Corporate Social Responsibilty

Lijo Chacko
Vocations Avocations

From being a man-at-arms at the fore front of the Indian Naval Army to becoming a harbinger of social change- Lijo puts light on the tragedy of the commons and the ways to overcome it through entrepreneurial leadership. A contemplative piece from the dynamic and extraordinary life experience of the ex-rank of commander and the present day Executive Director of Citizen Changemakers Foundation, his insightful perspective on CSR is a fresh breeze.

In this era, where we as human beings are connected on multiple levels, a global outlook will be immensely beneficial for us in the field of social change where we try to make the three broad stakeholders – corporates, governments and NGOs/CSOs - collaborate. Whatever be the difficulty of engaging with and among each other we need to agree to work together for the greater good. Perspectives gained from being part of two large movements: the right to food campaign and helping with public surveys of the rural employment guarantee scheme, both of which are national level movements, has given me a fair understanding of the perseverant hard work put in by NGOs/CSOs from various parts of the country and the fruits it has borne. The Indian government has humongous resources available at it’s disposal and has machinery which can reach deep into the country. 

Even as we take cognizance of what Theodore Levitte wrote in the ‘50s, “… business has only two responsibilities – to obey the elementary canons of everyday face to face civility and to seek material gain” we may let our philosophical antennae tuned into the wellbeing of the humanity at large. If that tuning requires one to spend some time on the ground, we should try to do it. In this context I am reminded of a good friend, Sai Raj, the MD of Synergy Navis, who at the end of our day’s visits to a few NGOs sighed, “…and I thought I had problems”. Sure enough because of that personal contact, he and his team are physically working closely with Rainbow Homes in Pune since then. 

People in C-suites are measured against very tangible goals— shareholder value, profits, revenue growth, etc—and are rewarded for achieving them. These become their strong personal drivers too. So, how does one hold maximizing profits as well as doing social good as goals at the same time in life? But then such dichotomies exist in the world in several aspects of our lives and we have been managing it, so we could consciously strive to strike a balance here too. Perhaps to help us achieve that balance Robert Frost advised that it is not enough to do one’s work faithfully but that we should strive to make our vocations into our avocations: 

My objective in living is to unite My vocation and my avocation As my two eyes make one in sight. For only where love and need are one And work is play for mortal stakes Is the deed ever really done For Heaven’s and the Future’s sakes. 

We could perhaps use a few nudges to think on those lines of aligning to humanity at large

Dr Tara Nair, a friend, in her essay on Binding Stakeholders into Moral Communities, invites us to think on Corporate Social Performance (CSP) which could perhaps help businesses by exploring the underlying interaction among three dimensions: the principles (CSR responsibilities - philosophical orientation), the processes (corporate social responsiveness - institutional orientation), and the policies (social issues management – organizational orientation). 

• Should we try to leverage every bit of the branding which can come our way while engaging in social activities? Or could we just stop trying to gain anything out of our social engagements?

• Private equity and venture capital has always been chasing the elite...people from top colleges/organisations attract Risk capital. People like many of us with elite degrees and corporate standings may not be the real risk takers since we have the best fall back options. But there many real risk takers in remote areas or are working in tough conditions, without any backing trying to work out new things every day to survive, even in small businesses. Could one channel risk capital in this direction? 

• How can one trigger social impact? What modifications need to be made to our current managerial paradigms? Could we endeavor to be globally impactful in the social field where we could seamlessly bring entrepreneurial leadership to large scale social transformations which is perhaps one effective way to engineer maximum social impact in the world? 

• Could we keep nature in the centre of things when we start to work on a new idea or when trying to solve a new business problem/product? 

• When trying to solve a social problem as part of CSR, could the R&D departments/organisations be physically close to the areas that we are trying to solve a problem of/in? 

• Could we encourage social intrapreneurship in our companies? Could such social enterprises/organisations get enough of the CSR department’s ‘patient’ capital? 

Ela Bhat’s counsel, though a few years old, remains fresh in my mind, “Poverty is violence, when you consume more than what you require you operate in the realm of violence. Simplicity is ahimsa/non-violence.” We may at times feel proud that we are givers and hence at a higher standing, but one tribal tenet implores us to recognize the fact that if there are no potential takers, a potential giver cannot become an actual giver. Imagine having to live a life without having the chance/opportunity to give! The sooner we internalise this ancient wisdom, the easier it becomes for us to operate in the space of CSR with a clear mind. When we reflect on why we are doing what we are doing and how distant a space we came from, I wonder whether it is a higher design at play, or whether we all have in us an innate fount of empathy that could be channeled to touch other's lives and help build that of others with compassion.

