Why Healthcare Needs CSR Boost?

Despite being a major destination for medical tourism and the fastest growing economy, India’s progress in healthcare is slower not just by OECD standards but also as per the standards of the developing world. When compared with emerging economies and its neighbours, India faces a bigger disease burden.

Here are some of the facts which highlight the state of health care in India:

1. India has one of the highest disease burdens (20%) in the world.

2. More people die in India of preventable diseases than anywhere.

3. India still accounts for 27% of neonatal deaths, 23% of infant deaths and 23% of TB deaths in the world. Out of the total neonatal deaths, 35% are due to lack of nutrition.

4. Every fifth person in India suffers from a chronic disease and more than 6 out of 10 people die from non-communicable diseases.

5. Cancer cases in India are also likely to rise by 25 per cent by 2020 from 1.4 million to 1.7 million by 2020.

6. Disease burden to cost India $6.2 trillion by 2030.

7. Between 1990 and 2010 premature deaths from cardiovascular diseases increased by 59 per cent to 37 million from 23.2 million.

8. Nearly 40% of the Indian population of all ages has mycobacterium tuberculosis infection; and there are about 85 lakh people with TB at any given time.

9. The US has 2.5 doctors and 11.1 nurses per 1000 population, while India has 0.7 Doctors and 1.1 Nurses per 1000 population.

10. India’s ambitious National Health Policy plans to increase public spending on health from 1.15% to 2.5% by 2025, when only 17.33% of the lower income classes having access to free health care.

It is clear that the government alone won’t be able to address all the health care issues. Although the National Health Policy 2017 has been approved, the target set promises little.

Corporations should see this gap as an opportunity to partner with the government to play a responsible role in improving the health care system. What we have been witnessing so far is their focus on health camps, building hospitals or donating equipment to hospitals. Most of these activities can only generate short-term impact and the targets are poorly set.

Instead, businesses can train local youths while pharmacists can be trained to prescribe medicines for minor ailments. One example is the Fiinovation and RPG foundation partnership to train youths in ‘patient care’. Similarly, companies could fund medical education to reduce the significant shortage of doctors and nurses. The concept of barefoot doctors in China can be implemented in rural areas. Additionally, CSR funds can also be utilized to provide medical treatment and promote traditional medicines.

 

By Rahul Choudhury

Media & Communications, Fiinovation

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Importance of Professionals in Corporate Social Responsibility – Fiinovation

The advent of corporate social responsibility (CSR) in India opened new avenues for employment for people belonging to the social development sector. The mandate under the Companies Act, 2013 made it a more focused area for the businesses which might look at CSR in a strategic manner. Hence, the effectiveness of CSR initiatives lies in the hands of CSR professionals who are well versed about the concept and can utilize the initiatives for benefiting the organization.

It has been observed that in most of the businesses, there is still no CSR department, rather it’s the Human Resource department or the senior management which takes care of such initiatives, that too because of mandatory compliance. When called to enquire regarding the CSR department, most of the times the calls are answered by the HR and not by the CSR committee members. This brings us to the question that, are the businesses really serious about giving back to the society or considers CSR as a tick-box exercise?

The presence of CSR professionals in the organization is definitely an indicator of the seriousness of the initiatives. There are several benefits attached to having a CSR professional within the organization. Not only it provides chances to improve the social return on investment, but also improves the communication of CSR initiatives to the stakeholders. As a brand, businesses look to increase their consumer base and market outreach. CSR definitely provides an opportunity to boost the brand value, and the CSR professionals do play a significant role in devising implementation strategies.

Globally, leading CSR professionals have moved one step ahead and are looking not just to initiate ‘give back’ projects, rather incorporate the concept of being a responsible organization across the value chain. They help the corporate communications department to put a number on the value that has been created through the CSR initiatives. It is always recommended to not to give the job of handling the CSR manager position to someone in the HR or any other department, so that there can be a complete analysis on the social return on investment.

