CSR: Urban India’s Problems

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November 16, 2018

According to the census 2011, around 31% of India’s population lives in urban areas. That is close to 400 million people.

The Census defines ‘urban’ as an area that satisfies the following three conditions

at least 5,000 inhabitants
density of more than 400 people per sq. km
at least 75% of male working population engaged in non-farm activities

These conditions were framed considering that India was primarily rural and the government’s priority was funding rural schemes. But the conditions have changed drastically now. More and more people are living in Urban areas and India is moving from agrarian economy to a service based economy. If we relax the density and occupation parameters of the census definition, then more than 50% of India is urban.

The urban areas are facing severe housing issues and a very high percentage of its population is living in slums. By 2030, India’s population will be around a staggering 1.5 billion. Where will all these people live? Cities like Navi Mumbai and Gurgaon came up to deal with the massive housing crunch and sky high prices in neighbouring metropolises of Mumbai and Delhi. People living in these cities face long commuting hours and now even these areas are becoming out of reach due to rising demand.

The housing problem appears quite small when data regarding urban mobility is considered. People spend hours in commute to cover small distances. India’s mean travel speed across cities is just 24.4 km per hour compared to the mean travel speed of 38.5 km per hour in metro cities in the US. These numbers don’t tell the complete truth. The Indian numbers are skewed and a factor of nearly 2 separates the fastest and the slowest cities. During peak hours, these numbers go for a toss and the majority of the population is either stuck in traffic or waiting for metros and trains.

India’s urban population is growing but the infrastructure growth is struggling to keep pace with it. The problems mentioned above are only going to compound in future. There needs to be a proper institutional framework to solve urban India’s problems so that this burgeoning population contributes to India’s growth and not otherwise.

Thank you for reading the story until the very end. We appreciate the time you have given us. In addition, your thoughts and inputs will genuinely make a difference to us. Please do drop in a line and help us do better.

Regards,
The CSR Journal Team

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LANXESS to strengthen its Indian production sites

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The CSR Journal

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November 16, 2018

Specialty chemicals company LANXESS is strengthening its asset base in India. The company plans to invest up to INR 1250 crores till 2023. Focus areas of the investment will be the businesses for chemical intermediates, high-performance plastics and water treatment products.

LANXESS had already invested a sizeable amount in India over the years, among others for greenfield investments and acquisitions. The company currently operates production facilities for five business units at its sites in Jhagadia and Nagda.

“The Indian economy is currently the world’s fastest rising major economy, with the chemical industry as one of the fastest growing sectors. We aim to even better capitalize the huge potential of the Indian chemical market and are therefore now launching a major investment package,” said Hubert Fink, Member of the Board of Management of LANXESS AG.

The main growth driver for LANXESS in India is the changing population which is rapidly becoming larger, younger, more middle class and more urban. “The demographic trend in India is leading to an increased demand in the areas of mobility, urbanization, nutrition and clean water. LANXESS can cater these demands with its wide portfolio of specialty chemicals,” said Neelanjan Banerjee, Managing Director and Country Speaker of LANXESS in India.

CSR: Youth In The Footsteps of Gandhi

By

Kasmin Fernandes

-

November 16, 2018

The need in India today is for young people with fresh ideas who could try and transform themselves to cause disproportionate change in the system and stand by it. It was out of this context that in 2008, Gandhi Fellowship emerged as a platform for youth to connect to the grassroots, understand the issues first hand and implement innovative solutions to cause change in the system.

Piramal Foundation for Education Leadership (PFEL), the philanthropic arm of Piramal Group, through its Gandhi Fellowship programme is shaping youth into social change leaders of tomorrow. As Mahatma Gandhi famously said: ‘Be the change you wish to see in the world.’

Started in 2008 by the PFEL, Gandhi Fellowship is a two-year residential programme in transformation leadership for graduates and above under which fellows are assigned to work in different districts and mentored in becoming social change.

“Till now a total of 742 Gandhi Fellows are supported by us and we have a target of supporting 7,000 by 2025 with an aim to impact a million lives,” Piramal Foundation chief executive, Aditya Natraj, told us on our visit to Jhunjhunu in Rajasthan where PFEL has spread its footprint in government schools.

During the two years, Gandhi Fellows go through an intense learning and unlearning experience. Fellows overcome their prejudices, learn the way the organization functions, the way the education system in their geography functions, change their mindsets, manage change and influence others’ mindsets etc. Post fellowship, they join NGOs, CSRs, government initiatives, or start their own entrepreneurial ventures or opt for higher education in alignment to their private dreams.

