NGOs of rural background are soft target of Fraud CSR advisors
Corporate Social Responsibility (CSR) fraud is the biggest threat to the social development landscape in India. CSR funding is a highly regulated business affair. It is worth mentioning that CSR funds are public money as mandated by the hon’ble Parliament. Corporate Social Responsibility gives an opportunity to participate in socio-economic development of India. CSR is a part of development work of nation building.
Fake CSR consultants are active in various cities. CSR funds are being misused in an organised manner by associating with companies, CSR Managers, CSR Directors, CSR consultants and social development organizations.
It has been experienced that fake CSR consultants are appointed by companies where corporate governance is very weak. These middlemen have made CSR grantmaking process messy. These so-called CSR Consultants with NGOs as their members are often seen speaking in forums claiming to make CSR selection process transparent.
Small, desperate and unsuspecting NGOs are being trapped by these fraudulent consultants. Here are a few ways to detect and avoid such consultants:
Phone Calls offering CSR funding
A phone call from CSR consultants offering CSR funds to NGOs is fraudulent. Their soft targets are civil society organisations, NGOs with rural backgrounds. If you receive a phone call offering CSR funds for social projects be careful.
Emails offering CSR funding
Fraudulent CSR consultants also used to send attractive emails to NGOs offering CSR projects. The fake CSR advisors often mislead the innocent social organizations of rural areas in the name of getting the CSR project done by attractive emails, but also extort money from them. On receiving the email of a CSR consultant for CSR projects, they should read it carefully and understand the things mentioned in it deeply and avoid answering. Once answered, Fraudulent gets information about your organization. They often misuse this information.
MOU on providing CSR Funds
Whenever social organizations fall into their trap, CSR consultants call them in their offices and sign the agreement. For this, they take a lump sum amount as a commission from the organization. They write the fabricated and bogus things in the agreement letter. Later on, these forms also threaten social organizations with legal action. One should avoid signing any forms with advisors and be careful.
Use of social media
Social media is well used by fake CSR consultants to woo social organizations. In the name of CSR implementation, fake CSR consultants derive large sums from companies and social institutions. So-called CSR consultants also create fear of their high political reach. It may be harmful to NGOs to contact CSR consultants through social media.
