MEDS-051

Fundamentals of CSR

Block

4
KEY THEMATIC AREAS IN CSR - II
UNIT 1
Microfinance 81
UNIT 2
Environment Protection and Biodiversity Conservation 100
UNIT 3
Education and Skill Development 112
UNIT 4
Awareness Creation 126
Key Thematic Areas in
CSR-II BLOCK 4 KEY THEMATIC AREAS IN CSR-II
Block 4 Key Thematic Areas in CSR - II consists of four units.
Unit 1: Microfinance discusses the status of microfinance in the world in general
and in India, in particular. It also discusses the role of microfinance in impacting
the lives of the poor and the excluded. It also discusses how the non-profit and
for-profit organizations have taken a lead in this field. The role of CSR and
government action in partnership has also been discussed.
Unit 2: Environment Protection and Biodiversity Conservation discusses the
role of CSR in environment protection. It also discusses the steps taken by private
companies and government organizations in this field. The unit covers issues
faced in implementing CSR in the domain of environment.
Unit 3: Education and Skill Development discusses the status of literacy and
skills in India. It also discusses the impact of lack of literacy or skills on human
lives. It also discusses various government programmes in promoting education
and skill development. The role of CSR in education and skill development has
also been discussed.
Unit 4: Awareness Creation discusses the meaning of awareness creation. It
also discusses the challenges in awareness creation in India. Approaches and
steps towards awareness creation have also been discussed. Finally, it gives case
studies on some of the successful awareness creation programmes implemented
as a part of CSR.

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 Microfinance
UNIT 1 MICROFINANCE
Structure
1.1 Introduction
1.2 The Microfinance Landscape
1.3 Microfinance: Impacting the Lives of the Poor
1.4 Reaching the Unreached: Including the Excluded
1.5 The Institutional Initiatives: NGO and For-Profit
1.6 CSR and Microfinance
1.7 Governments in Action and Partnerships
1.8 Let Us Sum Up
1.9 Keywords
1.10 Abbreviations
1.11 Bibliography and Selected Readings
1.12 Check Your Progress – Possible Answers

1.1 INTRODUCTION
“Microfinance recognizes that poor people are remarkable reservoirs of
energy and knowledge.”
– Kofi Annan, Ex-Secretary General, United Nations
Microfinance is a category of financial services targeting individuals and small
businesses that lack access to conventional banking and related services.
Microfinance includes microcredit - the provision of small loans to poor clients,
savings and checking accounts, microinsurance and payment systems.
Microfinance services are designed to reach excluded customers, usually poorer
population segments, possibly socially marginalized, or geographically more
isolated, and to help them become self sufficient.

Microfinance initially had a limited definition - the provision of microloans to

poor entrepreneurs and small businesses lacking access to credit. The two main
mechanisms for the delivery of financial services to such clients were (1)
relationship-based banking for individual entrepreneurs and small businesses;
and (2) group-based models, where several entrepreneurs come together to apply
for loans and other services as a group. Over time, microfinance has emerged as
a larger movement whose objective is “a world in which everyone, especially
the poor and socially marginalized people and households have access to a wide
range of affordable, high quality financial products and services, including not
just credit but also savings, insurance, payment services and fund transfers.”

Proponents of microfinance often claim that such access will help poor people
out of poverty. For many, microfinance is a way to promote economic
development, employment and growth through the support of micro-entrepreneurs
and small businesses; for others it is a way for the poor to manage their finances
more effectively and take advantage of economic opportunities while managing
the risks. Critics often point to some of the ills of micro-credit that can create
indebtedness. Due to diverse contexts in which microfinance operates, and the 81
Key Thematic Areas in broad range of microfinance services, it is neither possible nor wise to have a
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generalized view of impacts microfinance may create.

To understand it in a better way, the unit will also explain the initiatives undertaken
by various companies/other agencies that have facilitated the transformational
impact of access to credit and thus helped the journey out of poverty of the
impoverished populace and households.

After studying this unit, you should be able to:

Explain the important role of microfinance in the critical agenda of financial
inclusion.
Explain why access to credit is critical to empowerment among the poor
and excluded communities especially women.
Enumerate the role companies/institutions can play in the transformational
role of microfinance among the poor.
Understand how access to credit is important to livelihoods of the poor.

1.2 THE MICROFINANCE LANDSCAPE

The World Bank estimates that more than 500 million people have directly or
indirectly benefited from microfinance-related operations. The International
Finance Corporation (IFC), part of the larger World Bank Group, estimates that,
as of 2014, more than 130 million people have directly benefited from
microfinance-related operations. However, these operations are only available
to approximately 20% of the three billion people who qualify as among the world’s
poor. In addition to providing microfinancing options, the IFC has helped
establish or improve credit reporting bureaus in 30 developing nations. It has
also advocated for adding relevant laws in 33 countries that govern financial
activities.

Table 1: Top 10 countries by number of borrowers

Rank Country Borrower FY 2017 & Loan portfolio FY 2017

growth since 2016 (dollar) & growth since
2016
(in Millions) (in Billions)
1 India 50.9 (+5.8%) 17.1 (+26.3%)
2 Bangladesh 25.6 (+3.5%) 7.8 (+17.0%)
3 Vietnam 7.4 (+2.8%) 7.9 (+18.9%)
4 Mexico 6.8 (-3.8%) 4.4 (+5.5%)
5 Philippines 5.8 (+16.3%) 1.3 (+17.5%)
6 Pakistan 5.7 (+25.9%) 1.8 (+39.6%)
7 Peru 5.1 (+9.5%) 12.6 (+17.0%)
8 Brazil 3.5 (+1.1%) 2.6 (+2.7%)
9 Colombia 2.8 (-0.7%) 6.3 (+5.6%)
10 Cambodia 2.4 (-4.7%) 8.1 (+21.6%)
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The quest towards greater financial inclusion gives the Indian financial sector an Microfinance
opening to not only help the society around in a meaningful way, but to also
expand their businesses responsibly. The microfinance industry in India has a
total loan portfolio of Rs. 178,547 crores as on March 31, 2019 which represents
a growth of 40% over March 31, 2018. NBFC-MFIs hold the largest share of
portfolio in micro-credit with a total loan outstanding of Rs. 68,156 crores which
accounts for 38% of total industry portfolio. Banks are the second largest provider
of micro-credit, with a loan amount outstanding of Rs. 59,999 crores, which
includes both direct and indirect lending through BC partnerships, accounting
for 34% of total micro-credit universe. SFBs have a total loan amount outstanding
of Rs.29,990 crore, with total share of 17%. NBFCs account for 10% and Not-
for-Profit MFIs account for 1% of the industry portfolio.

Top 10 Indian states account for 83% of the microfinance industry’s gross loan
portfolio. West Bengal and Tamil Nadu contribute 34.7% of the top 10 states.
Amongst the top states, West Bengal, Tami Nadu, Bihar and Karnataka has
portfolio of more than Rs. 15,000 crore each. The microfinance industry has a
presence in 619 districts in India.

1.3 MICROFINANCE: IMPACTING THE LIVES OF

THE POOR
In the last few decades, we have seen an evolution in the microfinance landscape.
What once started off as microcredit, a simple service offering microloans to the
world’s unbanked populations, has evolved into complex microfinance markets
operated by thousands of Microfinance Institutions (MFIs) and Microfinance
Investment Vehicles (MIVs). Their products and service offerings aim to provide
low income people with tools to meet credit and saving needs as well as manage
risk and efficiently execute transactions. This evolution is often called the financial
inclusion agenda, or simply financial inclusion. Microfinance can be divided
into three broad categories: microcredit, microsavings and microinsurance.

The promise of microcredit is to provide small loans to micro entrepreneurs to

invest in their businesses, reinvest the returns and allow them to grow out of
poverty. Several recent studies indicate that while microcredit can be a useful
financial tool for some entrepreneurs, it has not typically generated dramatic
increases in income. Some of the key challenges for microcredit, therefore, include
the questions of how access to microcredit can better contribute to poverty
reduction and what credit product design choices and screening mechanisms
could increase their effectiveness, as well as their financial viability.

Microsavings products aim to provide accessible and safe avenues to save, either
for future investments or as a precaution against economic shocks. Microsavings
products can include simple no frills bank accounts, as well as commitment based
products that encourage deposits or limit withdrawal in order to help savers reach
their savings goals. Recent research shows promising effects of access to savings
products both on the ability to smoothen consumption by self-protecting against
economic shocks and to invest more in their microenterprises. A big challenge is
to make such products cost effective for MFIs.