‘Gandhi Fellows’ during their two-year fellowship support the headmasters and teachers of government schools in rural areas such as these and help them build their capacity, overcome school-related challenges, increase student enrolment, improve the mid-day meal system, and mobilise community participation.

Take for example, Harsen Pani from Odisha. He is currently a Fellow in School Leadership Development Program (SLDP), Jhunjhunu and is running three projects. The Fellow spotted an empty space near the school area where mid-day meals are cooked and came up with the idea of kitchen garden.

Currently, the kitchen garden is functioning successfully in this school, and 200 students have been directly impacted. The students get involved in planting seeds and taking care of the garden. Harsen plans to take the kitchen garden model to five other government schools.

The Gandhi Fellow also started meeting Anganwadi workers in the village. Harsen found that only 3 SHGs (Self Help Groups) were active out of the 17 SHGs. Due to past experiences of fraud, the SHG workers were not getting funds from the bank. Harsen started working with 17 members, and motivated to them come up with a business plan to address this issue. The workers came up with the idea of making foods like pickle and papad for sale. Over the time, the idea of a common business centre in the Gram Panchayat has evolved.

To introduce BALA (Building as Learning Aid), the Gandhi Fellow painted the school walls with different concepts which the students admired. This led to a wall painting competition in which youth from the community were also involved. Not only is the government school looking spanking new, other principals from the local Nawalgarh Block introduced the same concept in their schools.

By working on a social change problem, fellows understand change leadership at the generic level and a system design thinking process that they can apply to any social problem they want to solve. A culture of regular plan-action-reflection-consolidation helps fellows to grow into empathetic leaders.

The cohort is an amalgamation of people from varied educational backgrounds, rural and urban backgrounds, with the right gender balance. Candidates are tested on whether they have the grit, mindset, problem solving capabilities and the motivation to become next nation builders.

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Renew Power Ventures signs MOU with Government of Andhra Pradesh

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The CSR Journal

-

November 16, 2018

ReNew Power, one of India’s leading clean energy companies, today signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh for a proposed investment of 13,000 crore rupees into the state’s renewable energy capacity.

The agreement was signed at the “CII Partnership Summit”, a three-day investment summit held in Vishakhapatnam. The MoU envisages the development of 1000 MW of installed capacity for solar power and another 1000 MW of wind over the next five years by ReNew Power. The projects, put together, have the potential to create direct employment for 4,000 people and indirect employment for 6,000 people, while providing
access to clean energy, in the state.

At the signing of the MoU, Sumant Sinha, CEO, ReNew Power said, “Andhra Pradesh has proven, time and again that it is one of the most desirable destinations for investment in renewable energy. We already have more than 300 MW of installed green energy capacity in Andhra Pradesh. With this proposed investment, we want to further enhance our support to the state in meeting its energy requirements in a more sustainable way and also create thousands of jobs.”

The proposed investment also reinforces ReNew Power’s commitment towards supporting India’s national aim of achieving 175 GW of renewable capacity by 2022.

ReNew Power Employees Donate 20000 Kgs of Rice To Feed The Underprivileged

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The CSR Journal

-

November 16, 2018

The employees of ReNew Power Limited, through an internal donation drive, have successfully collected 20,000 Kgs of rice. The entire amount will be handed over to ReNew’s NGO partners who will use this to arrange 2 lakh meals for people from underprivileged sections.

This is the outcome of an employee driven initiative at ReNew Power, titled the Rice Bucket Challenge. ReNew Power employees, spread across its various project sites pan India, regional offices and the corporate headquarters at Gurugram, participated in a month-long drive to voluntarily donate rice to be used for feeding the underprivileged. While the employees contributed 10,000 kilos of rice, the ReNew management matched this by contributing an equivalent amount. This is the fourth year of the Rice Bucket Challenge and has seen the highest ever collection, surpassing 14,000 kilos collected last year.

The initiative commenced in the first week of October, coinciding with the Joy of Giving Week and received an overwhelming response as employees displayed great enthusiasm and a spirit of “giving back” in donating rice for feeding the less fortunate. In a fitting culmination, ReNew Power organized a “Children’s Day” event on November 14, wherein 1,000 less privileged kids from Delhi NCR were invited to the corporate office, ReNew Hub. ReNew employees spent time interacting with these children and also fed them a nutritious meal on this occasion.

Vaishali Nigam Sinha, Chief CSR, Communication & Sustainability Officer, ReNew Power said, “We have been a strong advocate of the UN Sustainable Development Goals, of which achieving food security and improved nutrition is especially relevant for India. The Rice Bucket Challenge is our humble contribution to address this key concern.”

