Tag: CSR

Corporate Social Responsibility or CSR, has gained significant traction in the business world in recent times. Essentially, CSR applies to organisations’ voluntary initiatives and measures to address social, environmental and ethical concerns in their operations and dealings with stakeholders. It denotes a business’s commitment to furthering both its financial objectives and its beneficial social impact. CSR includes a wide range of activities, including community development, ethical governance, philanthropy, environmental sustainability, employee welfare and support for social causes like healthcare, education and disaster relief.

Organisations use CSR as a strategic tool to get positive feedback from their stakeholders, which includes young people. This explains why the majority of businesses are shifting the focus of their CSR initiatives to youth empowerment. The majority of businesses are realising that young people play a critical role in maintaining social harmony and economic prosperity. Giving these young people more influence will essentially encourage them to participate actively in business cycles.

CSR projects hold the transformative power to effect substantial societal change. In contrast to conventional company endeavours that put profit first, CSR efforts are based on the values of giving back and fostering equity in society. For example, a company would sponsor a national scholarship programme to guarantee the country’s youth’s access to high-quality education and a better future.

CSR as a way of educating youth and fostering collaborations

In India, education is a potent driver for individual growth, societal progression and youth empowerment—particularly in rural areas where access to high-quality education is still difficult. India is ranked 32nd in the world in the education index by a poll from 2021, which highlights the urgent need for programmes that close this gap. Programmes for CSR have the potential to significantly impact education and lead students in these underprivileged areas toward a better future.

CSR collaboratives can positively impact learning, education and the holistic development of India’s youth. Technology can be introduced to rural classrooms through collaborative CSR activities with a focus on digital transformation. These initiatives can make computers and laptops accessible, enhance internet connectivity and raise the standard of instruction. Better attendance rates are the outcome of this digital transformation, which also improves student learning, encourages digital literacy and piques students’ enthusiasm for learning.

Today, half the world’s population is youth and it has been deemed historical. It is critical that CSR efforts adapt and accept new ideas as we navigate a world that is changing quickly. One such strategy is the need to trust and give young Indian entrepreneurs running not-for-profit organisations a chance. By doing this, we can enable these passion-driven people to carry out worthwhile programs comparable to those of reputable non-profits.

Several companies focus on fostering entrepreneurship among youth through incubation programs, funding, and mentorship. These initiatives encourage young people to start businesses and contribute to economic growth as they possess immense potential, fresh perspectives and boundless energy.

How CSR initiatives can focus on youth empowerment

India has been actively promoting CSR initiatives focused on youth development. These initiatives are designed to empower young people through various programmes for education, skill development, health and entrepreneurship.

For instance, many companies invest in skill development programmes to equip youth with practical skills that enhance employability. Initiatives often focus on sectors like technology, hospitality and manufacturing. Organisations partner with NGOs to offer soft skills, technical skills and entrepreneurship training.

Furthermore, businesses who demonstrate their commitment to CSR by hiring local youngsters may encourage young people to follow suit, fostering a more tranquil and favourable business environment that will support the growth of their enterprise.

Several CSR health initiatives also target youth by promoting physical and mental well-being. These programs may include awareness campaigns on mental health, nutrition and hygiene, as well as providing access to healthcare services in rural areas.

Youth engagement in sustainability is also a focus. CSR programmes may involve youth in environmental conservation activities, climate change awareness campaigns and sustainable practices training.

Lastly, CSR initiatives also play a key role in often encouraging youth to participate in community service and leadership programs, helping them develop skills such as teamwork, communication and social responsibility.

Smile Foundation’s CSR collaborations for youth through SteP

Since 2001, Smile Foundation has focused on uplifting underserved communities in India through education, healthcare, women’s empowerment and skill development and CSR collaborations for youth has been one of its key focus areas. The non-profit’s Smile Twin e-Learning Programme (STeP), through several CSR collaborations, aims to provide underprivileged adolescents with career prospects by offering programmes that focus on skill development and job readiness.

With over 90,000 youth trained and 56,000 placed in over 400 reputable companies—mostly women—Smile Foundation aims to expand its impact through CSR partnerships. With India’s young demographic eager to contribute, these collaborations can further enhance the nation’s economic potential.

While presenting the Union Budget this year, finance minister Nirmala Seetharaman said that the government will launch a scheme that will provide internship opportunities in 500 top companies to one crore youth in the next five years. The students will receive an internship allowance of Rs 5,000 per month along with one-time assistance of Rs 6,000. The companies will be expected to cover the training cost and 10% of the internship cost from their Corporate Social Responsibility (CSR) funds, said a report in The Times of India.

Employment and skilling of the youth has long been a concern of the government. And CSR plays a great role in making young people ready for the job market.

What is CSR?

CSR is a business model wherein companies actively incorporate social, environmental and ethical considerations into their operations and decision-making processes. It can encompass a range of activities, such as sustainable practices, ethical labour policies, community engagement and philanthropy.

