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: Need of Stringent Policy on Rare Diseases

In the year 2013, a petition was filed in Delhi High Court by the seven-year old Mohammed Ahmed suffering from the rare disease Gaucher. It is a hereditary disorder which is caused by the absence of enzyme which breaks down fat and releases energy. The absence of this enzyme leads to fat building all over the body and patients suffer from bone pain and anemia. In some cases, it may also lead to death. Although, this disease can be treated through the replacement therapy of enzymes and the person can lead a normal life under all medications and precautions, however, it can never be completely cured. The cost of therapy is Rs. 6 lakh per dose and has to be administered every month till the patient is alive. Since, his father is a rickshaw-puller and earns daily wages for survival he knocked the door of High Court for help.

Gaucher is one of the 7,000 rare diseases that afflict less than 6% of the global population. Looking at the rare phenomenon of this disease, pharmaceutical companies don’t consider it as an economically viable drug and end up pricing them as high as possible to derive profits. Even these companies don’t invest much on the research of the Orphan Drugs making them almost inaccessible for the weak and marginalised sections of the society.

In order to encourage the pharmaceutical companies to stimulate research for the treatment of rare diseases, the Orphan Drugs Act was passed by the US government in 1983. The law offered different incentives like smaller clinical trials, higher rates of regulatory success, extended exclusivity and tax rebates. Laws on similar line have been replicated in other countries such as European Union, Japan and Australia making it economically viable and commercially attractive for investing in the Research and Development (R&D) of the rare diseases. However, these companies ignore the incentives offered by the government and sell the orphan drugs at inflated prices. Rituximab, an orphan oncology drug, is one such drug in this category which is also the second highest selling drug in the world. The patients of developed country have higher per capita income and also governed by good government health policies hence they can afford them whereas it is completely unaffordable for the patients of developing countries considering their economic status and flaws present in the healthcare policies.

The Delhi High Court gave full attention to the case of Mohammed Ahmed causing lot of stir and scrutiny in the existing healthcare policies governing the nation. Before giving his judgment, Justice Manmohan analysed many other cases which have proved that the right to health and access to healthcare is implicit in Articles 21, 38 and 46 of the Indian Constitution.

He concluded that “every person has a fundamental right to quality health care – that is affordable, accessible and compassionate.” While recognizing the fact that every citizen cannot expect to receive free medical treatment at the state expense he also held the government responsible for not devising favorable policies for ensuring that every citizen can afford the treatment of rare diseases.

The court suggested the government to increase investment in the healthcare sector and formulate best practices and polices related to the treatment of rare diseases. It also confirmed that the act of financial aid treatment of rare diseases will be qualified as a CSR activity. It also directed the state government to arrange treatment for Mohammed Ahmed free of cost at AIIMS whenever he requires it, as per his constitutional right.

Learning lessons from this case, Karnataka became the first state in India to release a Rare Diseases and Orphan Drugs Policy. It recommended to implement the preventive and carrier testing, which is a means of reducing morbidity and mortality. Considering the fact that around 80% of the rare diseases` have genetic connection, it also suggested to the pharmaceutical companies to use genetic testing for accelerating the identification of the critical genes involved in rare diseases.

The state also highlighted about the flaw present in the Insurance Laws of India due which often acts as huge disadvantage for the patients suffering from the rare disease in India. The private insurance companies of India consider the genetic disorders as pre-existing conditions, hence, on that basis doesn’t provide any insurance cover for the same. Since, most of the rare diseases are genetic in nature; hence patients don’t get any support from the existing insurance policy.

The state emphasised on the awareness programmes to combat delay in diagnosis and treatment. It also called for the enactment of an orphan drugs statute to allow for tax breaks, funding and exclusive marketing rights as incentives for orphan drug discovery.

The policy has requested the IRDA (Insurance Regulatory and Development Authority) to re-consider this exclusion from the above mentioned laws and at least provide basic coverage of rare diseases at reasonable premiums.

Fiinovation recommends the other states of India to follow the footsteps of Karnataka to ensure every citizen of India has access to affordable healthcare facilities. The state-led PSUs and private companies can utilize their CSR funds to undertake healthcare initiatives involving rare diseases for extending support to the weak and marginalized sections of the society.

 

By Manisha Bhatia

Media & Communications, Fiinovation

 

Budget Highlights – Education Sector

The much awaited Union Budget 2017 was presented by the Finance Minister Arun Jaitely on 1st February 2017. Education is one of the key components for driving economical growth and acts as impetus for government schemes such as Make in India, Digital India and Skill India. Government should devise schemes to boost other sectors such as Automation, Artificial Intelligence, Textile, Energy etc. apart from focusing on the IT and applied IT sectors.

It is extremely important to pay attention on improving the quality of educational institutes for creating skilled workforce, ready to join the industry. The key budget highlights of the Education sector are as following –

  • In year 2017, citizens will gain access to SWAYAM, a massive open online courses (MOOC) platform. This education portal, will be introduced with 350 online courses and will be providing high quality e-content to all the colleges and universities free of cost.
  • Job-creating packages for textile sector
  • Good quality institutions which will possess better quality and education
  • 100 international centres will be launched across the country for providing assistance to the youth seeking jobs outside India
  • PM Kaushal KendrasPM Kaushal Kendras to be extended to 600 districts
  • 5 crore youth to be trained under Sankalp programme launched by government
  • Quality and market relevance will be noted in vocational training
  • Special scheme for employment has been launched in the textile sector
  • National Testing Agency will be conducting major entrance examinations
  • CBSE will be freed from conducting examinations, and will focus majorly on academics
  • Skill strengthening to be implemented from this year with a budget of Rs 2,200 crore
  • Greater autonomy will be provided to major institutes
  • UGC will be reformed for higher education, colleges and institutions will give more autonomy
  • Two new AIIMS to be opened in Jharkhand and Gujarat
  • Big employment opportunities to come up in tourism sector
  • Government will provide education through digital platform and the country will be turned into an electronics hub
  • Additional opportunities for employment of women to open up through model shops and establishment bill
  • The BHIM app has been downloaded 17 million times, and special cash back scheme for BHIM users

The main highlight of the budget in education sector was the introduction of 350 online courses and big employment opportunities to be introduced in textile and tourism sectors.

By Manisha Bhatia

Media & Communications, Fiinovation