How two different ‘species’
Corporates and NGOs could work together in the ecosystem of the new Company Act
of India? This dilemma exists at both ends. The corporates aren’t sure whether
they will get a genuine NGO partner to implement their ideas and NGOs are
worried that their credibility will be at stake, if they partner with a wrong
corporate. The amount of mistrust is tremendous. No wonder, every corporate,
therefore creates their own foundations to implement CSR activities while there
are around 3.3 million NGOs already existing in India!
Additionally I believe they are strongly influenced by 4Ps,
differently though; Passion, Practicality, Profits and Public good. NGOs are
usually driven by high octane of passion for public good and sometimes ignore
Practicality in their operations. They choose to make decisions through the
heart. On other hand, corporations are Passionately driven by Profits and
manage their operations with acute Practicality and largely think from the
brain. Thus it becomes difficult for either of them to understand each other. Yet
they are two sides of the same coin, one who runs the country’s economy through
profits and other who ensures that the people and planet are take care
of…finally contributing to the triple bottom line.
The Company Act 2013 which came into force on 1 April 2014 has
made Corporate Social Responsibility (CSR) legally binding with a mandate which is first of its kind in
the world. As reported, there will be around 16000 companies in India who will be spending
2% of PAT (profit after tax) as CSR, amounting to approx. 3 billion USD annually.
CSR is now seen as ethical and smart way to conduct business, making
corporate entities into socially responsible organizations, visibly contributing
to the social good. Such business regulations in India have already created a
platform for NGOs to play a part in creating shared value, by recommending, the
implementation of CSR projects through NGOs and development sector agencies. In
this context, it is essential that NGOs understand the CSR landscape in India. After decades, CSR has created a new
world of opportunities for the Indian youth and experts say that there will be requirement
of more than 1,00,000 CSR trained
professionals across the country. I guess for instant CSR managers, corporates
need to look at the NGO sector rather at management institutions who may take
atleast two more years to bring out degree qualified CSR managers who will be
still no match to rich experiences of NGO professionals of the country. Why
reinvent a wheel when there exists several of them?
So the question arises, whether CSR funds will be available
for NGOs? Whether NGOs are ready to avail CSR funds? At various CSR forums that
I attended, I witnessed good amount of bashing of NGOs. The business people finds NGO sector
largely fake, incompetent, unaccountable and disorganized. Some people have
thrown figures off their hat at me “ you know of the 3.3 million NGOs that
exists today, half of them are nonexistent and fake, of the remaining, half are
corrupt, still quarter of rest are compromised and say around 5% might be
genuine and really doing good work”. As you could see there is no research to
support these figures because the fact is true, till to date, the NGO sector in
India largely remains unorganized. No one thought of building a consortium, to
guide, mentor and bring in best practices into the sector.
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Funds scarcity and
sustainability issues has made every NGO an island in itself and no two islands
want to meet nor wants to build a bridge. They are so divided among themselves
that I can understand how bewildered the corporate world would be, while
looking at this ocean of 3.3 million islands, it must be very difficult for
them to pick and choose. They are unsure which of these islands might be sinking
ones, who are having a solid rock foundation upto the ocean floor and who are
mobile islands that move as per the tides and do not have a direction.
Yet in an historic moment, the Govt.of India decided to
support the NGO sector by making them partners in the country’s development
through CSR. This reflects, the government’s belief in voluntary sector as
there has been good work done by this sector and for long rather, the world’s
second oldest NGO – BNHS, still flourishes in India after its existence of 131
years protecting India’s unique biodiversity! Likewise in any sector, absolute
integrity is an impractical expectation, why NGOs are expected to play saint
when it is also driven by human beings. Today our NGOs need more of capacity
development in managing themselves rather funds, the CSR addresses this need too
and it is expected the corporates come forward to empower their NGO partners.
I still do not understand why more and more high-end CSR
workshops are being held across by the corporates, of the corporates and for
the corporates. What’s the point when NGO representatives are missing from the
panel and the audience. Why not hold free workshops and educate the NGO sector
who will be the key player in the implementation of CSR strategy? Why not
involve NGO leaders in developing CSR projects and programmes? If this happens
then the madness of tree plantation will be replaced by habitat restoration or forest
protection.
NGOs are grassroot workers and corporates aren't, this difference
will be there and it should be retained. Like mixed hunting parties among the
birds who operate at different canopy levels so that everybody gets food while
the ground dwelling birds are flushing out insects in search of seeds and fruits.
Thus the government, corporations and civil society should operate at
different canopy level and get rid of issues marring the country’s growth.
Many industrialists might disagree but the CSR sun has risen
on the NGO horizon and even before the next amendment comes through which I am confident,
the NGO sector by then, will be basking in the bright sunlight, brightening up
the world they touch upon.
