The Need For CSR in Rural India

Sanitation has been one of the major problems which is haunting India since a long time. Though the urban India has gained a lot of improvement in this sector, the rural areas continue to face the problem with minimal improvement. Most Indian’s still do not have access to modern sanitation: for example, rural sanitation coverage was estimated to have reached only 21% by 2008 according to the UNICEF/WHO joint monitoring program. There continue to be a number of innovative efforts to improve sanitation including the community led Total Water Sanitation and Hygiene Campaign.

Basic Sanitation is one of the goals of United Nations Millennium Development Goals. Many Indian companies are trying to meet these goals through their CSR initiatives. The Government of India has come up with some initiatives like Nirmal Bharat Abhiyan, and the recent Swachh Bharat Abhiyan to address sanitation challenges.

Inadequate Sanitation is broadly defined to include management of human excreta, solid waste, and drainage. Poor Sanitation Costs India Rs. 2.4 Trillion (US$53.8 Billion) a year (The World Bank’s Water and Sanitation Program). India’s garbage generation stands at 0.2 to 0.6 kilograms of garbage per head per day. Recycling, composting and waste- to-energy are all integral parts of the waste disposal solution and they are complementary to each other; none of them can solve India’s waste crisis alone.

It is important for the people of rural areas to get access to proper education. Education too, has been one of the most concentrated problems in India. Though there has been major change in the number of the literate people in India, there still is a need for better education resources. Students in rural areas lack access to books, clean water to drink, electricity and more. Hence, if the infrastructure of the schools in rural areas are improvised, there are high chances that a lot of population will take interest in learning and families too will send their children to school to study properly. CSR towards education in India has been helping a lot of rural area people who wish to study.

This involves in the development of the entire rural area is involved as a whole. It implies that rural development in a need today and thus needs a strong focus too. Moreover, CSR for rural development is needed. CSR today is the key to transform the lives of those who are unable to achieve due to unavailability of resources in the right form. Most of all, it is necessary to handle the health related issues which rural areas face. They do not get adequate help for child and women health too. India lives in its villages. Literally and from the social, economic and political perspectives the statement is valid even today. Around 65% of the State’s population is living in rural areas. People in rural areas should have the same quality of life as is enjoyed by people living in sub urban and urban areas. Further there are cascading effects of poverty, unemployment, poor and inadequate infrastructure in rural areas on urban centers causing slums and consequential social and economic tensions manifesting in economic deprivation and urban poverty.

Importance Of Corporate Social Responsibility

As we are all aware of the CSR companies act 2013 laid by the government of India and the mandates, the companies earning profits more than the decided limit has to contribute some percentage of it towards corporate social responsibility. CSR can involve a number of activities, basically focusing on the needs of the people where there are limited or no resources. CSR is focused on the rural parts of India mainly. These areas are affected with many problems and the means to resolve them are next to zero.

Top corporate companies have been lending a helping hand to many rural areas through csr implementation agency. These agencies identify the affected areas and assess the needs so that they evaluate the need of each area and suggest the corporate companies to invest in the right way. These companies engage in actions that builds a lot of PR for the company. The government has strictly formed this rule wherein a company is mandated to spend for CSR. If the company by any chance fails to do so, they will have to submit a written explanation mentioning the reason for the same. Every company has to mention the accounts of all those expenditure made for CSR and present in the AGM too. Many CSR programs have to realign their activities with the newly amended Schedule VII. The Government should have permitted the companies to have their choice of CSR activities. The contribution of any State setup funds, social business projects has been removed. Further, it seems that the concept of shared value proposition has been ruled out, for instance, a company cannot choose a project which also support their business object. If a water purifier company do CSR in the area of providing safe drinking water and run a campaign to create awareness regarding safe drinking water, this will have a shared value proposition.

CSR projects in India varies from women empowerment, skill development, sanitation and hygiene, quality healthcare, promoting education, livelihood development, environment sustainability, social infrastructure, Swacch Bharat Abhiyaan, etc. There are rural areas which require strong attention and there is a need. These places survive somehow with the limited resources available. The activities which CSR agencies involve the corporates in, really puts a strong pressure on the areas and hence things improve. Changes are seen in the areas and the situations are improved through necessary need supplies.

CSR agencies are present with strong grass-root participation, wide geographical presence, transparent institutional framework, information systems and documentation, veritable technical knowledge, they work towards meeting India’s inclusive growth challenges by forming a 3-tier partnership with:

  • Corporations to meet their community development goals / endeavours.
  • Communities to improve their quality of life and overall well-being.

CSR as per Companies Act, every company indulges in activities which builds a strong focus on the betterment of the rural areas. It is clear that companies enjoy the benefits of CSR in many ways. Corporate companies build an immense amount of trust among its target audience, they receive a tremendous amount of media coverage which creates a very strong brand recall value for them. Hence, the business of the company goes high and thus they earn more profits. Employees become their lasting asset. Employees respect the company for the fact they have contributed something better for the affected areas and this makes them trust the company more.

