The Company Rules amplified the Act and brought CSR from the back room to the boardroom of Corporations.
What has been the brand’s journey in the CSR space in India? Please elaborate.
As per my understanding – CSR branding is a new norm, where Corporations engaged in CSR activities want the stakeholders to know that the Corporations are engaged in social work beyond business. The Government is also inclined to roll out programs with the tagline promoting the initiative as a Government program and prominently projecting the image of the person leading the initiative. However, from a personalized outlook and for branding purposes, the question needs to be understood both from the lens of short-term gains as well as from the standpoint of long-term social impact. Branding must also be intelligently applied from an ethical perspective, as it could be perceived as an unjust projection, which would draw dissension across geographies.
When we deep dive into the issues of branding, I feel the beneficiaries must identify the supporting point-of-contact for the initiative through display on activity boards and hoardings targeted specifically in areas of intervention. From recent trends, it is observed that Corporations use forums to showcase the real-world applications of their proposed projections across locations and through different platforms of social spaces. Corporations should be more subtle in such presentations. I would recommend that the beneficiaries themselves should be the brand ambassadors and share important outcomes of the support rendered to them. It was because of the investments into the specific projects that the beneficiaries see the change in their lives as well as the lives of the local community.
What have been the key focus areas of interventions and CSR initiatives undertaken in the last financial year?
At Jindal Stainless Group of Companies, the focus of all CSR projects is the concept of sustainability. Such a vision stems from the fact that sustainable businesses need sustainable structures. Every year we have added something new to our journey. The need of society and the focus on building the nation is the main motto of Jindal Stainless Steel.
The key focus areas during the last Financial year have been as are: (a) Education and Skill training:
(b) Women Empowerment and Entrepreneurship development, (c) Integrated healthcare – especially during the time of the pandemic, (d) Environment protection – especially in the areas around carbon mitigation strategy and tree plantation and waste disposal, (e) Sustainable agriculture – this has been our flagship program and the highlights of the project have been elaborated in the subsequent paragraphs, (f) Infrastructure and community development and (g) Business and human rights.
I would like to mention that the CSR initiative by the Jindal Stainless Group is carried out by the Jindal Stainless Foundation and before initiating a project a detailed assessment is carried out through a process of participatory planning. Some of the highlights of our intervention are appended in the subsequent paragraphs.
Agriculture Extension Project – Krishi Unnati
The Agriculture extension project, Krishi Unnati, is one of our flagship CSR projects, with the primary intent of mitigating the problems faced by farmers especially during the post-demonetization period and the current pandemic phase. The project design, which essentially focuses on various interventions from soil testing to imparting training to farmers on new agriculture practices to price actualization and linking farmers directly with buyers, has encouraged a lot of interest amongst various stakeholders.
The efforts have been aimed at alleviating the logistical challenges being faced by the farmers. Additionally, prompt payment systems enabled with high-end IT interventions have been our prime focus. All this has been championed by our implementing partner “Gram Unnati Foundation’. It is indeed an encouraging sign to note that NITI Aayog has adopted many of our pioneering practices. Furthermore, letters have been issued to 12 Aspirational districts to adopt our project designs and further encourage farmers to change their archaic agricultural practices.
One of the major challenges encountered during the post-demonetization phase was the lack of liquid cash for the transportation of the harvested crops. However, since the backward linkage enabled by the digitalization of payments was already in place, the farmers who had joined the project did not face any difficulties in money transfer. Another major bottleneck faced by the farmers was witnessed at the time of crop harvest. Since there was a lack of labor available to cut the standing crop; the issue had to be addressed in a time-sensitive manner.
Further hindrances that we alleviated included logistical tracking, marketing support, lack of availability of pesticides and fungicides as well as the lack of seeds available for planting the next kharif crop. We understood that we needed to liaise with all the various stakeholders, to align their interests with that of the farmer. Only then, could we hope to address the systematic challenges and help the farmer at the grassroots level. We were sensitive to the plantation season, and given the limited time window that was available for planting the next crop, we worked around the clock to resolve all the complex challenges. While some of these challenges have since been addressed, solutions to other issues are being resolved as we speak, to ensure that the farmers do not suffer due to these challenges in the future.