Infosys Foundation: Outreach For A Brighter Tomorrow

Seventeen years before the Indian Companies Act 2013 mandated a purse for CSR, Infosys had established a foundation to reach out to the underprivileged sections of society. A reflection of the ethos since inception, the Infosys Foundation has contributed immensely to the community with initiatives straddling five areas of activity. 

CSR touches lives in ways difficult to fully comprehend or quantify, and demands the undivided attention of benefactors and sponsors. Infosys has closely worked with NGOs and civic authorities to reach out to the needy, helping to restore smiles. Straddling activities across healthcare, education support, destitute care, impetus to rural development and support to performing arts and heritage of India, the Foundation is actively involved in CSR activities with material and financial inputs, in addition to resource support. Some of the latest milestones achieved includes projects in the following categories: 

EDUCATION : Aimed at arresting school dropout statistics that prevent underprivileged sections of society from rising above the great divide, the Foundation’s initiative in Assam in association with Kalyan Ashram includes an endowment for a hostel that will accommodate 100 students of needy sections of Udalgiri district. The partnership with Shishu Shiksha Samiti aims to help impart education through two schools that will positively impact 19 villages with a combined population of one lakh residents. Women empowerment is high on the agenda of the Foundation, and consequently, the Saraswati Smarak Samiti receives funds for the establishment of a Seva Kendra that is aimed at making women self-reliant. 

HEALTHCARE : The Visakha Jilla Nava Nirman Samithi (VJNNS) received an endowment for the establishment of a superior gravity fed water supply system that will improve sanitation and water supply to more than 100 villages impacting 40,000 beneficiaries. The Foundation consistently supports and identifies sustainable projects that will help beneficiaries over a long period without having to rely on outside assistance. This is one such project that will transform the way water supply is managed, in addition to empowering local communities to handle development funds. 

With an aim to motivate researchers to perform cutting-edge research, as well as train them to raise awareness about infectious diseases, the Foundation partnered with IISC Bangalore. The partnership is to enhance infrastructure and broaden research activities at the Centre for Infectious Diseases Research (CIDR) at the institute. The endowment will be used towards research, training and creating awareness about infectious diseases. 

The Foundation partners with non-government organizations (NGOs) to make a difference among local communities and prioritizes projects by assessing their impact, and match funding requirement with availability of funds in our corpus. The Infosys Foundation takes pride in working with all sections of the society that were traditionally overlooked by the society at large. 

RURAL DEVELOPMENT : The Foundation has embarked on an ambitious development programme for the upliftment of communities in the tribal belt of Jhabua–Alirajpur in Madhya Pradesh. The Foundation has inked a pact with Shivganga Samagra Gramvikas Parishad through a grant for integrated development of the belt across various activities. More than 5,00,000 villagers will directly and indirectly reap the benefits of educational training, vocational assistance, community development and, more importantly, receive assistance to help conserve natural resources. Technical resources planned for the upliftment include a well-stocked library and advanced training. 

ARTS & CULTURE : While the Foundation supports performing arts and artisans elsewhere, this initiative, in association with Sahapedia, is aimed at creating a digital bridge between the masses and the rich cultural glory of India. This project is aimed at collating and disseminating rich content that reflects the glory of India digitally. Ensuring the connect of the future with the past heritage, culture and tradition of India is one of the objectives of this one-of-a-kind initiative that is destined to bring the cultural wealth of India to more than 10 lakhs users in a few years from now. 

SUSTAINABILITY : We saw a great opportunity to contribute to the global fight against climate change while keeping the community at the heart of it. An estimated 60 per cent of Indian households rely on traditional cooking methods using firewood. This leads to the gradual loss of forest cover on the one hand and indoor air pollution-related deaths on the other. Nearly a million deaths a year in India are attributed to indoor air pollution from cooking. Infosys has undertaken large-scale projects where rural communities received either high efficiency biomass cooking stoves or biogas units to replace traditional cooking. These clean-cooking technologies produce very little or no smoke. They also eliminate or reduce the firewood requirement, helping prevent the loss of forest cover. Infosys projects are helping nearly 100,000 rural families, while reducing an estimated 650,000 tonnees of greenhouse gas emissions over a 5-year period.