Microinsurance products are designed to mitigate different types of risks, such

as agricultural or health risks. In emerging markets, the provision of such insurance
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Key Thematic Areas in is faced with two challenges of asymmetric information. First, as in established
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markets, the challenge for any insurance provider is to monitor that claims are
justified, and to avoid selection of particularly risky customers into their customer
base. Second, in new markets, there is an additional challenge to establish trust
among potential customers that their insurance will indeed pay out in the event
of a future negative shock. Current research and innovative microinsurance models
explore how to overcome these challenges.

Over the last few years, with rapid changes in technology, microfinance has
been evolving, and MFIs and MIVs are expanding their services in innovative
ways. A case in point is the delivery of microfinance products using mobile
phones. MFIs are leveraging this dramatic penetration of mobile technology and
mobile payments to improve delivery of microfinance services and products to
their clients.

Leading MFIs, as well as some promising start-ups, are driving evolution in the
microfinance business model. The microfinance product and services design has
been benefitting from greater business awareness and the application of rigorous
impact measurement methodologies. For instance, the offering of individual
microcredit products is increasingly replacing the traditional group-lending model.
Bundle product packages and commitment devices are tools contributing to
tackling the transaction costs and behavioural obstacles that otherwise make
microsaving unsustainable. MFIs are designing tailored microinsurance products
(e.g., index insurance) and establishing partnerships with retailers, utilities and
mobile operators. This reduces the cost of providing microinsurance and increases
customer loyalty.

The new microfinance business models are more and more technology enabled.
The now generally accepted principle that credit alone cannot eradicate financial
exclusion has led MFIs to rely on integrated product and service propositions.
The wide mobile phone reach in developing countries has allowed MFIs and
their partners (mobile operators, retail stores, credit card companies, etc.) to
develop integrated mobile banking platforms for the delivery of a broad range of
products and services. However, regulators, as well as the industry players that
operate in such a new environment, should address a few open issues. Examples
are: e-money issuance by non-banking players (e.g., mobile operators), risk-
based approaches to know-your-customer controls, feasible requirements for
nonbank retail agents and adequate customer protection.

The benefits of microfinance extend beyond the direct effects of giving people a
source for capital. Entrepreneurs who create successful businesses, in turn, create
jobs, trade, and overall economic improvement within a community. Empowering
women in particular, as many microfinance organizations do, may lead to more
stability and prosperity for families.

1.4 REACHING THE UNREACHED: INCLUDING

THE EXCLUDED
The increased focus of central banks on financial inclusion has prompted banks
to explore innovative means of reaching out to the financially excluded section.
In that process, various banks propose to adopt several models to reach the
unreached. One of the most successful models is the partnership approach by
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collaborating with credible and efficient financial intermediaries (interchangeably Microfinance
referred to as BC/Partner) to deliver the much needed micro-credit services to
the said segment. Timely delivery of financial services which include savings,
credit, insurance, remittances, etc., at an affordable cost to the vast sections of
disadvantaged and low income groups is the goal of Financial Inclusion agenda.
Basic financial services includes
Savings
Credit
Insurance
Remittance facilities, etc.
Who are excluded?
Marginal farmers
Landless farmers
Oral lessees
Self employed
Urban slum dwellers
Migrants
Minorities
Socially excluded groups
Senior citizens
Women
Physically challenged /Specially abled persons
Over 430 million people, or 37% (as per the Tendulkar Report) of the population
in India, live below the poverty line (BPL). The vast majority of Indian households
with an annual income less than INR 150,000 (USD 3,260), a total of 700 million
people, though not necessarily of BPL status, still lack access to essential financial
services like credit, insurance, and savings facilities, and therefore constitute the
potential target client base for microfinance services. Despite many efforts, banks
have not been able to serve this segment because of peculiar characteristics of
this segment calling for newer business models.

Based on the recommendations of Mr. H. R. Khan Committee (Deputy Governor

of the Reserve Bank of India) and also drawing from the advancement in
technology (resulting in significant reduction in transaction costs) with proven
delivery models, the RBI has come up with circular (January 2006) on appointing
Business Correspondents/Business Facilitators (BC/BF) on carrying out the basic
banking services on behalf of the bank. The RBI also made lending to such
excluded sections mandatory under Priority Sector Lending (PSL) obligations
of the banks. The approach of collaborating with the NBFC (partner) / BC for
delivering the microcredit services is termed as partnership model.

While the partnership model is one way to reach out to the unreached, it is
important for the NBFCs / MFIs / NGOs to continue to innovate and find better
solutions /products /methods to reach out to the last excluded person from the
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Key Thematic Areas in banking services to meet his/her basic necessities and utilise their potentialities
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to the best.

1.4.1 Microfinance and Women’s Empowerment

Microfinance institutions generally agree that women should be the primary focus
of service delivery. Evidence shows that they are less likely to default on their
loans than men. Because operating margins become tighter the smaller the loans
delivered, many MFIs consider the risk of lending to men to be too high.

Worldwide, microfinance loans serve almost 20 million people living in poverty.

74% of these clients are women. At the Grameen Bank, the world’s largest
microfinance institution, more than 90% of loan clients are women. It is true that
women tend to make their payments more reliably than men. But more
importantly, a loan in the hands of a woman has a better chance to change not
just her life, but to improve her children’s opportunities and her society’s
prosperity.

For one thing, women are ambitious, for themselves and for their families. As
they lift themselves out of poverty, they carry their families to a better life. Once
they get a leg up, women are more likely to spend their earnings on medical care
and education for their children. Women who provide for themselves and their
families are empowered. They have more choices and influence in bargaining.
They have a greater sense of self-worth and increased confidence in their abilities.
Women who succeed economically also believe in their right to make decisions
about their own lives.

Furthermore, the improved condition of a few women benefits the larger society.
Studies show that low status for women obstructs a country’s economic
development. Microfinance offers women the chance to enter the public sphere
as businesswomen, expanding their roles beyond housewife to breadwinner. As
women participate in the economy, they also become more involved socially and
politically. Within their communities they may advocate for changes that will
better their own lives and those of other girls and women. Even the power of
example is important. More families will pay for their girls to attend school if
they see women putting their education to use.

Of course, the social status of women in various cultures can hinder their efforts
to start a business. Many societies and families expect any business undertakings
to take a backseat to domestic duties. Some cultural traditions or religious practices
frown on women working outside the home and earning an income. In some
cases, women have resorted to participating in microfinance secretly. In others,
though, there has been an effort to educate women about their rights and in
involving men so that the microfinance process seems less alien.

Perhaps the biggest obstacle women face is a lack of education. Illiteracy and
deficient math and accounting skills are common among women living in poverty.
Many microfinance institutions provide business training, information access,
technology development, as well as policy and advocacy.

What is truly exciting about women and microfinance is the positive loop. As
women prosper, they invest in their sons’ and daughters’ education and health,
and elevate the status of women in their communities. When it comes to
86 microfinance, women seem to have a magic touch.
On the contrary, microfinance’s emphasis on female oriented lending is also the Microfinance
subject of controversy in some cases, as it is claimed that microfinance improves
the status of women through an alleviation of poverty. It is argued that by providing
women with initial capital, they will be able to support themselves independent
of men, in a manner which would encourage sustainable growth of enterprise
and eventual self sufficiency. This claim has yet to be proven in any substantial
form. Moreover, the attraction of women as a potential investment base is precisely
because they are constrained by socio-cultural norms regarding such concepts of
obedience, familial duty, household maintenance and passivity. The result of these
norms is that while microlending may enable women to improve their daily
subsistence to a steadier pace, they will not be able to engage in market oriented
business practice beyond a limited scope of low skilled, low earning, informal
work. Part of this is a lack of permissivity in the society; part a reflection of the
added burdens of household maintenance that women shoulder alone as a result
of microfinancial empowerment; and in part, a lack of training and education
surrounding gendered concepts of economics. In particular, the shift in norms
such that women continue to be responsible for all the domestic private sphere
labour as well as undertaking public economic support for their families,
independent of male aid increases rather than decreases burdens on already limited
persons.

This is also due to a general trend for interpersonal microfinance relations to be

conducted on grounds of similarity and internal/external recognition - lenders
want to see something familiar, something supportable in potential borrowers,
so an emphasis on family, goals of education and health, and a commitment to
community all achieve positive results from prospective financiers. Unfortunately,
these labels disproportionately align with women rather than men, particularly
in the developing world. The result is that microfinance continues to rely on
restrictive gender norms rather than seek to subvert them through economic
redress in terms of foundational changes - training, business management and
financial education are all elements which might be included in parameters of
female-aimed loans and until they are the fundamental reality of women as a
disadvantaged section of societies in developing states will go untested.