Business and Human Rights
While the initiatives, which can be undertaken under the CSR Act do not mention human rights activities, yet if we break down the components linked to various defined activities, business and human rights become central to all engagements. Whether related to education, health, women empowerment, environment, or skill building, this becomes a ubiquitous endeavor, having a direct impact on human rights. The UN Guiding Principles (UNGP) have clearly outlined that businesses have to work towards the second pillar of the UNGP i.e. ‘Respect’. This by itself is an all-encompassing principle and facilitates business operations by respecting the workforce, the communities, and the environment in all aspects. This will give businesses the much-needed ‘License to Operate’ and create a healthy business ecosystem. Hence, corporate houses need to build on this aspect and understand how CSR can contribute to building better relations. As the first and third pillars ‘Protect’ and ‘Remedy’ respectively, fall under the ambit of the State, this can only be achieved through the important second pillar of ‘Respect’.
Women Empowerment and Entrepreneurship Development
The projects undertaken include creating Self-Help Groups (SHGs) and providing numerous activities around capacity building. Multipurpose training has been organized for the women in the rural areas. These range from the usual culinary workshops for producing badi, papad, achaar, jam, and chutney to more vocational training aimed to empower the women to start their enterprises like boutiques and salons. They have also been trained in garment designing, fashion technology, as well as finance management. Additionally, to empower the women in the urban areas of Haryana and Odisha, JSL in partnership with Xynteo, a Norwegian organization. Associated with the UNDP together we have empowered women to work in the stainless steel sector by imparting training to women in cutting, welding, quality assurance as well as the marketing of stainless steel products.
Some of the outcomes of our initiatives have been women setting up their enterprises. Many of them have even gone a step further in collaborating with other SHGs engaged in making intermediate products required by their enterprise through a mutual agreement. This has helped in expanding the manufacturing scope of the business, while also marketing finished products on a profit-sharing model. Subsequently, this has also led to skills improvement of the smaller partners and ensured high-quality control. Some of the production unit setups are actively producing safety jackets, home linen products, etc. Several of the SHGs have collectively collaborated to form a single company, which has been registered under DIC, while another production unit has also been registered under the brand name ‘Asmita’.
Aligning CSR Projects to UN Sustainable Development Goals (SDGs)
JSL has been factoring in various areas of SDGs in all its programmatic engagements. Under its new initiative, JSL has taken a proactive approach to aligning all its projects to the UN SDGs through a technology-based platform. This is a comprehensive and robust system with a focus on the requisite monitoring processes. With this defined pathway, JSL has outlined its commitment to a sustainable future. Towards this, it is imperative to state that various SDGs have specific reporting and documentation protocols. For example, SDGs aligned to social and environmental projects need to focus on specific impact using real-time data analytics, generate data stories and create brand engagement. Subsequently, project-level monitoring needs to be automated through an evidence-based approach. As per our experience, we need to adopt a two-pronged SDG mapping exercise. This is the most efficient method to achieve the target indicator level as per the UNDP guidelines.
JSL intervention could be included under SDGs, 1, 2, 3, 4, 6, 11 and 17. JSL could also explore avenues for targeting other SDGs, where the process of M&E is underway. Poverty Alleviation is addressed through initiatives for providing food for underprivileged and at-risk communities. The area of specific focus is the migrant workers who were most affected during the Covid crisis. This has been mapped under the SDG indicator 1.5.1. Similarly, SDG 2 has been addressed through our farmer intervention projects in partnership with Gram Unnati Foundation (GUF) and Claro Energy. Both activities have been mapped under the SDG indicators 2.3.1 and 2.3.2.