Gender-Inclusive Companies Are More Socially Responsible

By

Kasmin Fernandes

-

November 16, 2018

Companies and society win when business leaders are gender-inclusive. Researchers from Harvard Business School examined how corporate leadership and organizational structure influence CSR by utilizing the most visible form: corporate philanthropy.

Focusing specifically on how women leaders might impact CSR, researchers from Harvard Business School and Catalyst conducted follow-up analysis. Compared to companies without women executive leaders, they found that companies with gender-inclusive leadership teams contributed, on average, more charitable funds.

Gender-inclusive companies and philanthropy

It’s not only a matter of companies with more women leaders being larger and having more money to donate or of companies with more women being clustered in industries with higher levels of charitable giving. After controlling for key factors that might influence the amount of donations, including financial performance, company size, and industry, the presence of women leaders in Fortune 500 companies still has a significant, positive effect: more women leaders is correlated with higher levels of philanthropy.

Going beyond correlation—proving that gender-inclusive leadership actually causes companies to be more socially responsible—can be difficult given all the factors at play. Additional evidence does, however, point to gender-inclusive leadership positively impacting CSR.

While it is plausible that companies committed to CSR could attract more diverse leaders, it is likely the connection works in reverse. Research examining the impact of gender-inclusive leadership, when taking time into account, suggests gender diverse leaders are employed before increases in CSR are observed.

Quality of CSR initiatives

Having gender-inclusive leadership can influence the level or quantity of philanthropic investment corporations make in CSR. But we also speculate that by keeping gender issues prominent, gender-inclusive leadership likely also affects the quality of CSR initiatives. When leaders spotlight gender issues in their CSR strategies, they often position their organization for sustained growth, and the payoff extends beyond the company to society.

Focusing on the roles women play in the marketplace is one way companies can create success through CSR initiatives. For example, Campbell Soup Company’s supplier diversity program aims to develop a supply base that reflects its consumer base, giving companies owned by women an equal opportunity to sell services and products to the company.

Gender-inclusive leadership is good for business and society. Findings demonstrate that corporate stakeholders understand the value of gender-inclusive leadership and its positive influence on the quantity of a company’s CSR activities. Companies with both women and men leaders in the boardroom and at the executive table are poised to achieve sustainable big wins for the company and for society.

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Pernod Ricard joins the ‘New Plastics Economy’ Global Commitment

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The CSR Journal

-

November 15, 2018

Pernod Ricard announced its commitment to contribute to establishing a new plastics economy, by becoming a signatory of the New Plastics Economy Global Commitment, led by the Ellen MacArthur Foundation.

As part of the New Plastics Economy Global Commitment, signatories are expected to report on their progress against individual pledges, with the aim to help drive momentum around creating a circular economy for plastic.

By joining the initiative, Pernod Ricard commits to deliver the following by 2025:
Evaluating and taking measures to eliminate unnecessary plastic packaging
Ensuring that the Group moves towards a usage rate of 100% for reusable plastic, recyclable or biodegradable packaging, according to CITEO specifications
Implementing an eco-design handbook for the development of new products
Integrating recycled plastics into its packaging

These commitments are in line with the United Nations’ Sustainable Development Goal 12 – “Sustainable consumption and production” – supported by Pernod Ricard since July 2016.

Dame Ellen MacArthur, Founder of the Ellen MacArthur Foundation, said: “We know that cleaning up plastics from our beaches and oceans is vital, but this does not stop the tide of plastic entering the oceans each year. We need to move upstream to the source. The New Plastics Economy Global Commitment draws a line in the sand, with businesses, governments and others around the world uniting behind a clear vision for what we need to create a circular economy for plastic. This is just one step on what will be a challenging journey, but one which can lead to huge benefits for society, the economy and the environment. I encourage all businesses and governments to go further and embark on a race to the top in the creation of a circular economy for plastic. One in which this material never becomes waste or pollution.”

JGU hosts the ‘Northern Conclave for Building CSR Partnerships’ in association with TISS

By

The CSR Journal

-

November 15, 2018

O.P. Jindal Global University (JGU) hosted a three day-long Northern Conclave for Building CSR Partnerships in association with Tata Institute of Social Sciences (TISS) from November 1-3.

The sustainability conclave organised collaboratively by JGU- CECRAS (Centre for Excellence in Corporate Responsibility and Sustainability) and TISS AESDII (Assessment and Empanelment Standards for Development Institutions in India) is designed to be a multi-stakeholder platform bringing together corporations, non-profit organisations (NPOs), government entities and higher education institutions.

