Good News– Inflation is slowly coming down. Consumer Price Index (CPI), a measure of changes in consumer prices, eased to 5.72% in December 2022, coming within the Reserve Bank of India’s (RBI) 2-6% tolerance band. In this blog we are going to beyond CSR full form and explore how it makes desirable change possible in the lives of many.
It is welcome news for the economy, especially for rural India. Unlike the urban sector, the rural economy was significantly impacted by inflationary pressures through most of 2022. The pandemic had already destabilised things, with the rising prices adding further fuel to the fire.
But thanks to the RBI and the improving global setup, inflation has come down, and rural demand is recovering, albeit at a slow pace. Parle Products, a major FMCG brand in India, saw 6-7% rural volume growth in November, compared to 2-3% in the previous two quarters.
It’s a promising sign, but there’s a long way to go, isn’t that the case always! Unemployment, which ultimately dictates rural demand, is still over 7%, according to data from the Center for Monitoring Indian Economy (EMIE).
Improving that figure is central to spurring rural demand and growing the economy. While a lot depends on the government and their policies, Indian corporations can also improve the state of the rural economy with the right use of CSR funds.
Introduction to Corporate Social Responsibility (CSR) Full form and Beyond
CSR, full form, Corporate Social Responsibility , introduced in the Companies Act 2013, mandates certain profitable companies to contribute financially to impact their society. They can select from several causes, like eradication of hunger or poverty, encouraging gender equality, promoting sustainability, etc., where they want to impact.
Moving beyond CSR Full For and its Challenges
Parking funds for CSR is one thing, and using it effectively is another. Hundreds of companies in the country have made CSR efforts for many years, but only some have succeeded. Deploying CSR funds and identifying impactful programs are among the two biggest challenges companies usually face with CSR.
Even with the changes to the CSR Policy in 2021, these problems persist. As a result, CSR contributions decreased by 64% to 8,800 crores in FY2021, dropping from 24,700 crores.
Given the state of the rural economy, using CSR in rural development in India could be an ideal initiative. It can significantly impact the economy, and several local bodies can help companies deploy CSR funds correctly in rural areas.
CSR for Rural Development in India
The rural economy has been subdued due to several reasons. Unemployment is one of the more prominent contributors, but the right use of CSR in rural development can deliver change. Here is a complete plan a company can use to increase rural livelihoods and bring back rural demand:
1. Identify Struggling Rural Areas- Impact more than learning CSR full form
Rural India is diverse. Some rural communities are almost as advanced as the urban sectors, with high literacy and low unemployment rates. On the flip side, there are others suffering from extreme poverty and high unemployment. Although many of us know CSR full form, not many are aware of its contextualisation in rural development.
The first step to using CSR in the context of rural development is to identify communities that need more help. Research and data are readily available on the internet and can be used by companies to create a shortlist of rural areas in desperate need.
Consultation with local communities and government bodies can also help determine which parts of the rural areas need more help. Understanding a community’s actual state and needs can assist companies in deploying funds in the right direction.
2. Partner with Local Organisations
Implementing rural projects can be challenging. Companies usually do not have dedicated teams that look after the implementation of CSR projects from the ground up.
Hence, it is vital for companies to partner with organisations specialising in CSR initiatives. Many local bodies have significant experience in spearheading CSR projects. They have the right plans and ideas to improve various facets of society, including rural livelihood, but funds are a problem. Partnering with such bodies ensures CSR funds are used effectively and sustainably.
3. Think Long-term
Triggering a short-term impact isn’t the correct use of CSR funds. Companies should focus on the long-term effects of their CSR initiatives and how they can improve rural livelihoods for generations.
Since rural livelihoods are central to the fundamentals of several businesses along with the Indian economy, it is in organisations’ best interest to focus on long-term goals. They can do so by identifying activities and industries where the impact can be long-term. Some examples include agriculture, small-scale industries, educational hubs, and health centres.
4. Measure and Optimise the Impact
After deploying CSR funds, companies must monitor impact the same way they regularly measure their business growth. Success with CSR only comes with regular tracking, as companies can understand what works and what doesn’t.
Based on their findings, they can optimise their spending in industries and activities that have more room for impact. Several evaluation and monitoring tools are available, while companies can also consult local communities to gather feedback on their initiatives. The latter can prove especially useful as local communities have a wider reach.
5. Stay Committed and Patient
It is vital for companies to stick to their CSR goals to create lasting impact. Initiatives like rural livelihood development take time to bear fruit. They depend on several factors, including government policies and commodity prices, which are susceptible to change.
Therefore, it is central for companies to demonstrate patience and commitment. They must take time to figure out what they want to do with their CSR funds and stick to it in every situation.
CSR and Rural Development
Indian corporations are central to the country’s $5 trillion dream. The sustained growth of their businesses can increase employment, improve citizens’ standard of living, and bring foreign investment to the country.
Additionally, with a more significant profit pool, companies can better develop and uplift their societies. They’d have more CSR funds on hand for initiatives like rural development.
However, money doesn’t solve anything without collaboration. Partnering with local organisations with prior CSR experience and having a long-term vision is central to realising the role of CSR in rural development.
Smile Foundation and Livelihood
Smile Foundation realises that education without a scope for a fulfilling livelihood opportunity in the horizon, is best, an incomplete step in the growth and development cycle of a young learner. Through its various CSR associations and an active livelihood initiative, STeP or the Smile Twin e-Learning Programme, Smile Foundation is imparting the youth of low-income groups relevant courses to improve upon their skills and make them completely ready for India’s workforce.