The benefits of microfinance extend beyond the direct effects of giving people a
source of capital. Entrepreneurs who create successful businesses, in turn, create
jobs, improve trade, and contribute to overall economic improvement within a
community. Empowering women in particular, as many
microfinance organizations do, may lead to more stability and prosperity for
families.

Activity 1

Visit any nearest microfinance institution and write about the various financial
services rendered by the institution and also list out the various excluded
categories to which their services cater to.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
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Key Thematic Areas in Check Your Progress - 1
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Notes: a) Write your answers in about 50-100 words.
b) Check your answer with possible answers given at the end of the unit.
1) What are the different categories of microfinance?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

2) Why is the combination of microfinance and women so potent?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

1.5 THE INSTITUTIONAL INITIATIVES: NGO

AND FOR–PROFIT
Microfinance is the provision of financial services to low income clients, including
consumers and the self employed who traditionally lack access to banking and
related services (Christen et al., 2004). Microfinance institutions also known as
MFIs, offer financial services to underserved, impoverished communities and
these services include savings accounts, insurance, health care and personal
development (Brennan, 2008). In fact, the scope of work of the MFIs goes well
beyond providing financial services to the lowest strata of society. MFIs try to
build a unique tripod of financial inclusion, livelihood sustainability through
micro enterprises and social development to empower the marginalized sections
of communities across the globe. Broadly speaking, MFIs are involved in capacity
building, financial literacy, livelihood promotion, preventive healthcare, education
and training, water and sanitation, etc., besides their core financial functions
such as microcredits to the poor.

It is heartening to note that MFIs are active in 124 districts out of 154 districts
classified by the Government of India as backward (Srinivasan, 2014).
Emphasising the outreach in backward areas and districts, Srinivasan (2014)
observes: ‘Some poor and underserved states such as Bihar, Jharkhand and
Chhatisgarh have MFIs operating in all the backward districts. In Madhya Pradesh,
MFIs operate in 20 out of 23 backward districts. The focus of MFIs has now
clearly shifted to states such as Bihar, Madhya Pradesh, Rajasthan and Uttar
Pradesh. The southern states of Tamil Nadu, Karnataka and Kerala show high
penetration of MFIs in backward districts as well, commensurate with their overall
high penetration across these states’. However, it is misnomer that MFIs work
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only in backward states and districts. Currently MFIs operate in 28 states, 5 Microfinance
Union Territories and 568 districts in India (Sa-Dhan, 2015).

Indian MFIs have not only expanded their geographical outreach but also
consolidated their footprints in social development arena in a big way. MFIs
have made significant contributions in adding value to the lives of the poor by
time-tested interventions to enhance overall quality of their life and empower
them meaningfully. Some of the thrust areas vis-à-vis social developments in
which the MFIs in India are active include capacity building, financial literacy,
livelihood promotion, preventive healthcare, education and training, water and
sanitation, etc.

Financial literacy is one of the most important intervention programmes carried

out by MFIs in India. It is essential for realising the larger goal of financial
inclusion. Most of the poor have little knowledge about formal financial
transactions as they depend primarily on traditional money lenders for all their
financial needs and gradually slip into the vicious cycle of loan trap due to
exorbitant rate of interest and corrupt practices. Knowledge of sources of finance,
financial transactions, liabilities and risks involved in taking loans, rationale of
repayment, savings and thrift, etc., empowers the poor borrowers and helps them
free themselves from the clutches of traditional money lenders who have exploited
them for ages.

A good number of MFIs in India are involved in education. These institutions

provide basic education, vocational education, adult and continuing education.
Besides, MFIs also organize awareness campaigns on various socio-economic
issues from time to time. The Bharat Microfinance Report 2015 provides an
indicative list of educational services provided by the MFIs for the benefit of
communities they serve. For example, Belghoria Jankalyan Samity provides pre-
schooling programs while Barasat Unnayan Prostuti runs schools for children of
migrant workers in brick kilns. Mass Care International provides basic education
to out-of-school girls. Jeevankiran distributes free study materials, umbrellas,
uniforms, etc. Centre for Promoting Sustainable Livelihood provides educational
loans from nursery to engineering.

Besides, several MFIs are involved in educating their beneficiary communities

through various awareness campaigns. The various state microfinance
associations like UPMA has been doing commendable working in awareness
campaigns. The national microfinance industry bodies Sadhan and MFIN have
also been involved in raising awareness among clients and administration on
various issues related to financial literacy and client protection. Grameen Koota
Financial Services Pvt. Ltd. provides information on health, government schemes
and nutrition/food during its weekly meetings, while Suryoday Microfinance
Pvt. Ltd. use its weekly meetings to sensitize the members on social well being.
Many institutions like Prayas Microcredit are involved in adult literacy. The
Bharat Microfinance Report 2015 has captured just tip of an important aspect of
social development initiative by the MFIs. There are numerous other MFIs which
are running educational programs for their beneficiary communities and concerted
efforts are imperative so as to prepare a comprehensive report on all such
interventions.

Several MFIs are involved in training their clients. For example, Grameen
Development & Finance Pvt. Ltd. provides training on rice intensification and
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Key Thematic Areas in piggery while Kotalipara Development Society provides training in goat and
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duck rearing (Sa-Dhan, 2015). Aparajita Mahila Sakh Sahkari Sanstha Maryadit
runs training programmes on computers, accounting, banking, etc. (Sa-Dhan,
2015). MFIs can take up training more seriously as part of their commitments to
promote livelihood. It is possible that the MFIs can collaborate with schools,
industrial training institutes, polytechnic institutes, colleges and universities in
their neighbourhood to offer some vocational training best suited to their clients.
Migrant workers joining the hapless crowd of casual workers lose out on wages
simply due to lack of skills and concomitant certifications.

MFIs can play an active role in promoting skill training, assessment and
certification in sync with the vocational education framework being patronized
by National Skill Development Corporations (NSDC). Further, the MFIs can
leverage a number of schemes launched by the government of India such as
Pradhan Mantri Kaushal Vikas Yojana. The training initiatives of the MFIs can
become self sustaining if these are integrated with relevant schemes of the
government. Some of the large MFIs can actually start their subsidiary units /
affiliates to focus on training just as a number of corporate houses are already
doing – Education Lanes of Tech Mahindra for example. Gradually training can
become a steady source of revenue for the MFIs while fulfilling social purpose.

MFIs are providing preventive healthcare to their clients in a big way. According
to the Bharat Microfinance Report 2015, Annapurna Mahila Cooperative Credit
Society Ltd. has pioneered preventive healthcare by providing 24×7 Doctors on
Call. Centre for Promotion of Sustainable Livelihood offers 24×7 loan up to Rs.
5000 for treatment. Jeevankiran meets medical expenses of the poor. Balajee
Sewa Sansthan provides health insurance. Unnati Trade and FinconPvt. Ltd. and
Saral Women Welfare Society promote the use of generic medicine among its
clients offers free health check-ups. Health camps are organized by a good number
of MFIs such as Annapurna Micro Finance Pvt. Ltd., Equitas Microfinance Pvt.
Ltd., Institute of Rural Credit & Entrepreneurship Development, ODISHA, People
Forum, Prayas Micro Credit, Samasta Microfinance Ltd., etc.

Some MFIs provide preventive healthcare training. MFIs spearheading such

interventions include Bal Mahila Vikas Samiti –VAMA, Belghoria Jankalyan
Samity, Blaze Trust, Hand in Hand India and Suryoday Microfinance Pvt. Ltd.
However, much more is desirable on this front. MFIs have untapped opportunities
of collaborating with primary health centres, neighbourhood clinics, private and
state run hospitals to create awareness about healthy living, yoga, etc., among
their clients. Besides, they can develop a pool of community health workers by
providing comprehensive training and practical exposure during health camps.
Such a move will not only create a second line of social defence in case of health
emergencies among the poorer communities but will also create livelihood
opportunities for so many people in the bargain.

MFIs are uniquely poised to bring in qualitative difference in the lives of their
clients (Jha, 2013). However, these institutions are hard pressed for resources
which are inadequate even to help them run their core functions. Hence, MFIs
are not able to realize their full potential as agents of change and remain content
with whatever little they can do for their clients. The MFIs are serving over 37
million poor across the country (Sa-Dhan, 2015). If the government can channelize
some of the welfare schemes through MFIs, it can surely make a huge difference.
90 An integration of microfinance, social welfare schemes, food security and
employment guarantee can augment the benefits accruing to the poor in piecemeal Microfinance
manner with unnecessary leakages in the transit. While the efforts of various
agencies in strengthening the MFIs are laudable, hardly any are actually trying
to help MFIs scale up their community development intervention strategies driven
by higher social purpose.

