certain turnover and profitability to spend two percent of their average net profit for the past three years on CSR.

As per section 135 of Companies(CSR) Rules 2014 and schedule VII of Companies Act 2013, every company having-

Net worth of Rs 500 Crore or more,

Or turnover of Rs 1000 crore or more,

Or net profit of Rs 5 crore or more 

during the immediate preceding financial year, must have a CSR committee and spend at least 2%of the average net profit earned during three immediate preceding financial years to CSR activities. 

Prior to this act, CSR clause was a voluntary for companies, though they were bound to share to their shareholders only. Until now if a company is unable to fully spend its CSR funds in a given year, it could carry the amount forward and spend it in the next fiscal year, in addition to the money allotted for that year.  This has changed post the new clauses, under which now companies will deposit the unspent amount in a predefined fund under Schedule VII of the Act within the end of the fiscal year. This amount must be utilized within three years from the date of transfer, failing which the fund must be deposited in to one of the specified funds.

CSR: Domains

Recognizing the vital role, being socially relevant and responsible plays in today's globalized economy not just in front of customers and employees but society as large also; organisations has become dead serious in efforts and approaches. To be an early starter against their rivals, companies have enlarged the circle of acts which I have broken down in 4 domains along with one best CSR initiative taken in respective categories - 

1. Environment: This one hot topic in CSR is widely discussed less because of of the concern and intent but more because of the guilt governments and big corporations have started feeling in last 2 decades. Earlier discussion used to center around Ozone layer depletion which has now moved around carbon footprint. /Reliance Foundation Bharat India Jodo (RF BIJ)  Program is aimed at connecting the hinterlands of rural India with modern and sustainable living style which goes in sync promotion of bio-diversity and preserve environment.
2. Philanthropy: Businesses can practice social responsibility by donating money, products or services to social causes and nonprofits. Free education, Medical healthcare,Feeding the hungry destitute are most favorable areas where a lot of CSR has been done and still lot more needs to be done. /Mumbai Port Trust Will provide 3 dormitory blocks to Tata Memorial Hospital. This will help outstation cancer patients who are taking treatment from Tata Memorial Hospital, both in lodging and other facilities free of charge.
   
   
3. Mainstreaming Inclusion: By treating employees fairly and ethically, companies are  demonstrating CSR. This not only send the message of equality among the larger and rapidly growing global audience but also makes company an aspiring place to work among the new talent./Future Group Under "Sabke Liye in Every way" Future Group has made 150 Big Bazaar and FBB retail stores accessible for people with special abilities. In this, stores provide a shopping assistant who is trained to communicate and meet requirement of such customers. "Quiet Hours" for people with Autism, "Yound Eleder's Day" for senior citizens are some other much appreciated campaigns run at stores.
   
   
4. Volunteering: Participating in local causes or volunteering your time (and your staff's time) in community events says a lot about a company's sincerity. By doing good deeds without expecting anything in return, companies can express their concern (and support) for specific issues and social causes. Child education in marginalized sections of society, Literacy campaigns for all ages in villages, Blood donations camps are few activities come in this domain./Schindler Group Under Muskan campaign company provides volunteering opportunities to their employees who are keen in imparting skill based short or long term projects in select areas. 

CSR: In COVID Times

In view of the spread of COVID-19 and the decision of GOI to treat this as a notified disaster, the Ministry of Corporate affairs was quick to clarify vide its General Circular No.10/2020 dated 23rd March,2020) that the spending of CSR funds for COVID-19 shall be considered as an eligible CSR activity. 

Apart from the contribution made in PM CARES Fund and state disaster management authority expenditure incurred on preventive health care and sanitation, ex-gratia to the temporary/casual workers over and above daily wages, providing quarantine facilities to those affected, amongst others shall be considered as CSR spend. 

Every organisation contributed to the noble cause with tremendous zeal and sincerity. Naming few of them, irrespective of the contribution value 

• SBI Foundation commits Rs 30 cr for COVID-19 relief measures

• Walmart, Flipkart pledge Rs 46 crore towards India’s COVID-19 efforts

• Promoter of DMart,donates Rs 100 cr to PMCAREs Fund to fight COVID-19

• Vedanta contributes Rs 201 crore to fight coronavirus pandemic

• Azim Premji Foundation, Wipro commit ₹1,125 crore to tackle COVID-19 crisis

• Tata Sons Contributes ₹ 1000 Crore To Fight COVID-19

• Ambani tops Covid-19 hospital, free food and fuel with Rs 500cr aid to PM CARES Fund

                 

COVID-19 the pandemic, has given Unpredictability word a new meaning which Business abhors just like a dog loathe a cat. 

Indian value system of परोपकाराय is the ultimate Epilogue, choice rests with us, when to refer it?.. Before starting or after finishing the book!!

OMNAMAH

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