With increasing competition among the businesses, CSR could be an innovative mechanism to differentiate a brand from its competitors. The increase in effectiveness of the CSR programmes due to the presence of CSR professionals is definitely a motivating factor for the socially responsible investors. It is also due to the increasing demand of CSR professionals in the businesses and business foundations that several b-schools have started offering degrees in CSR. It is expected that in the years to come, the businesses which doesn’t have CSR professionals will look to recruit them to optimize their social return on investments. Hence, for a CSR professional the future seems to be bright in terms of employment opportunities, but their definitely will be more pressure on them with greater responsibility towards the organization and society at large.

 

By Rahul Choudhury

Media & Communications, Fiinovation

Fiinovation Reviews India’s Migration and Malnutrition Problems

The rising disparity among the people of India is a stark reminder that growth after the liberalisation, privatisation and globalisation reforms of 1991 has not been inclusive. Although, the country developed significantly, yet the development ripples have not reached the remote villages. The initial plan of focusing on the service sector to reduce the dependency of the Indian GDP on the primary sector (Agriculture, Animal Husbandry, Dairy, etc.) paid off well, but didn’t solve the problem of the rural population which is nearly 70 per cent of the total Indian population.

As the primary sector didn’t receive as much investments, there wasn’t much growth to improve the standard of living of the rural population. The problems associated with agriculture and allied sector ensured that millions had to migrate to the urban areas for employment opportunities. Migration is not a recent phenomenon, rather the pace of it has increased in recent times due to widespread distress in the rural areas. As per the Census 2011, there were about 45.36 crore migrants. In fact last year 2.06 crore people migrated looking for employment opportunities and education.

It is understandable that the impact of migration is one the entire family and it’s the children who suffer immensely. It has been observed that the rapid development which ensured India becomes the fastest growing major economy in the world is not helping to curb poverty and malnutrition. As per the global hunger index, India ranks abysmal 97 out of 118 countries which much worse that its neighbours Sri Lanka, Bangladesh, Myanmar and China. Fiinovation reviews that about 38 per cent children living in India are stunted or too short for their age. There seems to be a link between growing urbanisation and increase in malnutrition as it has been observed that significant proportion of children living in urban areas are stunted.

Alarmingly, it is estimated that 90 crore people will be added as urban residents in just three countries (China, India and Nigeria) by 2050. It seems that there is a paradigm shift of the burden of malnutrition from rural areas to urban areas, especially due to persistent child undernutrition. Fiinovation reviews that the problem of malnutrition is evident amongst the 6.5 crore slum dwellers in the country. Hence, the reason behind urban poverty and malnutrition is definitely India’s incapability to develop the rural areas while promoting inclusive and sustainable growth.

The road ahead will not be easy as the government plans to double the farmers’ income by 2022. Currently, there is very less industrial development in the rural areas. Agriculture in India is a seasonal activity with majority of the regions being mono-cropic, especially due to lack of irrigation facilities and dependency on the monsoon. Therefore, it is important to create livelihood opportunities and promote healthy lifestyle amongst the rural population. If the migrant population start finding employment opportunities in their inhabited regions, it will reduce migration, poverty and malnutrition significantly.

Hence, Fiinovation urges the government to implement policies which promote growth of the rural economy. Efforts to increase the farmers’ income will definitely pay huge dividends for the country. The impact of this will also be visible on the global hunger index and help the country eliminate extreme poverty as per the Sustainable Development Goals. However, this massive task cannot be done only by the government and the role of the private sector will be significant in providing resources for the development of rural infrastructure. The businesses should also contribute towards betterment of the farming community and the people residing in the rural areas through their corporate social responsibility funds. Investments in the agriculture sector by the businesses supported by agriculture credit from the government will significantly boost the primary sector thereby reducing the burden of the rural households.

Let us hope that the next two decades India grows inclusively and sustainably becoming one of the largest economies of the world with a higher human development index ranking.

 

By Rahul Choudhury

Media & Communications, Fiinovation

CSR Contributions – Is it a Burden for the Companies?

