In the 4 years since the CSR law, companies have become an integral part of the development ecosystem. The mandate has opened up new streams of funding, and increased access to private sector support and partnership.
Despite corporate India’s enthusiasm, CSR spending accounts for a small proportion of government spending. To give an idea of the disproportionate spending, in 2015-16 total CSR spending was 1 percent of public sector spending.
In such a scenario, for CSR to make significant impact, it must become more effective and efficient. In our recent article New Frontiers in Indian Corporate Social Responsibility, published in the Stanford Social Innovation Review, we analyse how companies are evolving their approach to CSR to unlock greater impact and to support a robust development ecosystem.
We look at how companies such as Godrej Properties, Pratham, Viacom18, Capital First and others in corporate India are going beyond traditional and compliance oriented approaches to create ‘catalytic’ impact under three themes – financing, partnerships and competencies.
The article explores various blended finance models such as loan guarantee fund and syndicate fund, corporate-incubator partnerships, and unique programs that capitalize business competencies. Globally, these and other innovative models are being used to close the funding gap. In India, such interventions could expand funding, spur new thinking, and bring traction and support to traditionally ignored parts of the ecosystem.
You can read the article here.
We hope this article is of value to you. If you want to know more about these ‘New Frontiers’ or would like to provide feedback, do leave a comment on the article or email us. Our team would love to set up a time to discuss this in greater detail.