(Abhishek Behl)
The promulgation of the new Companies Act from April 1 also made India the only country that has a legislated provision for spending on Corporate Social Responsibility (CSR). All companies, including foreign firms, with a minimum Net Worth of Rs 500 crores, or a Turnover of Rs 1000 crores or a Net Profit of at least Rs 5 crores, will have to spend a minimum 2 per cent of their average profit of the last 3 years on CSR. It is being estimated that this move will bring 8,000 companies into the ambit of the new CSR provision, and unleash funds to the tune of Rs. 10 to 15,000 crores - to be spent for Social benefit. While this legal move by the government is being hailed by the Social and NGO sector, the private sector is still weighing the pros and cons of this new compliance.
In Gurgaon, and across the country, even those companies who were already engaged in CSR activities are reassessing their way forward – and trying to evolve a proper strategy. They observe that making CSR compulsory is a good move but it should not be micro-managed by government officials - and definitely not by politicians. A CEO of a leading company expressed apprehension that this provision could be used to arm-twist the private sector to set up projects and social work in political backyards. Social sector experts say that the private sector can at best augment the government effort, not replace it; and even more than their money, this area needs their business expertise - so that the resources could be used more efficiently, productively and in an accountable manner. Everyone sees this as an evolutionary process, which will take time to settle. Prema Sagar, CEO, Genesis BM, one of the leading PR companies in India, which has been engaged in CSR for the last several years, observes that CSR is steadily becoming the differentiator in the corporate world in India. Due to the newly-enacted legal provision, CSR has now become an agenda in Boardroom discussions. The focus had first been on regulatory compliance (labour and environmental laws); then on ‘doing well by doing good’ - aimed at reputational benefits; and more recently, on creating value by aligning sustainability with innovation. In her view, this CSR legislation will see better systems and process being introduced, which are sorely required in the Social sector. DLF, one of the largest companies based in Gurgaon, and which also owes its fortunes to the Millennium City, has set up a foundation to execute its CSR activities. PK Joseph, Program Director, DLF Foundation, welcomes the government decision to make CSR mandatory for companies. “There were a number of companies that either did not take up a Social agenda or were conducting it only half-heartedly. This move will bring Rs 18000 crores to the Social sector, and a number of NGO that were starved of funds would now be able to work effectively”, he says. Joseph agrees that the private sector will bring in the much-needed management expertise, better efficiencies and accountability. However, currently even in the private sector the execution of CSR activities is not strictly monitored and reported, as most of the work is outsourced to NGOs. Joseph says that this law will ensure that companies deploy more internal resources for carrying out CSR programmes. DLF has hired 20 professionals from the Social sector. The Foundation plans to work closely with NGO partners, mentor them, monitor their spending and evaluate their performances. This will ensure that the impact of the programmes - on the lives of the beneficiaries and the influence on the community - can be assessed in a far better manner. This also raises a pertinent question on whether private companies should set up separate departments to execute the CSR programmes themselves or engage with NGOs to deliver Social programmes. Experts in Social enterprises that opine that there needs to be a mixed approach to effectively execute a CSR programme. Apeksha Porwal, a Social sector entrepreneur who works for Janata Meals in Gurgaon, says that corporations and like-minded NGOs should get together and use their combined skills to ensure the successful delivery of Social goals. In her opinion, the private sector has competencies like better business practices, strong execution skills and better accounting, whereas the Social sector has better linkages with local communities, they know better about issues being faced by the poor and weaker sections…and also have some solutions. DLF's Joseph says that engaging with quality NGOs will ensure that Social activities can be taken to multiple locations in multiple States – which would be difficult for a private company to do by itself. He refers to the Skill Development Programme launched by DLF in collaboration with an NGO, which has been taken to 6 States and today comprises 30 centres that are training youth in different skills. The NGOs have helped the Foundation in identifying about 500 young children who have exceptional talent, from the weaker sections of society - from across the villages of Gurgaon.
