DR.

RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY, LUCKNOW

Topic: Corporate Social Responsibility and Right to Education

SUBMITTED BY SUBMITTED TO
Shahish Shandilya Dr V.Vishalakshi
Enrollment Number: 190101133 Associate Professor
B.A.LL.B (Hons.) Semester VI Corporate Law
 TABLE OF CONTENTS

Table of contents......................................................................................................................2

Introduction..............................................................................................................................2

Corporate social responsibility and education......................................................................4

Corporate socal responsibility: The Indian scenario............................................................5

Education sector in India and The role of CSR....................................................................6

CSR and Initiatives taken under education sector................................................................8

 General Electric...............................................................................................................9

 DLF.................................................................................................................................9

 Bharti Airtel....................................................................................................................9

 Citigroup.......................................................................................................................10

 Indian Oil Limited.........................................................................................................10

 Rural electrification Ltd................................................................................................10

 Azim Premji foundation................................................................................................10

 Microsoft.......................................................................................................................11

Conclusion...............................................................................................................................11
 INTRODUCTION

Education is backbone of any economy and it has pivotal role in national building and
moulding superb wings of human recourse. Every country is spending much amount for
enhancement of education. CSR, as a strategic practice, is a key to organizational success
because it is one of the few practices that can positively impact all three elements of the
Triple Bottom Line (Economic, Social, Environment), contributing to a healthy bottom line
and long-term sustainability. There have been significant improvements made in education
sector across India since Independence. With the advent of the Millennium Development
Goals (MDGs), significant attention has been given to achieving the goal of Universal
Primary Education, at the centre of which is Universal Primary Enrolment.

The SarvaShikshaAbhiyaan (SSA) and the Right to Education Act (RTE) were India’s
responses to this commitment and in terms of enrolment figures, there has been substantial
progress. However, considerable issues regarding quality of education, lack of learning,
teacher quality, lack of accountability, good teacher retention irrelevant curriculum and
pedagogy remain big challenges for Indian nation, and these challenges will have serious
consequences on the growth and development potential of the country. India is the first
country who has mandatory CSR spending as per Companies Act, 2013. The passing of the
Companies Act, 2013 provides the right opportunity forcompanies to play an important role
in this sector. In order to understand the current CSR trends in education, their implications
for CSR and CSR issues &challenges in education.

CSR has never been more prominent on the corporate agenda than it is today. Nowadays CSR
is playing an important role in the rapidly changing global world. Consumers are more
selective and conscious about the products that they are purchasing and companies are also
becoming more responsible about the products that they are producing, supplying and selling.
The reasons behind these responsible activities are based on consumer demand, legal
requirements that are developing rapidly in the last decade and, the competitive needs of the
firms. CSR has achieved business prominence due to the activities of pressure groups and
also the emergence of the “market for virtues” such as Socially Responsible Investment(SRI)
that create further pressures to adopt CSR initiatives.

A report from global accounting and consulting firm Grant Thornton noted that CSR
activities across the world have increased dramatically in recent years as “businesses realize
their value not only commercially, but also in terms of boosting employee value, attracting
staff and cutting costs.” Incidentally, “Saving the planet” came in sixth in the survey of
drivers of CSR.

In addition to the prime requirement to deliver profits to shareholders, organizations are

frequently subject to wider stakeholder interests.. CSR Europe has launched the Enterprise
2020 initiative in 2010; an initiative that promotes highly developed CSR Management and
transparency, while putting social innovation at the heart of business strategy. CSR Europe
showcases social innovation through Enterprise 2020. In practice, companies and their
stakeholders can engage in Enterprise 2020 in a number of ways. The balance between
minimizing risks through accountability and maximizing opportunities through transparency
and social innovation lies at the very heart of EU Enterprise 2020 initiative. On September
08, 2011, Continuing with the efforts for building a progressive society Company supported a
unique initiative called ‘GAIL Utkarsh’ to provide training to under-privileged children for
top engineering entrance exams in the country.

CSR and Education: unhindered except by fulfilling their duty to pay taxes. Then they donate
a certain share of the profits to charitable causes. In the present society the public education
faces many challenges of standardized testing, strained budgets, teacher retention and basic
quality. These demands have given way to new opportunities for businesses to support
education in a win-win situation that benefits everyone.

