LAKSHYAA CONNECT #1

OUTCOME DOCUMENT

Session was held on 23rd December 2023

 Evolution of CSR Panel Discussion Recommendations Audience Input

• Governance
o CSR is a significant vertical now, gets a seat at the corporate table.
o Decision making by the Board. CSR is a Board Level Activity.
• Drastic change in NGOs over the years, they are now on the same page as corporates, have become more professional in their working styles.
• The government is also more focused on CSR, and its impact. During Covid, they turned to CSR and NGOs for assistance as now they are aware of
the impact they can create.
• Non-financial Accounting, Auditing (NFAA) is coming up in the area of Social Audits. It is a separate vertical in the accounting system now.
• The future is SDG goals.
• Partnerships are emerging at all the 3 levels -
o Government - they are pitching to corporates for CSR projects to happen in their state
o Corporates - looking for partnerships all around
▪ With Government (1st priority),
▪ With other Corporates
o NGO- NGO partnerships are also becoming strong.
Challenges
▪ Corporates - brand clashing? -> Corporates have come to realize that they can work better in synergies, but at the same time sometimes
it takes a lot of time for them to come on the same page in order to work together, which tends to delay things.
▪ Capacity Building of NGOs in order to properly implement the project with high impact and compliance.
• Corporates are becoming more open towards hiring skilled people with disabilities, which is propelled by a change in the policies of HR
department
 Evolution of CSR Panel Discussion Recommendations Audience Input

How has the Sector Evolved?

Government Representative NGO Representative Corporate Representative

• Industry has geared up strongly.
• There were initial struggles as
corporates were not able to find the
right implementation partners, and
then they started to set up their
own foundations.
• Now that gap is decreasing as NGOs
are becoming more capable in
conceptualizing, implementing and
reporting the projects.
• NGOs as partners to corporates
have increased their capacity.
• Corporates have built relationship
in the community.
• It has also enhanced the NGOs
capability in compliance and social
impact. These are the two pillars
where we can see growth in NGOs.
• 3 key milestones in the evolution of
CSR space over the last 10 years were -
1. Comply or explain
2. Comply and spend
3. Comply and spend with impact
• In response to corporates focusing on
visibility - What the corporate is trying
to do is build trust with society. They
want to increase their social visibility.

Challenges for NGOs Suggestions for NGOs

• Getting CSR funds to non-metros, rural and tribal
areas where there is a greater need.
• Some corporates like to focus on visibility, rather than
making an impact. Also, sometimes corporates want
to market their own products.
• Corporates are also looking for long term meaningful partnerships, with
programs having a start and end line with progress that can be measured.
• Understand the lens corporate is going to use to evaluate a proposal.
• The moment the clarity comes to what is measureable, projects could be more
result orientated, it would be an enabler for all the parties.
 Evolution of CSR Panel Discussion Recommendations Audience Input

1. What is the impact we are referring to in CSR, can we get a direct definition? Currently it is not very clear what is meant by impact, is it
the outcome, is it the changes, the numbers impacted?

2. The 31st of March deadline for expenditure, can it be relooked in a way that it becomes an enabler to what the law is trying to
achieve. Many times, due to the cashflow issue or some other issue, if the corporates are not able to spend within the deadline, then the
activities that were planned do not take place at all and it defeats the purpose of CSR.

3. What can be done to improve the skills and employability of people with disabilities, as a large portion of such people are currently
not skilled enough to be employed, and corporates are also a bit hesitant to hire them.
 Evolution of CSR Panel Discussion Recommendations Audience Input

Following are various suggestions and observations related to Corporate Social Responsibility (CSR) policies in India. Here is a summarized overview of
the key points: (Based on Google form Submissions from the Audience Member)
1. Inclusivity of Small NGOs:
• Propose a change in CSR policies to include support for small NGOs working on the ground.
• Emphasize the importance of direct interaction, clear requirements, and comprehensive coverage.
2. Resource Allocation and Education:
• Suggest directing resources based on actual developmental needs in states.
• Call for continuous education, training, and awareness for businesses, SMEs, and communities.
• Encourage corporates to reach rural and tribal areas for better program alignment.
3. Inclusion of Disabled Individuals:
• Advocate for considering disabled students in education, skill development, vocational training, and therapies.
• Recommend housing initiatives for the disabled by corporates.
• Recommend adding a reservation of 5-6% for persons with disabilities in CSR policies.
4. NGO Capacity Development:
• Highlight the need for defining and refining the NGO space within CSR policies.
• Stress the importance of capacity development and stricter compliances for NGOs.
5. CSR Reporting and Contributions:
• Recommend more impactful CSR reporting.
• Suggest changing social auditing with equal emphasis on qualitative and quantitative analysis.
• Propose an increase in CSR contributions from 2% to 5% of net profit.
6. Awareness and Laymen Understanding:
• Stress the need to increase awareness of CSR laws and their impact among the public.
 Evolution of CSR Panel Discussion Recommendations Audience Input

7. Innovation and Transparency:

• Encourage long-term commitments, transparency, and reporting standards in CSR.
• Advocate for incentives for innovation, collaboration, and alignment with Sustainable Development Goals.
8. Skill and Professional Registry:
• Propose a national registry for certified professionals in CSR-related activities.
9. Equitable Fund Allocation:
• Suggest encouraging companies to allocate a portion of CSR funds to underdeveloped or remote areas.
10. Independent CSR Divisions:
• Call for guidelines on recruiting qualified individuals specifically for handling CSR projects independently.
11. Compulsory Spending:
• Recommend compulsory spending on education in government schools lacking infrastructure.
• Advocate for compulsory spending in remote areas, particularly in the Northeast.
12. Widening Scope and ESG Ratings:
• Propose widening Schedule VII to include other sectoral issues.
• Recommend making ESG ratings compliant in CSR policy, especially for environmental projects.
13. Sports CSR Emphasis:
• Call for more emphasis on sports CSR to build a sporting culture.
14. Monitoring and Evaluation:
• Emphasize the need for improved monitoring and evaluation in partnerships.

These points collectively highlight diverse perspectives on improving CSR policies, encompassing inclusivity, accountability, innovation, and targeted
impact.
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