By Rusen Kumar
In an exclusive interview with Rusen Kumar for India CSR, George Muthoot George, Deputy Managing Director of Muthoot Finance, delves into the company’s deep-rooted commitment to social welfare. The ethos of giving back to society has been an integral part of Muthoot Finance’s operations, shaped by the values of their former Chairman, M. G. George Muthoot. This dedication is evident in their extensive CSR initiatives, focusing on empowering middle-class and marginalized communities across India.
Edited Excerpts:
India CSR: What is driving Muthoot Finance’s commitment to giving back to society?
At Muthoot Finance, our commitment to societal well-being and development is deeply rooted in our corporate philosophy and the values instilled by our former Chairman, Shri. M. G. George Muthoot. Over the years, we have been known for our dedication to CSR initiatives and I strongly believe that a company’s business success is always complimented by its social welfare efforts.
Every member of The Muthoot Group thinks beyond profit-generating objectives and has a strong sense of responsibility towards the people who have contributed to the growth of our company. As the majority of our customers belong to middle-class families and from the marginalized segments of society, the driving force of our CSR commitments stems from empowering them.
The company’s pan-India presence has not only helped us cater to the financial needs of the unbanked but also understand and holistically address the social needs of women and marginalized communities across India. Contributing back to the communities from where we exist and operate, gives us a deep sense of satisfaction and purpose.
In FY23, Muthoot Finance spent Rs.964 million on CSR efforts with a focus on Education, Healthcare, and Environment. Muthoot Finance had been in the CSR space even before the CSR mandate of spending 2% came into effect, it has been ingrained in the organizational DNA. Over the years, we have re-engineered our CSR initiatives to not only improve the lives of people but also foster sustainability at the grassroots level.
India CSR: What is the purpose behind the CSR initiatives that you choose?
The strategy behind the CSR initiatives that we choose is deeply rooted in understanding the challenges faced by communities we operate in and a commitment to address them. We have consciously prioritized our CSR efforts around 3 main focuses viz: Environment, Health, and Education, because we believe that focusing on these pillars can lay the groundwork for solving a myriad of various issues.
The purpose is twofold, firstly, to create a sustainable and positive impact on the lives of people and secondly, to be a catalyst for social development which will also contribute to sustainable economic growth of India, and create an Atmanirbhar Bharat.
We see education as a cornerstone of social empowerment, thus we invest in scholarship programs and unique educational projects, such as the Muthoot Smart Anganwadi, which aims to benefit lower-income families lacking access to quality elementary education due to limited infrastructure. This project encompasses a high-tech study room with modern amenities and a secure roofed play area for children.
We aim to open 100 such Muthoot Smart Anganwadis across India in the next five years and this will open the doors to quality education for underprivileged children. Each Anganwadi is expected to support 25 children on average and we believe opening 100 Smart Anganwadis is expected to have a multiplier effect in the lives of around 25,000 children in the next 10 years.
A large part of the rural population also lacks access to quality healthcare, which has a detrimental impact on society and economic growth and hence we have chosen to focus our CSR efforts in this sector. One of our notable CSR efforts among other healthcare initiatives is the Cup of Life, a two-month-long Menstrual Health Campaign where we focused on creating grassroots awareness and training programs about menstrual health.
We allocated Rs.15 million for this flagship initiative where we offered proper training to women, promoted menstrual cups as an environment-friendly and cost-effective alternative to sanitary pads and distributed 100,000 menstrual cups to women in Kochi within 24 hours, while also securing a Guinness World Record.
To underscore our commitment to environment conservation, we have been actively involved in creating awareness and supporting green alternatives for our communities through initiatives like installing EV charging points in New Delhi, installing solar pumps in wildlife sanctuaries for wildlife conservation, commissioning a solar project, donating E-vehicles to specially-abled individuals in Bengaluru, and distributing solar home lighting kit in Mysuru, among others.
“Giving back to the society has been ingrained in the organisational DNA, and our CSR initiatives are designed to empower communities on the margin.”
India CSR: What has been the impact of these CSR initiatives?
In FY23, we spent over Rs.964 million on our CSR initiatives and touched the lives of 0.55 million beneficiaries. This financial year (FY24), we have pledged Rs.1 Billion to create a positive impact on the lives of the communities we engage with. Having said that, even though our CSR spending are quantified and set aside annually, we tend to consider the impact of our intervention and extend our support every year.
As mentioned earlier, we have adopted a holistic approach to our CSR initiatives and focused our efforts on Education, Healthcare and Environmental protection. We usually operate on direct engagement models by focusing on grassroots-level activities and have our own team on the field across India to carry out the CSR operations. Complementing this strategy, we also collaborate with NGOs to understand the challenges better and reach out to a wider group of economically deprived communities.
We have partnered with non-profit organizations like the World Wide Fund for Nature-India (WWF India), Habitat for Humanity India, and Hope and Helping Hand Society amongst others to conduct multiple CSR projects.
Through our infrastructure development efforts and smart class initiatives in government schools, we are trying to bridge the gap and nurture opportunities for underprivileged children. We are proud to have laid the foundation for over 3 million aspiring students through our CSR efforts and nurtured over 300,000 talents by promoting sports.
One of the significant milestones last year was the completion and handover of 200 homes through our rehabilitation initiative, Muthoot Aashiyana in Kerala. Considering the impact of the project, we have scaled up the project in other parts of the country like Rewari, Haryana and Haridwar, Uttarakhand to complete the milestone of 250 homes under the project.
In addition, we have also partnered with a housing NGO, ‘Habitat for Humanity India’ to empower families with these homes. We have uplifted more than 500,000 financially deprived people and positively impacted over 100,000 people under our inclusion and women empowerment-focused efforts primarily like the Cup of Life, various Skill Development Initiatives, and Vivahasammanam – marriage assistance to the daughters of widowed mothers from the weaker sections of the society during the last 20 years.
India CSR: What is the driving force behind Muthoot Finance’s support of these initiatives and the continuation of its legacy since The Muthoot Group’s inception in 1887?
CSR forms an integral part of The Muthoot Group’s business and our efforts are centered on sustainability and community growth. Our late Chairman laid a solid groundwork for Muthoot Finance that goes beyond offering financial services. He instilled a profound sense of social responsibility urging us to actively contribute towards societal wellbeing and for the welfare of our stakeholders. This legacy of social commitment serves as a guiding light reminding us of the integral role businesses like ours play in uplifting rural communities.
The success of a business is not independent of its social upliftment efforts and this realization is truly a driving force for us to continuously enhance our CSR initiatives. Muthoot Finance has been setting new standards for corporate and community responsibility. We prioritize unlocking unused resources to enhance economic and social well-being, striving for a harmonious balance between corporate practices and community welfare.
Our steadfast commitment is directed towards forging a sustainable future. With our CSR programs, we aim to build a lasting legacy that transcends generations and fosters a culture of positive social impact defining Muthoot Finance.
(Copyright@IndiaCSR)