MFIs involved in social development initiatives are often appreciated by the

stakeholders, get encouraging press coverage for good practices and receive
regular invites for sharing their experiences in various summits and conferences;
however such interventions hardly get any financial incentives from their lenders
(Srinivasan, 2014). It is imperative that the government agencies as well as banks
should come forward and provide liberal financial incentives so as to enable the
MFIs expand their social development interventions in terms of reach, quality
and overall impact on the people who are living on the margins. Besides financial
incentives, widely acceptable objective measures and standards to assess social
development interventions are essential for taking forward the social agenda of
the MFIs and consolidate their position as key player in social sector.

However, the social sector cannot be strengthened merely by way of holistic

interventions of the MFIs. The government needs to play its role in social
development as well. What the poor need the most is the livelihood security.
This can be achieved by converting the ‘Make in India’ programme into a
workable intervention strategy on the grounds so that phenomenal job
opportunities are created as tangible results (Jha, 2015). Moreover, farm distress
is taking a toll on rural population. Hence, the government needs to come up
with a new agriculture policy to address the long standing issues of farm sector
(Jha et al., 2019). Further, overall economic slowdown is affecting the poor both
in rural as well as urban areas in many ways. In order to boost the economy, the
government can rally around improving the banking ecosystem so as to augment
consumption (Mohapatra and Jha, 2018). MFIs can achieve the proverbial goal
of holistic social development with the help of government interventions.

1.6 CSR AND MICROFINANCE

Corporate Social Responsibility (CSR) is how companies manage their business
processes to produce an overall positive impact on society. It covers sustainability,
social impact and ethics, and done correctly should be about core business –
how companies make their money – not just add-on extras such as philanthropy.

The triple bottom line approach to CSR emphasizes a company’s commitment

to operating in an economically, socially and environmentally sustainable manner.
The emerging concept of CSR advocates moving away from a ‘shareholder alone’
focus to a ‘multi-stakeholder’ focus. This would include investors, employees,
business partners, customers, regulators, supply chain, local communities,
the environment and society at large.

A major stakeholder in the business is the community in which the company

operates. The involvement of a company with the community would depend
upon its direct interaction with the community and assessment of issues/risks
faced by those living in the company’s surrounding areas. This helps in delivering
a community focused CSR strategy – making positive changes to the lives of the
people and improving the brand image of the company. Involvement with the
91
Key Thematic Areas in community could be both direct and indirect – through funding and other support
CSR-II
for community projects implemented by local agencies.

Some examples of CSR initiatives by large companies in India are given below:

ITC: Indian Tobacco Company believes that economic empowerment of women

transforms them into powerful agents of social change. ITC has forged an
empowering partnership with rural women – the most effective development
workers. ITC’s intervention leverages micro-credit and skills training to generate
alternate employment opportunities. Increased income in the hands of rural women
means better nutrition, health care and education for their children. Working
with NGOs, ITC has organized village women into micro-credit groups.

SAIL: SAIL has initiated Mahila Samaj, performance of community welfare

programmes which include manufacture of products and services for SAIL
employees. The Mahila Samiti in SAIL plants has 4000 members and 15 affiliated
to national level organizations for community development.

Tata Steel: Tata steel, over the last 15 years had supported the formation of more
than 500 rural enterprises in agriculture, poultry, livestock and community
entrepreneurship. It continued to work untiringly towards furthering
empowerment by facilitating the formation of around 200 women SHGs every
year, who were encouraged to venture in to income generating activities. Tata
Steel also held regular competitions for identifying women leaders who could be
role models through its programme ‘Tejaswini’.

1.6.1 Activities for CSR Expenditure in which microfinance can

play an important role:
Schedule VII mandates expenditure on besides other activities, also on the
following activity-

1) Promoting employment enhancing vocation skills especially among women,

elderly, and the differently abled and livelihood enhancement projects,

2) Promoting gender equality, empowering women and measures for reducing

inequalities faced by socially and economically backward,

As per the new CSR regulations, the banking and financial services sector will
contribute aproximately 2000 crores into the development sector. The companies
can now channelize CSR capital towards making India more financially inclusive.
The sector also presents a chance for companies to offer a wide portfolio of
innovative products to cater the underserved, and thereby explore opportunities
to Create Shared Value.

1.7 GOVERNMENTS IN ACTION AND

PARTNERSHIPS
Historically, governments have used credit schemes as a way to transfer resources
to specific target populations. The negative impact of most of these schemes has
led many donors and experts to advocate for national governments to disengage
from microfinance. This approach has not always produced the desired effect
since some government programmes still undermine microfinance markets.
92
However, there is increasing clarity that governments do have a constructive Microfinance
role in building financial systems that work for the poor. Experienced donors
can support governments to focus on developing sound policy frameworks and
encouraging vibrant and competitive microfinance, rather than directly providing
financial services.

1.7.1 How can governments support an inclusive financial

sector?
Governments (at both national and local levels) can create a legal and regulatory
environment that encourages market entry and competition in microfinance. To
do this, finance ministries, central banks, and other government bodies should
recognize microfinance as a legitimate financial activity within the financial
system, rather than a marginal sector or a resource transfer mechanism.

The most important contribution governments can make to microfinance is

to maintain macroeconomic stability through appropriate monetary and fiscal
policies. In the 1990s, volatile inflation in Lao PDR often reached three
digits. The resulting need for frequent price changes disrupted microfinance
institutions (MFIs) and confused their clients.

Governments can involve the private sector in formulating poverty reduction

strategies, and explicitly recognize its leading role in financial sector
development, including microfinance. The active participation of the private
sector should help to embed microfinance firmly within financial systems,
with private and non governmental actors taking the lead (as opposed to
government bodies, such as ministries of agriculture and health, and local
authorities).

If and when needed, governments should adjust regulatory frameworks to

permit all types of financial institutions to offer services to poor people.
Premature or restrictive regulations can stifle innovation. For example, the
“Loi PARMEC” in francophone West Africa favours the cooperative model,
to the detriment of others. This limits poor people’s choices and access to
services. The introduction of prudential regulation is generally only
warranted when a critical mass exists of institutions that are strong enough
to obtain licenses to mobilize deposits from the public.

Governments should invest in a supervisory capacity. In many developing

countries, bank supervision capacity is limited. There is no point in licensing
institutions that cannot be effectively supervised.

1.7.2 What kinds of government interventions harm the

development of microfinance?
Interest rate ceilings. Interest rate ceilings undermine the ability of MFIs to
cover their costs. They generally hurt the poor by making it hard for new
MFIs to emerge and for existing ones to stay in business. Faced with interest
rate ceilings, MFIs often withdraw from markets, grow more slowly, become
less transparent about total loan costs, and/or reduce their work in rural and
other costly markets.

93
Key Thematic Areas in Provision of credit at the retail level. Governments (including local
CSR-II
authorities, development funds, line ministries, and other public institutions)
should not be directly involved in credit delivery or the management of
microfinance initiatives. Government ministries and project management
units usually lack the technical skills and political independence needed to
manage microcredit programmes.
Subsidized lending programmes. Subsidized lending is usually associated
with high default levels. It absorbs scarce public resources that need constant
replenishment. It distorts markets, hampering the development of sustainable
lenders, and can encourage rent-seeking behavior. In the 1980s, the Indian
government introduced several subsidized targeted lending programmes
including the Integrated Rural Development Program (IRDP). Studies show
that IRDP has a loan recovery rate of 10–55 per cent and has tended to
benefit better off segments of the rural population, rather than poorer groups.
Political interference. Government interference in governance or
management of private institutions can threaten their sustainable
development. Such interference can force managers to lend to unfit clients
or lower interest rates, ultimately decreasing the number of poor who access
services.