CSR is a legal requirement in India

India is the first country in the world to make CSR mandatory, following an amendment to the Companies Act, 2013, in April 2014. Companies with a net worth of ₹500 crore or more, a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more during any financial year are required to spend at least 2% of their average net profits from the last three financial years on CSR activities.

Improving employability of Indian youth: Need of the hour

According to the People Research on India’s Consumer Economy (PRICE) survey, India’s youth population is expected to reach 420 million in 2024, ie,  29% of the total population.By 2047, India will have 1.1 billion people in the working age group (15-64).

However, according to UNICEF and the Education Commission, more than 50% of Indian youth do not have the education and skills necessary for employment by 2030. The India Skills Report 2021 states that nearly half of India’s graduates are unemployable. Open unemployment, which was barely 2.1% in 2012, nearly tripled to 6.1% in 2018.

Why do youth lack skill sets?

“Some students are able to secure admissions in top educational institutions. Such students don’t require support with additional skills to help them become employable,” says Dr Prahalathan KK, co-founder of Bhumi, a Chennai-based non-profit which aims to drive social change by fostering an environment where young adults and children learn, lead, and thrive.

“Other students, who don’t secure admissions in top rung colleges or cannot afford it, go to mediocre colleges where they study some course but need additional support with skills to secure a job,” he says, adding that students can either pay for additional courses, or opt for internships and learn on the job.  The nonprofit sector can step in and support vulnerable students at the lower end of the educational system to make them more employable. And some philanthropy has to fund it – individual donors, foundations or CSR initiatives,” says Dr Prahalathan.

Government schemes address the issue

The Government of India has launched various initiatives to help youth secure livelihoods. For instance, the Pradhan Mantri Kaushal Vikas Yojana, the flagship scheme of the Ministry of Skill Development & Entrepreneurship, aims to enable a large number of Indian youth to take up industry-relevant skill training. In 2015, the Skill India Mission was launched to create and implement comprehensive skill development training programmes to help bridge the gap between industry demands and skill requirements.

The role of CSR in increasing youth employability

CSR programmes of companies can play a big role in helping to bridge the gap between industry needs and existing skill sets of the youth. “Soft skills are needed by everyone. It also depends on the requirements of the industry that the candidate hopes to work in. At Bhumi, we work with government and government-aided schools to improve their learning outcomes, provide scholarships to older children so that they can choose the right institutions, and also conduct skilling programmes for Tier 2 and 3 colleges located outside big cities,” says Dr Prahalathan.

A few Indian companies have launched CSR initiatives aimed at enhancing youth employability. For instance, Tata STRIVE provides youth from underprivileged communities access to quality skill training with an aim to enable livelihood linkages. The programme aims for employment, entrepreneurship or enhanced employability through their domain and soft skills training.

Infosys Springboard, a digital literacy programme, is delivered free through Infosys’ CSR commitment to empowering 10 million-plus people with digital skills by 2025. It provides a holistic set of courses, developed in collaboration with world-leading digital educators like Coursera and Harvard Business Publishing.

CSR is not just about money

“Many people have the misconception that CSR has to be in monetary form but it’s not,” says Tarun Mahadevan, managing director of Advantage Foods. “For instance, my father, restaurateur M Mahadevan, has used his wealth of experience in culinary arts to train youth. He believes we are just the runway, then it’s up to the students and organisations we work with to use us as a platform to grow,” says Tarun, whose company works with youth with special needs as well.

For instance, their venture, Popcause, is run by two students who were placed from SPASTN (The Spastics Society of Tamilnadu). “They were trained in the art of making popcorn and now they run the brand,” says Tarun, adding that the F&B industry’s CSR initiatives offer great avenues for upskilling youngsters who are interested in working in the field. “You just need to be more patient, make it more interesting, and project a career path they can follow.”

NGOs upskill youth

Smile Foundation has also been working to skill the youth and make them more employable. Our STEM and experiential learning initiative recognises that building scientific temperament in students by introducing them to think critically, solve problems through inquiry and logic, ideate creatively and continue this process of learning for a lifetime are critical skills for the youth and workforce of tomorrow. So, vocational exposure has been encouraged and initiated amongst students to facilitate holistic learning and development by providing a space for students beyond regular curriculum subjects to enable children and youth to make connections between different areas of learning.

Under Project Manzil, Smile Foundation aims to provide counselling and employability skills training to over 90,000 young girls in Rajasthan. The project provides training to girls in streams like IT, healthcare, beauty & wellness, security, retail, automobile, apparel, home furnishing, agriculture, tourism and hospitality, and electrical and electronics. Currently, the project is benefitting over 44,000 girls in grade 9-12 from Government schools in six districts of Rajasthan.

As per Section 135 of the Companies Act 2013, it is mandated that companies meeting specific size and revenue criteria invest at least 2 per cent of their average net profits from the previous three annual years into Corporate Social Responsibility (CSR) projects. Introduced a decade ago, this regulation has significantly transformed the CSR landscape in our country. Companies now actively channel funds into public service projects, elevating discussions on social impact to a higher level.