Despite global turmoil, India continues to emerge as one of the fastest growing investment destination in the world. The Indian government’s efforts towards ‘policy reforms’ and ‘ease of doing business’ are major steps directed to meet the demands of its citizens. Socio-economic growth of the nation is directly linked to profitability of businesses. Without growth, the domestic consumption is not likely to increase. This is one major reason for the businesses to invest their share of profits in activities that are aimed to benefit the marginalised sections of the society.

Although, Corporate Social Responsibility (CSR) is mandatory in India for businesses falling under the CSR ambit, yet the attitude of the Indian companies have not changed much. Businesses are mostly interested in earning profits even after realising that businesses can sustain only if communities prosper. Fiinovation, a global CSR consulting company suggests that companies who are mandated to contribute towards CSR are merely focusing on compliance, rather than impact of the initiative.

In such a situation, when there is not much visible impact, the companies tend to believe that funds have gone wasted. Hence, CSR becomes a burden for them.

It is understandable that while the CSR spending went up from Rs 8,330 crore in 2014-15 to Rs 9,882 crore in 2015-16, the utilization of funds and overall social outcomes have not been quantified or reported. As per experts, it is important for businesses to understand and measure the impact and return on investment of CSR initiatives. Research has also suggested that the rise in contributions by the larger businesses is related to partnership with implementation agencies, mainly CSOs for execution of the CSR programmes. It is noteworthy for the companies facing challenges in CSR to understand that partnership with CSOs help boost compliance of the law.

Effectiveness of the CSR programmes can also be determined through monitoring, evaluation and impact assessment studies. The companies must understand the purpose of CSR and actively engage in its implementation. It is not a matter of compliance, rather it’s about their survival. Companies should be looking to leverage the initiatives to build their brand image. Through CSR, the government is also trying to push the rural development agenda to spur economic growth. As per the Union Finance Minister Arun Jaitley, the CSR process which is perceived as burden by the businesses in India can help double the income of farmers. Hence, in this collective effort to eradicate poverty and boost socio-economic growth, businesses should play a pro-active role through collaborations with the civil society organisations.

 

By Rahul Choudhury

Media & Communications, Fiinovation

FIINOVATION REVIEWS – THE NEW MATERNITY BENEFIT BILL

The Government gifts the Amended Maternity Bill as the Woman’s Day gift for the working women in India as the Parliament approves the Maternity Benefit (Amendment) Bill, 2016. The Bill was introduced in Rajya Sabha on August 11, 2016 by the Minister of Labour and Employment, Mr. Bandaru Dattatreya and passed on 9th March, 2017.

“This is my humble gift to women, a day after the world celebrated International Women’s Day,” he said after about a four-hour debate in the Lok Sabha. He also informed that while finalising the Bill, few amendments were made in the old law to ensure that pregnant women derive maximum benefit from the law.

Fiinovation applauds the move as India joins the league of small consortium of countries with progressive maternity leave policy in system for the working women. Now, India ranks third in terms of number of weeks allotted for maternity leave with Canada and Norway leading at 50 and 44 weeks respectively.

The Maternity Benefit Act, 1961 was introduced to protect the health and employment of working women during their maternity tenure. As per this Bill, the women employed in companies with minimum 10 employees were entitled to 12 weeks of paid maternity leave. However, the new bill has increased the tenure of paid maternity leave for first two children from 12 weeks to 26 weeks. However, for the third child it will be limited to 12 weeks. It also includes the 12 weeks paid leave provision for women legally adopting children under three months and mothers having children through surrogacy. In the later case, the 12-week period will commence from the date when the child is handed over to the mother. As per the Bill, every company employing 50 or more women employees is entitled to provide the creche facilities within a prescribed distance, allowing at least four visits to the creche during the day.

Other major amendments allows a woman to avail work from home opportunity after joining back from the maternity leave on mutually agreed terms between the employer and the woman. It mandates all the organisations to inform a woman about all the benefits included in the bill during the time of her appointment through both written and electronic medium.