1.7.3 How can donors support governments to play a

constructive role?
Donors can help governments at both national and local levels facilitate the
emergence of a strong pro-poor financial system and avoid actions that restrict
private sector-led initiatives.
Collaborate according to respective strengths. Effective policy work
requires donor agencies that have a mix of experience and skills. Deep
technical skills in finance, hands-on experience supporting retail level
institutions, and the ability to truly influence governments are all key. Only
donors who have these characteristics should work at the policy level. Few
donors do. Donors should leverage each other’s strengths when designing
programmes in this area.
Provide technical inputs to poverty reduction strategy papers (PRSPs)
that advance pro poor financial sector development, for example, supporting
better policies and encouraging governments to withdraw from direct
financial services delivery.
Foster strong networks and empower other local stakeholders capable of
engaging with governments in policy dialogue. In Mali, GTZ, USAID, and
the World Bank promoted the emergence of an association of MFIs, APIM,
that serves as a conduit for MFIs to contribute to the formulation of national
policies.
Support interest rate liberalization. Donors can provide information on
the rationale for microcredit interest rates that cover costs and document
the adverse effects of interest rate ceilings on poor people.
Where circumstances call for it, provide technical support to help
governments adjust the regulatory and supervisory framework. For
instance, donors can build capacity of key government staff in ministries of
94
 finance and central banks. Donors can also showcase examples of successful Microfinance
regulatory and supervisory frameworks, both related to the content and
process of reform.

Invest in public retail lenders and apexes only when they are independent
from government and demonstrate a clear capacity and commitment to
perform sustainably. Donors should exercise caution about funding apex
institutions. They should analyze whether a critical mass of viable MFIs
exists, and avoid creating disbursement pressure that compromises quality
standards.

Activity 2

Visit any nearest microfinance institution and write one case study on how
microcredit has contributed to the lives of the poor.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
Check Your Progress - 2
Notes: a) Write your answers in about 50-100 words.
b) Check your answer with possible answers given at the end of the unit.
1) How have microfinance institutions helped in training their clients?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

2) How can donors support governments to play a constructive role?

.......................................................................................................................
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.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

1.8 LET US SUM UP

In this unit you have read about the microfinance landscape across countries.
You have also read how microfinace impacts the lives of the poor. Microfiance
95
Key Thematic Areas in has helped in including the excluded section of the society in the development
CSR-II
process. We have also discussed role of microfinance insitutions in various thrust
areas like capacity building, livelihood promotion, preventive healthcare,
education, water and sanitation etc. Role of government support in inclusive
financial sector as well as the role of CSR in microfinance has also been discussed.

1.9 KEYWORDS
Microfinance : Microfinance is the provision of financial services to
low-income clients, including consumers and the self
employed, who traditionally lack access to banking
and related services.
Financial Inclusion : It is defined as the availability and equality of
opportunities to access financial services. It refers to
a process by which individuals and businesses can
access appropriate, affordable, and timely financial
products and services.
Microcredit : It provides small loans to micro entrepreneurs to invest
in their businesses, reinvest the returns and allow them
to grow out of poverty.
Microsaving : It aims to provide accessible and safe avenues to save,
either for future investments or as a precaution against
economic shocks.
Microinsurance : Microinsurance products are designed to mitigate
different types of risks, such as agricultural or health
risks.

1.10 ABBREVIATIONS
ATM : Automatic Teller Machine
BALCO : Bharath Aluminium Company
BC : Business Correspondent / Banking Correspondent
BF : Business Facilitators
BPL : Below Poverty Line
BSE : Bombay Stock Exchange
CSR : Corporate Social Responsibility
HUL : Hindustan Unilever Limited
ICICI : Industrial Credit and Investment Corporation of India
IDFC : Infrastructure Development Finance Company
IFC : International Finance Corporation
IGA : Income Generating Activities
ITC : Indian Tobacco Company
MFIs : Micro Finance Institutions

96 MFIN : Micro Finance Institutions Network

 Microfinance
MIV : Microfinance Investment Vehicle
MIX : Microfinance Information Exchange
NABARD : National Bank for Agriculture and Rural Development
NASSCOM : National Association of Software and Services
Companies
NBFC : Non-Banking Finance Company
NGOs : Non-Government Organizations
NISM National Institute of Securities Markets
NSDC : National Skill Development Corporation
NSE : National Stock Exchange
PSL : Priority Sector Lending
RBI : Reserve Bank of India
RIL : Reliance Industries Limited
SAIL : Steel Authority of India Limited
SEBI : Securities and Exchange Board of India
SFB : Small Finance Bank
SHG : Self-Help Group
SIDBI : Small Industries Development Bank of India
SWOT : Strength Weakness Opportunities Threats
U-DeC : Uttaranchal Infrastructure Development Company
UNIDO : United Nations Industrial Development Organization
UPMA : Uttar Pradesh Microfinance Association
VAL : Vedanta Aluminium Limited
CII : Confederation of Indian Industry
SDG : Sustainable Development Goals

1.11 BIBLIOGRAPHY AND SELECTED READINGS

Articles

Kabeer, N. (2001). Resources, Agency Achievements: Reflections on the

Measurement of Women’s Empowerment. In Discussing Women’s Empowerment
– Theory and Practice, Sida studies no.3, pp. 17-57.

Patel, V., Kirkwood, B.R., Pednekar, S., Pereira, B., Barros, P., Fernandes, J.,
and Mabey, D. (2006). Gender disadvantage and reproductive health risk factors
for common mental disorders in women: A community survey in India. Archives
of General Psychiatry 63 (4): 404–413. doi: 10.1001/archpsyc.63.4.404.
[PubMed].

Sridevi, J. (2015). Corporate Social Responsibility Towards Women

Empowerment. International Journal of Administration and Governance, 1 (5),
Pages: 35-37. Available at SSRN:https://ssrn.com/abstract=2797739
97
Key Thematic Areas in Books & Reports
CSR-II
Bhattacharya and Ahuja. R. (2010). Community Participation in Corporate Led
Initiatives for Health. CSR Critique, Policies & Strategies 2, pp 24-50.

Bhattacharya, V. and Pattanaik, B. K. (2013). HIV/AIDS and the world of work.

Edited book- AIDS: Causes and Cure by C. Chidambaranathan and I.Jenitta Mary,
Aavishkar Publishers and Distributors, ISBN 978-81-7910-449-1, p. 39-50.

Eyben, R., Andrea, C. and Naila, K. (2008). Conceptualizing empowerment and

the implications for pro poor growth, A paper for the DAC Poverty Network,
Institute of Development Studies.

World Bank. (2001). Engendering Development: Through Gender Equality in

Rights, Resources, and Voice, Washington D.C.: Oxford University Press and
the World Bank.

Online Search
http://www.samhita.org/csr-in-education-what-are-indias-top-companies-upto/
https://www.pg.com/en_IN/sustainability/social_responsibility/social-
responsibility-programs-in-india.shtml

https://www.researchgate.net/publication/255700427 _ Corporate _ Social _

Responsibility _ A_Way_Towards_Women_Empowerment
https://en.wikipedia.org/wiki/Akshaya_Patra_Foundation
https://www.thehindubusinessline.com/companies/30-of-csr-spend-to-be-made-
mandatory-for-swachh-bharat/article8402480.ece
http://www.skf.com/in/industry-solutions/index.html
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4624628/#R40

1.12 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress - 1
Answer 1: Microfinance can be divided into three broad categories: microcredit,
microsavings and microinsurance. Microsavings products aim to provide
accessible and safe avenues to save, either for future investments or as a precaution
against economic shocks. Microsavings products can include simple no frills
bank accounts, as well as commitment-based products that encourage deposits
or limit withdrawal in order to help savers reach their savings goals.

Answer 2: For one thing, women are ambitious, for themselves and for their
families. As they lift themselves out of poverty, they carry their families to a
better life. Once they get a leg up, women are more likely to spend their earnings
on medical care and education for their children. Women who provide for
themselves and their families are empowered. They have more choices and
influence in bargaining. They have a greater sense of self-worth and increased
confidence in their abilities. Women who succeed economically also believe in
their right to make decisions about their own lives.
98
Check Your Progress – 2 Microfinance

Answer 1: Several MFIs are involved in training of their clients. For example,
Grameen Development & Finance Pvt. Ltd. provides training on rice
intensification and piggery while Kotalipara Development Society provides
training in goat and duck rearing. Aparajita Mahila Sakh Sahkari Sanstha Maryadit
runs training programs on computers, accounting, banking, etc.