The conclave was held on three-point mandate-day one was, amplification based workshop on skills, participation and developing partnership. Day two saw a transition from theory to practice. Day three culminated with best practises that would pave way to play a much larger larger leadership role in this paradigm changing business and human rights treat negotiations being currently negotiated in Geneva at the UN.

Gyaneshwar Singh, Joint Secretary of Ministry of Corporate Affairs inaugurated the conference. In his opening remarks he spoke about the enforcement regime that the ministry is considering in order to drive home that corporations in the country have to become more responsible towards the society and environment in which they operate. He also mentioned the institution of a new national award on CSR and the rigor of the criteria it entailed.

In his keynote session Dr. Bhaskar Chatterjee, Secretary General, Indian Steel Association shared his insights on ‘CSR in India: Past, Present and Future’ while highlighting the milestones and challenges faced by the committee when drafting the bill.

Dr Chatterjee was largely instrumental for drafting the singular section 135 of the Companies Act 2013 dedicated to mandating CSR spending for eligible companies, of the more than 400 sections.

Dr. David Bilchitz, Secretary – General, International Association of Constitutional Law and Director, SAIFAC and Professor at Constitutional Law and Fundamental Rights, The University of Johannesburg also spoke at the plenary session. He said, “While CSR is a responsibility that we owe to each other, it is also vital to realise and build a treaty between businesses and human rights. With the rise of globalisation, these treaties are important to address the challenges of international law and ensure adequate protection of human rights.”

CSR In the Light of SDGs

By

Kasmin Fernandes

-

November 15, 2018

2015 was a watershed moment in the international development scenario. It was the year of transition from Millennium Development Goals (MDGs) to Sustainable Development Goals or SDGs in short.

What are the SDGs?

Sustainable Development Goals (SDGs) were adopted on 25 September 2015 by 193 countries to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda, according to the UNDP (United Nations Development Programme).

These goals range from ending poverty to looking at climate action. The 17 goals come with 169 targets to be achieved by 2030. India along with other countries signed the declaration on 2030 agenda for sustainable development.

SDGs and CSR

SDGs and CSR activities share a lot of overlap in terms of their thematic areas. The Companies Act, 2013 sets a broad framework and gives direction for better sustainable future and SDGs set tangible well-defined targets to measure the outcome of activities. India ranks at 116 of 157 countries on the SDG Index (according to the SDG Index and Dashboards Report 2017). We will evaluate CSR in the light of SDGs.

Focus areas

Health and Education continue to receive more traction from companies with 56% of the projects and expenditure, which is linked to 5 SDG Goals, according to India’s CSR Reporting Survey 2017 by KPMG.

Disclosure

Only 20% companies have aligned their CSR projects towards SDGs and have made disclosure regarding same in their Annual Report. However, strategic integration of same in CSR Policy is observed only with two companies.

Partnerships

Over 1300 projects to the tune of almost INR 5000 cr. (more than 70% of the CSR spends during current year) were spent through a combination of direct, own foundation and partner organisation. This is a significant alignment to SDG Goal 17 i.e. Partnerships for the Goals.

Spread of expenditure

SDGs cover a broad range of social and economic development issues including poverty, hunger, health, education, climate change, gender equality, water, sanitation, energy, environment and social justice. Similarly, backward districts in India are identified on the basis of health, education and economic issues which are holding back the development of the country. Both have inter-linked thematic areas that that need attention and action.

According to the KPMG report, Bihar, Uttar Pradesh, Karnataka, Himachal Pradesh, Odisha and Chhattisgarh account for more than 60% of the backward district concentration across India. However, it is critical to note that these states account for only 15% of CSR projects and 15% of total expenditure towards CSR during current year.

Maharashtra, Haryana, Gujarat, Karnataka and Andhra Pradesh account for more than 70% of the CSR expenditure during current year. However, they have over 15% backward district concentration. The North East states have the least focus with less than 2% CSR expenditure during current year against 25% concentration of backward districts.

Although, only 20% of N100 companies have disclosed mapping of their CSR projects with SDGs, going forward, it is anticipated that more companies might map their CSR projects with SDGs. Expectations will not be restricted to mapping alone, but for companies to design their CSR strategy in such a way that they systematically contribute to achievement of specific SDG targets and aid in the country’s development and global sustainable future.

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CSR And HR Are Mutually Beneficial To Each other

By

Hency Thacker

-

November 15, 2018

CSR and HR are mutually beneficial to each other in an organisation. Given their mutual focus on the human element of an organisation, these two departments have always supported and strengthened each other.

