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

Budget Highlights – Education Sector

The much awaited Union Budget 2017 was presented by the Finance Minister Arun Jaitely on 1^st 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

FIINOVATION OBSERVES – WORLD SOCIAL JUSTICE DAY

World Social Justice Day is observed annually on 20^th 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

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.

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

Fiinovation’s Take on Health Sector Problems

The world’s second most populous country is currently facing a triple-disease burden of maternal and child health, infectious and non-communicable diseases. Despite significant efforts, India has been unable to provide affordable healthcare solutions to the masses. With India being the third-largest economy in the world, it isn’t being able to deliver world-class healthcare services to the 800 million people residing in the rural areas.

Fiinovation, a global CSR consulting company, suggests that India’s tax-based funding of healthcare is not adequate and barely support the healthcare system. India annually spends approximately Rs 6 trillion on healthcare to cater to 1.3 billion population. With an experience of over eight years in health projects, Fiinovation understands that over 60 per cent of healthcare expenditure in India is being incurred by individuals themselves. Indians usually spend a lot of money on healthcare services.

Indians have the innate tendency to ignore health issues until we are really sick. This is the reason why Indians don’t opt for health insurances. The health insurance covers less than 5 per cent of total health expenditure. Apart from this, formal private network is a small portion of India’s health sector. The people usually suffer due to such circumstances and spend heavily on hospitals, completely ignoring primary care and early diagnosis.

Understanding the situation, Fiinovation believes the sector needs a complete revamp to achieve the health targets of the nation. Like several other countries, India too needs to on taking the path of free markets and build high-performing health systems. There needs to be a push towards health insurance. Countries, such as Japan, Britain, Germany and Thailand have given a lot of emphasis on providing universal health coverage. Fiinovation believes that the government will play a crucial role in designing and supervising the entire health system of the country, instead of just focusing on state-owned hospitals and public health centers.

Equally, the private sector should join hands with the government, take cognizance of the loopholes and establish an effective healthcare system in the country along with mechanisms for early diagnosis and universal health insurance coverage. If adequate healthcare services are provided in the rural areas, it will reduce the burden of hospitals and clinics in the urban areas. A lot of lives can also be saved, if facilities for early detection and diagnosis are available. With health being a favourable sector for CSR expenditures in the country, businesses should definitely look to organise health camps and provide other infrastructural facilities to curb the prevailing health problems in India. There has always been a need to spread more awareness about the preventive measures of diseases.

At present, it seems to be an uphill task for India, however, countries such as Thailand, Brazil and South Korea had similar health statistics which they managed to turn around in the last two-three decades. India can take note from these countries and start planning for re-designing the healthcare system of India.

By Rahul Choudhury

Media & Communications, Fiinovation

Fiinovation – The Future of Impact Investing in India

Impact investments is not something new to the world anymore. It might have started on a similar concept back in the 1980’s when Bill Drayton’s Ashoka started funding social enterprises. The term impact investing was coined in the year 2007 at the Rockefeller Foundation’s Bellagio Center. The term was given to investments which are made with the intent of generating both financial and social and/or environmental returns.

In the last decade, India has become one of the world’s biggest impact investment market. The global investors are looking at India as a bright spot which is likely to grow rapidly in the next two-three decades. Along with this, there are several social and environmental issues which India would like to resolve while it continues to grow.

It is expected that with all the growth in several sectors, India could absorb $6-8 billion of capital annually by 2025. In the past six years, there has been $4.1 billion worth of cumulative investments with an annual growth of 15%. It is believed that impact investments has touch at least 60-80 million lives in the country focusing on sectors such as financial inclusion, agriculture, healthcare and education. Last year, impact investments touched the billion mark for the first time.

Understanding the present situation, Fiinovation believes that there is a huge importance of impact investors in helping socially relevant enterprises grow and prosper. There is need to focus on increasing investments to promote financial inclusion, clean-technology solutions, education, healthcare and agriculture. Fiinovation comprehends that the potential of impact investments needs to be unlocked as it provides vast opportunity for social and financial dividends.

With the impact investments growing at fast pace, it will be necessary to keep track on the returns. Fiinovation believes that there is a need for guidelines and monitoring frameworks to strengthen the entire investment process. The bottlenecks related to policies and government regulations need to be managed keeping in mind the adequate measures that can help the impact investment market expand. Fiinovation also understands that increase in investments will lead to requirement of professionals and therefore, government policies promoting skill development in sectors such as clean-tech, healthcare, education, digitalisation, financial inclusion, agriculture, etc.

In future, the struggle with access to capital will be done with and the massive challenges, which the sector is still facing, is expected to be addressed. It is also expected that the limited number of investors need to grow over a period of time. Fiinovation expects that better governance and talent will be required to provide support in the market expansion process. For bridging the gap between priviledged and the marginalised, it is important for impact investing to become mainstream.

By Rahul Choudhury

Media & Communications, Fiinovation

TOP 5 HEALTH STORIES OF 2016

India has seen some major policy reforms in the year 2016. The central government has allocated budget worth billions to bring radical change and upgrade the healthcare sector as we believe that a developed economy can be build on the foundation of a healthy nation.

