Clinton to talk CSR with India Inc

Clinton to talk CSR with India Inc
The Financial Express, July 17, 2009, Page 1

Sanjay Jog, Mumbai

India Inc’s initiatives in corporate social responsibility (CSR) will dominate the discussions between visiting US secretary of state Hillary Clinton and a 10-member team led by Tata Group chairman Ratan Tata on July 18.

Clinton has shown a desire to understand India Inc’s ongoing and intended CSR projects. She would later spell out the US schemes in this respect. The 10-member team comprises RIL chairman & managing director Mukesh Ambani, Piramal Healthcare director Swati Piramal, Godrej & Boyce CMD Jamshyd Godrej and National Dairy Development Board chairman Amrita Patel. Names of the rest are being finalised.

Sources told FE that “The US consulate called upon Ratan Tata to organise a group of leading industrialists not exceeding 10 for the meeting. Clinton is keen to hold deliberation exclusively on CSR, and not on other issues.”

Curiously, more pressing issues like sale of nuclear reactors, US move to curb H1 B visas, climate change and trade expansion will not be on the agenda.

After her interaction with industry representatives, Clinton will spend about an hour with volunteers and artisans of Self Employed Women’s Association (Sewa), a non-government organisation founded by Ela Bhatt.

Clinton’s meeting comes in the backdrop of greater acceptance of CSR by Indian companies in recent years. Corporate India has spread its CSR activities across 20 states and Union territories, with Maharashtra gaining the most from them. About 36% of the CSR activities are concentrated in the state, followed by about 12% in Gujarat, 10% in Delhi and 9% in Tamil Nadu.

Assocham’s ‘Eco Pulse Study’ on CSR for 2009-10, released in June, says some 300 corporate houses, on an aggregate, have identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, the environment, health as well as rural development.

Of the 300 corporate houses, 74 are from the chemical sector, contributing 12% to the overall CSR initiatives. Among these 74 companies, 28% CSR themes focuses on environment, followed by 18% on education, 6% on community welfare and 12% on healthcare.

As many as 62 companies in the FMCG and consumer durable sector are placed at second position with a CSR initiative contribution of 10.15%. Their focus is mainly on community welfare (29%), environment (21) and education (15.)

Clinton will be on a five-day visit to India, beginning Friday to start a strategic dialogue with New Delhi, which will include issues like climate change and clean energy.