The Customer Experience Company

The 2% CSR AllocationImplications for the CSR ManagerNamrata Rana

India

The new Companies Bill has mandated that organisations of a certain financial strength spend 2% of their net profit on corporate social responsibility (CSR),

What does it mean for the CSR manager of today?

Can the move towards higher value, volume and profit be made while giving back to society and the

environment?

India is home to the largest number of poor and illiterate

3 out of 10 people need to be taught how to read

4 out of 10 people need to be given food

Every year a million children need to be saved before they are a month old and another million before they are 5

years old.

Every year 15000 farmers need to be given hope

A quarter of the population needs to be taken out of the dark

Over 49% of urban areas and 65% of rural areas need to be given toilets

Are you ready for the challenge?

By 2020 India will be the 3rd largest economy in the world

This will put extraordinary pressure on our natural resources and our infrastructure.

Water. Waste. Energy. Urbanization. Livelihood....

are just some of the several challenges we face

Going by the government’s 2% norm Rs 63 billion is expected to flow in from India’s top 500 listed companies.

If we expand this list to the top 1,000 corporations, add MNCs, co-operative banks and SMEs, then we are talking about at least Rs 120 billion.

Each of India’s 660 districts could get over Rs 18 crore of this investment.

What should be spent, where and on whom? Can you help your company achieve its strategic goals?

But the corporate landscape is challenging......

Challenges CSR in many companies is either part of HR or Corporate Communications.

Need for a separate department with specific deliverables.

NEED

NEED

Challenges CSR budgets are expected to double, this will also lead to increased scrutiny by stakeholders.

Need for re-skilling of existing teams and establishment of processes.

NEED

Challenges Many CSR initiatives have been ad hoc and not necessarily linked to requirements.

Need for a strategic focus + Study of stakeholders needs and aspirations, + an action plan that can run for several years

NEED

Challenges CSR initiatives in the past may not have formed part of standard corporate reporting

Need to assess, monitor and report initiatives and judge efficacy

Then, ask some tough questions?

WHO - is your core audience, for which CSR initiatives need to be designed?

WHAT - is your value proposition and is this in synch with your core business?

WHEN - did your competition launch their CSR initiatives, do you want to be distinct from them?

WHERE - is the sweet spot, through which you can benefit both the community and the company?

WHY - are you investing in CSR if you cannot deliver what you are promising?

Define your core intent

Run a good business

Give Some thing Back

Do you want to......

Be a good neighbour

Be a beacon to others

Transform an industry or industries

Take a close look at the implementation,after defining the broad areas you want to look at as part of CSR.

Strong partnerships

Fundamental Impact

Improves competitive

context

Events sponsorships

Cause marketing

Employee volunteerism

Mitigate value chain impacts

Donations

Grants

Ask yourself how your CSR will scale from year to year? And develop an approach that is sustainable...

Philanthropic Transactional Integrative

Actions

While developing your CSR strategy it might be useful to look at a Macro view too

Enhancing capacity for

growth

SOURCE - Scenarios shaping India’s growth

For Example: The starting point of the Indian Planning Commission’s consultations with stakeholders for the 12th plan were these challenges.....

Enhancing skills and faster

generation of employment

Managing the environment

Markets for efficiency and

Inclusion

DecentralizationEmpowerment and Information

Technology and Innovation

Securing the energy future

of India

Accelerated development of transport

infrastructure

Rural transformation

+ growth of agriculture

Managing Urbanization

Improved access to quality of education

Preventive and curative

healthcare

Are you ready?

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