Companies get involved in education for a number of strategic reasons including building a
positive reputation land goodwill among consumers, employees and other stake holders;
developing brand recognition, whether to increase consumer loyalty, boost sales, or establish
the company as an industry leader; building a more educated workforce; raising consumer
awareness about a particular issue; and fulfilling a company mission or mandate students,
schools, and the general public can benefit from the experience and expertise that
corporations bring to the table, particularly if the groups work together to ensure the right
needs are being met on both ends. Companies looking to contribute to public school
education, for instance, must consider the many demands that schools and educators face
daily-time constraints, tight budgets, technology access, standardized testing and explicit
curriculum standards as well as the unique places where outside help is needed.
 CORPORATE SOCIAL RESPONSIBILITY AND EDUCATION

Businesses have begun to take a more targeted approach in their corporate social
responsibility programs and are seeking to impact areas that have a correlation with their own
business goals. For many businesses, education is an important part of their plans, since the
needs exist in all geographic areas, across all subject areas, and for all kinds of people. The
bottom line is that educational outreach efforts have the capability to make a real and lasting
difference for all players involved. Corporations are getting involved in education sector for a
number of reasons, including Improved financial performance, building a positive reputation
and goodwill among consumers, employees, investors, and other stakeholders; Increased
ability to attract and retain employees developing brand recognition, whether to increase
consumer loyalty, boost sales, or establish the company as an industry leader, easier access to
capital; building a more educated workforce; raising consumer awareness about a particular
issue; and fulfilling a company mission or mandate. Students, schools, and the general public
can benefit from the experience and expertise that corporations bring to the table, particularly
if the groups work together to ensure the right needs are being met on both ends. Companies
looking to contribute to public school education, for instance, must consider the many
demands that schools and educators face daily – time constraints, tight budgets, technology
access, standardized testing, and explicit curriculum standards – as well as the unique places
where outside help is needed.

As long as they address the right needs, businesses have the ability to make a tremendous
impact. By providing highly engaging resources, by building in strong connections with
instructional needs, and by effectively marketing the resources, more and more companies are
simultaneously meeting educational goals and their own business goals. Parents are
enthusiastic about the industry involvement, too, so long as it’s positive and productive. CSR
initiatives, through partnerships between business organisations, the government, particularly
at the local level, and not-for-profit sector, can play a vital role in enabling increased access
to higher education through both demandside (e.g. provision of scholarships, general
awareness programmes) and supplyside measures (e.g. provision of endowments, making
corporate staff available as resource persons, funding research and by contributing to
infrastructure). There is increasing consensus that well-designed CSR initiatives could assist
companies domestic and foreign, operating in India, to sustain long-term growth and
profitability, while increasing acceptability to local population.
 CORPORATE SOCAL RESPONSIBILITY: THE INDIAN SCENARIO

A national attitude of humanitarianism has been well-documented for centuries, 4 with

numerous, albeit erratic, records of patrons from higher economic strata donating resources to
those who were in need. Even before a legislation was established, Indian companies have
engaged in socially beneficial actions. For instance, ICICI banks have participated in
vocational training programmes for decades. To facilitate a more meaningful impact on
society, the Ministry of Corporate Affairs implemented the Companies Act in 2013,which
regularised corporate spending on charitable causes and provided contemporary guidelines
for organizations. According to this act, certain companies were required to spend at least
2% of their profit margin on charitable institutions and activities. 5,6 In addition to increasing
funding for ethical causes, this act was also targeted at making such initiatives more
sustainable and transparent. This governmental plan has been met with mixed success, but
overall some studies have observed increases in corporate CSR spending after 2013.

Execution of such these CSR initiatives is carried out in different ways. Many organizations
opt for engaging in partnerships, either with the government, non-governmental organizations
(NGOs) or non-profit establishments that are founded specifically for the purpose of CSR
implementation.8 Partnerships and collaborations such as these help ensure that initiatives and
schemes are sustainable over a long period of time. For example, in Gujarat when
governmental agencies and private organizations collaborate to improve educational
facilities, they have been seen to contribute to better infrastructure, amenities and
development.

CSR funding can be allocated towards different sectors such as education, health care,
women empowerment, conservation of national heritage and slum development. Companies
usually showed least preference for options such as the PM Relief Fund and financial support
to veterans. Traditionally, companies have preferred investing in either the areas of education
or health care, a trend which has continued after the implementation of the 2013 act. When
discussing the distribution of corporate spending in education, which so far has drawn in the
highest CSR spending in 2017, it is necessary to examine not only the current educational
situation in India but also the different overheads that contributions can fall under.
 EDUCATION SECTOR IN INDIA AND THE ROLE OF CSR

Education is undoubtedly necessary for the development of India. As per the most recent
2015 estimate, our country ranks 131st on the global scale in terms of human development
and has demonstrated a literacy rate of around 74%, which is far below the global average.
But illiteracy is only one problem, with studies identifying other concerns such as poor
infrastructure, absent teachers, poverty and inadequate quality of learning being the driving
forces behind students opting out of higher education.Indian schools show vast differences
between private and publicly funded educational institutions, with government schools often
lacking the finances to attract and retain pupils. At the same time, simply increasing public
funding and finances may not be the best possible solution.