SDG 3, which deals with integrated healthcare, has been addressed through partners like Roko Cancer. Various other projects specifically focused on health interventions have also been undertaken through the SDG indicator 3.4.1. The Education indicators 4.1 and 4.5.1 are addressed by providing ITES quality education to the differently abled. Individuals with impaired hearing are being supported through our partner NOIDA Deaf Society. The UN SDG 6 of providing clean drinking water is being addressed with our partners Piramal Foundation and Swajal. Directly leading to SDG 2 for healthcare, we are also addressing the menstrual hygiene project with Sachi Saheli, which falls under the ambit of the WASH project.The Environmental Impact and sustainable cities linked to SDG 11 have been addressed through our partners at Prabhav Foundation. Through our continuous efforts, we have positively supported communities. This was recorded under the indicators 11.7.1 and 11.2.3. With our partners, we have developed parks with support from the local self-governments. Going forward, we would expand on these initiatives and take our projects to other locations in the State of Haryana. It is well acknowledged that the partnerships listed above adequately lend toward SDG 17.
Carbon Mitigation Strategies
In addition to undertaking sustainable CSR projects and ‘Tree plantation’ drives, water mitigation strategies were also a key area of focus. This included water harvesting as well as engaging with farmers to adopt climate resilient agriculture practices and support the sustainable park initiatives at the grassroots level. Furthermore, JSL has also been engaged in reducing its carbon footprints. This has been a dedicated investment as we worked on climate adaptive technologies. This has required comprehensive investments in high technology for manufacturing processes. As these have been cost-intensive practices, there is a support required from various agencies, including government bodies. Though developing countries are working towards the creation of funding mechanisms to support such initiatives, the support for our industry has been found lacking. More sustained efforts need to be made toward supporting corporations in this regard.
Hence, it is imperative to address all projects under the Sustainable Development Goals, and accurately map the outcomes through the prism of the UN’s 171 indicators. Only through a data-centric approach, can we select the correct pathway for growth and development. While I have addressed only some of the areas being undertaken by JSL Group, I am certain that the combined efforts of all corporations will present a clearer picture of where we are and how we need to move forward. By leveraging technology to empower our data-centric initiatives, we are confident in our commitment to achieving the national SDGs agenda each year.
The company has taken various initiatives under Energy Efficient Projects and process optimization and is certified with ISO 50001:2018 standards which indicate JSL’s commitment to Energy Efficiency.
What are the plans for FY23? What will be the focus of the JSL Foundation for the current financial year?
It is important to consolidate projects initiated in recent years, while also adding value to the existing projects and programs. Having said that, I would like to mention that projects we initiated in 2020 and 2021 to combat Covid, require a pivot in our intervention. While initially, we were focusing on manufacturing masks, sanitizers and health support systems, now our efforts will be expanded in scope to also include the distribution of LNOs. Furthermore, more sustainable initiatives are also being undertaken to improve working environments and push for policy interventions.
Additionally, we are making committed efforts to engage in ‘Waste Management, while also taking more proactive steps to align with the ESG framework. The aim of our initiatives has been focused on making a sustained contribution to the climate change agenda. We are dedicated to ensuring that there is a positive impact on communities in climate-sensitive geographies. As we scale up our initiatives, we will need support from various governments. Hence, our efforts have been focused on further developing partnerships with both the Central Government as well as the various State Governments. This will further enhance the PPP model as we look to support the people, who are always at the center of all our initiatives. Toward this end, our projects to support waste pickers in Hisar have picked up significantly. With collaborations from local governments, we will be looking to scale up the scope of the project. Additionally, another project based on a similar operational model will soon be started in Odisha during the current fiscal year.
Based on the preliminary survey conducted on truckers in Jajpur, we identified the need for eye screening and optical equipment. Hence, we are now dispensing spectacles to individuals diagnosed with vision problems. It is a dedicated project, which will help a large number of truckers. Being on the road for most of the week, the truckers who had little or no support available to them before will now be given the attention they need.