Traditionally, CSR expenditure has been concentrated in six primary areas: education and skill development, healthcare, rural and urban slum development, livelihood enhancement, environmental sustainability and poverty alleviation. However, increasingly novel areas, such as gender inequality, animal rights, etc., are also being catered to via CSR projects. This shift has not only broadened the scope of CSR activities but also emphasised the role of businesses in addressing societal challenges.

Among the recent research, a 2024 study conducted by SoulAce, a prominent CSR consulting and monitoring firm, highlights the significant impact of CSR initiatives on India’s healthcare sector. As per this research, these projects have substantially alleviated the strain on public healthcare institutions and played a crucial role in fortifying India’s healthcare framework. Through investments in various healthcare-related CSR activities, companies have not only been supporting the enhancement of medical facilities and services. Still, they are also contributing to improving overall public health outcomes. This growing emphasis on CSR in healthcare underscores the evolving role of businesses in addressing critical social issues and supporting national health priorities.

A push to access and equity

India has one of the lowest healthcare expenditures as a percentage of GDP. Over the last two decades, most development with regard to healthcare facilities has taken place in the private sector or through public-private partnerships, with minimal progress in the public sector. In this context, CSR initiatives are crucial in addressing disparity in access to medical services. Despite advances in medical technology and healthcare delivery, significant gaps remain, especially in underserved and low-income areas.

CSR programmes often work to bridge these gaps by funding free clinics, providing mobile health units, or partnering with nonprofits to offer subsidised treatments. For instance, the Hyundai Motor India Foundation (HMIF) has introduced the Sparsh Sanjeevani Telemedicine Clinics in Maharashtra, creating a network of telemedicine clinics in remote areas to offer essential healthcare services. Patients can consult specialists for a nominal fee of Rs. 100, with medications provided by an in-clinic nurse. Similarly, the SBI Foundation’s Sanjeevani initiative deploys mobile medical units to deliver primary healthcare directly to rural, tribal, and remote communities. Between 2022 and 2023, the SBI Foundation rolled out 30 mobile units across seven states, improving healthcare access in these regions.

These CSR efforts go beyond merely improving access to healthcare; they play a pivotal role in promoting equity across the healthcare sector. By supporting programs that target vulnerable populations, advocating for equitable health policies and investing in research to address disparities, these initiatives contribute to greater equality in healthcare in India. A notable example herein is Tata Steel Limited’s Maternal & Newborn Survival Initiative (MANSI), which aims to reduce neonatal and infant mortality by strengthening the capacity of government health volunteers—ASHAs workers.

Overall, CSR programmes play a vital role in overcoming barriers such as cost, transportation, and service availability, ensuring that more individuals receive the care they need.

Furthering environmental sustainability in healthcare

The environmental impact of healthcare practices is coming under increasing scrutiny due to the sector’s significant carbon footprint, which includes high levels of waste generation, energy consumption, and reliance on non-renewable resources.

In India, the healthcare sector accounts for about 2 percent of global healthcare emissions, and as the country invests more in healthcare, this figure is expected to rise. Given this context, it is crucial for healthcare CSR initiatives to address sustainability concerns as well. In this case, a notable example is Apollo Hospitals, which has incorporated environmentally sustainable practices into its CSR strategy. Their green initiatives focus on reducing, reusing, and recycling medical and non-medical waste. They have implemented specialised systems for safely disposing of hazardous and biomedical waste to minimise environmental impact.

Additionally, Apollo Hospitals has adopted water conservation measures such as rainwater harvesting and wastewater recycling to reduce water wastage and promote sustainable water use in their operations. This forms a critical case study as to how CSR initiatives can promote the environmental cause while serving those in need of the right services.

Most importantly, it must be remembered that effective healthcare involves providing quality medical care and creating environments that enhance patient well-being. Several studies suggest that green buildings—designed with natural lighting, proper ventilation, and soundproofing—contribute significantly to a positive therapeutic environment. By incorporating these features, hospitals can improve patient comfort and recovery. This is how they can further strike a balanced commitment to environmental sustainability and patient care.

Forging community engagement 

The right interventions can also help create community engagement by working closely with local populations to understand their specific health needs and concerns. This often includes sponsoring health education programs, supporting local health initiatives, or fostering partnerships with community-based organisations. Project Jeevan Aastha by HDFC Life Insurance Company demonstrates a comprehensive approach to community health. The initiative organises free health camps that offer essential medical screenings and consultations to people in remote and underserved areas. It also conducts workshops and educational sessions to raise awareness about preventive healthcare, hygiene, and disease management. Additionally, HDFC Life collaborates with local NGOs and healthcare providers to expand its reach and enhance its impact within specific communities.

CSR initiatives in India are addressing some key issues and will only continue to have a profound impact as they evolve. By focusing on organising free health camps, educational workshops and fostering partnerships with local organisations, these programmes not only improve immediate conditions but also foster long-term development of the country.