India Inc's CSR spend up 28% in FY 2015-16

A gradual uptick in corporate earnings has led to a 28 per cent surge in corporate social responsibilities (CSR) spending by listed entities in 2015-16. 

According to data compiled by Prime Database,   these companies spent Rs 8, 345 crore in various CSR activities in 2015-16, against Rs 6, 526 crore in 2014-15. Education was most preferred area of spending, attracting Rs 2, 042 crore or nearly fourth of total spending, followed by spending on preventive health of Rs 1, 637 crore. Contribution to PM national relief fund also saw a five fold jump to Rs 869 crore.

Prime Database official stated that the increase in CSR spending was seen across sectors and type of companies. CSR spending by Public Sector Units (PSUs) saw a rise of 41 per cent. Total 47 PSUs spent Rs 2, 396 crore in 2015-16.

In absolute spending, Reliance Industries spent Rs 651.6 crore on CSR, highest by any corporate group, while Govt. owned NTPC and ONGC spent Rs 491.8 and Rs 409 crore respectively and were on second and third position. 

  

CSR is loosing its importance in the lack of sensitiveness among corporate citizen. Most of companies look at CSR as philanthropic vertical instead considering it as strategic business tool. I think in current scenario where  SDGs are being promoted to adopt and deliver in stipulated time frame, CSR might play imperative role in achieving SDGs, eventually CSR is synonyms of sustainable development. 

I also strongly believe that we need not to develop professionals but to responsible professionals. Therefore building the socially conscious professionals/workforce are  imperative for larger benefit of society, responsible business and entire world. 

Ironically, our technical institutions lack this aspect of professional education. Most of these institutions are building workforce are mechanical in nature and lacks social and emotional consciousness.  

What is CSR...business responsibility? way to sustainable development? or philanthropy?

 Corporate Social Responsibility (CSR) is the buzz word amongst corporate, development organizations, government bodies and many civic organizations. Each and every concern stakeholder is defining CSR in their own way and preferred agenda. There are few suitably correct definitions of CSR are as follows;

“Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner”.

“Corporate social responsibility (CSR), also called corporate conscience, corporate citizenship or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model”.

“CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders”.

“A company’s sense of responsibility towards the community and environment (both ecological and social) in which, it operates”. 

These most suitable definitions are being used amongst the varied stakeholders with their preferred business objectives/agendas.

Eventually, CSR is being recognized as new tool for sustainable business. While in the Indian context, it is being practiced by corporate from quite long in the name of philanthropy or charity. Corporate citizens i.e. TATA, Birla etc have been doing this for community in form of temple, shrine, charitable hospitals construction etc.  At that point of time, it was also an endeavor to build credibility and image of company amongst the community to have good rapport. And, now this is come up in the form of CSR.

The new form of CSR is more structured, elaborative & defined business practice or tool, which create favorable environment to perform business. It is aim to have effective stakeholder & relationship management to diminish the scope of any micro or macro risk element for the business. All these conscience enhance the business productivity, profitability & relation with all the concern stakeholders.

The intent of this blog is to promote CSR as business process and effective tool for sustainable business amongst all the corporate citizen & development practitioners and share the various CSR practices and its impact across the globe. As responsible CSR professional, it is my duty to sensitize management alumina, professionals and leadership layer of various corporate and academic institutions to practice ethical, socially responsible and environmental friendly business process in their professional life cycle.