Focusing on livelihood generation, we understood that in this sphere a dynamic approach was needed. Therefore, we worked on adding new initiatives to either upgrade existing ones or create new ones altogether. One such initiative is our project around “Neem Leaves”, which is being developed through the SHG platform in collaboration with our partners. This project will help the members of the SHG to make optimum use of the neem leaves and will also supplement their incomes considerably. It will also encourage women, and farmers, to collaborate and grow specific neem trees.
Please elaborate upon JSL Foundation’s long-term vision, and how it plans to drive sustainability through its CSR programs.
JSL Foundation’s long-term vision is an extension of the vision statement of Jindal Stainless, which categorically highlights its commitment toward ‘Social Inclusivity’. However, it is important to realize this vision statement in a manner that is consistent with both the CSR rules as well as the guidelines enacted by the Government of India through the Companies Act 2013. Furthermore, it is equally important to address various issues mentioned in the UN SDG framework. Towards this, we must align our initiatives to specific SDGs, while also recording our progress as mentioned under the 171 indicators.
Going forward, our focus will be on climate change and poverty alleviation, while also including other parameters covered under the ambit of SDGs of education, health, and providing clean drinking water. I am confident that with such interventions we will be able to address sustainability issues effectively and also facilitate the achievement of the overall National Agenda. Our vision is always based on upholding the rights and respect of the individual. Hence, the importance of Human Rights is enshrined in all our initiatives. We will continue to strengthen the pillar of ‘Respect’ in all our endeavors.
With this as our guiding principle, we have developed various partnerships to support us on our journey towards sustainable planning and execution. Some of the major partnerships that we have fostered include the United Nations Global Compact, as well as the Norwegian organization, Xynteo, and Carbon Development Mechanism partners with CDP. We have also collaborated with the French organization Accessing Low Carbon Transition (ACT), which has included us in the Technical Working Group in association with the United Nations. Hence, our steadfast effort would be to deep dive into this space and facilitate the overall Sustainability Index. Additionally, we have developed an alliance with the Global Business Initiative on Business and Human Rights, as well as championing the India CEO Forum on Business and Human Rights.
How has the overall CSR ecosystem evolved in the last few years, especially post COVID? Your views?
CSR has evolved over the past decade. This strategic expansion was first led by government entities, wherein all PSUs were required to spend up to 2% of their profits on social agendas. This eventually led to the introduction of the National Voluntary Guidelines, which outlined specific rules on CSR. This was augmented by the introduction of the UN framework of PRME. Thus, PRME came to become a tool for developing policy frameworks for the citizen groups’ consultative process. It also encouraged the adoption of digital technology extensively in its guidelines.
Finally, in the year 2013, the Company Act was enacted, which categorically listed 13 activities that could be carried out under CSR. This list of activities was further increased over time, and the strictures enunciated in the Act were re-visited and appropriate amendments introduced as and when required. The Company Rules amplified the Act and brought CSR from the back room to the boardroom of Corporations. With a conscientious focus on all sustainable development goals, corporations created dedicated CSR committees. With adequate gender representation becoming mandatory under the specific guidelines, CSR initiatives were brought into immediate implementation.
The reporting frameworks and implementation standards have since been periodically updated over the years. Initially, the GRI reporting standard was the accepted norm. Under this standard, there was a greater emphasis given to ‘integrated reporting as well as other reporting methodologies and guidelines issued by SEBI. As reporting standards improved for attracting international investors, marketing references were incorporated from the OECD guidelines and the DOW Jones Index.
Due to the pandemic, corporations made a paradigm shift in the way they engaged both with their employees as well as with communities as a whole. During the pandemic, there was a collective socio-religious consciousness to reach across party lines and support the nation in its time of need. This gave rise to an urgent and immediate need for corporations to review their policies with all stakeholders. It was a case of the three tenets of sustainable living – ‘STOP – REVIVE – SURVIVE’. Hence, it became imperative to pause, reflect and revive in the aftermath of the pandemic. It became imperative to ensure that survival takes precedence over all else. Survival of individuals and the survival of the nation.
About the Author
Rusen Kumar, Editor, India CSR.
