CSR is carving out an impact
From mere compliance, CSR activity has now scaled up, bringing about genuine social change
They are bringing valuable corporate strengths, such as strong programme management skills, and organisational capabilities in finance, HR, technology, and communications, to the work.
Often, top leadership is part of the team to inject a longer-term impact outlook. CSR teams also began engaging with the boards more often, outside the mandate of board meetings.
There has also been a cultural shift in how corporates approach CSR — viewing employees as important stakeholders and instilling a sense of ownership and pride by involving them in field visits and volunteer opportunities. As part of their employee engagement programme, EdelGive Foundation has connections with dierent non-profits that sta members can contribute their skills and expertise to, for example.
For impact to scale to population-level change, investment should reach underserved States with higher levels of poverty and lower SDG scores, and sectors that have historically not attracted private funding.
Yet, a forthcoming study by Give Grants building on Bridgespan’s analysis indicates that only 2 per cent of CSR funding currently goes towards districts identified as aspirational by the government. On the other hand, the wealthier States of Delhi, Goa, and Maharashtra receive the most CSR funding, on a per capita basis.
SKEWED FOCUS
Similarly, education and healthcare have been the highest funded sectors in the last eight years, with less than 1 per cent of expenditure directed towards solving socio-economic inequalities.
Therein lies the opportunity for CSR in the next decade. Corporates can catalyse impact at scale, over the long term, by scaling-in — deeper impact for select communities, for example, reaching aspirational communities around factories, across their social needs. Or they can do it by scaling-out — reaching a wider population, for example, through national initiatives that address the root causes of inequalities.
There is also a need to fund innovative solutions. Bajaj Finserv’s partnership with Neomotion, a start-up that creates wheelchairs and other vehicles for the dierently abled, is a worthy example.
Investing in multi-year grants that enable NGOs to be more nimble and agile will create sustainable impact. Nanhi Kali’s girl child education project, which reached 2,000 girls in 2012, is now impacting nearly 20 lakh girls with multi-year support from KC Mahindra Education Trust.
The CSR law has led to a reliable, growing stream of funding for vital social change and has elevated social impact work to the highest levels of corporate decision making. Alongside India’s economic growth, a sustained eort from CSR leaders/corporate boards, non-profit partners, and the government can help address long-standing developmental and inequity challenges — to truly unlock greater potential of CSR giving in the coming decade.
Venkatachalam is a partner and co-head, Asia and Africa, and Gambhir is manager, at The Bridgespan Group