Just before the beginning of the weekend last Friday, leading national dailies published findings of the corporate social responsibility (CSR) report by one of the known consultancy firms. While most news stories carried exact abstracts either from the report or from the media release, CauseBecause read all reports thoroughly and brought together this quick review.
The findings, probably the first of their kind, are quite interesting as they throw light on the sectors where the majority of CSR investments are going. However, considering that the report is based on responses from a mere 40 organizations, it does not seem to have covered an adequate number of samples, especially because about 14,000 companies are mandated to spend towards CSR as per the Companies Act 2013. The Mercer report also does not say if the companies surveyed fall in the ambit of the CSR law and hence are mandated to spend two per cent of their net profits after tax towards CSR.
Secondly, as the new law has just begun to be implemented in this financial year and most organizations are in preparation mode – wherein many are either formalizing their new CSR policy or are revisiting and modifying their existing policy or guidelines – the findings cannot possibly be relevant for a long time. The scenario may be significantly different when all the companies share their first annual CSR report, which is expected to happen in financial year ending March 2015.
The report by Mercer, which is part of Marsh & McLennan Companies in India, says that education is the most favoured area for CSR investments, followed by community-based development and environment sustainability. As per the report, 81 per cent of companies spend their CSR fund on activities concerning education, 64 per cent on community development, and 61 per cent on environment sustainability. It further says that these spends vary between Rs 9 lakh and Rs 25 crore annually. Mercer however has not shared any example of such ongoing projects in the public domain. Hence, the micro details such as what is being done by the companies for education or community development is not yet clear.
Interestingly, about 78 per cent companies who participated in the survey claimed that they implemented their CSR projects by partnering with non-profit organizations, which seems to be the way ahead for credible partnerships. Some 17 per cent organizations say that they work with their ‘own’ non-government organizations. This, however, is not really permitted by the law as it clearly states that the companies should not invest monies in a foundation or other social organization that has the investing company’s director as its founder or trustee.
The report did not carry any significant message either and was released with a most-heard comment in the form of a statement from Shanthi Naresh, business leader, Information Solutions, Mercer India. He said, ‘The importance of CSR/sustainability is seeping deep into Indian companies as three out of four companies in India already have or are planning to form a core team dedicated to CSR/sustainability within the next one to two years.’
Source; http://causebecause.com/news-detail.php?NewsID=670
The findings, probably the first of their kind, are quite interesting as they throw light on the sectors where the majority of CSR investments are going. However, considering that the report is based on responses from a mere 40 organizations, it does not seem to have covered an adequate number of samples, especially because about 14,000 companies are mandated to spend towards CSR as per the Companies Act 2013. The Mercer report also does not say if the companies surveyed fall in the ambit of the CSR law and hence are mandated to spend two per cent of their net profits after tax towards CSR.
Secondly, as the new law has just begun to be implemented in this financial year and most organizations are in preparation mode – wherein many are either formalizing their new CSR policy or are revisiting and modifying their existing policy or guidelines – the findings cannot possibly be relevant for a long time. The scenario may be significantly different when all the companies share their first annual CSR report, which is expected to happen in financial year ending March 2015.
The report by Mercer, which is part of Marsh & McLennan Companies in India, says that education is the most favoured area for CSR investments, followed by community-based development and environment sustainability. As per the report, 81 per cent of companies spend their CSR fund on activities concerning education, 64 per cent on community development, and 61 per cent on environment sustainability. It further says that these spends vary between Rs 9 lakh and Rs 25 crore annually. Mercer however has not shared any example of such ongoing projects in the public domain. Hence, the micro details such as what is being done by the companies for education or community development is not yet clear.
Interestingly, about 78 per cent companies who participated in the survey claimed that they implemented their CSR projects by partnering with non-profit organizations, which seems to be the way ahead for credible partnerships. Some 17 per cent organizations say that they work with their ‘own’ non-government organizations. This, however, is not really permitted by the law as it clearly states that the companies should not invest monies in a foundation or other social organization that has the investing company’s director as its founder or trustee.
The report did not carry any significant message either and was released with a most-heard comment in the form of a statement from Shanthi Naresh, business leader, Information Solutions, Mercer India. He said, ‘The importance of CSR/sustainability is seeping deep into Indian companies as three out of four companies in India already have or are planning to form a core team dedicated to CSR/sustainability within the next one to two years.’
Source; http://causebecause.com/news-detail.php?NewsID=670
