In a world grappling with complex challenges, the role of businesses in shaping a sustainable future has never been more crucial. According to Shombi Sharp, the United Nations Resident Coordinator in India, businesses in the country are at the forefront of investing in social causes, making India an indispensable force in the global journey towards sustainable development.
India’s Key Role on the Global Stage
Speaking at a conference on Corporate Social Responsibility (CSR) in the national capital, Sharp emphasized the pivotal role that business plays as the key driver for achieving the Sustainable Development Goals (SDGs). India, with its ambitious goal of becoming a USD 5 trillion economy, has positioned CSR as an indispensable element in its journey toward economic growth and social progress.
In accordance with the provisions outlined in the Companies Act, specific profitable entities are obligated to designate a minimum of two per cent of their three-year annual average net profit for Corporate Social Responsibility (CSR) activities within a specified financial year. This statutory framework not only establishes a clear mandate for corporate entities but also signifies the government’s unwavering commitment to fostering social responsibility within the business sector. The stipulated CSR allocation serves as a tangible demonstration of the government’s dedication to encouraging businesses to actively contribute to social and community development.
Highlighting the significance of India’s role on the global stage, Sharp noted, “Almost half the countries in the world have to invest more in paying their debts than they can in education and health. These were among the issues that the world saw India take leadership on during the G20 Summit.” India’s presidency of the G20 and hosting of the summit further solidified its position as a leader in addressing global challenges.
Overcoming Challenges in CSR Implementation
The conference featured insights from business leaders, including Farhad Forbes, Co-Chairman of Forbes Marshall, who discussed the challenges of impact measurement and transparency within the realm of CSR. Forbes emphasized the need for a more equitable distribution of CSR funds, pointing out geographical disparities in deployment.
Shridhar N E, Chief Sustainability Officer at Titan Company Ltd, highlighted the need for corporations to align core competencies with CSR initiatives. Understanding the unique strengths of each business can enhance the impact of CSR activities, contributing to meaningful and sustainable change.
Setting a Positive Example for Global Business
Organised by the Confederation of Indian Industry (CII), the CSR conference served as a platform for thought leaders and industry experts to discuss and strategize the future of CSR in India. As businesses continue to play a pivotal role in shaping sustainable development, India’s leadership in CSR sets a positive example for the global community, illustrating the potential for businesses to drive positive change on a global scale.
