“CSR isn’t a particular programme, it’s what we do every day, maximising positive impact and minimising negative impact.”
Responsible Business Summit (2013)
Imagine a set-up, there is a small software development company that wants to give back to the community. They collaborate with a nonprofit dedicated through its CSR activities in India to assisting people from lower-income communities in acquiring digital skills. Employees of the company donate laptops and other equipment to the initiative of the nonprofit in addition to their time to mentor and teach coding, designing, etc. to the young kids.
Many programme kids are on their way to work in technology and other fields. Also, this opportunity assists the company’s employees in gaining new teaching and leadership abilities while supporting its own Corporate Social Responsibility (CSR) programmes. Now this set-up is not fiction; but the reality of all mandated corporations now.
According to the Companies Act of 2013, corporations must spend 2% of their total profits on CSR (these are companies which have Rs. 500 crore minimum net worth, or Rs. 1000 crore turnover, or Rs. 5 crore net profit). Through a variety of projects of their choosing, it directly contributes to the improvement of the nation through CSR programmes.
Given that this is required, it makes sense that corporations would hunt for appropriate areas for investment. Nearly all businesses now have CSR goals that are outlined and consistent with their corporate values.
Is there a way, though, for CSR initiatives to help both the country and the business investing in it? There is, which is where skilling programmes as a CSR initiative come into play!
Corporate Social Responsibility in India
India became the first nation to formally require corporate social responsibility on April 1, 2014.
Regarding what counts as corporate social responsibility, there are tight guidelines. The types of social actions that fall under the jurisdiction of CSR are outlined in the Companies Act. The seventh schedule of the rule contains this list. Companies have the following options—
CSR Activities in India (Examples)
- Protection of the nation’s artistic, cultural, and historically significant structures, locations, and works of art
- the development and promotion of traditional arts and crafts
- the creation of public libraries
- the establishment of orphanages and hostels, the development of those facilities, as well as their upkeep and management
- construction of structures for old age homes, their establishment, upkeep, and operation
- establishing daycare facilities, building them, maintaining them, and running them.
- construction of female-only homes and hostels
- undertakings involving a living
- encouraging good hygiene and health
- working on behalf of underprivileged social and economic groups
- interventions on behalf of the dependents and widows of war martyrs
What are Skilling Programmes and Why are They Important?
The Government of India’s Skill India Mission was established in 2015. Did you know that 65% of Indians would be under the age of 35 by the year 2020? This is the prime working age group.
Realising each person’s potential is crucial, as are raising the national growth rate and developmental indices. Is the answer to this to create more jobs? While the answer is an unquestionable yes; the other is the growing unemployment among young people in India, whether they are graduates or unskilled workers.
Therefore, it is clear that simply creating jobs would not address the employability issue; instead, individuals must also be employable, which is where skill-building programmes come in.
Scope of Skill Development Trainings under CSR
The business case for industry investment in worker skill development is strong since it is obvious that these workers are essential to the nation’s long-term economic growth. This investment helps all stakeholders by promoting a competitive and skilled labour market and advancing industries’ social responsibility objectives.
Also, from an ethical perspective, businesses must develop the skills of their human resources in a balanced way. The business sector has a wide range of tools and a strong capacity to influence the environment of skill development. The resources, facilities, tools, and expertise that enterprises possess can help to double the effort put into skill development. They have seasoned employees whose knowledge and expertise are quite important for this goal.
The corporate sector will benefit strategically from taking part in programmes that encourage skill development. Companies’ CSR goals are successfully met when their initiatives to help at-risk youth improve their abilities reach out to them and have a good, lasting impact on the community.
Because skilled labour is readily available, businesses may easily increase production and efficiency while reducing operating expenses. To assist firms in getting ready for the future, young people can be retrained and given new skills.
The corporate sector has a fantastic chance to get involved with and contribute to the Sustainable Development Goals (SDGs’) realisation. Leading organisations and experts in sustainable development consequently look for companies to help accomplish these global goals. Proper emphasis is placed on skill development in this sustainable plan.
What are the Advantages for Corporations investing in CSR Skill-building Programmes?
Companies are more likely to succeed in obtaining a competent workforce when they participate in skilling initiatives that the government is currently running. The corporate world is able to guarantee that they will receive qualified and skilled human resources that suit their expanding needs by cooperating with skill development programmes run by various nonprofits like Smile Foundation’s livelihood initiative, STeP or the Smile Twin e-Learning Programme.
This benefits not just the nation’s youth, who are certain of receiving training in skills required by business, but also the Indian economy by giving jobs to the country’s ever-expanding youth population. It’s a win-win situation for everyone.
CSR Activities in India and the Smile Foundation: A Natural Fit
The Smile Foundation is aware of how a sizable young population can become the country’s greatest asset if sufficient funds are allocated and wisely used towards the vocational education of Indian youth, especially those who come from disadvantaged social groups.
It seeks to dynamically skill kids through its STeP or Smile Twin e-Learning programme, and it anticipates long-term CSR partnerships to significantly broaden the scope of its livelihood activity. Find out more about Smile Foundation here!