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

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

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

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

 

FIINOVATION OBSERVES – WORLD SOCIAL JUSTICE DAY

World Social Justice Day is observed annually on 20th February for promoting efforts to tackle global issues such as poverty, unemployment, gender equality and exclusion to create an equitable society for all. It promotes social justice, solidarity, harmony & equality for marginalised communities, women and immigrants. The theme of World Justice Day in 2017 is “Preventing conflict and sustaining peace through decent work”. On this day many organisations including the United Nations and International Labour Organisation present plans and issue statements regarding the promotion of social justice. Additionally, campaign groups, trade unions and volunteers are also invited to mark their support on this day.

In 2007, the World Day of Social Justice was introduced in the UN agenda. It urged governments to focus on three important aspects;

a) reaffirmation of commitments made in Geneva Development Summit 1995,

b) recalling the commitment to promote national and global economic systems based on the principles of justice, equity, democracy participation, transparency, accountability and inclusion and

c) reaffirming the commitment made in the 2005 World Summit Outcome to full and productive employment and decent work for all, including for women and young people.

Keeping focus on these aspects will remove the barriers that people face because of their gender, age, race, ethnicity, religion, culture or disability.

Equality is the basic fundamental right of every society and in order to achieve the same, governments have created a framework for action to promote social justice at national, regional and international levels. The governments accept the fact that holistic economic growth can be achieved only by promoting equitable distribution of income, resources and providing everyone an equal opportunity for growth and development irrespective of race, ethnicity, gender, religion, culture or disability. They promote the belief that only social justice can help in achieving the peaceful coexistence within and among the nations.

United Nations also promotes social justice as part of their global mission to achieve equality for all. The recent adoption of the Declaration on Social Justice for a Fair Globalization by the International Labour Organisation is one example of the UN system’s commitment to social justice. The Declaration focuses on guaranteeing fair outcomes for all through employment, social protection, social dialogue, fundamental principles and rights at work.

Fiinovation through its association with corporations for CSR and Sustainability initiatives, have always promoted social justice. It believes that there are serious challenges in front of us, including financial crises, insecurity, poverty, exclusion and inequality within and among societies and considerable bottlenecks to further social integration and full participation in the economy. The road ahead would be to incorporate social integration activities within the social development programmes to boost equitable growth in the country.

“With exclusion and inequality on the rise, we must step up efforts to ensure that all people, without discrimination, are able to access opportunities to improve their lives and those of others.” – Former Secretary-General Ban Ki-moon

By Manisha Bhatia

Media & Communications, Fiinovation

MOBILE APP HELPING WOMEN IN SLUMS FOR SMOOTH PREGNANCY

As per the estimates by WHO (World Health Organisation), 5,29,000 maternal deaths occur in the world every year. Out of these around 1,36,000 or 25.7% of total deaths happen in India. Every five minutes, one Indian woman die during pregnancy and child birth.

In a statement released by WHO, it was stated that, “Two-thirds of maternal deaths occur after delivery and postpartum hemorrhage being the most commonly reported complication. The incidence of emergency postpartum hysterectomies is about 83/100,000 with a maternal mortality of 17.7 per cent and a perinatal mortality of 37.5 per cent”.

India carries the burden of around 17 per cent of the global maternal deaths and post-partum haemorrhage, accounting for as high as 37% of the maternal deaths. This situation will prove to be a major hindrance for India in achieving the goal of a healthy and developed nation.

Majority of women dying and facing complications during pregnancy and childbirth are from the lower income group and neither they are aware about reproductive health nor have the money to consult the doctors or afford appropriate healthcare facilities.

In order to improve the healthcare conditions of pregnant women for safe child birth, better health post delivery, the Maharashtra based NGO has started free mobile voice call service known as mMitra for giving free consultation to the women during their pregnancy. A voice message has been regularly sent to the enrolled women, reminding them continuously about the mandatory medicines, tests and scans required during their pregnancy.

Nearly 1.30 lakh women from the Nalasopara slum area of Maharashtra have enrolled for the service. Women have enrolled for this service and were guided through short voice messages like regular health checkups, ultrasounds, diet, etc. Many women have claimed multiple benefits from the service like better health, “uneventful” delivery which means without any complications such as diabetes, high blood pressure or bleeding during the childbirth. Inspired by the benefits, they are also encouraging the many other women in their area to register for the services.

The initiative is the brainchild of Dr. Aparna Hegde, alumna of a Sion Hospital in Mumbai. “The success of the initiative shows that there was a great need for an information medium. Women are now demanding iron and folic acid from hospitals, which was always available for free but they had no knowledge about it.