A New Ray Of Hope – Corporate Social Responsibility

The advancement of corporate social responsibility in India alludes to changes after some time in India of the social standards of partnerships’ engagement of corporate social obligation (CSR), with CSR alluding to way that organizations are figured out how to realize a generally positive effect on the groups, societies, social orders and situations in which they operate. The essentials of CSR lay on the way that open strategy as well as even corporates ought to be sufficiently capable of addressing social issues. Consequently, organizations ought to manage the difficulties and issues took care of to a specific degree by the states. There has been a substantial amount of increase in the number of the csr projects in India due to the rise in the needs. CSR agencies are the best resources today to get moving with the CSR activities in India. It helps companies to reach their goals and

Among different nations, India has one of the most seasoned customs of CSR. Be that as it may, CSR practices are consistently not honed or done just in namesake particularly by MNCs with no social and passionate connections to India. Much has been done as of late to make Indian Entrepreneurs mindful of social obligation as a critical portion of their business movement, however, CSR in India still can’t seem to get the board acknowledgment. On the off chance that this objective must be acknowledged then the CSR approach of corporates must be in accordance with their states of mind towards standard business-organizations setting clear targets, undertaking potential ventures, measuring and revealing execution openly.

CSR agencies like SEED CSR help corporates to connect with the rural India in the way of CSR. The entire CSR scenario today has gone through a complete change due to the rise in the companies and the law passed for them to contribute a percentage of their profits in to CSR.

There’s more competition, and as a result several new companies have risen to find a place in the top 10 rankings of the Best Companies for CSR 2014 study. That’s just one side of the story. Only about 18% of all companies surveyed met the mandatory 2% spending norm. Not a single services company features in the Top 10. Companies need to think of CSR more strategically.

Last year’s study was in the context of the introduction of mandatory spending on CSR brought on by the Companies Act, 2013. The focus of the companies has now shifted from anticipating the change and trying to understand the ramifications of the change to implementing it. This is in the early stages. Hence, this year companies need to shift their focus from anticipating to implementing.

To better understand where individual companies are at, we have categorised them across four quadrants: pace setters, smart utilizers, starting out and low efficiency. A self-help group (SHG) is a village-based financial intermediary committee usually composed of 10–20 local women or men. A mixed group is generally not preferred. Most self-help groups are located in India, though SHGs can be found in other countries, especially in South Asia and Southeast Asia. Members make small regular savings contributions over a few months until there is enough capital in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In India, many SHGs are ‘linked’ to banks for the delivery of micro-credit. CSR supporting self-help groups have grown to a great extent. Women are becoming more independent and empowered to earn their livelihood with the help of their skills. This helps them contribute better in their daily needs for their families too.

CSR – The Need Of The Hour

A self-improvement gathering (SHG) is a town based money related delegate board generally made out of 10–20 neighborhood ladies or men. A blended gathering is by and large not favored. Most self-improvement gatherings are situated in India, however, SHGs can be found in different nations, particularly in South Asia and Southeast Asia. An equal amount of efforts are taken by the government and corporate companies approach CSR supporting self help groups.

Individuals make little standard funds commitments over a couple of months until there is sufficient capital in the gathering to start loaning. Assets may then be loaned back to the individuals or to others in the town for any reason. In India, numerous SHGs are “connected” to banks for the conveyance of small-scale credit.

A self-improvement gathering might be enrolled or unregistered. It ordinarily includes a gathering of smaller scale business people having homogeneous social and monetary foundations, all willfully meeting up to spare normal little totals of cash, commonly consenting to add to a typical reserve and to meet their crisis needs on the premise of shared offer assistance. They pool their assets to end up monetarily steady, taking credits from the cash gathered by that gathering and by making everyone in that gathering independently employed. The gathering individuals utilize aggregate insight and companion weight to guarantee appropriate end utilization of credit and auspicious reimbursement. This framework wipes out the requirement for security and is firmly identified with that of solidarity loaning, broadly utilized by microfinance establishments. To make the accounting straightforward, level financing costs are utilized for most credit figurings.

While banks need to handle just a solitary SHG account rather than an expansive number of little estimated singular records, borrowers as a major aspect of an SHG chop down costs on go (to and from the branch and different spots) for finishing paperwork and on the loss of workdays in campaigning for credits. Where effective, SHGs have fundamentally engaged needy individuals, particularly ladies, in provincial zones.

The methodology ofCSR for rural development the present study relied on the web-based research, review of print literature and visit to the selected sites to witness CSR practice. The paper concludes that social responsibility is regarded as an important business issue of Indian companies irrespective of size, sector, and business goal. Therefore, CSR actions have positive impacts not only on development of rural community but also in their business. The authors reveal some lesson on CSR practices in India which can provide guidance to corporate entities for better implementation of CSR activities.

620 million individuals or half of the populace in India lack access to properwater sanitation and hygiene. So as to address this basic circumstance and make sanitation a national need, the Indian Government propelled the Swachh Bharat Mission (SBM) with an aspiring objective to end open poop in India by 2019.

Alongside giving government financing, the Swachh Bharat Mission has additionally looked for dynamic interest from the corporate part to handle the issue. Organizations have reacted to this suggestion to take action with energy; many utilizing Section 135 of the Companies Act, 2013, which presented compulsory Corporate Social Responsibility (CSR), to add to the battle.

In spite of this noteworthy intrigue and support from organizations, little is thought about their approach, the nature of their intercessions and the boundaries they confront while executing programs in the field of Water, Sanitation and Hygiene (WASH). While trying to produce prove based information that can manage organizations and help them settle on educated choices about such projects, this study examinations CSR endeavors in WASH by the 100 organizations with the biggest CSR spending plans on the BSE 500.