CSR activity needs to focus in areas around policy advocacy

Experts are increasingly feeling the need for corporate social responsibility (CSR) of companies to move from merely spending and statutory compliance to making a difference in the communities. New CSR guidelines for companies have came into effect from April 1, 2013 and are a revised version of the previous comprehensive guidelines of April 2010. 

Range of budgetary allocation for CSR and sustainability activities (as % of profits in previous year) has been revised with companies profits less than Rs 100 crore the budgetary allocation is 3–5%. For profits between Rs 100 crore to Rs 500 crore, it is 2–3%, and those with profits Rs 500 crore and above, it stands at 1–2%. Further, the revised guidelines by the Department of Public Enterprises also take internal stakeholders, particularly employees, into account, unlike earlier. 

However, it is the statutory obligation that is forcing the corporate role and not a desire to make a sustainable impact in the communities a corporate is working in. 

And hence there is the need of CSR Version 3.0 going beyond statutory obligations.   

On being asked how CSR can move to the next level, the Minister of State for Corporate Affairs, PP Chaudhary, responded, “CSR cannot be an ad hoc work, but should be part of a long-term strategy of the corporate, a core business function not a peripheral activity, ideally bridging the rural and urban divide, and corporate houses need to work towards that ahead.”

Sukanti Ghosh, the Chicago based global partner of APCO Worldwide Consulting notes, “Look beyond community relations (which is only the first level and good in case of hygiene and education), and start strategic CSR in areas around policy advocacy and business continuity. Specially in cases where there can be a civil society unrest affecting your business. Create a coalition with other organisations, NGOs and media to take on a larger issue”. 

This can be a cause related to environment, vocational education, education or health of the girl child. In fact, Bharat Kharbanda, COO, Pearl Academy, Delhi, advocates linking girl child education as a part of CSR in all cases of CSR initiatives as far as possible. 

Neelam Thakkar, senior manager in government healthcare, London and Jayanta Sur, a vertical head of the global chemical major Solvay, simultaneously draw attention towards ethical conduction of business and decision-making itself, and shouldering responsibility and mentoring towards your employees as a part of CSR. EY Report on CSR also calls for a CSR framework which is a way of doing business resulting in a significant impact on community and long term sustainability. 

In fact, many rightly believe that sustainability is to be factored in how the business itself is done (with people and planet focus), and not just what is done with a part of the profits, as mandated by the low today. New policy framework about CSR must factor this. 

The writer is dean, school of media, Pearl Academy, Delhi & Mumbai