CSR law in Companies Act 2013
brought new dimension in community development or social sector. Prior to that
Not for Profit organizations had critical role to play in terms of resource
mobilization and implementation of projects with social imperatives. Now new
CSR rule has not only ensured active participation of industries it has also
attracted sizable investments in social sector as well as business practices which
are being used to make social projects more beneficial and sustainable.
Although development organizations
and industries are working together to leverage from each other’s strength,
however I still see some gap in their approach to execute social projects with
multilayer interests. It is also evident from recent report of KPMG, which
shows that in 2015, about 15% implementation of CSR projects was done by
development organization which increased up to 37% in 2017 but drastically went
down 9% in 2018. While implementation of CSR projects in combinations (Not for
Profit Organization + Industries) has grown up to 91% in 2018 compare to 62% in
2017. But the positive side is that the stake of development organization in
attracting financial assistance grew from Rs. 3014 Cr in 2017 to Rs. 3467 Cr in
2018.
Development organizations are
more focused to bring positive and social change in community by mobilizing
resources, developing innovative practices, working deep at grass root level to
create sustainable impact. While Industries see CSR as tool to not only create
impact on community, also establishing themselves as socially conscious and
responsible organization, improving the
relations with stakeholders etc. Above data reflects that Industries have opted
to go more with joint projects instead relying totally on development or
community based organizations.
Development organizations and
Industries have their own strength as well as interest areas. Both, if work
together may create win-win situation for every stakeholders engrossed in
projects. It is for both sides that they
need to look where their strength lies and how they can leverage for each
other. Coming from Development sector and now working in CSR space I encounter
with lots of differences between Not for Profit organization and Industries.
Development organizations have impression that Industries are not spending
enough on various thematic areas; however Industries think that there are still
lack of quality organization to execute CSR projects understating their
specific needs and target impact. I feel that there is gap in knowledge and
also intrusion in each other’s space. Both need to understand their
requirements and build a strategy which works for everyone. At one side,
development organizations need space to try out their ideas to bring notable
change in community at other side the business challenge or risk from external
stakeholders needs to be mitigated through community interventions.