• The Big Health Budget

Realising the requirement of funds for upgrading the infrastructure to meet the increasing healthcare demands of the country, the Niti Aayog has allocated Rs. 37,490 crores under the 12^th Five Year Plan to the Ministry of Health and Family Welfare. The current budget is about three times the actual expenditure under the 11^th Five Year Plan. The share of healthcare in total plan allocation is set to increase by 2-5% of the GDP in the 12^th plan from 0.9% in the 11^th plan. The major portion of the allocated budget was sent to the Rural Health Mission which support the health developments of less privileged states.

• CSR Contributions on Health

A report released by KPMG on the CSR spending of firms states that from the total outlay of Rs. 6,490 crores, Indian companies have spent a total of Rs. 5,115 crores in 2015 and the heath sector tops the spending accounting for 20% of the total CSR spend. The spending on health sectors comprises the availability of safe drinking water, combating HIV/AIDS, malaria and other diseases.

• Back to Roots

India is known to be the land of Ayurveda and has been developing branded as well as generic quality medicines since ages. It has evolved from a industry of Rs. 1500 crores in 1980 to a whopping Rs. 1,19,000 crores in 2012 and it continues to grow by leaps and bounds. Even though the medicines are priced competitively, still a major chuck of the poor people have either no or low access to the medicines. Hence, to ensure that the quality medicine reaches to everyone at affordable prices, the government has initiated the opening of 3,000 Jan Aushadhi Stores (JAS) under Pradhan Mantri Jan Aushadhi Yojana (PMJAY) across the country by the end of March 2017. The government has allocated the budget of Rs. 39,532.55 crore budget for this initiative.

• Tech Savvy India

The E-health initiative, which is a part of Digital India drive launched by the Prime Minister Mr. Narendra Modi, aims at providing effective and economical healthcare services to all citizens. In order to ensure greater transparency in information sharing and access to healthcare facilities and experts by every citizen of the country, the Ministry of Health has decided to expedite the digitalization of the healthcare sector. The programme aims to make use of technology and portals to facilitate people to maintain health records and book online appointments with various departments of different hospitals using eKYC data of Aadhaar number.

The technology plays an important role to cure the chronic diseases like cardiac arrest, cancer, and TB etc. It helps in saving countless lives, who may have otherwise succumbed to death due to lack of these services. As per the Ministry of Health, development of 50 technologies has been targeted in the FY16, for the treatment of diseases like Cancer and TB. Medical technology is an area where technology plays an important role in creating sustainable health.

• National Health Protection Scheme (NHPS)

The government has alloted Rs. 1,500 crore under the National Health Protection Scheme (NHPS) an increase of 152% from the previous year, reflecting its continued commitment towards providing health insurance to the middle class and marginalised sections of the society. A cover of Rs. 1 lakh per family was introduced under the NHPS with an additional coverage of Rs. 30,000 for the senior citizens.“It looks like insurance is the direction that universal health coverage and NHM are taking. There is clear emphasis on insurance,” said K. Srinath Reddy, President of the non-profit Public Health Foundation of India.

Compiled By:

Manisha Bhatia

Media & Communications, Fiinovation

5 Big Things in the Education Sector in 2016

The education sector in India is currently at a crucial transformational stage. It is likely to grow leaps and bounds due to India’s demographic advantage presenting huge opportunities for investors. Among several things, these are the five big things that happened in the education sector.

1. The National Educational Policy Debate

The education sector in India had grown because of the first National Education Policy in 1968. The new draft NPE 2016 aims to bridge the gap between the growing population and quality education for all. It plans to put India’s education sector in the global map by making the country a global knowledge hub. The policy also plans to bring must needed reforms such as technology enabled education, skill education, teacher training support and compulsory quality audits for educational institutions. However, the draft policy has been widely criticised by teachers and institutions due to factors such as issues of commercialisation, massively open online courses (MOOCs), internationalisation and recruitment policies.

2. Education Sector & CSR

The education sector continues to be one of most favoured sector receiving CSR funds from businesses. In a recent report by Nasscom, it was highlighted that on an average 70% of the CSR funds of business is directed towards the education sector. Even, private educational institutions have been quite vocal about their wish of receiving CSR funds. The spending of the Nifty listed companies increased this year by more than 20% and education remained their priority sector.

3. Swachh Vidayala

Sanitation have become an important instrument to ensure there is no dropouts from schools. After the PM’s call to construct toilets and make the nation open defecation free, several companies under CSR contributed towards construction of toilets. Within a year, 4.07 lakh toilets were constructed out of which 2.66 lakh were new toilets whereas the rest were repaired. The aim was to have a separate toilet for girls and boys at every government school thereby reducing the drop-out rates of girls because of unhygienic facilities.

4. More Firms But Few Offers at IITs

The campus placements are always in the news, especially because of the highest offered packages from US based companies. This year, although more companies visited IIT campuses, it seems number of offers per company has dipped from last year. Students picked by leading finance and consulting firms have also reduced. The reason for such maybe the changing global dynamics and the slowdown of the developed economies.

5. Improved Rankings

The rankings of the Indian Universities improved from the last year. In the newly expanded Times Higher Education BRICS and Emerging Economies University Rankings, India was the 2^nd most represented country, with the Indian Institute of Science becoming the first Indian institute to enter the top 15. In the list of 300, India has 27 universities. In 2015, 16 Indian universities had made it to the top 200. China continues to dominate with 52 places in the top 300 and six in the top 10.

There might be several other impactful things that happened in 2016 related to the education sector, but these were the few which garnered much media attention.

By Rahul Choudhury

Media & Communications, Fiinovation

**The above article is based on the author’s personal views and analysis of the sector.

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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

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