During a study conducted by the same NGO it found that there is a 36% increase in the knowledge of women listening to the voice messages consistently and 47% increase in women knowing about the three family planning methods. Looking at the success and popularity of the programme, the NGO is planning to extend services to other states of India like Delhi, Assam, UP, etc. to educate and help women during pregnancy and childbirth as well as maintain good maternal health post childbirth.

Fiinovation urges the leading hospitals and health consultancies to extend support for such initiatives through their CSR funds and technical expertise for creating a huge impact in the lives of millions of young women, focused on reducing maternal mortality rate and achieving universal access to the reproductive health care.

Manisha Bhatia


FIINOVATION REVIEWS: WHY INDIA NEEDS TO REVISE ITS ABORTION LAWS

The recent landmark judgment given by the Supreme Court of India allowing a woman to terminate her 24-week old pregnancy has opened up the doors of discussion on obsolete pregnancy laws, need to increase awareness about abortion and change the pregnancy laws as well as end stigma prevalent in the country. On Monday, Supreme Court relaxed the 20-week legal ceiling on abortion, allowing a woman to abort her 24-week baby diagnosed with Anencephaly, a life-threatening congenital defect in which a baby is born without the parts of the brain, skull and scalp.

India’s Medical Termination of Pregnancy (MTP) Act legalises abortions upto 20 weeks only under certain circumstances such as threat to mother’s or child’s physical or mental health or if the unborn baby is diagnosed with severe physical or mental abnormalities or both.

As per the data revealed by the Union Ministry of Health & Welfare and World Health Organisation, there are 56 million induced abortions in the world every year from which around 22 million are unsafe abortions. The practice leads to 47,000 deaths and an estimated 5 million women develop some form of disability. In India, 10 women are killed everyday due to abortions as an estimated 6.8 million choose unsafe methods of abortion due to lack of knowledge and laws. Being responsible for 8% of the overall maternal deaths, unsafe abortions is the third biggest reason of the women dying due to child-birth related causes in India. Lack of skilled medical staff is also another big reason for women falling to the prey of unhealthy abortion practices. The weak and marginalised section of the society suffers the most due to lack of knowledge and stigma associated with the medical practice.

“Vulnerable groups including women with disabilities or mental health problems, rape and incest survivors and widows and single women who may need more support because of the tremendous social stigma may prevent them from seeking legal abortion services in the early stage of pregnancy”, says Mumbai-based Dr. Nozer Sheriar, former secretary-general of FOGSI (Federation of Obstetrics and Gynaecologist Societies of India), who was also part of the Union Health Ministry’s expert panel that drafted the amendments.

Looking at the appalling figures and gaps observed in abortion laws, the Union Health Ministry has proposed certain amendments from relaxation in law to increasing the number of skilled workforce. “The amendments are women-centric as opposed to the provider-centric provisions in the MTP Act. The proposed bill aims to give each woman control over decision-making related to her life and body,” said a Union Health Ministry official.

The key changes proposed by the expert panel recommends widening the network of service providers through training so that nurses, village health workers and Auxiliary nursery midwives (ANMs), ayurveda, unani and homeopathy practitioners can use the medical methods to terminate the pregnancies by relaxing the norms from 20-week to 24-week for the “vulnerable” groups who may have delayed in seeking services due to lack of knowledge or stigma. After the completed training, the ANMs can terminate pregnancies upto 7 weeks, nurses and alternative practitioners upto 9 weeks through drugs. However, the surgical abortions can only be done by the registered physicians.

Other proposed amendments include the inclusion of confidentiality clause which will be helpful for the PROCSO (Protection of Children from Sexual Offences) Act, which requires all the pregnancies involving minors should be reported to the police. The clause under the Act states that minors need consent from their guardian before seeking abortion. It also recommends to change the restrictive terminologies and make a uniform law for “women” irrespective of their marital status and changing the preference from “husband” to “partners”.

Fiinovation also supports the proposed amendments as they are in-line with the changing scenarios and will provide incredible benefits to women in advancing their rights on their own bodies and health. The lack of support and relaxation in norms have often forced women to resort to desperate measures falling to unsafe abortion methods leading to numerous health problems.

By Manisha Bhatia

Media & Communications, Fiinovation

Corporate Social Responsibility – In Context of 2017

The year 2017 brings new hopes in the social development sector with more businesses contributing towards improving the standard of living of the people. With praises across the country for their contributions, the businesses are now more focused on strategising CSR rather than doing charity. However, there are several questions which are not answered as CSR projects are not good parameters for judging societal welfare. Today, it is unclear whether CSR spending by businesses have increased or not as compared to the days before the mandate, with not much available information.