Answer 2: Donors can help governments at both national and local levels in the
following ways:-
Collaborate according to respective strengths
Provide technical inputs to poverty reduction strategy papers (PRSPs)
Foster strong networks
Support interest rate liberalization
Where circumstances call for it, provide technical support to help
governments adjust the regulatory and supervisory framework
Invest in public retail lenders and apexes only

99
Key Thematic Areas in
CSR-II UNIT 2 ENVIRONMENT PROTECTION
AND BIODIVERSITY
CONSERVATION
Structure
2.1 Introduction
2.2 CSR and Environment Protection
2.3 Initiatives by Private Companies
2.4 Initiatives by Government Organizations
2.5 Issues Faced in Implementing CSR in the Domain of Environment
Protection
2.6 Let Us Sum Up
2.7 Keywords
2.8 Bibliography and Selected Readings
2.9 Check Your Progress – Possible Answers

2.1 INTRODUCTION
Growing awareness about the need for environmental sustainability has motivated
organizations to take measures for community service through environment
protection. From the eco-social perspective, corporate social responsibility is
both significant and a strategy to achieve business sustainability. The new
generation of corporates value optimization of profit more than profit
maximization. Hence, there is a perceptible shift from accountability to
shareholders to accountability to all stakeholders in order to ensure long term
success and business sustainability. One of the criteria to check sustainability of
business is environmental stewardship in which the efforts are made to connect
people with nature either through direct participation or through indirect
involvement.

After the introduction of the Companies Act 2013, the spending on corporate
social responsibility (CSR) is made compulsory. The companies in India and the
world have started incorporating CSR practices in their operations. The actions
directed towards environment protection are mostly taken up by various
organizations as a part of their CSR agenda. The actions got a boost with coming
up of World Conservation Strategy in 1980 which aimed at creating more stable
economy to promote growth, removing inequalities and addressing poverty.
Likewise, in 1992, at the UN Earth Summit, the ‘triple bottom line’ business
model was put forward with an objective of bringing sustainable development
for companies and businesses.

There are serious consequences of overexploitation of natural resources by

mankind. The deforestation, unplanned development and pollution have
deteriorated the environmental conditions and created inequalities in society.
Further, it is believed that corporations are mainly responsible for unsustainable
development and environmental degradation. In view of this, it is demanded that
corporations must address their improper actions and undertake corporate social
responsibility initiatives according to the environmental needs.
100
In the current unit, you will learn more about CSR practices in the field of Environment Protection and
Biodiversity Conservation
environment conservation. You will also be introduced to the various initiatives
which have been taken up by both government and private sector in this area.

After reading this unit, you will be able to:

List the CSR activities done by government and private organizations in

the area of environment protection.

Explain the issues related to CSR implementation in the area of environment

protection.

2.2 CSR AND ENVIRONMENT PROTECTION

There are ten major areas of CSR activities which have been listed by Ministry
of Corporate Affairs. Out of these, item sixth (vi) refers to activities related to
environmental sustainability which includes ‘ensuring environmental
sustainability, ecological balance, protection of flora and fauna, animal welfare,
agroforestry, conservation of natural resources and maintaining quality of soil,
air and water’. These interrelated and complementary areas are critical in
maintaining the balance of nature.

Let us know what is meant by environmental sustainability. In simple words,

environmental sustainability means maintaining the integrity of environment and
its components so that the goods and services provided by nature remain intact.
Everything which is done to protect the environment comes under environmental
sustainability but still there are no set guidelines or measures to implement them.

You must know that the dimensions of environmental sustainability differ from
place to place and time to time. Hence, when CSR is undertaken in the area of
environment protection, it is important to check whether the problem is relevant
to that place and is consistent in terms of its scope. Therefore, identification of
CSR issues is of utmost importance. As of now, issues such as climate change,
clean energy, regeneration of water bodies, afforestation, etc., are most common
in which the CSR activities are undertaken. These activities are not just meant to
protect the environment but are also instrumental in making people aware about
these issues and helping them devise their own solutions. Environmental
sustainability helps to maintain the harmony among different segments such as
nature, people, communities and society.

2.2.1 Specific CSR activities in environment protection

A decade ago, the most common CSR activity with a focus on the environment
was planting trees. Indian companies today are instead focusing on initiatives
which have a long term impact, such as installing solar powered lighting systems,
setting up sewage treatment plants, setting up rain water harvesting projects, etc.

Below, the broad areas covered under CSR initiatives in environmental

sustainability are discussed for your better understanding.

1) Ecological Balance
Ecological balance refers to maintaining a state of balance between various
components of environment and organisms. Afforestation programmes,
101
Key Thematic Areas in participating in van mahotsava, distributing saplings on important occasions,
CSR-II
promoting eco-tourism, etc are some of the common activities done by companies
and organizations.

2) Protection of Flora and Fauna

Flora refers to plants present in a given region whereas fauna is different forms
of animal life. The variety and variability among the flora and fauna is known as
biodiversity. Due to several natural and man made causes, the existence of diverse
plants and animals is in danger. Specific activities pertaining to the protection of
these organisms and their habitat constitutes an important area of CSR. Some of
these include providing tree guards and habitat conservation.

3) Animal Welfare
Animal welfare refers to maintaining the physical and mental health of animals
by preventing diseases, providing proper veterinary treatment, proper food and
shelter, etc. Thus, the activities such as constructing shelter houses, providing
ambulance services for diseases and distraught animals, birth control and
immunization of stray animals, relief to animals during natural calamities etc.
can be undertaken under this broad activity.

4) Agroforesty
Agroforestry is a land use system which integrates trees and shrubs on farmlands
and rural site to improve productivity, promote diversity and ecosystem
sustainability. Agroforestry provides opportunity for employment and income
generation and offers food and fodder, timber, fuel wood and various other natural
resources to local population. CSR activities help the people to improve their
capacity in rejuvenating their lands and improve the production.

5) Conservation of Natural Resources

Natural resources are those resources which are obtained from nature and are of
utility to human beings. The resources can be conserved by strengthening
institutions and policies for natural resource conservation, raising awareness on
the importance of natural resources and its conservation, developing technologies
for natural resource conservation and promoting sustainable practices at various
levels. As a part of CSR, companies promote renewable sources of energy like
solar energy, wind energy and also conduct programmes on energy conservation.

6) Maintaining Quality of Air, Water and Soil

Maintenance of environmental quality is pre requisite for improving the quality
of life for the people. In view of this, the quality of air that we breathe, the
quality of water, all are of prime importance. Organizing green marathons, river
cleaning activities, etc. are some of the common activities organized by companies
as a part of their CSR agenda.

102
 Environment Protection and
Activity 1 Biodiversity Conservation

Visit any CSR programme on environment protection or biodiversity

conservation being implemented in area of your vicinity. Discuss its focus
and possible impacts.
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.......................................................................................................................
Check Your Progress -1
Note: a) Use spaces given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) Define environmental sustainability.
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2) List the main CSR activities which can be undertaken in the area of
environment protection.
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2.3 INITIATIVES BY PRIVATE COMPANIES

CSR initiatives intended towards the protection of the environment by the private
sector include green initiatives such as tree plantation drives to promote
afforestation, efforts to conserve water, management and disposal of waste
responsibly, and so on and so forth. CSR initiatives are implemented by
companies, usually in partnership with non-governmental organizations (NGOs)
who are well versed with working with local communities and have knowledge
about local conditions and are able to tackle specific social issues of the region.
By such activities, the companies have brought about significant changes in the
area and many of the problems have been addressed. By means of their expertise,
strategy and other resources, companies take up the CSR for the issue that they
are passionate about. However, this practice has also been questioned on several 103
Key Thematic Areas in occasions. Rather, the companies should go for need assessment approach and a
CSR-II
systematic approach must be adopted to identify the thrust areas.

Also, there are significant issues in green corporate social responsibility which
need to be considered before moving ahead. For example, how to assess whether
a company or organization is green, understanding the expectations of the people,
changes needed to make the society green, and understanding the role of
communications on portraying the overall image of an organization.

Despite the mandatory nature, CSR still remains a voluntary and philanthropic
activity. Expending money and resources without proper planning and
implementation is not what CSR is all about. A company has to pass through
several stages of planning and after listing out all the details, the actual
implementation can begin. The basic idea is that through CSR companies are
giving back to the society, some giving back to the employees and some are
doing both.

CSR activities related to environment protection of some of the companies are

described below:

1) Reliance Industries Ltd.

Reliance has invested in infrastructure related to water conservation and has
constructed community halls, schools, and health centres at various places. Some
of Reliance’s initiatives to promote environment protection include investing in
renewable energy sources, promoting green plantations and spreading
environmental awareness.

2) Ambuja Cements Limited

Ambuja Cement Foundation was established by Ambuja Cements Ltd. in 1993.
As its cement plants are situated in the rural areas, the rural people are one of the
stakeholders of the company and are key to the company’s sustainability. Hence,
the company realized the need to address the needs of the rural people. One of
the community initiatives the company is actively involved in is natural resource
management (NRM) which includes activities centered on conservation and
management of water, land, energy and livestock.