''CSR Aims To Ensure That Companies Conduct Their Business In A Way That Is Ethical ''

Back in April 2014, the Ministry of Corporate Affairs (MCA) had notified Section 135 and Schedule VII of the Companies Act, 2013, which relate to corporate social responsibility (CSR) that was to be effective from April 1, as part of the new Companies Act. The norms apply to companies with net profit of at least Rs5 crore or Rs1,000 crore turnover or Rs500 crore net worth. These companies will have to spend two per cent of their three-year average annual net profit on CSR activities in each financial year, starting from FY15. “The rules had been finalised after extensive consultations with all stakeholders and provide for the manner in which CSR committee shall formulate and monitor the CSR policy, manner of undertaking CSR activities, role of the board of directors therein and format of disclosure of such activities in the board’s report. Thus, mandatory CSR was born in India. 

CSR aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact and consideration of human rights. It can involve a range of activities, such as environmental protection and sustainability. 

After the new government was sworn in, there was lull till about August 2014. The famous inspiring speech of Prime Minister Modi on the Independence day from the ramparts of Red Fort actually paved the way for a new beginning of mandatory CSR in India. Stressing on the need for cleanliness, “Swachh Bharat” was announced to be launched on October 2 the same year, to be accomplished by 2019, on the 150th birth anniversary of Mahatma Gandhi. As the first step towards “Swachh Bharat”, toilets in all schools, including separate toilets for girls, were to be built within one year. We could give the chronology of the events, as our CSR magazine (Corporate Social Focus) was launched on April 16, 2014, coinciding the year of mandatory CSR introduction. The magazine was launched by Padmashree Rajashree Birla at the Global CSR Conference. 

As announced, on Oct 2, 2014, the Swachh Bharat Abhiyaan was launched with the PSUs joining in a full-fledged execution mode. PSUs being the large spenders on CSR activity, the real execution began. Followed by a series of initiatives directly/indirectly associated with CSR, initiatives like the Pradhanmantri Jan-Dhan Yojana (financial Inclusion), Skill India” movement, digital infrastructure as a priority, Make in India, ‘Saansad Adarsh Gram Yojana’, Beti Bachao, Beti Padhao, each Member of Parliament adopting and making one model village in his/her constituency by 2016, etc. 

In the first year (2014), apart from the PSUs, other companies were still on the 'wait and watch' mode, some trying to dilly-dally under the garb of forming the CSR Committee. The law had clearly specified one Independent Director on the board of CSR Committee, apart from the company's senior officials. The idea was to ensure there was no favouritism on allocation of funds to any one particular NGO/entity to carry out the CSR work as an Implementing Agency. 

As per the spending pattern in these last three years analysed by Corporate Social Focus, the first year saw a spend of Rs5,000-plus crore, with a marginal increase in the second year at around Rs7,500 crore, topping up to Rs8,200-plus crore in the thrid year. As reported earlier, PSUs continue to be the major spenders. Majority of spend was seen in the states of Maharashtra (60%) and Gujarat (40%). The education sector followed by healthcare have been the major areas of spend so far, followed by rural development. Preservation of heritage structure was ignored to a great extent. Promoting local art and culture through heritage conservation is directly linked to the social well-being of the community, the definitive reason being that it spawns a sense of identity among people, who associate with the culture and share a common history with it. The importance of engaging communities through CSR initiatives on art and culture is not being put forth systematically and corporates are not aware about the benefits of carrying out such programmes. There is immense potential for executing such successful programmes which can align a corporate’s activity to its core business. 

Measures for the benefits of armed forces veterans, war widows and their independents is another area of neglected spend. Kudos to our PM for his customary ritual of spending Diwali with the armed forces. However, not much is being done for the forces under the CSR. Though many corporates in their CSR policy framework have mentioned this as one of the areas earmarked for their spend, but anything worthwhile has seldom been done. Though there is a general perception that armed forces veterans and their dependents receive enough institutional and government support and therefore, private sector or anyone else need not bother. Besides, if an institution, corporate or individual does want to do something, they do not know how to go about it, as the awareness level is almost nil. 

