In these testing times when the world is busy contemplating, researching and analysing reasons and solutions to the Covid-19 pandemic, each institution must actively collaborate. Corporation as an institution has a dual role in not only resurgence of economy post Covid 19 but also in mitigating the spread and impact of the virus.
In India Corporates are mandated by law to spend 2 percent of their net profits on activities specified under Schedule VII of Section 135 of Companies Act. At present, companies with a net profit of Rs 5 crore or a net worth of Rs 500 crore or a turnover of Rs 1,000 crore have to spend 2 percent of their average net profits of the last three years as Corporate Social Responsibility (CSR).
Recently, the Ministry of Corporate Affairs (MCA) has stated that all Covid-19 related spending on health care can be classified as CSR spending. India Inc. has already contributed thousands of crores to help fight the pandemic through their contribution to PM CARES (a centrally created fund to fight the pandemic).
Eradication of Coronavirus is the utmost urgency and is also an opportune moment for businesses to think innovatively. CSR is an umbrella term encompassing companiesโ contribution towards societal development, aspects of human rights, external and internal stakeholder management and sustainable supply chains. Overall, CSR is a strategic move to achieve the UN’s Sustainable Development Goals (SDGs). Combatting Covid 19 in every way is the step towards sustaining the earth.
Charity begins at home โ so the foremost responsibility of the corporate world is to take care of their employees. The contractual, daily wagers are at the ebb presently and the assurance from the employers of continuation of their jobs and taking care of their daily needs is the first step. TATA group has promised all its temporary and daily wage earners full pay for March and April (Businessline, 2nd Apr 2020).
Donations to various funds are just a one-time affair, but corporations must step up to include preventive health care, sanitation, and disaster management on a continuous basis. Businesses have achieved the expertise to reach to the base of the pyramid (read Fortune at the bottom of the pyramid), therefore, companies need to exhibit their prowess and work collaboratively with state governments (especially in hotspot areas) to provide the essential services.
CSR activities need to be planned and invested strategically in public health, research and development, extension, and alleviation of poverty. These activities are performed by the corporations over the last many years. So, what is new or different? The difference lies in innovative processes of implementation and monitoring. Corporations have bright minds, money, and the expertise.
The idea is to work in collaboration and convergence and be part of implementation, monitoring and evaluation. The foremost point is not to take CSR โfor grantedโ. Rather, CSR can be utilized to combat the impending disasters, pandemics, and climate change. The larger question is how to utilize CSR funds effectively?
Every penny counts โ so every penny needs to be utilized to the maximum. The corporations must gear up โ start with systemic approach โ plan, implement, monitor, and evaluate the impact. Peer reviewing, third party impact assessment and employee engagement will be effective measures.
In any such disaster or calamity, it is the poor and weak who are hit hard. They are most vulnerable in terms of exposure, sensitivity, and adaptability. Corporate India needs to invest in building their resilience. Health, equity, and environmental protection is the way forward. This is the moment to create corporate super-heroes promoting effective CSR with a considerable impact.
Encouraging research and implementation of the โOne healthโ approach is a step towards futuristic development and enhancing resilience. One Health approach is particularly relevant to include food safety, the control of zoonoses (diseases that can spread between animals and humans, such as flu, rabies and Rift Valley Fever), and combating antibiotic resistance. Professionals active in different sectors, such as public health, animal health, plant health and the environment, should join forces to support One Health approaches.
Apart from this, ecosystem development needs to be prioritized. Abuse of nature by indiscriminate exploitation of natural resources and changing land use such as forests vis-ร -vis altering wildlife habitat can be attributed as one of the causes of activating zoonotic viruses (read Covid-19).
Changing land use poses risk to food security and human nutrition. A realization at this hour of an old saying โHealth is wealthโ is worth emulating. Only a healthy human, environment and nature can contribute to the wellbeing of our Mother Earth and its diverse children.
The probability of pandemics in the future is high due to unsustainable practices. Industry (both big and MSMEs) is the worst affected due to the pandemic. Therefore, this is the time for introspection and adaptation to sustainable practices for survival and business sustainability.
This is the appropriate time for businesses to think and act holistically for a safer future. A holistic approach that encourages sustainable business practices, judicious resource utilization and enhancing adaptability can mitigate the risks of impending disasters. This needs redrawing the strategies of development and growth, and in this corporations have to collaborate with the government and play the lead.
(Sumita Sindhi is a Assistant Professor, Indian Institute of Management (IIM) Sambalpur, Odisha)