But what about other builders? There are a large number of builders in the Millennium City making big profits, but most have not been very keen in supporting the local community. Ramesh Menon, Certes Reality Ltd, a Gurgaon-based firm, agrees that the Real Estate sector has been found wanting in its support for the Social sector. “If they can even start with helping labour and their families, at their construction sites, it would be a good opening,” says Menon. Menon suggests that builders should voluntarily set up crèches and tented schools, and provide free meals to the children of their workforce. The Real Estate industry can get some much-needed ‘respect’ by adopting the villages where it sets up projects, and support the roads, sanitation and other services that impact the lives of the local community. For Certes, CSR is a way of life, and the Company has launched the Flip4Green initiative and the Confidence Foundation. The former is aimed at saving the environment by protecting trees, while the latter engages with rural girls to improve their soft skills. Gurgaon also has a large concentration of IT companies, which are very careful about compliance and the execution of people and community friendly policies - like CSR. Nagarro, a Gurgaon-based software company, has already factored in the changes required by the new Companies Act, says Shruti Tandon, Senior Manager, HR. “We are focusing on promoting non-motorised transport in Gurgaon in a big way, and also other Social activities. We have a calendar for this, and also clear rules and regulations that guide our Social spend,” adds Tandon. Recently Nagarro, led by Manas Fuloria, had tied up with Euphoria to create an
anthem 'Walk On', sung by Palash Sen.
While the move to make CSR mandatory is being welcomed by most, sceptics feel that this may become another tool in the hands of government to browbeat the industry. Darshan Singh, CEO, Pan India, which has been involved in Rain Water Harvesting in a big way in Gurgaon, says that voluntary compliance would have been a better way to push for CSR in India - where giving is a way of life for big business, and established family businesses have been doing it for ages. “There is fear in small and medium enterprises that politicians and bureaucrats could misuse this law to pressurise them. It is an excellent idea, but there is need to insulate it from the corrupt establishment - else it would end up emulating government functioning,” he warns. He also points out that the biggest spenders on charity in India have been Parsi, Bania and Marwari business houses, which have spent big money to build hospitals, schools and other facilities required by the people. All this happened voluntarily, he asserts. His apprehension is not off the mark. The Gurgaon District Administration has already reached out to ‘hand-hold’ the private sector in the carrying out of CSR activities. The Administration says that they want to fill the gaps in the Social sector by roping in corporate houses and adopt a Public Private Community Approach (PPCA) - under which the government and private sectors will join hands to make Gurgaon a better place to live in. Gurgaon DC, Shekhar Vidyarthi, who held a meeting on this a couple of months ago, said that the District Administration would help the companies in discharging their CSR obligation. According to the ‘plan’, a Society will be formed under the Chairmanship of the District Collector, and representatives of the companies would be members of that Society. The DC added that the ADC, CTM and SDMs would also be members. Various Non-Government Organisations (NGOs) would be asked to propose programmes related to Social causes. Bhawani Shankar Tripathy, who works in the Social sector with the UN, says that the Social sector stands to benefit from CSR in the private sector, provided there is appropriate engagement between social, private and government sectors. Right now there is a need for clearer guidelines on scope, participation and measurement. “Any activity that gets regulated always has a scope for interference; this could be related to the use of resources, processes followed, outputs achieved and review mechanisms,” says Tripathy. CSR should be redefined, from making corporate houses undertake social activities to them becoming 'socially responsible'. True Corporate Social Responsibility will be visible when corporate houses change those activities and processes that are socially detrimental or harmful, to activities that are socially beneficial. Apeksha Porwal suggests that though the government has made CSR mandatory, it also needs to ensure that it benefits the community in a sustainable manner. In this increasingly Social and caring world, the private sector needs to send out a strong message that it is not only about profits, and that it also cares about the society in which it functions. It should be happy to care and share – as a responsible entity.