Additionally, there are various other labour laws like the Employees’ State Insurance Act, 1948 which entitles the payment of wages to an insured woman, during her 12-week maternity leave. Even, the women employed in newspapers or working as journalists are entitled to similar maternity leave under the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955. Further, women employed in the central government are provided about 24 weeks of paid maternity leave and additional child care leave up to a period of two years.

Although progressive and applauding but still it has left many important aspects untouched. Fiinovation reviews that this bill is entitled to benefit only 1.8 million women working in the organised sector as they constitute only 10% of the women workforce. It fails to include the women belonging to the weak and marginalised sections of the society as 90% of the women workforce is employed in the unorganised sector belong to the lower strata of the society. It includes women working as seasonal labourers working at construction and agricultural sites, contractual labours and domestic workers. The Bill lacks to cover them under its ambit as they lack eligibility under the 1961 Act such as continuous employment or a period of 80 days in the one year prior to the date of delivery. Hence, it portrays a huge disparity among the allotted benefits amongst the different sections of the society.

Experts also argue that the Bill could have an adverse impact on the job opportunities available for women. As it requires an employer to pay full wages during the maternity leave, many companies may consider it as a financial burden and prefer to hire male candidates on critical positions. Although, International Labour Organisation (ILO) Maternity Protection Conventions has proposed that the complete burden should not be borne by the organisations as suddenly the compensation period has increased from 12 to 26 weeks. It recommends compensating through public funds, insurance schemes, etc. Various countries like UK, Germany, Australia and Norway compensate by combining funds from the government and employer or national security fund.

A government official, who has been part of the debate in parliament argued that, “A father also has equal responsibility towards the child like a mother and paternity benefits would help a couple to raise their child together as majority are now nuclear families”. In fact, another government official from West Bengal shared saying that the government in its state is already providing the paternity leave of 30 days. Additionally, the benefits should extend to single father adopting children who are currently excluded from the Bill.

Fiinovation recommends that instead of introducing different bills and schemes, the government should introduce a uniform policy to benefit every employed woman rather parent in the country. Not only this, a strict monitoring mechanism should be implemented to ensure that women receive these benefits as currently only a handful of leading corporates in India have been strictly following these norms.

As quoted by in a report by Mckinsey Global Institute “Achieving gender equality in India would have a larger economic impact there than in any other region in the world – $700 billion of added GDP in 2025 – but comprehensive change is needed.” Fiinovation second with the though and feels that the New Maternity Bill is an important step towards the same and will certainly act as an impetus for women empowerment since they will be able to strike a healthy balance between personal and professional life.

By Manisha Bhatia

Media & Communications, Fiinovation

Preserving National Heritage Through CSR – Fiinovation

In the past few years, it has been observed that the rising global warming, mishandling and inadequate restoration of cultural arts and monuments has caused deteriorating effects on the historical masterpieces around the world. Although the developed countries practice best methods for the conservation of their art and culture, the developing countries often lack both funds and willpower to carry out this exercise. For instance, European Union started the project CHARISMA, which brought industry experts from universities, museums, research institutes and historians from the respective disciplines to share their knowledge, expertise and innovative ideas for preserving their national heritage.

The project aims at developing innovative tools through research to identify the materials and methods originally used by the artists as well as the modern techniques to safeguard them against rising challenges related to environmental degradation. Under this project, different art works like paintings, sculptures, ceramics, manuscripts, monuments, art work of different forms like metal and glass etc., books and archaeological items will be investigated by the historians and archaeologists. Apart from this, several grants and funds are raised through government, civic bodies and private sector for the preservation of its prestigious art and culture.

However, in a country like India, the heritage conservation is often taken for granted and there a very few corporates who are involved in initiatives related to the protection of culture and heritage. Kiran Seth, the recipient of Padma Shri award and founder of SPIC MACAY (Society for the Promotion of Indian Classical Music and Culture Amongst Youth) voices her concern saying, “We have failed to protect so many art forms and now they are lost to us forever. Ustad Asad Ali Khan’s death meant the end of the Khandar Vani style played on the rudraveena. The Koodiyattam style of theater in Kerala has almost no takers now. So much knowledge about our heritage is getting lost every day.”

