Most CSR Funds Redirected, Ensure Efficient Use: Minister Harsh Malhotra

Praises HEAL Foundation for Its CSR Initiatives and Support to Marginalised Athletes

NEW DELHI (India CSR): Union Minister of State for Corporate Affairs, Harsh Malhotra, voiced concerns over the underutilization of Corporate Social Responsibility (CSR) funds in India during his address at the Healthcare CSR ChangeMakers Summit. The Minister emphasized the importance of ensuring that CSR funds are effectively used for their intended purpose, rather than being redirected to other government funds. Malhotra also commended the HEAL Foundation for its exceptional work in health initiatives and its efforts to support marginalized athletes who have made India proud at international sporting events.

The Growing Concern of CSR Fund Utilization

Corporate Social Responsibility (CSR) is a critical aspect of corporate governance, intended to ensure that businesses contribute to social welfare and community development. However, Union Minister Harsh Malhotra highlighted a growing concern that a significant portion of these funds remains unutilized or redirected to other government initiatives. Addressing the Healthcare CSR ChangeMakers Summit and Awards 2024, Malhotra called for better management and utilization of these resources to create lasting and meaningful societal impact.

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In his remarks, he praised the HEAL Foundation for its innovative health-related CSR initiatives and its efforts to support marginalized athletes, underscoring the importance of CSR in empowering communities and driving change. The event provided a platform to acknowledge these contributions, while also shedding light on the areas where improvements are needed in CSR fund utilization.

CSR Funds: A Missed Opportunity for Societal Impact

Malhotra pointed out that the government mandates companies to allocate 2% of their annual profit to CSR activities. These funds, according to him, are intended for various social causes such as education, health, and arts, but unfortunately, most of these funds remain unutilized.

“Most CSR funds remain unutilized and are redirected to other government funds. Proper utilization of CSR funds could significantly benefit society if used effectively across the 12 categories under CSR, including education, health, and art and literature,” the Minister remarked during the event.

Malhotra’s statement highlights a systemic issue with CSR implementation in India, where the potential for social impact is enormous, but the inefficiencies in fund distribution and utilization diminish the intended benefits. By redirecting CSR funds away from their core purpose, the very communities and causes these funds are supposed to uplift remain underserved.

HEAL Foundation’s Success in CSR Initiatives

While addressing the CSR shortcomings, Minister Malhotra took a moment to praise the HEAL Foundation for its exemplary work in the healthcare sector. The Foundation’s efforts have had a substantial impact on improving the health and well-being of marginalized communities. One of the standout initiatives mentioned by Malhotra was the “Suposhan Abhiyan,” an ambitious campaign aimed at improving child nutrition by distributing iron and calcium-fortified biscuits to underprivileged children. The result was a 1.2% increase in their haemoglobin levels, demonstrating the tangible impact of well-executed CSR initiatives.

The Minister also lauded the Foundation’s work in supporting marginalized athletes, particularly those who have excelled at the international level. One such example was the Foundation’s support for Indian para-athletes Vinai Kumar Kush and Krishna Kumar Samania, who won bronze medals at the International Canoeing and Kayaking Sprint Goodwill Cup in Moscow. The Foundation’s CSR funds were pivotal in providing these athletes with the necessary resources to compete on the global stage.

Celebrating Marginalised Athletes: A Testament to CSR’s Power

The Healthcare CSR ChangeMakers Summit and Awards 2024 also celebrated the achievements of Indian Boccia athletes, who made the nation proud at the World Boccia Challenger in Cairo, Egypt. These athletes, many of whom come from marginalized backgrounds, won a total of six medals, including gold, silver, and bronze. Anjali Devi secured the Gold Medal in the BC-3 individual category, while Sachin Chamaria and Gayathri HM earned Silver in the BC-3 and BC-1 categories, respectively. Govindbhai and Sarita Dwivedi brought home Bronze in the BC-2 and BC-3 categories.

The HEAL Foundation, through its CSR initiatives, gave Rs 25,000 to each of these athletes, a gesture that reflects the importance of CSR in supporting not just societal welfare but also individual achievement. In recognizing these athletes’ efforts, Minister Malhotra emphasized that CSR should empower individuals and communities alike, creating opportunities for those who would otherwise go unnoticed.

HEAL Foundation’s Founder and Chairman, Dr. Swadeep Srivastava, echoed this sentiment, stating, “Honoring these athletes celebrates not only their sporting achievements but their embodiment of resilience and inclusiveness. The CSR, at its core, should empower communities and drive meaningful, lasting change.”

Addressing the Challenges in CSR Utilization

While the HEAL Foundation’s work is a shining example of how CSR can transform lives, Minister Malhotra’s remarks underscored the larger issue of fund mismanagement in the CSR sector. According to him, CSR funds are often either unutilized or misdirected, failing to reach the sectors and communities that need them most.

To address this, Malhotra called for a more structured approach to CSR spending. He urged companies to not only allocate their CSR funds but to also ensure that these funds are used efficiently and with measurable outcomes. Proper monitoring and transparent reporting can help ensure that CSR initiatives contribute to tangible social progress.

(India CSR)