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Leveraging strength – Not for Profit Organizations and Industries, walking together

India CSR by India CSR
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CSR law in Companies Act 2013 brought new dimension in community development or social sector. Prior to that Not for Profit organizations had critical role to play in terms of resource mobilization and implementation of projects with social imperatives. Now new CSR rule has not only ensured active participation of industries it has also attracted sizable investments in social sector as well as business practices which are being used to make social projects more beneficial and sustainable.

Although development organizations and industries are working together to leverage from each other’s strength, however I still see some gap in their approach to execute social projects with multilayer interests. It is also evident from recent report of KPMG, which shows that in 2015, about 15% implementation of CSR projects was done by development organization which increased up to 37% in 2017 but drastically went down 9% in 2018. While implementation of CSR projects in combinations (Not for Profit Organization+Industries) has grown up to 91% in 2018 compare to 62% in 2017. But the positive side is that the stake of development organization in attarcting financial assistance grew from Rs. 3014 Cr in 2017 to Rs. 3467 Cr in 2018.

Development organizations are more focused to bring positive and social change in community by mobilizing resources, developing innovative practices, working deep at grass root level to create sustainable impact. While Industries see CSR as tool to not only create impact on community, also establishing themselves as socially conscious and responsible organization, improving the relations with stakeholders etc. Above data reflects that Industries have opted to go more with joint projects instead relying totally on development or community based organizations.

Development organizations and Industries have their own strength as well as interest areas. Both, if work together may create win-win situation for every stakeholders engrossed in projects.  It is for both sides that they need to look where their strength lies and how they can leverage for each other. Coming from Development sector and now working in CSR space I encounter with lots of differences between Not for Profit organization and Industries. Development organizations have impression that Industries are not spending enough on various thematic areas; however Industries think that there are still lack of quality organization to execute CSR projects understating their specific needs and target impact. I feel that there is gap in knowledge and also intrusion in each other’s space. Both need to understand their requirements and build a strategy which works for everyone. At one side, development organizations need space to try out their ideas to bring notable change in community at other side the business challenge or risk from external stakeholders needs to be mitigated through community interventions. ­

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Not for Profit organizations and Industries have potential to design, develop, implement, assess and create innovative practices which are sustainable and having long lasting impact on community if they understand and accommodate each other outlook, objectives, requirement, expectations etc.

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Tags: CSR in IndiaManish Kumar Singh
India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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