Arun Jaitley, Finance Minister and Minister of Corporate Affairs, during his stint as Defence Minister had urged that the corporate sector should utilise the services of ex-servicemen as their commitment to work and discipline is without parallel. Since mid-career and late-career stage jobs are relatively more in the private sector than in the public sector, ex-servicemen are a useful resource. "Corporate India needs trained minds and personnel. Ex-servicemen constitute a huge resource of trained and disciplined manpower. He said a majority of ex-servicemen are "retired but not tired". "Society owes debt and gratitude to the ex-servicemen. It is very important that segment of society come forward and absorb these extremely talented and trained men into jobs," Jaitley said. He added that ex-servicemen are best suited to run Corporate Social Responsibility (CSR) programmes. Technology incubation have evoked little or practically no interest at all. There are multiple reasons for tepid corporate interest. One of the traditional reasons being is that it is not looked at as CSR activity, as the idea of CSR is associated with doing social good and so this concept of funding incubators as CSR is seen as alien. Secondly, many companies fund start-ups and get returns on that investment. But when they give as CSR grants to an incubator, which is nothing but diverting the funds to start-ups, they get no returns at all. The general myth is that CSR funding in incubators is an interesting option but may not be sustainable for building a start-up ecosystem for the longer term. That is better done by capital that will look for returns also, as it will ensure more competitive start-ups to build roots for future. It is a different thing that CSR funding is limited to approved academic incubators, but companies are not aware as which academic incubators are approved.

Dabur Helps 22 Villages Achieve ‘Open Defecation-Free’ Status 

New Delhi, Jan 15, 2018: Moving forward on its mission to create a heathy India, the country’s largest home-grown consumer products maker Dabur India Ltd has helped 22 villages in Uttar Pradesh and Himachal Pradesh achieve ‘Open Defecation-Free’ (ODF) status. The company has targeted to nearly double the number of ODF villages under its fold from 22 now to 41 by the end of FY2017-18. 

The 22 villages declared Open Defecation- Free following sustained efforts by Dabur India Ltd include eight in Uttar Pradesh and four in Himachal Pradesh. In all, the company has helped construct toilets in over 3,000 households across these villages to achieve this feat. In addition, separate toilet blocks for boys and girls are also being constructed in nearly 20 schools across five states: Uttar Pradesh, Himachal Pradesh, Uttarakhand, Rajasthan and Assam.

“As a company, Dabur is committed to its motto of being dedicated to the health and well-being of every household. The sanitation exercise in rural India, covering both households and schools, is part of this mission. Our intention to make 41 villages across Uttar Pradesh, Uttarakhand and Himachal Pradesh Open Defecation- Free by the end of financial year 2017-18 and we are well on track. Our idea is to improve the overall hygiene standards in these villages and turn them into model villages, offering a variety of services, from operating health posts to vocational training programmes for the youth,” said A Sudhakar, CSR Head, Dabur India Ltd. 

Dabur had in 2016-17 constructed nearly 1,254 household toilets under its mega initiative “700 se 7 kadam” that sought to protect the dignity of women in the hinterland by bringing toilets closer to them. “At Dabur, we believe that an organisation’s true worth lies beyond its business and it is best reflected by the service it renders to the community and the society. Businesses have a responsibility to subserve larger societal goals as they have the ability to contribute significantly and impactfully to sustainable and inclusive development. Since toilets are constructed in the individual households, the maintenance of these toilets is the responsibility of the individual household, making the project sustainable in the long run,” Sudhakar said. 

In addition to constructing household toilets, Dabur and its CSR arm Sundesh, have also been organising several programmes and cleanliness awareness drives across these villages to sensitise the residents about keeping their surroundings clean. 

The ‘700 se 7 kadam’ initiative began with Dabur conducting a detailed survey of the villages to ascertain the status of household toilets. As per the data collected from these villages, it was observed that nearly 50 per cent of households in most villages did not have individual toilets. Villagers were using open spaces to defecate, which was posing a serious threat to their health, in addition to compromising the safety of women and girls. Due to the open defecation, the cases of diarrhea, cholera, typhoid and hepatitis A were also rising at an alarming pace in these villages. Due to unavailability of toilets in houses, family members, especially women and adolescent girls, had to wake up in the wee hours and head to the outskirts of the village to defecate. Their low income was the biggest stumbling block in constructing toilets in their households. 

To address this issue, Dabur decided to financially support the poor households in the construction of toilets in their homes. Through village meetings with SHG and Kisan Club members, Dabur motivated the villagers towards changing their habit of open defecation. “We motivate them to construct toilets in their households with our financial support. However, in order to bring in a degree of ownership, we do not sponsor the complete amount. Instead, we fund half the cost of constructing the toilet, while the balance is to be borne by the individual household. 

Also, the financial support is given to the woman of the household through an account payee cheque. The financial support is given in two installments, with the first cheque given after the pit is constructed and the second instalment after the entire construction is completed. The women are asked to submit their identity card and bank account details, along with a request letter for constructing the toilet. 

To authenticate the request of the beneficiary regarding unavailability of toilet and construction of new toilet in their household, construction activity is monitored at every stage with photographic evidence. Finally, when the toilet is completed, a health and sanitation message is painted on the wall,” he said.