However, data from the last two years suggest an increase of CSR funding with Indian businesses spending INR 9,309 crore in 2015-16. This is INR 163 crore more than what was required by the law and INR 703 crore more than 2014-15. The major focus areas for businesses have been Education and Health and they are likely to remain one of the most favoured sectors for CSR investments.

Understanding the present situation, Fiinovation, a global CSR consulting company analyses the trends in CSR for the year 2017.

1. Environment – After the successive droughts that nearly crippled the rural economy, it is expected that businesses will look to invest their CSR funds in projects that mitigate the climate change risks. Keeping focus on water, businesses will look to implement CSR projects for natural resource conservation, rain water harvesting, safe drinking water, watershed development and irrigation. Organic agriculture, climate smart agriculture, grain production with new innovative methods, etc. will also receive adequate focus. Several companies are looking to reduce their harmful environmental impacts.

2. Education – Several businesses will rather not look to diversify and stick to their CSR projects in education. It is expected to remain the favourite sector when it comes to CSR expenditures. Although, there might be a shift towards digital literacy, digital education and higher education to meet the current demands of the nation.

3. Health – Similar to Education, investments in health projects is likely to continue even this year. Focus will be on preventive healthcare along with healthcare infrastructure facilities including ambulances, digital check ups, diagonistic centers etc. Several businesses will also look to invest in public health in a public-private partnership model working in tandem with the government initiatives.

4. Skill Development – The Indian Government is currently committed towards providing skill development trainings to the youth. The government also provides additional support for entrepreneurship of the SC, ST and women. The government has also urged the businesses to contribute their CSR funds towards skill development trainings to ensure that the emerging workforce is formally skilled. It is expected that businesses will also look to boost infrastructure in the ITIs and Training Institutes to support the government. There are several businesses who are also investing in Sustainable Agriculture projects by providing trainings to the farmers.

5. Other Sectors – It is also expected that several other sectors will receive CSR funding but not at a very large scale. Swachh Bharat, Clean Ganga, Digital Literacy, renewable energy, etc. are some areas which will receive contributions.

The impact of the CSR law can be better understood after the end of this year, when experts review the first three years after the enforcement of the law.

By Rahul Choudhury

Media & Communications, Fiinovation

Fiinovation: Beyond the Mandate – Changing CSR Paradigms

Not long ago, not many people cared about corporate social responsibility, at least in India. The concept might be known to a few, but there wasn’t much thought on the same. In the last two decades, things have changed significantly. Firstly, the economic reforms in 1991 laid the red carpet for the MNCs to start operating in India.

With the MNCs came the concepts of cause marketing, corporate responsibility, employee welfare, volunteerism, ethical practices, etc. Few other concepts, such as the Triple Bottom Line Approach (coined by the British consultant John Elkington in 1994), Shared Value (Michael Porter in 2011) and Conscious Capitalism (Raj Sisodia and John Mackey in 2013) also came into the limelight.

It was clear that in the last two decades, the emergence of these concepts targeting the commercial enterprises came up suggesting that the businesses should go beyond the obvious financial parameters and develop a holistic framework for assessing the impact of the business operations. From the point of view of the businesses, time and again they have spoken about doing good towards the society and environmental sustainability in their annual reports. Yet, the big issues such as climate change and well-being of the people and planet are prevalent along with a huge disparity.

The passing of the CSR law in India, seemed to have formalised the social sector contributions by the private entities. With not much data, a comparison of the same cannot be made. However, at least in the last two years, there has been significant amount of funds being invested in social projects. Businesses are now taking CSR as a strategic business concept and not many are contributing as a mere charity.

The move to bring about a cultural change within the businesses in India highlighted two concerns. Firstly, majority of the companies are searching beyond their own competencies to create programmes as per the Schedule VII. Secondly, there is not enough capacity or capability in the existing NGOs to meet the requirements of the businesses.

Fiinovation, a global CSR consulting company suggests that social sector initiatives require endurance and extended periods of investments in capability and delivery to make a significant impact. The concept is still evolving and incorporating sustainability issues, despite specifications mentioned in the Schedule VII. The whole idea is not to departmentalize business ethics and social responsibility, rather focus on sustainable corporate practices which includes CSR. Fiinovation suggests the idea of amalgamation of social and environmental issues within the business processes, help the businesses achieve enduring socio-economic outcome.

sustainability-framework

The time has come for businesses to be linked with ecosystem and not empty effluents into rivers and then contribute funds towards Clean Ganga. If businesses are truly considering becoming responsible entities they have to reduce, re-use and re-cycle the waste at least by 50 per cent. Therefore, when corporate social responsibility emanate from the core competencies of the respective companies, there is a higher chance of creating systemic solutions for delivery of social benefits.

By Rahul Choudhury

Media & Communications, Fiinovation