‘No easy answers, preparing an action plan’
For the past more than three decades, Dr Sandeep Goyal has worn many hats – a veteran adman, entrepreneur, investor, author, and head of a thinktank – but he has always been itching for new challenges. Goyal has taken up the unenviable task of helping his home state Punjab get its “fair share of CSR spends”. HT spoke to the first CEO of the newly constituted Punjab CSR Authority about the task at hand and challenges ahead. Excerpts:
What made you take up this assignment?
I am a Chandigarh boy – St John’s School and DAV College – but have been away from the city for nearly 40 years now. I have taken up this assignment last month purely as “give back” to my home state. I am working pro bono for the government and will try to use, and leverage, my 36 years in corporate India to the state’s advantage. I have been Group CEO of Zee, and founder chairman of Dentsu India amongst other assignments over the years. I have had the privilege of working with very many large corporates. I am hoping to use some of that outreach to advantage in my new role.
Punjab has a minuscule share of less than 1% of the total CSR spending by industry. How do you plan to improve this?
Yes, Punjab has been a CSR (corporate social responsibility) deficit state. The state does not get its fair share of CSR spends. The state ranks quite low on India Inc’s priority list for CSR. The state has received just Rs 234 crore of the total Rs 42,467 crore of CSR spending by industry across all the different states and UTs between 2015-16 and 2017-18. There are no easy answers on how to channelize more funds except that I am preparing an action plan for Punjab domiciled companies, to focus their spends in the state. Also, I am starting to get in touch with the BSE 100 companies across the country that have substantial CSR budgets, and a Punjab presence of some size, to get them to consider some of their CSR allocations to Punjab.
What special efforts are being planned?
We are working on a destination for CSR funds for these companies prioritised along the lines of actual spends of BSE 100 companies in sectors such as education and skilling so that there is synergistic opportunity for fund allocation. We have already written to Punjab companies to understand how current CSR monies are being spent and what the state government can do to ensure there are no external leakages. Also, efforts are being made to reach out to corporates to support startups in the state by supporting incubators and accelerators as multipliers of business opportunities.
How will you persuade companies in times of Covid-19?
The current situation in corporate India is pretty grim. Covid has played havoc with revenues and profits this year. I doubt there will even be any surpluses to actually support CSR allocations in most companies. And the situation is likely to remain gloomy for quite some time. CSR is voluntary, not mandatory. There are no compulsions in the law. No penalties, only guidelines. My job is to do the best with one-on-one persuasion by reaching out and getting better sense to prevail.
Punjab companies are also spending more CSR funds outside the state. What can be done to change this?
The best we can do is to request, and persuade, Punjab companies to not take their funds outside. So far, that has perhaps not been proactively done. Owners and managements have perhaps not been sensitised that they need to help the state and not take their benevolence outside. I am hoping my meetings and appeals will help. Still, it is the choice and discretion of individual companies.
What steps have been taken so far?
No magic wand as yet. I am trying to prepare the action plan to put a method and purpose into the entire system.