In the state of Gujarat the rural communities are situated along the coastal belt in
Junagadh and Amreli Districts. Due to over utilization and over exploitation of
ground water over the years, these areas faced a serious salinity ingress problem.
The rivers in this area were seasonal and the ponds that were fed by these rivers
also dried up by the time winter arrived making the water problem even worse.
To tackle these problems, ACF adopted innovative techniques like interlinking
of water bodies, tidal regulators and rivers through link water channels. This
technique proved to be effective in collecting the run-offs of the rivers and
consequently increased the quantity of water being saved and stored. Ground
water was recharged and the salinity levels of the underground water declined to
improve the quality of water (KPMG, 2008).

3) Nestle
Nestle Ltd. is known for undertaking CSR in the area of environmental
sustainability through initiatives such as providing climate change leadership,
104 reducing food wastage and preserving natural capital like forests, rivers, etc.
4) Shoppers Stop Environment Protection and
Biodiversity Conservation
Shoppers Stop has been practicing eco-friendly initiatives in the area of energy
conservation by formulating an energy management policy. The store also strongly
advocates the 3 R’s (Reduce-Reuse-Recycle). It has also introduced ‘Back to
Earth’ merchandise range in home products made of eco-friendly material, like
cotton, bamboo, jute, etc.

5) Colgate-Palmolive
Colgate-Palmolives long term sustainability strategy is focused on three areas:
people, performance and planet. Colgate has programmes in place to promote
oral health in communities, to reduce energy use and to increase energy efficiency.

6) Gardens Galleria Mall

If you have visited Gardens Galleria Mall in Noida, you will find mini gardens
all over where you can rejuvenate and connect with nature at the same time. The
concept in itself is an innovative approach and a world-class initiative. In support
of the global initiative, Rally for Rivers launched by Isha Foundation, Gardens
Galleria came forward by creating awareness among people about the issue.
From broadcasting the informative videos on main screens of the mall to engaging
people and educating them about the same are some of the noteworthy initiatives.

7) Coca Cola
The company has 320 rain water harvesting programmes implemented across 17
states in India, and it has also been successful in restoring water conservation
programme. Moreover, it is also running the ‘Elixir of Life’ project that provides
drinking water to children of primary and panchayat schools in and around
Chennai.

8) The Tata Group

Tata group has more than 80 companies under their umbrella. The business of
Tata varies from automobiles to steel and telecommunications to consumer good.
Tata group is spending on the National Horticulture Mission programme which
is a joint project of the Tata group with the government of Jharkhand. This
programme focuses on the non-conventional energy and the renewable energy.
This particular project impacts more than 5000 lives (Singh et. al., 2016).

9) Dainik Bhaskar Group

Under the theme of “Animal welfare” Dainik Bhaskar Corp. Ltd. launched their
‘Save Bird’ campaign for the conservation of birds in the year 2000. Under this
initiative, every year, the group aims at creating awareness in the society to save
birds during summer season. Citizens are encouraged to keep bird baths (sakoras)
or vessel at their homes and workplaces, filled with food grains and water. The
group has also partnered with WWF India and Nature Forever Society for this
campaign to improve sustainability of Save Bird Campaign.

Along with the examples cited above, companies like BMW, Infoys, Mahindra
& Mahindra, etc., are also diverting their commitment towards environmental
sustainability.

105
Key Thematic Areas in
CSR-II 2.4 INITIATIVES BY GOVERNMENT
ORGANIZATIONS
The Government of India initiated Corporate Responsibility for Environmental
Protection (CREP) to set guidelines of non mandatory norms for 17 polluting
industries. However, there is no real pressure for its implementation. The
international CSR standards and guidelines include the ILO’s Tripartite
Declaration of Principles Concerning Multinational Enterprises and Social Policy,
OECD Guidelines for Multinational Enterprises, UN Global Compact and The
Universal Declaration of Human Rights.

As per the Companies Act, the Government has made it a point that it will not
monitor the implementation but will leave it to the organizations to implement
what is essential by the law. In case a company fails to meet the prescribed
spend, it will have to report and provide explanation.

In the line of private companies, the government organizations, departments and

institutions are also contributing their share in environment protection through
CSR activities. The public sector delivers many services in the community and
environment and has various regulatory roles which form a part of their policy
interventions and do not come under the ambit of CSR. The public organizations
are meant to provide service to the community depending upon the involved
stakeholders. The very nature of public service reflects diverse aspects of social
responsibility and through their activities they have to remain accountable and
transparent towards the stakeholders. For example, Indian Railway Catering and
Tourism Corporation Limited (IRCTC), has offered projects related to
environment sustainability, sanitation and cleanliness, rain water harvesting, water
recycling plants and solar panels among others under the corporate social
responsibility (CSR). Construction of toilets, provision for solid waste
management and supply of filtered drinking water are some of the activities
which are also planned as CSR initiatives. Similarly, with respect to concern for
biodiversity, BHEL has been carrying out afforestation activities such as mass
tree plantation and development of green belts.

In order to influence its CSR initiatives through sustainable strategies, an

organization must think out of the box and apart from its core clientele must also
consider the impact on other sections of the society and surroundings. Such a
kind of thought process will eventually result in sustained competitive advantage.

In a bid to invite corporate funds for its flagship schemes like the Swachh Bharat
Mission and Clean Ganga initiatives the present government has announced that
corporate spending in these schemes will be now counted as CSR spend. It has
gone ahead to include ‘Swachh Bharat Kosh’ and ‘Clean Ganga Fund’ in the
schedule VII of the Companies Act. Similarly, the Government is soon going to
improve upon the procedures relating to CSR spending outlined in the Companies
Act of 2013. Cleanliness, health and education are among the areas where CSR
spending would make a lot of difference. Companies also complement the efforts
of the government by spending on CSR related activities.

106
 Environment Protection and
India Business and Biodiversity Initiative (IBBI) Biodiversity Conservation

Confederation of Indian industries (CII) launched India Business and

Biodiversity Initiative (IBBI) in 2012 to direct the business organizations
for the sustainable management of biodiversity. It is because of the belief
that businesses are the major stakeholders in conservation and sustainable
use of biodiversity. A key aspect of the initiative focuses on capacity
development of the member companies to come forward and incorporate
biodiversity management into their operations. Since its launch, some 21
companies have so far joined the IBBI initiative. The Ministry of
Environment, Forests and Climate Change has endorsed IBBI in its function
as the national initiative for business and biodiversity. The Initiative has
joined the Global Partnership for Business and Biodiversity established by
the Convention on Biological Diversity Secretariat.
Case Study: ITC – Ravandoor Cascade Development
Ravandoor tank cascade area is located in the southern district of Mysore
(Karnataka) and comprises of 13 tanks and is a habitat for local and migratory
aquatic birds. The farmers are dependent on various ecosystem services
like water from the river and tanks for irrigation and fodder and timber
wood from forest areas. However, continuous pressure on natural resources
has caused disruptions in some of the available ecosystem services. Due to
continuous siltation over the years, the water holding capacity of these tanks
is considerably diminished, resulting in less storage of water. Through ITC’s
desiltation project, all tanks in the cascade were restored and the silt was
applied on farmlands. ITC’s interventions resulted in higher inflows into
the tanks, and enhancement of water holding capacity of all tanks in the
cascade, leading to year round availability of water.
Source: CII, 2016

CSR and Sustainable Development Goals

Since the 17 SDGs provide defined targets of measurement and universal
compatibility amongst nations, the overlapping nature of CSR activities
and SDGs provide the perfect measure of activity outcome. India is one of
the 193 countries that have signed the Declaration on 2030 Agenda
for Sustainable Development on September 25, 2015. However, evaluation
of CSR in terms of SDGs gives us an idea of an unequated expenditure on
environment management which is one of the key elements of sustainable
growth. Environmental sustainability gets the fourth position and amounts
to about seven percent of the total CSR spending. Though environmental
sustainability coincides with seven SDGs, yet it is not one of the top priorities
of the industry when it comes to CSR spending. It is noticeable
that companies wish to spend in education and health which can give
quantifiable returns unlike environment which does not provide immediate
gains.
(http://www.csrmandate.org/the-holy-grail-of-csr-planet-people-and-profits/)

107
Key Thematic Areas in
CSR-II 2.5 ISSUES FACED IN IMPLEMENTING CSR IN
THE DOMAIN OF ENVIRONMENT
PROTECTION
Over the period, the domains of CSR practices have expanded and researchers
and practitioners have largely agreed on economic, legal, ethical, philanthropic,
and environmental domain. Environment is the domain which cuts across various
theoretical models of CSR. Present day environmental issues need concerted
efforts from all stakeholders and CSR can play a constructive role through series
of interventions.