Karan Anand
Head - Relationships, Cox & Kings Ltd 

Robust CSR Can Have A Positive Impact In The Community 

What is CSR in your view? 

CSR is a reflection of who we are and how we operate as a company. To us, being socially responsible means striving to embbed our values and ethics into everything we do — from how we run our business, to how we treat our employees, to how we impact the communities where we do business. At Cox & Kings Foundation, we aim to bring about societal transformation through our CSR initiatives and also involve our employees in the process. 

Is Corporate India responding positively to the mandate for CSR? 

While CSR issues have been gaining in prominence across countries, India is the first country to have made CSR activity mandatory for large and profitable companies incorporated into law. The mandate indicates that the government has recognised the important role of companies in the development of the country. However, we feel it is work in progress. Only a few big companies are visible and engaging in development discussions, while many coming under the bill are still missing in action. But to bring about sustainable and long term development, companies need to work together with other development actors to scale up innovative solutions to community problems. 

What needs to be done, in your view, to achieve results on the ground when it comes to CSR spending? 

All organisations have to balance limited resources and effort, so it is crucial to deploy yours to maximise the benefits. Many companies start with pet projects, philanthropy or propaganda, because these activities are quick and easy to decide on and implement. But to achieve best results on the ground, the companies need to move toward CSR strategies that focus on truly co-creating value for the business and society. Also, making smart partnering is strategic to getting the best results on the ground.

How is CSR in India different from the CSR in the global context? 

People in many countries are expecting that corporations should meet the same high standards of social and environmental care, no matter where they operate. At the same time, there is increasing awareness of the limits of government's legislative and regulatory initiatives to effectively capture all the issues that CSR addresses. Businesses across the world including India are recognising that adopting an effective approach to CSR can reduce the risk of business disruptions, open up new opportunities, drive innovation and enhance brand. 

What are the benefits of robust CSR programme? 

A robust CSR programme has the ability to have a positive impact in the community and it also encourages businesses to act ethically and to consider the social and environmental impacts of their business. If a company wants to integrate and drive CSR throughout the organisation, it needs to align its social responsibility strategies and goals with organisational objectives. This will embbed CSR within the business culture to sustain the strategy over the long term. 

Please tell us about your various CSR initiatives? 

Our philanthropic arm Cox & Kings Foundation is established to make the world a better place by fostering a positive and holistic change. Established in 2010, the Foundation is committed to bringing about societal transformation through financial support and by engaging our employees to be a part of the solution. We work with select, reputed NGOs to bring about sustainable change in the fields of education, culture, animal welfare, village development, social empowerment, environment and healthcare.

George Alexander Muthoot
MD, Muthoot Finance Ltd 

CSR Activities Create A Robust Cycle Of Collaborative Growth 

What is your definition of a robust CSR programme? 

Currently, businesses are run in a very complex environment, wherein all the stakeholders are very vocal about their expectations. This results in companies adopting a very robust CSR programme, thereby facilitating greater benefits to the society at large. 

A robust CSR programme involves forming a dedicated CSR team by the company, along with well-defined CSR policy in place. Many times, to reach a wider audience and to create an impact at the grassroot level, the companies also partner with local NGOs or government initiatives. This facilitates both the company and all the stakeholders’ feel-good factor of a positive social impact and goodwill. The company board is actively involved with CSR committee while drafting CSR policies and executing CSR programmes. 

A robust CSR programme also aids in developing a skilled and loyal workforce. It facilitates in attracting and retaining good talent. The participation of employees in CSR activities creates a motivated environment among the workforce, thereby leading to a sense of pride in the company and its business. With robust CSR programmes, corporates have much to gain. The philanthropic and social contribution cultivates an innate respect for the companies through generations, resulting in deep market penetration even in changing economic and cultural scenarios. Thus, CSR activities are favourable for all. As businesses grow, the society gains. And as the society flourishes, businesses gain – thereby creating a robust cycle of collaborative growth.

What is business responsibility reporting? 

A Business Responsibility Report divulges the details of responsible business practices by a listed company to all its stakeholders. The report highlights the work done by the company from an environmental, social and governance perspective. The report is significant as the companies’ access funds from the public and it also has an element of public interest involved. Thus, the companies are obligated to make exhaustive disclosures on a regular basis SEBI has outlined nine underlying principles to assess compliance with these norms. According to these, businesses should carry out and manage themselves with moral values, transparency and accountability. The company is responsible for providing safe and sustainable goods and services and also to promote employee well-being. The company should encourage inclusive growth and equitable development. Most importantly, companies should provide value to their customers and consumers. 

