India’s new mandate on CSR spends is still awaiting approval in parliament. Many who assume that the passing of the bill is a foregone conclusion are suddenly wondering, “How do we effectively manage funds that are suddenly going to become accessible?” For CSR departments that have had to traditionally struggle for funds, this is a welcome challenge.
Most organizations that fall under the purview of the act already have active CSR departments although many of these activities might not be rooted in the business strategy. Typically organizations start by developing focus areas – healthcare, education, poverty alleviation etc and that is a good place to start. This could also be the time organizations decide how rooted in business these areas need to be. We at Corporate Citizenship believe that focus areas should ideally be connected with business – it ought to integrate with business operations while also making a holistic contribution to society. For example, Lifebuoy espouses the cause of washing hands while promoting its brand. Through this timeless soap brand, Unilever co-founded Global Handwashing Day in 2008, to spread the message about the importance of washing hands with soap.
Then, there are organizations that have well articulated focus areas but do not have a sustainability plan. They work to a budget but not to a plan. Why have a plan at all? Primarily plans enable organizations to think long term, set targets and monitor progress. They also help CSR teams communicate with stakeholders on their social and environmental performance. More importantly, plans provide a fantastic opportunity to receive feedback. Leading organizations like Unilever, Marks and Spencer, Sony etc work to a sustainability plan. According to a Corporate Citizenship paper titled “Steps to Sustainable Success”, “a true sustainability plan looks beyond the core operations to cover the full economic, environmental and social impacts of the business and how these can be managed to achieve long term sustainable success”. Against the backdrop of the 2% mandate, the next big step for mid-sized organizations could well lie in thinking ahead and developing sustainability plans.