The public sector has made great strides in advancing education, and in India, education is
considered to be a fundamental right. As per the Right to Education, children up to the age of
14 years are to be provided free and compulsory education by the government. While done
with good intentions, governmental education often suffers from several shortcomings, such
as absent teachers, lack of proper infrastructure and scarce facilities. These findings
discourage enrolment and continuation of students in more affordable option, pushing them
to consider more expensive private options. There have been reports of misappropriation and
mishandling of funds that were allocated for public education, which has deterred experts
from solving this problem by directly increasing related funding. Thus, CSR contributions
made by private organizations can help improve the scope of education.

Businesses participate in CSR initiatives in several ways. For instance, in Uttar Pradesh, the
private sector collaborated with the government and adopted a public school, thereby
ensuring sustained, good quality education. Companies provide help by targeting established
issues that students face, such as a deficiency in useful skills. This can range from a shortage
of soft skills to rusty communication skills. Additionally, some partnerships between
corporates and non-profit organizations help raise awareness about important issues. For
instance, there are several initiatives that focus on limited educational opportunities available
to girls as well as street children. Increased digitalization of learning materials is another
possible avenue for corporate support, with the use of online books and teaching programmes
enabling students from different backgrounds to have access to the highest quality of
information. Contributions to infrastructural elements, from the entire school-building to the
basic facilities, financial aid to deserving students in the form of sponsorships and
scholarships, occupational and vocational training programmes and provision of teaching aids
are all some of the ways that a corporate organization can provide support to an educational
sector that needs it. This also highlights the necessity of companies to go beyond merely
setting up a school or paying the minimum amount of money to satisfy the legal
requirements. It introduces the notion that companies must take an active interest and be
responsible for the projects that they initiate, as it is this sustained accountability that cements
the usefulness of their role and ensures the success of their project. While the avenues for
institutions to contribute to education are plentiful, many organizations prefer promoting
tangible outcomes such as infrastructure development. On the other hand, adult education
and managing independent educational institutions are often less preferred.

The present study utilized available literature resources and survey data to conduct a
systematic literature review of the applications of CSR in the educational sector. The primary
focus of the paper is to obtain a comprehensive view of the impact of CSR in Indian
education and obtain a broad understanding of the distribution of corporate funding to various
overheads. Based on information repositories, specific divisions of the educational sector
were identified.

Literature and company information was analysed to estimate the volume of industries
contributing to each pre-determined division. The findings of this analysis were then
compiled and used to determine if there was a potential gap in CSR spending. This study
would help involved Indian corporations make informed decisions about how to allocate
resources from their CSR budget to make the maximal impact in society. With many
individuals sharing the opinion that it would be more sensible to spend money on a few
specific causes rather than stretch the same financial resources between several ventures,
identifying lacking areas would provide focussed targets for future projects.
 CSR AND INITIATIVES TAKEN UNDER EDUCATION SECTOR

Mahatma Gandhi envisioned that education should help curb social insecurity and social
disharmony. Objective of any educational initiative should be to inspire the pupil to put
worthwhile efforts in any meaningful initiative. A Michigan survey conducted in April 2007
by The Detroit News, The Skillman Foundation, and Your Child showed that 77% of parents
think businesses should play a role in education, particularly by providing additional
resources Several Indian corporations have developed synergistic initiatives towards higher
education and vocational training. The illustrative examples include Tata’s Institute of Hotel
Management at Aurangabad and ITC Welcomgroup’s Hotel Management Institute, HUL’s
Project Shakti and other CSR education initiatives, ITC’s e-Choupal, Reliance’s DA-IICT
providing graduate and undergraduate education in Gujarat and Intel’s higher education
programme.

 General Electric

General Electric has a five-year, $100-million “College Bound” program to boost the number
of high school students who go to college in certain school districts. The program
encompasses math and science curricula, professional development, management capacity,
and the involvement and expertise of GE officials.

