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

Top 10 Green Companies of India

With India making rapid progress in the field of industrialization, concerns have also been made by various sections of environmentalists regarding the repercussions on the environment. The companies themselves are now more aware about the ways in which their factories often affect the ecosystem and have taken a greener path to success. Here are the top ten green companies in India which Fiinovation believes, are showing the path of sustainability to others.

  1. LG: LG India has been a pioneer is making electronic gadgets that are eco-friendly. Recently, it has launched a LED E60 and E90 series monitor for the Indian market. Its USP is that it consumes 40% less energy than conventional LED monitors. Also, they hardly used halogen or mercury, trying to keep down the use of hazardous materials in their products.

LG_LOGO_NEW

  1. HCL: HCL is another brand that is trying to introduce eco- friendly products in the market and it has recently launched the HCL ME 40 notebooks. These notebooks do not use any polyvinyl chloride (PVC) material or other harmful chemicals and the Bureau of Energy Efficiency already given it a five star rating.

hcl

  1. Haier: Eco branding is a part of Haier’s new green initiative and they have launched the Eco Life Series. They have semi automatic and automatic refrigerators and washing machines, split and window air conditioners and a lot more.

haier.jpg

  1. Samsung: Samsung India has always had a roaring range of LED TV screens and now they have come up with eco- friendly LED backlight. They use 40% less electricity have also no harmful chemicals like mercury and lead.

samsung1

  1. Tata Consultancy Services: TCS has a globally recognized Sustainability practice and has already topped the Newsweek’s top World’s Greenest Company title. It also has a global green score of 80.4% and this has mainly happened due their initiative of creating technology for agricultural and community benefits.

tcs

  1. Oil and Natural Gas Company: ONGC, India’s largest oil producer is all set to change the way with the invention of green crematoriums, that would serve as a perfect replacement for the funeral pyres that emit so much smoke and uses up excess oxygen.

ongc_logo

  1. IndusInd Bank: One of the first banks in India to discourage the use of paper for the counterfoils in ATMs, and sending electronic messages, it has contributed a lot towards saving paper and reducing deforestation.

IndusIndBankJPEGlogo

  1. ITC: ITC has adopted a Low Carbon Growth Path and a Cleaner Environment Approach and has already introduced ozone treated elemental chlorine free bleaching technology that has improved the lives of millions worldwide.

itc-logo

  1. Wipro: Wipro, has not only helped in the creation of technology that helps in saving energy and preventing wastes, but its corporate headquarters in Pune is the most eco friendly building in this sector all over India.

wipro

  1. MRF Tyres: MRF has launched the ZSLK series and this is all about creating eco- friendly tubeless tyres made from unique silica- based rubber and also offers extra fuel efficiency to those who drive their vehicles.

mrf

Fiinovation has been urging corporations to incorporate sustainability within their business operations. Development of green technologies and products is a necessary step towards a sustainable future.

Complied By- Rahul Choudhury