CSR function was handled by the HR department in majority of Indian companies before the mandate. After the mandate though, the two have begun to diverge and function exclusively. However, they still work in close quarters.

CSR is quite dependent on employee participation in an organisation. It is also a key area of focus for the HR in order to build productive employee engagement practices. Youth today are very conscious about social causes and are embracing CSR with gusto.

Globally, more than 3.5 million people have mentioned on their LinkedIn profiles that they would participate in the organisation’s non-profit activities and use their skills in volunteering. This is very beneficial for a CSR program because committed employee participation is the backbone of its execution.

This is why, it is very important for the organisations to train the employees in such a way that they consider their part in the non-profit activities as their citizen social responsibility. This way employees can utilise their skills in the community work and get recognised by the organisation, in return feeling invested with the company as well as the cause.

Corporates can encourage more employees to participate in its CSR initiatives through effective communication, in return earning the respect of their employees. According to a study, 95 per cent employees felt more engaged working for a company that gave back to the community. 83 per cent of the respondents said that an organisation’s commitment to social issues played an important role in determining their choice of work place. 47 per cent respondents said, they would even consider changing a job if the company they are working for is not socially responsible.

CSR and HR go hand in hand. The sooner organisations start to take advantage of this, the better it will be for both the departments.

Thank you for reading the column until the very end. We appreciate the time you have given us. In addition, your thoughts and inputs will genuinely make a difference to us. Please do drop in a line and help us do better.

Regards,
The CSR Journal Team

Subscribe

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Piramal Foundation for Education Leadership (PFEL), the philanthropic arm of Piramal Group, through its Gandhi Fellowship programme is shaping youth into social change leaders of tomorrow. As Mahatma Gandhi famously said: ‘Be the change you wish to see in the world.’

Started in 2008 by the PFEL, Gandhi Fellowship is a two-year residential programme in transformation leadership for graduates and above under which fellows are assigned to work in different districts and mentored in becoming social change.

Take for example, Harsen Pani from Odisha. He is currently a Fellow in School Leadership Development Program (SLDP), Jhunjhunu and is running three projects. The Fellow spotted an empty space near the school area where mid-day meals are cooked and came up with the idea of kitchen garden.

Currently, the kitchen garden is functioning successfully in this school, and 200 students have been directly impacted. The students get involved in planting seeds and taking care of the garden. Harsen plans to take the kitchen garden model to five other government schools.

The cohort is an amalgamation of people from varied educational backgrounds, rural and urban backgrounds, with the right gender balance. Candidates are tested on whether they have the grit, mindset, problem solving capabilities and the motivation to become next nation builders.

The employees of ReNew Power Limited, through an internal donation drive, have successfully collected 20,000 Kgs of rice. The entire amount will be handed over to ReNew’s NGO partners who will use this to arrange 2 lakh meals for people from underprivileged sections.

Companies and society win when business leaders are gender-inclusive. Researchers from Harvard Business School examined how corporate leadership and organizational structure influence CSR by utilizing the most visible form: corporate philanthropy.

Gender-inclusive companies and philanthropy

Going beyond correlation—proving that gender-inclusive leadership actually causes companies to be more socially responsible—can be difficult given all the factors at play. Additional evidence does, however, point to gender-inclusive leadership positively impacting CSR.

Quality of CSR initiatives

2015 was a watershed moment in the international development scenario. It was the year of transition from Millennium Development Goals (MDGs) to Sustainable Development Goals or SDGs in short.

What are the SDGs?

Sustainable Development Goals (SDGs) were adopted on 25 September 2015 by 193 countries to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda, according to the UNDP (United Nations Development Programme).

These goals range from ending poverty to looking at climate action. The 17 goals come with 169 targets to be achieved by 2030. India along with other countries signed the declaration on 2030 agenda for sustainable development.

SDGs and CSR

Focus areas

Health and Education continue to receive more traction from companies with 56% of the projects and expenditure, which is linked to 5 SDG Goals, according to India’s CSR Reporting Survey 2017 by KPMG.

Disclosure

Only 20% companies have aligned their CSR projects towards SDGs and have made disclosure regarding same in their Annual Report. However, strategic integration of same in CSR Policy is observed only with two companies.

Partnerships

Over 1300 projects to the tune of almost INR 5000 cr. (more than 70% of the CSR spends during current year) were spent through a combination of direct, own foundation and partner organisation. This is a significant alignment to SDG Goal 17 i.e. Partnerships for the Goals.

Spread of expenditure

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