Prema Sagar, CEO Genesis BM, says that Section 135 of the Companies Act mandates normative CSR spending and mandatory reporting for companies registered in India or having their project office in India. The Section defines the CSR systems along with a suggestive list of activities that can be undertaken as part of CSR. These include Social Development issues - like health, education, environmental concerns, protection of art and culture, rural infrastructure development and contributions to the PM Relief Fund. “We expect that in the first year itself more than 8,000 companies will invest more than USD 2 billion in CSR programmes in India. This revolutionary law provides us the potential to deal with some of the most pressing social challenges that India is facing”, says Sagar. She adds that since the publication of the ‘Ruggie Report’ (2008) on human rights and corporations, companies have been waking up to human rights issues across their value chains. In a time of globalisation, transparency and increasing expectations from informed stakeholders, the risk of even indirect involvement in human rights violations is growing. Many companies are proactively adopting human rights policies and practices and looking at ways to mitigate any liabilities. Sagar says that CSR is also becoming a major tool for attracting and retaining talent. As per a recent survey, more than 60% Indian employees expected their employers to do more on the Social and Environmental front. The corporations have taken it seriously and are creating new programmes on CSR, with a clear employee engagement element. In Sagar’s opinion, corporations operating in India need to adopt a strategic approach to CSR in the light of these key trends. They need to review, realign and re-launch their CSR policy and programmes.
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(Shilpy Arora)
It is Friday night at Sahara Mall. Young couples throng the top floor of the Mall. As they head into the nightclubs, Rajdeep, a bouncer, checks their ID proofs and Geeta (name changed), a young waitress, greets them at the entrance. At the bar a young boy, Sumit, makes heady cocktail mixes for the guests. Rajdeep, Geeta and Sumit come from a nearby village. These youngsters have a strong urge to ‘make it big’ in the City. “We are very much a part of Gurgaon City and we also want to experience the modern culture and make good money,” says Geeta, 19, who comes from a conservative Haryanvi family. She has told her family that she works with an MNC in a night shift. She loves the nightlife of the City and wants to make a career in the hospitality industry only. Over 20 girls from her village work in pubs and outlets at the malls on MG Road. “Forget about girls, even boys are not ‘allowed’ to go to clubs. However we want to prove ourselves and for that it is important to step out of the village. We support the girls from our village who want to work in malls,” says Rajdeep, 25.
The economic boom that fuelled a modern culture in conservative Gurgaon, effectively divided it into two worlds – the villages and the ‘new’ City. Although these worlds almost co-exist, they are yet so distant. Youngsters in the villages are trying hard to bridge the gap. “Money is no more an issue for the villagers. My grandfather had sold his agricultural land some 10 years ago. He says that we don’t need to earn money now. But what concerns me is that despite having money, we are not allowed entry into the City’s ‘elite’ circles. Only office-goers who wear suits and ties are respected here. My family has enough money to buy the showroom that I work in, but it will still not make me socially acceptable in the City,” says Jaya (name changed), 20, who works as a sales executive in one of the branded outlets at MGF Metropolitan Mall. A lack of education and exposure to a cosmopolitan culture are the two big issues the villagers face. “Many clubs on Golf Course Road don’t let us enter so easily because they feel that we do not ‘fit in’ with their ‘profile’,” says Geeta. She dreams of visiting Striker one day! Jaya has bigger aspirations. She is pursuing her graduation in Music through ‘Distance Learning’ and wants to try her luck in Bollywood. “Most girls in my village get married before they are 21.
I am lucky that I have been given an opportunity to study, though my parents will never allow me to move out of the City. They need to understand that money alone can’t bring us happiness; we should be respected, and it is possible only through a successful professional career,” she says. Rajdeep seconds her views and says, “I want to pursue an MBA from Amity so that I can work in a multinational company in Cyber City.”
