Namrata Rana, Director, Futurescape Namrata Rana will speak about the new CSR law that requires Indian compa- nies to donate 2% of their profits to nonprofits.

1. India
Implications of the
2% CSR allocation
Namrata Rana
Twitter - @namratarana
2014 Summit on Social Media
& Online Giving

2. By 2020 India will be the 3rd largest
economy in the world

3. Can the move towards higher value, volume and profit be
made while giving back to society and the environment?

4. India is home to the largest number of poor and illiterate

5. 3 out of 10 people need to be taught how to read

6. 4 out of 10 people need to be given food

7. Every year a million children need to be saved before they
are a month old and another million before they are 5
years old.

8. Every year 15000 farmers need to be given hope

9. A quarter of the population needs to be taken out of the
dark

10. Over 49% of urban areas and 65% of rural areas need to be
given toilets

11. The need for growth will put extraordinary pressure on
our natural resources and our infrastructure.
Water.Waste. Energy.
Urbanization. Livelihood....are just
some of the several challenges India faces

12. The new Companies Bill has mandated that
organisations of a certain financial strength spend
2% of their net profit on corporate social
responsibility (CSR),
What are its implications?

13. Going by the government’s 2% norm Rs 63 billion is
expected to flow in from India’s top 500 listed companies.
If we expand this list to the
top 1,000 corporations,
add MNCs, co-operative
banks and SMEs, then we
are talking about at least
Rs 120 billion.
!
Each of India’s 660
districts could get over
Rs 18 crore of this
investment.

14. 10 areas where the CSR Budget can be spent
i) Eradicating hunger, poverty and malnutrition,
promoting preventative health care and sanitation and making
available safe drinking water;
!
ii) Promoting education including special education and
employment enhancing vocation skills especially among children,
women, elderly, and the differently abled and livelihood
enhancement projects.
!
iii) Promoting gender equality, empowering
women, setting up homes and hostels for women and orphans;
setting up old age homes, day care centres and other such
facilities for senior citizens and measures for reducing inequalities
faced by socially and economically backward groups;

15. iv) Ensuring environmental sustainability, ecological
balance, protections of flora and fauna, animal welfare,
agroforestry, conversation of natural resources and maintaining
quality of soil, air and water;
!
v) Protection of national heritage, art and culture
including restoration of buildings and sites of historical importance
and works of art; setting up public libraries; promotion and
development of traditional arts and handicrafts’
!
vi) Measures for the benefit of armed forces
veterans, war widows and their dependents
!
vii) Training to promote rural sports, regionally
recognised sports, Paralympics sports
10 areas where the CSR Budget can be spent

16. 10 areas where the CSR Budget can be spent
viii) Contribution to the Prime Minister’s National
Relief Fund or any other fund set up by the Central
Government for socio-economic development and relief and
welfare of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
!
ix) Contributions or funds provided by technology
incubators located within academic institutions which are
approved by the Central Government;
!
x) Rural development projects

17. A quick look at some of some research on what
companies are doing….
Research : Collaboration between Prof Utkarsh Majmudar and Namrata Rana
Supported by IIM Udaipur

18. AUTOMOTIVE
India has the highest accident rate in
the world.
!
Reports of 19 auto companies reveal
a high focus on employees and
community (around manufacturing
plants)
!
SAFE DRIVING - a missed
opportunity
Research
http://
blogs.economictimes.indiatimes.com/
ResponsibleFuture/entry/strategic-
approach-towards-automotive-csr-part-2

19. STEEL
India has 18 percent of the world’s
population and 4 percent of the
globe’s water resources.
!
We studied the annual reports and
websites of steel companies and
found that 9 out of 22 companies do
not have any information on water
related initiatives.
Research
http://blogs.economictimes.indiatimes.com/
ResponsibleFuture/entry/water-scarcity-and-
steel-companies

20. TOYS
We found that over 56 International
toy brands are sold in India. Parents
are increasingly concerned about
responsible - safe - non toxic - non
plastic toys.
!
Of these 56 companies only 11
company websites mention CSR
activities of which only 4 - LEGO,
Mattel, Walt Disney and Wild
Republic Toys talk of socially
responsible activities being
conducted in India.
Research
http://blogs.economictimes.indiatimes.com/
ResponsibleFuture/entry/to-play-or-not-to-
play

21. Plastic
Plastics are one of worst products to
dispose, taking hundreds of years to
degrade.
!
Out of the 12 companies studied only
one, produces a sustainability report.
The remaining companies provide information through their annual reports and websites.
!
Almost no focus on reuse - recycle
aspects of plastic.
Research
http://blogs.economictimes.indiatimes.com/
ResponsibleFuture/entry/csr-sustainability-
and-the-plastic-industry

22. FMCG
Mostly market to women and children -
large TV and Print budgets.
!
Out of the total sample of 32 companies we
find that only 18 companies have initiatives
that focus on Women and Children.
5 companies are doing health & hygiene related activities.
4 companies have activities that focus on Child
Malnutrition.
5 companies are doing activities that support education
and related activities.
5 companies focus on empowering women through skill
upgradation and capacity building programs.
Research
http://blogs.economictimes.indiatimes.com/ResponsibleFuture/entry/women-and-children-are-they-
strategic-to-fmcg-companies1

23. Implementing the 2% mandate is not easy
Corporates face many challenges……

24. NEED
Challenges
!
CSR in many companies is either part of
HR or Corporate Communications.
Need for a separate
department with specific
deliverables.

25. NEED
Challenges
!
CSR budgets are expected to double,
this will also lead to increased scrutiny
by stakeholders.
Need for re-skilling of
existing teams and
establishment of processes.

26. NEED
Challenges
!
Many CSR initiatives have been ad hoc
and not necessarily linked to
requirements.
Need for a strategic focus +
Study of stakeholders needs and
aspirations, + an action plan that
can run for several years

27. NEED
Challenges
!
CSR initiatives in the past may not have
formed part of standard corporate
reporting
Need to assess, monitor
and report initiatives and
judge efficacy

28. What should be spent, where and on whom? Can you
help companies achieve their strategic goals?
Are you ready for the challenge?

29. Namrata Rana
Twitter - @namratarana
Level 4, Rectangle 1
Commercial Complex D4, Saket
New Delhi - 110017, INDIA
+91 (11) 6654 4196
Twitter - @futurescape
www.futurescape.in