What is the role of the CSR committee? 

The board of the company forms the CSR committee with the purpose of assisting the board in fulfilling its Corporate Social Responsibility. The CSR committee plays a vital role in accomplishing the following responsibilities:
• Identifying various CSR activities that can be undertaken and prepare a detailed plan on the same
• Recommend the disbursements required on the agreed CSR activities
• Successfully execute and examine the CSR policy from time to time
• CSR committee regularly reports to the board on the CSR initiatives
• The committee reviews and re-evaluates the CSR activities annually and recommends any proposed changes to the board for approval
• The CSR committee is also responsible for looking into the income accrued to the company by way of CSR activities. The committee should ensure that it is credited back to the community or CSR corpus
• The committee can also form subcommittees and delegate authority to them as and when appropriate 

What are the CSR initiatives undertaken by your company? 

The CSR activities of Muthoot Finance areimplemented through Muthoot M. George Foundation, which was established in 1993 in the memory of our founder chairman late M. George Muthoot. The welfare programmes organised by the foundation are aimed at providing assistance to deserving groups and individuals. 

As a strong proponent of corporate social responsibility, Muthoot Finance has consciously embraced welfare initiatives that are aimed at furthering social good. The objective is to ensure a positive social impetus through well-planned activities backed by effective implementation. Our initiatives help solve some of the persistent challenges in the areas of education, medicine, disaster management and environment. 

CSR INITIATIVES BY MUTHOOT ENVIRONMENT RESEARCH FOUNDATION 

GARBAGE BINS TO RWAs IN DELHI 

The careless treatment of garbage is a threat that Delhi has been dealing with for a long time. In order to control this, Muthoot Finance distributed free garbage bins to the Resident Welfare Associations (RWAs) in Delhi. The activity helped to solve the problem and the garbage treatment has become systematic now. 

HUMAN-ELEPHANT CONFLICT MITIGATION (HEC) IN ASSOCIATION WITH WWF : Urbanisation has led to fragmentation of natural habitats of elephants across the country. This leads to straying of elephants into the areas of human settlement, resulting in damage to human life and property. We have joined hands with WWF India to mitigate this increasing human-elephant conflict in regions like Assam, Arunachal Pradesh, West Bengal, Tamil Nadu, Kerala and Uttarakhand. Solar fences were placed in the areas of conflict. Orientation camps and awareness meetings for anti-depredation squads were conducted. Also, search lights and early warning motion sensor alarms were provided to forest warden. 

MUTHOOT HARITHATHEERAM PROJECT : The 'Muthoot Harithatheeram project' is a revolutionary small-scale farming initiative aimed at promoting pesticides-free organic vegetables. The programme encourages individuals and families to cultivate organic vegetables within the premises of their own homes 

HARITHATEERAM AROGYA GRAMAM PROJECT : Muthoot Finance ‘Harithatheeram Arogya Gramam Project' became the catalyst for development in the village of Chellanam. This project was undertaken in order to develop the village by giving educational assistance and training for construction of rain water harvesting systems, toilets etc 

CSR INITIATIVES FOR EDUCATION SECTOR 

MUTHOOT M. GEORGE EXCELLENCE AWARD: It is an initiative to felicitate the top students of government schools in Kerala, Andhra Pradesh, Telangana and Karnataka. Students were given cash award and a certificate signed by school authorities and the Chairman of Muthoot M. George Foundation. The programme aims at forming an equitable and sustainable society by uplifting the younger generation 

WATER PURIFIER DISTRIBUTION: Water distribution is a sensitive matter related to every establishment, but when it comes to children, it has to be ensured that the water is safer. To keep the students away from various diseases, the Muthoot Group has distributed water purifiers to the government schools in Trichy, Tamil Nadu 

UMBRELLA DISTRIBUTION Prior to the monsoon season, free umbrellas were distributed in a number of schools across Kerala. Attractive umbrellas of superior quality were chosen for the project 

SCHOOL UNIFORM DISTRIBUTION The government schools are the gamechangers in the life of students who come from families with limited financial back-up. As the parents are struggling to provide for the basic educational needs, the Muthoot Group made an initiative by distributing uniforms to the students of the Government ADW High School, Theni 

MUTHOOT FINANCE YMCA CHANGE AGENT PROGRAMME Proper guidance and direction at a young age will help young minds find their true potential. We launched this programme with our focus on grooming young children to develop their personalities and make them more confident. The programme covered schools of Ernakulam district, Kerala 

