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IOD Special Talk - A Strategic Imperative: CSR for Social and Environmental Stewardship
A Strategic Imperative: CSR for Social and Environmental Stewardship
I am pleased to associate myself with this Conference on the transformative subject of Corporate Social Responsibility (CSR), under the theme “The Board's Role in Shaping the Future of CSR: Impact beyond mere Compliance”. The Institute of Directors as the apex association of corporate directors, been instrumental in driving policy initiatives that shaped CSR policies. I congratulate the Institute of Directors for organizing the Conference and bringing about discussion on this important issue.
This theme resonates deeply with the pressing need of our times to move beyond token gestures and embrace CSR as a vital instrument for driving positive and sustainable change in society.
Corporate Social Responsibility, as we know, is not merely an obligation; it is an opportunity to reshape the narrative of corporate influence in society, to align the pursuit of profit with the imperatives of social and environmental stewardship. It is about understanding that businesses do not operate in a vacuum; they are integral to the communities they serve, the environment they inhabit, and the lives they touch. Corporate Social Responsibility, or CSR, has emerged as a cornerstone of our nation's developmental journey.
The Companies Act, 2013 marked a transformative moment by institutionalizing CSR into the legislative framework as a mandatory provision. This visionary legislation mandated businesses to dedicate at least 2% of their average net profits over the preceding three years to initiatives designed to uplift society, with a focus on livelihoods, healthcare, education, and environmental sustainability. A decade has passed since this milestone, presenting us with a timely opportunity for introspection.
The importance of CSR lies in its potential to bridge gaps in education, healthcare, and livelihoods; gaps in opportunities, access, and equity. It is a moral imperative to contribute to the greater good, but it is also a strategic necessity for businesses to thrive in a world that increasingly values accountability and transparency.
A company's success today is measured not solely by its financial metrics but by its contributions to societal well-being and environmental preservation. People value and trust brands like Tata and Birla in India, it is because of their commitment to quality and more importantly, commitment to the welfare of societies in which they operate.
A business that aligns its objectives with societal needs fosters trust, loyalty, and goodwill intangible assets that are invaluable in today's interconnected world.
In Maharashtra, we have further amplified CSR efforts by creating frameworks for public-private partnerships, enabling companies to collaborate with government agencies to address critical developmental challenges. One such initiative is the 'Maharashtra Village Social Transformation Foundation,' which leverages CSR funds to transform rural communities. By focusing on health, education, sanitation, and sustainable livelihoods, this initiative exemplifies how businesses can partner with the government to create lasting change.
At the national level, the 'Aspirational Districts Programme' has identified districts requiring focused attention. This program invites corporates to direct their CSR efforts toward improving key indicators of human development, ensuring that no region is left behind in our journey toward progress.
Hon'ble Union Finance Minister Nirmala Sitharaman had announced a new government scheme under Budget 2024, which will require companies to use their Corporate Social Responsibility (CSR) funds to cover 10% of internship costs. This initiative aims to create opportunities for one crore youth in the top 500 companies over the next five years. As part of the scheme, interns will receive a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000.
Allow me to highlight some recent metrics from FY 22- 23 published by the Ministry of Corporate Affairs - a total of 24,392 companies have collectively spent Rs. 29,987 crores on Corporate Social Responsibility (CSR) initiatives. These efforts have resulted in the execution of 51,966 CSR projects, impacting 14 development sectors. This scale of contribution highlights the corporate sector's commitment to addressing critical social and economic challenges. These initiatives have helped improve livelihoods, uplift underprivileged communities, and foster sustainable development.
To maximize the impact, companies can adopt a more collaborative approach, pooling resources and expertise to tackle large-scale challenges. Additionally, by enhancing transparency, monitoring outcomes, and aligning projects with local needs, we can ensure that these efforts create lasting change.
As Mahatma Gandhi profoundly said, “The best way to find yourself is to lose yourself in the service of others.” This ethos must guide our efforts. Leaders must champion CSR not as an add-on but as an integral part of their business's DNA.
As the Governor of Maharashtra, I am the Guardian of the Scheduled Areas regions with a significant tribal population. Since assuming office in Maharashtra, I have announced the creation of a Model Tribal Village. I have instructed officials that this village will be a self-sufficient, modern settlement featuring well-built houses, a dispensary, schools, a community hall, a shopping complex, and other essential amenities. I have also proposed the establishment of a Tribal University in Nashik, which will have an IIT-like engineering college, an AIIMS-like medical college, and an IIM Ahmedabad-like management institute. To ensure greater access to quality education, 80% of the seats will be reserved for tribal students. To bring meaningful transformation to the lives of tribal brothers and sisters and to achieve the goal of Viksit Bharat, we need the support of corporate in this endeavour.
In conclusion, I urge each one of you, leaders, entrepreneurs, and change-makers, to embrace the transformative potential of CSR. Together, we can make a difference that truly matters.
I congratulate the recipient of the Golden Peacock Awards and I applaud the work of all the organisations contributing to the greater social good through CSR.
Dhanyavad
Jai Hind! Jai Bharat! Jai Maharashtra!
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H.E. C. P. Radhakrishnan
Hon'ble Governor of Maharashtra
Owned by: Institute of Directors, India
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