Although the rural youth dreams to make it big in the City, life is not easy in the villages - especially for girls. Parents protect their daughters by curtailing their movements and restricting their freedom. According to a survey, more than 300 teenaged girls left their schools last year in rural Gurgaon; allegedly because local youth were harassing some of them while they were on their way home. Rani (name changed), 15, a student of Government School, Sukhrali, says, “My mother drops me to school in the morning and my father picks me up in the afternoon. Some girls left the school as they were being teased by a few boys. I want to apply for an English Honours degree in Delhi University after completing my 12th, but I know that it is going to be tough as my family does not want me to study further.” Rani’s mother feels that the modern culture in the City is responsible for the rising sexual assault cases. “My daughter will soon turn 16. I don’t want her to stay in Gurgaon because it is not safe. Moreover, I don’t want her to wear short skirts and use a mobile phone and try to become ‘modern’. I will send her to my village in Hisar to stay with my parents. We will look for a nice person and marry her off soon,” she says. Some families still pull their girls out of school when they reach adolescence and force them to marry early. Taking girls out of school in order to protect them from sexual abuse is not new in rural Haryana. However, with the rising aspirations among rural girls, due to the increasing urbanisation around the villages, it has become a big challenge. Many of these girls are today working in various occupations around the City, without the knowledge of their parents; this is a volatile situation, just waiting to explode.
Despite facing many challenges in their villages and social discrimination in the City, rural youth has been making conscious efforts to become an integral part of the ‘new’ Gurgaon. Ravinder, 26, who owns acres of land in his village and has three SUVs, sends his sisters to an international school. “My parents put me into the business of property as soon as I passed out of school, but I want my sisters to study and feel comfortable when they step into the City. I want to show the villagers that girls can do anything – even work in big companies (like the boys),” he says. Such new thinking is helping change the youth of rural Gurgaon, who are now aware that education is key to becoming a part of the modern culture. Those who are already studying in schools understand the difference very well. When asked about the dresses adopted by girls in ‘new’ Gurgaon, Rani says, “We have been taught that different places have different ‘dress codes’ in India. My parents feel that wearing a skirt is wrong. But I strongly disagree. It should be a matter of personal choice.” It may be hard to believe, but most youngsters in villages don’t smoke and drink. Rajdeep claims that the brawls at the malls are generally initiated by drunken youngsters who come from the Capital. “We are always held responsible for the fights in the malls. We have well-built bodies, but that doesn’t mean that we love to indulge in fights. In fact the only time when we find it hard to control our emotions is when people look down upon us because we can’t speak good English. While the ‘modern folk’ from ‘new’ Gurgaon don’t wish to talk to us at the gyms and clubs, we will still make sure that they feel comfortable on our land,” smiles Rajdeep. While many in ‘new’ Gurgaon are often heard saying that villagers initiate the brawls, misbehave with women and take out their guns in public, not many have experienced any of this. Mishti from LSV Foundation, who has been teaching children at Wazirabad for the last six years, says, “When I moved from the US to the City, I used to maintain a distance from the villagers, as I always had a negative image in mind. Once I started interacting with them, I realised that while we may be culturally different, when we visit a village they welcome us with open hearts. We, on the other hand, have always looked down upon them. We believe that the social and cultural hotspots in this City are exclusive - only for ‘people like us’. How can we even think of blocking places in this City from the original inhabitants?” So, while the youngsters from rural Gurgaon have become more open to accepting the culture of the new Gurgaon, the ‘modern’ lot still wishes to live a cocooned life in ‘safe’ pockets. The next generation of rural Gurgaon will have doctors, lawyers and engineers too. It is time for the ‘new’ Gurgaonites to realise the potential and positivity of these youngsters living in the villages around us. There is a serious need to introspect on the value(s) of our (exclusive) education. Modernity is also about accepting and respecting other cultures. A positive urban-rural social and cultural exchange will help the City evolve a true millennium culture.
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