CSR INITIATIVE ON GENERAL WELLNESS OF THE SOCIETY 

MUTHOOT SNEHA SAMMANAM PROJECT: Muthoot M George Foundation launched ''Muthoot Sneha Samanam” to honour artists, writers and their widows by providing financial assistance. The project selects artists who have made their mark in their respective creative field and provide financial assistance as a gesture to honour their intelligentsia and contributions they have made in their creative field 

PAUL GEORGE MEMORIAL CRICKET TOURNAMENT: Paul George Memorial Cricket Tournament, the 11-day cricket tournament, has been designed as a platform for the government school students who have been unable to get an opportunity to showcase their talent in cricket. 

CSR INITIATIVE TO IMPROVE QUALITY OF LIFE

'MUTHOOT SHAPE A SMILE' PROJECT : We initiated this project to bring back smiles to children suffering from cleft lip and palate deformity. We sponsored all treatment costs for children and funded their surgeries, which were conducted at Kumaran Hospital, Chennai 

SNEHASRAYA PROJECT: Muthoot Snehasraya is a mobile laboratory intended for the prevention and early detection of kidney-related diseases, diabetes and hypertension ailments. This mobile laboratory facilitates blood and urine tests and creates awareness among people about kidney diseases. At present, it operates across Tamil Nadu and Kerala and exclusive health camps are held in these states

Manappuram Foundation: Aiming For The Gold Standard In CSR 

The Manappuram Foundation is a charitable trust set up in October 2009 under the inspirational leadership of its chief patron and Managing Trustee, V.P. Nandakumar. Our express mandate is to drive forward the CSR activities of the Kerala-based Manappuram Group of companies, and especially its flagship Manappuram Finance Ltd., India’s best known gold loan company. V.P. Nandakumar is the promoter and MD & CEO of this company. 

The Manappuram Foundation works with the vision to create healthy, educated and happy communities. The goal is to enrich people’s lives and make a visible difference in their day-to-day existence to open up a brighter future for them. Towards this end, the Foundation’s strategy is to collaborate with our internal as well as external stakeholders to take forward grassroots programmes in healthcare, education, empowerment of women and livelihood projects and, thereby, make an impact on the community at large. 

In line with Nandakumar’s vision and experience, the Manappuram Foundation essentially seeks to build upon the inherent social relevance of its core business of gold loans, which has long promoted inclusive growth by enabling the common people to meet their credit requirements with ease, even as they lacked access to formal channels of finance. 

Our CSR policy further encourages us to also take up a wide variety of projects, programmes or activities pertaining to old age care, women empowerment, environmental sustainability, ecological balance, protection of national heritage, measures for the benefit of veterans of the armed forces, training, promotion of rural sports, contributions to technology incubators, rural development, etc. 

However, the Foundation has identified two main areas for focused attention: promotion of quality education and upgrading the standards of healthcare among people inhabiting its area of operation. In this context, the name “Manappuram” refers to a narrow strip of land on the coast of Thrissur district in Kerala sustained mostly by agriculture and fishing. Not surprisingly, the activities of the Manappuram Foundation are predominantly focused on this backward area. 

ACTIVITIES UNDER CSR Under the Education theme, the Manappuram Foundation runs a fairly large ICSE school with two pre-schools, a skill development institute under the National Skill Development Council framework, and various professional coaching institutes. It also extends support to reputed colleges in Thrissur district to upgrade their infrastructure. 

Under the Healthcare theme, the Foundation has been providing group insurance benefits to BPL families, subsidized health check-ups and diagnostic services, pyschotherapy and counselling services, ICU ambulances, palliative care, old age care programmes, personality development and life skills training, fitness and Yoga centres, etc. Recently, the Foundation collaborated with a leading international NGO to launch large-scale outreach programmes for diabetes awareness, detection and education. The effort will also lead to the creation of a public gymnasium infrastructure for diabetes prevention and management. Incidentally, this campaign recently won an entry into the Guinness Book of World records for the sheer numbers covered. It may be mentioned that Nandakumar’s exemplary thought leadership has been instrumental in conceptualizing such programmes with national and global outreach.

Today, the Manappuram Foundation is widely acknowledged to have broken new ground and set new standards in how Corporate Social Responsibility activities can be made truly meaningful at the grassroots.

EVALUATING THE IMPACT 

A social audit is conducted periodically to measure the impact of all major projects and to make sure the activities are in line with the vision under the CSR. 

