Corporate Social Responsibility (CSR) stands as a powerful force, urging companies to embrace responsibility and accountability for societal and environmental well-being. With diverse manifestations, including philanthropy, sustainable business practices, and ethical behavior, CSR aims to channel resources towards creating positive change in the world.
Sumit Tayal, the Chief Operating Officer at Give, an organization dedicated to alleviating poverty, shares insights into the role of CSR in the social sector. Joining Give as a volunteer during the pandemic, Tayal was inspired by the organization’s mission, leading him to stay on and now head Give Grants, working with institutional donors to maximize social impact.
In an exclusive interview, Tayal sheds light on the highlights and challenges within the social and development sector. Notably, government spending in healthcare and education surged during the pandemic, with the social sector experiencing sustained growth. The India Philanthropy Report 2023 indicates that CSR spending, contributing 30% of private giving, has grown at an annual rate of 13% over the last five years, reaching INR 27,000 crore in FY 2022.
Tayal identifies the scarcity of top talent as a major challenge, emphasizing the need for a multi-dimensional approach to strengthen the non-profit sector. He sees CSR playing a pivotal role in supporting grassroots NGOs, thereby positively influencing the communities they serve.
Pivoting CSR Initiatives to Address Diverse Needs
Tayal emphasizes that India’s diverse needs require CSR initiatives to fill gaps left unaddressed by the government. He cites the pandemic as an example, where CSR initiatives complemented government efforts by facilitating last-mile connectivity through NGOs.
Moreover, CSR’s potential lies in funding innovations and pilots that, if successful, can be scaled with government support. This collaboration can effectively address both large-scale issues and the unique needs of smaller communities.
CSR’s Role in Enhancing Employability
CSR, Tayal argues, transcends mere altruism; it’s about achieving long-term outcomes. To break the cycle of poverty, poor education, and unemployment, CSR initiatives must extend beyond creating jobs. Equipping the youth with 21st-century skills, resilience, and personal competency ensures sustained impact. Tayal highlights the importance of CSR initiatives supporting training, skill enhancement, and entrepreneurship development to combat high unemployment rates among India’s youth.
Opportunities and Challenges in the CSR Landscape
Tayal identifies opportunities in leveraging technology to improve CSR outcomes. Combining resources and expertise from different companies can lead to more impactful initiatives. However, he underscores the challenge of ensuring CSR funds reach underrepresented sectors and regions. Post-pandemic, inequalities have deepened, and there is a risk of concentrating CSR spending in a few states, leaving the least developed regions lagging behind.
Outlook for CSR and Key Focus Areas
According to the India Philanthropy Report 2023, CSR has grown at 15% annually in the past seven years, becoming an integral part of business. With the 2% CSR mandate, companies are increasingly contributing to philanthropy, with a focus on climate action, ESG (Environmental, Social, Governance), green tech, and sustainability. Tayal emphasizes the importance of socially responsible businesses leading the way in exploring green technologies.
In conclusion, Tayal sees a positive trend in the continued growth of philanthropic spending, driven by CSR. The future of CSR should align with climate action, ESG principles, and sustainability, with a strong emphasis on data tracking, monitoring, reporting, and outcome-based planning for accelerated impact. As CSR becomes inseparable from doing business, its potential to drive positive change remains immense.