 DLF
DLF Foundation also administered scholarships for meritorious students from economically
vulnerable sections of society and scholarships for higher education for aspirants particularly
from certain districts of Haryana and U.P. Notable among these programs is the “DLF -
Choudhary Raghuvendra Singh Scholarship for Excellence in Education”. Grants are
provided for studies in the fields of Engineering, Medical, Management, Fine Arts and for
excellence in Sports. These Scholarships are instituted for higher education within India. The
maximum amount of scholarship is Rs. 1,00,000/- for the complete academic course.
Applicants are required to secure admission to any reputed institution within the country to be
eligible for the scholarship.
  Bharti Airtel
Under the aegis of its flagship program, the Satya Bharti School Program, Bharti Foundation
imparts primary and higher education to help in both holistic and academic development of
underprivileged children and youth across the rural pockets of India. Girl child gets special
focus in these temples of learning, radiating knowledge and excellence. This helps them
connect with their own community and stay rooted to their local culture. The senior school
program trains students in vocational skills to help them emerge as employable citizens and
contribute towards community development.

The program aims to provide academic support to children, healthy nutritious mid day meals
and also contribute to their holistic development. Launched in 2006, just three years into
operation the schools have, slowly but surely, started to make an impact on the children,
parents and the village community. Bharti Foundation has partnered with premier institutes
like the Indian Institute of Technology, Delhi in 2000 to set up the Bharti School of
Telecommunication Technology and Management, IIT Delhi. 200 students are supported
every year to pursue courses in the field of telecommunications. The School has been set up
with the vision “to develop telecom leaders through excellence in education and research”.
The Foundation has also set up the Bharti Centre for Communication, Mumbai in partnership
with IIT Mumbai.

 Citigroup
Citigroup announced the formation of its Office of Financial Education, along with a 10-year,
$200-million commitment to financial education. Since then, the company has developed
curriculum programs for aspiring entrepreneurs, college students with questions about credit,
and pre-scholars who are just starting to learn about money, among others. Thousands of
Citigroup employees volunteer their time to teach these programs, which have reached people
in more than 60 countries.

 Indian Oil Limited

OIL instituted a chair in the memory of late KD Malviya, Ex. Petroleum Minister,
Government of India in late sixties in the Dibrugarh University, Assam. This is one of OIL’s
social gestures of promoting research works in geoscientific fields relevant to exploration &
exploitation of hydrocarbon for India’s self-sufficiency. OIL contributes an amount of Rs.1
Million (USD .02Million) under its Social Welfare Programme towards the chair.

 Rural electrification Ltd

Providing grant in aid assistance to schools in rural/remote areas for development of
necessary infrastructure like building, electricity, furniture, computers etc. They also supply
study material like bags, books, stationery etc. to children belonging to the under privileged
class of the society.

 Azim Premji foundation

The Azim Premji Foundation till 2006 had touched nearly 20,000 schools, 60,000 teachers
and three million children. With over 250 professionals and over 1000 paid field volunteers,
its vision is to ‘significantly contribute to achieving quality universal education to facilitate a
just, equitable and humane society.’ The Foundation aims to deliver quality universal
education across the country by bringing systemic changes in partnership with the
government agencies and not merely develop smaller ‘islands of excellence’. The Foundation
has also set up training institutes for school teachers as it believes in improving school
performance by improving quality of teachers and school infrastructure (Premji, 2006).

 Microsoft
Project Shiksha (Rs.100 crore or US 20million dollar), launched by Microsoft to improve
computer education in India, aims at training 80,000 school teachers who would be educating
3.5 lakhs students across the country is an important step in this direction.
 CONCLUSION

Availability of education is a valuable benchmark for understanding the social and

developmental progress of a nation. While it may not be the sole factor involved, education
can serve as an individual’s foundation to make advancements in several sectors, ranging
from innovations in the health care industry to improvements in agriculture. The value of a
good education is largely uncontested, but access to high-quality and affordable schooling
remains out of reach for a sizeable part of the population, especially in developing countries
like India, where there exists a distinct socioeconomic gap between different strata of society.
Although attempts are made by the public sector to bridge these disparities and provide all
individuals with the same learning opportunities, the reality of the situation is that it is neither
possible nor plausible. It is for this reason that the involvement of the private sector is vital,
and one of the ways in which private organisations and businesses have been contributing to
society is through the use of corporate social responsibility.

Corporate social responsibility (CSR) was introduced as a concept in the 1950s, but only
became popular in the 1970s, and since then it has become a well-established practice in
organizations. Sometimes discussed as ‘corporate citizenship’, CSR can be broadly
understood as the initiatives that an organization takes to help various environmental and
social causes. Companies use their own finances to make a contribution to society and go
beyond the goals of conducting business and gaining profits.2,3 In India, the philanthropic
spirit of corporations has been well-recorded and recent changes to legislations have enabled
companies to easily participate in CSR projects and schemes. Businesses are thus able to give
back money that they have earned to society, sometimes focusing on weaker sections that
need an extra boost. At the same time, these industries often benefit from an improved public
image as a result of their actions.