Further, regular audits are conducted by internal auditors and statutory auditors. Beyond this, the direct feedback we get from the ground level—through our social and psychiatric counsellors, the ward members and office bearers of the Panchayats—provides us an opportunity to rectify shortcomings, if any. At the end of the day, the positivity and the encouraging word-of-mouth publicity generated by our CSR programmes indicates how much our CSR activities are appreciated at the grassroots. 

CSR SPENDS 

The total CSR spend for FY2016-17 amounted to Rs114.99 million. Manappuram Finance Ltd has consistently contributed 2 per cent of its net profit to CSR and Nandakumar has committed to deploy significant financial as well as human capital resources to our CSR activities in full compliance with the regulatory norms. The Foundation’s endeavour now is to cover as many people as possible within our focus areas, create visible impact in the lives of the people and the communities, and eventually make the programmes self-sustaining. 

Today, the Manappuram Foundation is widely acknowledged to have broken new ground and set new standards in how Corporate Social Responsibility activities can be made truly meaningful at the grassroots. A measure of credit must go to Nandakumar’s insistence all along that the Foundation operate with standards of efficiency and accountability no less than the corporate sector.

CSR – Taking The Corporate From
An ‘Organisation’ To Being A
‘Socially Responsible Organisation’ 

CSR can be defined as ‘a form of corporate self-regulation integrated into a business model that helps companies to create an overall positive impact on society. The efforts could be philanthropic, environmental or ethical in nature. It should be noted that CSR is not charity or mere donations, it is a way of conducting business by which corporate entities visibly contribute to the social good. 

With change in time, rules have been changed and so are organisations. It was on April 1, 2014, that the new Companies Act, 2013 came into force which made India the first country to legally require companies to practice CSR activities and “give back” to the society. As per the law, it is mandatory for companies having an annual turnover greater than Rs1,000 crore or a net worth greater than Rs500 crore or net profit greater than Rs5 crore, to spend 2% of their 3-year average annual net profit on activities related to corporate social responsibility (CSR). 

A company needs to incorporate a report in its annual report mentioning a brief outline of the company's CSR policy, average net profit of the company for the last three financial years; prescribed CSR expenditure (2% of the amount of the net profit for the last three financial years); details of CSR spent during the financial year and specify reasons in case the company has failed to spend 2% of the average net profit of the last three financial years. 

The CSR rules appear to widen the ambit for compliance obligations to include the holding and subsidiary companies as well as foreign companies whose branches or project offices in India fulfil the specified criteria.The rules specify that a company which does not satisfy the specified criteria for a consecutive period of three financial years, implying that a company not satisfying any of the specified criteria in a subsequent financial year, would still need to undertake CSR activities, unless it ceases to satisfy the specified criteria for a continuous period of three years. 

One must give a thought to why there is such a requirement for CSR in today’s era? Why is it mandatory? First and foremost, we has a human being has exploited nature to its maximum limits. The resources have started depleting rapidly with our ways to create comfortable lives for ourselves. Comfort, which has slowly and steadily started to cost us at grandeur scale. 

Second, the gap between the privileged and the underprivileged has grown rapidly. This, in the long term, would be the biggest threat to human civilisation, not just to a single country. Hence, there is a need to find ways to uplift the underprivileged. In the four years of our operations, every year we have donated for the education of the girl child, regularly invited kids from backward areas of Maharashtra to visit the mall and given them an experience and let them enjoy the things they have never experienced in their life. As part of our eco-friendly initiatives, Viviana has its own ‘Organic Waste Management’ plant for treating organic waste into manure. All the food waste generated is converted into organic manure on a daily basis, which gets distributed to customers free of cost and also used for developing greenery around the mall. The mall is India’s first mall to install a 900KVA solar power plant at a single site on its rooftop. 

Third, and the most important one, is that it helps the organisation to come closer to its customers and employees. It gives anorganisation a human touch that creates an emotional bond which helps them to connect with the organisation, thereby creating a long lasting relation with its stakeholders. Also, the process of executing a CSR campaign helps an organisation to connect with its employees and other stakeholders. We had a similar experience. Our Viviana Mall, which is recognised as India’s first and only visually impaired-friendly mall, has now become a part of our ethos that even our employees and retailers have consciously started taking steps to give a better experience to a visually impaired person. They participate in our meetings to drive the campaign further to newer heights; they give suggestions and are at the forefront to execute the same. Thus, CSR is taking corporate from a mere ‘organisation’ to ‘socially responsible organisation’.