Mandate for corporates to undertake CSR has distracted from efforts to support employability of scheduled castes and tribes, according to Milind Kamble, founder Chairman of the Dalit Indian Chamber of Commerce and Industry (DICCI).
Are you interested in understanding the role of CSR in addressing social and environmental challenges? This article explores the debate around the effectiveness of mandatory CSR spending and its potential impact on affirmative action for reserved categories such as scheduled castes and scheduled tribes.
Kamble explains that industry initially committed to affirmative action but it has since been “derailed”. He notes that while there is representation of reserved categories in entry-level positions, there is a lack of representation at upper managerial and board levels. Kamble suggests that the mandate for companies to spend a minimum of 2% of their net profit on CSR over the previous three years has distracted from the commitment to affirmative action.
Government data shows that 335 public sector undertakings spent Rs 4,480.70 crore on CSR in 2020-21, while 17,677 non-PSUs recorded CSR spending of Rs 21,233.95 crore in the same period.
Overview of CSR in India: Requirements and Objectives
In India, companies are required by law to spend a minimum of 2% of their net profit over the preceding three years on corporate social responsibility (CSR) initiatives. CSR is a concept whereby businesses aim to operate in a responsible and sustainable manner, considering the social and environmental impacts of their operations and activities. This can include activities such as supporting education, healthcare, and environmental protection, as well as initiatives to benefit the local community.
Kamble’s view on the impact of CSR spending on affirmative action in India
However, according to Milind Kamble, this mandatory norm for CSR spending has “derailed” affirmative action for reserved categories, such as scheduled castes and scheduled tribes.
These are groups that have historically faced discrimination and disadvantage in Indian society, and affirmative action refers to policies and initiatives aimed at redressing these imbalances and promoting the inclusion and representation of these groups in various fields.
Kamble’s observations on the representation of reserved categories in the private sector
According to an interview that appeared in the Indian Express, Milind Kamle explains that the industry had initially made a commitment to affirmative action, but that this commitment has since been neglected. He notes that while there is representation of reserved categories in entry-level positions, there is a lack of representation at upper managerial and board levels.
Kamble’s view on the relationship between CSR and affirmative action
Kamble suggests that the focus on CSR has distracted from the commitment to affirmative action, and that companies often use their CSR spending as evidence that they are taking action, even though he believes that CSR and affirmative action are distinct commitments.
Kamble’s perspective on the distinction between CSR and affirmative action
He argues that CSR is a form of philanthropy, whereas affirmative action is a commitment made to the government to work towards the development and empowerment of reserved categories. Kamble also points out that the representation of reserved categories in government jobs follows a similar pattern, with strong representation in lower-level positions but a lack of representation at higher levels.
Government data on CSR spending in India
Government data is provided in the story, which shows the amount of CSR spending by public sector undertakings and non-public sector undertakings in 2020-21. The data shows that 335 public sector undertakings spent Rs 4,480.70 crore on CSR during this period, while 17,677 non-public sector undertakings recorded CSR spending of Rs 21,233.95 crore. This information provides some context for the scale of CSR spending in India and the potential impact that it may have on other areas of social and economic policy.
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