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Both India-based companies and foreign multinationals have a strong commitment to helping lift people out of poverty and creating a healthier and more sustainable India. Although the India Companies Act of 2014, which requires companies with a net worth above Rs 5 billion, revenues above Rs 10 billion, or net profits of Rs 50 million or more to spend 2 percent of net profits on CSR initiatives, is only five years old, companies are already exceeding the requirement in many aspects. The Conference Board’s Global CSR & Philanthropy Council saw this first hand and learned about the economic, political and social landscape of the country during our November, 2018, meeting in Guragaon, a city on the outskirts of Delhi that has quickly become a business hub. With 1.3 billion people, India is a huge country and has an infinite number of issues. The government—both national and the governments of the 29 states—often consider philanthropy to be a minor player in resolving these issues. For example, a nonprofit program to help 10,000 people is not significant in such a large country. Scale is needed to affect real change. The government welcomes the opportunity to enter into partnerships with companies that can innovate programs and develop proofs of concept which the government can then scale. Opportunities are particularly strong for companies to partner with governments at the district level (there are 700 districts in India), which is much more manageable than working at the larger state or national level. India has a strong economy and steady growth track. Other key facts include: All this means there is a lot of opportunity for growth and for people to grow into the consumer class. Income classes Class Percent of population Income categories (USD) Affluent 10% $14,000 or more Middle Class 7% $7,000-$13,999 Lower Middle Class 8% $4,000-$6,999 Lower Class 75% <$4,000 Total middle class (15%) grew by 12% between 2011 and 2017. India is the first country in the world to make corporate social responsibility (CSR) mandatory, following the amendment to the Companies Act. The policy can be complicated, but the CSR Reporting Survey from KPMG India (which hosted the council meeting) is a helpful guide. One of the related sessions we hosted for the meeting was a discussion with the leader of the India Institute of Corporate Affairs, which oversees the regulation for Prime Minister Narendra Modi’s government. The council meeting also comprised presentations, working sessions and site visits: Presentations Site visits The sentiment from our meetings with business and nonprofit leaders was that companies need to give back to society and that CSR is an important way of doing business—not an obligation. While our time in India was primarily focused on the country’s challenges and how business is actively part of the solution, our council also had an opportunity to experience some of the rich culture, epicurean delights and vibrant markets of the country. We were masterfully hosted by Fluor, KPMG and Aditya Birla Group and the conclusion of the meeting coincided with Diwali, the festival of lights. The children at one of the schools we visited made us Happy Diwali cards and wherever they were displayed, we marveled at the beautiful sand art called rangoli. As the Global CSR & Philanthropy Council explores the world to discover corporate citizenship best practices, we do stop to smell the roses so to speak. In the case of India, it was saffron, turmeric and of course curry! [1] Data source for this section: Amit Bali, “State of India Consumers,” presentation to the Global CSR and Philanthropy Council, November 2018.About India[1]
CSR and the council meeting
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