Impact of Corporate Social Responsibility and Social Entrepreneurship in 2016
In an attempt to diminish disparity in education, poverty, gender and hunger, socially impactful initiatives by startups and corporates increased in 2016. In the aftermath of a change in company law in April 2014, businesses with annual revenues of more than 10 Bn rupees must give away 2% of their net profit to charity. The CSR departments of sectors were given a directives to make investments in sensitive local issues.
Nearly 100 corporates from India portrayed exemplary performances in 2016. First four types or stages of transformative CSR being defensive, charitable, promotional and strategic, companies have built strategies around such metrics.
Tech startups impacting social responsibility
Each business with its core competencies and skills supported to distribute aid. In December 2016, UrbanClap and Snapdeal asked their customers to donate “Happiness Boxes” to selected NGOs via the Snapdeal Sunshine platform to help them arrange and plan the Christmas as well as New Year celebration parties for the kids they look after. The contributor received official invites to attend these events at the location of the NGO chosen by them.
The transformation of CSR from a moment to movement
The conversation of CSR has become very mainstream in India, almost every MNC has been dynamic in their social responsibilities. The expectation from CSR has matured beyond the one day service or donation. Cairn India won the award at Petrotech 2016 for its safe water drinking initiative Jeevan Amrit Project which provides clean drinking water to communities in the districts of Rajasthan from ‘Any Time Water’ kiosks.
A collaborative evaluation of social entrepreneurship
Social entrepreneurship has gained major significance in India with support from the governance and the private sector alike. UnLtd, Villgro, Action for India, Deshpande Foundation, RTBI - Rural Technology and Business Incubator, Dasra, Upaya Social Ventures, Ennovent, Centre for Innovation, Incubation and Entrepreneurship (CIIE), Khosla and Marico Innovation Foundation are the several Indian incubators focusing on the growth of social entrepreneurship in India.
Support of the Government
We applaud the proactiveness of Indian government for initiating a plethora of advance level initiatives like setting up of solar power projects worth Rs. 500 crore in various states such as Rajasthan, Tamil Nadu, Gujarat and Jammu and Kashmir.
Funding social enterprises was introduced into the Schedule VII of the Section 135 of the Indian Companies Act through an amendment, where companies can fund startups incubated in ‘technology incubators’ connected to academic institutions.
Special Purpose Vehicles
The development of various Special Purpose Vehicles (SPV), has galvanized the growth of social entrepreneurship in India. Nagpur is becoming a wifi enabled city by March 2017, Thane is building police stations with gyms and kids block. Bhuvaneshwar has been building street lights with solar electricity to reduce coal burning. BW Smart Cityhas its own special edition covering news related to smart cities.
Awareness in people
In the 2016 fiscal year, Tata Power along with its subsidiaries and joint ventures spent Rs 47.02 crore under corporate social responsibility (CSR) initiatives. Savvy marketers realized amazing opportunity to enlighten consumers about important issues. However for clarification, customers require a more transparent supply chain for conforming on the investments.