Even corporates are also lagging behind in extending much support in this sensitive matter. In a recent study it was found that in FY16, the CSR spend on the projects related to heritage conservation by corporates has declined by 40% as compared to FY15. In the first year of CSR rules, the projects related to heritage conservation received Rs 67.87 crore but the funding fell to Rs. 40.88 crore in FY16. Experts believe that sufficient efforts aren’t being done by the government and corporates for preservation of art and cultural heritage and the lack of funds is aggravating the matter further. The government allocates funds for the projects related to heritage conservation only from the tourism point of view. So, if a monument or a historical piece is not important from the tourism perspective, it doesn’t receive funds and precious pieces of glorious history are eventually lost.

The projects related to education, poverty, health and environment receive maximum focus from the corporates as they lack awareness about the benefits associated with programmes related to heritage conservation. Hence, if seen positively, this field has immense scope for executing successful CSR programmes which can integrate a corporate’s activity with its core business objectives. For instance, industries related to tourism and hospitality can derive maximum benefits through the strategically designed CSR initiatives. The programmes can include site maintenance and restoration, carrying out awareness programmes and setting up of management frameworks for maintaining the historical sites. Similarly, other companies whose area of operations holds historic significance can also make valuable contribution towards executing such kind of projects.

In India only few corporates have taken up CSR projects related to heritage conservation. For example, IT giant Infosys Ltd. funds a part of its CSR budget for the restoration of monuments and organising cultural shows in south India. In 2016, Infosys Foundation (the CSR arm of Infosys) completed a restoration project at the Somanatheswara temple complex at Lakshmeshwara in Karnataka, spending around Rs 5 crore over four years. It also organized performances at the two restoration spots in Andhra Pradesh at Lakshmeshwara and Anupu.

Similarly, Yes Bank has used a part of its CSR funds for organising over 100 heritage walks and 50 cycle rides at various heritage spots like Lodhi Garden, Qutub Minar and Hauz Khas in 2016. It has further plans to extend these activities to different cities. It spent Rs. 29.52 crore in FY16 and plans to invest Rs. 34 crore in FY17 for conducting these initiatives.

Many PSUs such as ONGC, NTPC, GAIL and Indian Oil have also undertaken the renovation and maintenance activities for temples and monuments around their areas of operations. The Indian conglomerate Tata Group has been traditionally involved in promoting historical monuments and setting up museums through their institutions and trusts. The group has also helped the Archaeological Survey of India (ASI) through grants.

In 1966, the Ministry of Tourism and Culture has set up the National Culture Fund (NCF) to channelise funds for the preservation of historical monuments and arts. It has identified 100 monuments of national significance which has been put up for adoption by the corporates.

In response to the poor feedback received on the hygienic conditions of the sites, the Ministry launched “Clean India Campaign” in 2012. As part of the campaign, the Indian Tourism Development Corporation (ITDC) adopted Qutub Minar while ONGC also expressed interest in adopting sites like Taj Mahal, Khajuraho Temple and Ajanta-Ellora Caves for their conservation. The main objective of this campaign was to foster a collaborative model wherein corporations are encouraged to adopt a site and the local bodies such as schools, banks, authorities and trader’s associations can come forward for maintaining the nearby areas.

Maharashtra and Rajasthan governments have taken the lead and in creating platforms for corporates to adopt monuments of historical and cultural significance. Government should create awareness programmes and encourage corporates to utilise their CSR funds through structured planning and execution.

Fiinovation, a global CSR consultancy working in the domain of CSR and Sustainability urges the corporates to initiate projects related to the preservation of cultural heritage especially in their area of operations. It will not only help in keeping the history of glorious culture alive but will also enhance their presence as a culturally evolved organisation among the stakeholders.

“It has been said that, at its best, preservation engages the past in a conversation with the present over a mutual concern for the future.” — William J. Murtagh

By Manisha Bhatia

Media & Communications, Fiinovation