The non mandatory cap on CSR in India raises several debatable issues. We
must think about the several loopholes which are there with the mandatory CSR.
One of the biggest issues is the rise in ‘green washing’ and that it covers very
small section of private sector. Another concern is to have a monitoring agency
to look at the implementation of mandatory CSR. There are convincing arguments,
therefore, that the mandatory CSR leads to a decline in private industries
enterprises. The small and medium scale sectors are severely affected in such a
scenario.

Further, CSR in the area of environment brings with it its own limitations. On
one hand CSR activities related to less waste generation, energy conservation,
etc. may provide quantifiable data which is easy to quote and understand but on
the other hand, environment is actually ‘beyond business’ CSR because it does
not provide immediate and measurable gains. However, long term gains of
environment protection are well known. Externalities are always linked to CSR
but environmental services are not always convertible into economic terms. The
aesthetic, spiritual, and religious value is difficult to convert in economic terms.

The companies are arguing that it is their social responsibility to protect and care
for the environment and human resources. Corporate Social Responsibility
promotes companies to do right things, beyond legal requirement. The concept
is based on the idea that not only public policy but companies, too, should take
up social and environment issues. In more particular, CSR is seen as a concept in
which companies voluntarily integrate social and environment concerns into their
business while dealing with their stakeholders. The idea of being a socially
responsible company means doing more than just complying with the law for the
environment and for human well-being.

There is a lack of transparency in CSR activities in small organizations and the

real changes brought about are difficult to monitor. The conflicting interests among
the various stakeholders in case of environment protection are known and there
is lack of consensus among the practitioners of CSR. The overlapping of activities
and areas also creates confusion and therefore arriving at common agenda is a
difficult task. The financial benefits must outweigh the costs in the long run in
case of CSR. Hence, the mutual understanding on monitoring, certification and
reporting for the credibility and reliability of CSR activities is very essential.

108
 Environment Protection and
Activity 2 Biodiversity Conservation
Visit any CSR programme on environment protection or biodiversity
conservation being implemented in area of your vicinity and discuss with the
people working in the implementation of the programme about the issues and
challenges faced by them in implementation of the programme. Write down
the key points.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

Check Your Progress -2

Note: a) Use spaces given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) How are private organizations practicing CSR in environment protection?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

2) What are the challenges in undertaking CSR in environmental sustainability?

.......................................................................................................................
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.......................................................................................................................
.......................................................................................................................

2.6 LET US SUM UP

In this unit, we have studied about the CSR activities undertaken in the area of
environment protection. The degradation of environment is caused by several
factors and therefore a diverse group of stakeholders are required to come together
and work for a common goal. In this context, the role of business organizations
becomes very important. However, practicing CSR must be need based and a
voluntary initiative. In most of the cases, it is seen that the companies do not
want to spend in areas which do not provide immediate gains. In this unit,
examples of CSR initiatives taken up by several companies have also been
described.
109
Key Thematic Areas in
CSR-II 2.7 KEYWORDS
Environmental sustainability : This refers to the state of the environment
where demands placed on nature do not
exceed its ability to renew the resources.
Green washing : This is the practice of making a false or
deceptive claim about the environmental
benefits of any product or service which
makes the company appear to be eco-friendly
even when it is not so.
Agroforestry : Agroforestry is a land use management
system in which trees or shrubs are grown
around or among crops or pastureland.
Natural Resources : These are the resources that are found in the
environment and are developed without the
intervention of humans.

2.8 BIBLIOGRAPHY AND SELECTED READINGS

http://citeseerx.ist.psu.edu/viewdoc/download? doi = 10.1.1.828.3998 &re p=
rep 1&type=pdf

CII. (2016). Reimagining Business for Biodiversity Enhancement Case Studies

From Indian Industry (Report)
KPMG. (2008). http://www.in.kpmg.com/pdf/csr_whitepaper.pdf.
Schönherr, N., Findler, F., &Martinuzzi, A. (2017). Exploring the interface of
CSR and the Sustainable Development Goals. Transnational Corporations, 24(3),
33-49.

Singh, G.D. , Singh, S. and Bawa, J. (2016). A Case Study on Corporate Social
Responsibility in NESTLE, TATA, ITC. Journal of Advanced Research in HR
and Organizational Management, 3(4).

2.9 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress – 1
Answer 1: Environmental sustainability means maintaining the integrity of
environment and its components so that the goods and services provided by
nature remain intact. Everything which is done to protect the environment comes
under environmental sustainability but still there are no set guidelines or measures
to implement them.

Answer 2: The broad areas covered under CSR initiatives in environmental

sustainability are:
1) Ecological balance
2) Protection of flora and fauna
3) Animal welfare
110
4) Agroforestry Environment Protection and
Biodiversity Conservation
5) Conservation of natural resources
6) Maintaining quality of air, water and soil
Check Your Progress – 2
Answer 1: CSR initiatives intended to protect the environment by the private
sector include green initiatives such as tree plantation drives to promote
afforestation, efforts to conserve water, management and disposal of waste
responsibly and so on and so forth. CSR initiatives are implemented by companies,
usually in partnership with non government organizations (NGOs) who are well
versed with working with local communities and have knowledge about local
conditions and are able to tackle specific social issues of the region.

Answer 2: One of the biggest issues is the rise in ‘green washing’ and that it
covers very small section of private sector. Another concern is to have a monitoring
agency to look at the implementation of mandatory CSR. There are convincing
arguments, therefore, that the mandatory CSR leads to a decline in private
industries enterprises. Also, there is a lack of transparency in CSR activities in
small organizations and the real changes brought about are difficult to monitor.
The conflicting interests among the various stakeholders in the case of
environmental protection are known and there is lack of consensus among the
practitioners of CSR. The overlapping of activities and areas also creates
confusion and therefore arriving at common agenda is a difficult task.

111
Key Thematic Areas in
CSR-II UNIT 3 EDUCATION AND SKILL
DEVELOPMENT
Structure
3.1 Introduction
3.2 Literacy and Skill Status in India
3.3 Effects of Illiteracy and Lack of Skills
3.4 Government Programmes for Education and Skill Development
3.5 Role of CSR in Promoting Education and Skill Development
3.6 Case Studies of CSR Initiatives in Education and Skill Development
3.7 Let Us Sum Up
3.8 Keywords
3.9 Bibliography and Selected Readings
3.10 Check Your Progress – Possible Answers

3.1 INTRODUCTION
Globalization and advancement of information technology has brought about
several structural changes in the Indian economy. To keep pace with such changes,
education and skill development are important. India has more than 50 percent
of its population below the age of 25 and more than 65 percent of its population
below the age of 35. Young population is considered to be one of the most
important assets for economic growth. As the working population of India grows
at a fast pace, it is important that this increasing workforce is equipped with
knowledge and skill so that the country can harness its human capital potential.
India has entered a phase of demographic dividend since 2018 where its working
age population of 15 to 64 years is more than the dependent population of children
below 14 years and adult above 65 years. However, just this shift in population
structure alone cannot help India to reap the benefits of demographic dividend.
According to UNFPA, countries can only harness the economic potential of the
youth bulge if they are able to provide good health, quality education and decent
employment to its entire population.

In this unit you will read about the role of CSR in imparting education and skill
development in India. After reading this unit you will be able to:
Explain the current literacy and skill status in India
Discuss the impacts of illiteracy and lack of skills on human lives
Discuss various government programmes for education and skill
development
Explain the role of CSR in promoting education and skill development

112
 Education and Skill
3.2 LITERACY AND SKILL STATUS IN INDIA Development

3.2.1 Literacy Status in India

The literacy level is one of the basic indicators of the level of development of a
society. In this section we will look into the status of literacy in India as a whole
and in different states of the country. With literacy are associated the signs of
modernization like industrialization, communication, urbanization, trade, etc.
Literacy also enhances the capabilities of individuals and communities in terms
of health, education and access to opportunities for a better life. In India, literacy
as defined by census is the ability to read and write any one language. Going by
this definition, the literacy rate in India has increased from 34.5% in 1971 to
74% in 2011. The corresponding figures for males and females during the year
2011 are 82.14% and 65.46%, respectively. However, India is still far from
achieving the goal of universal literacy. Besides, there is a lot of interstate variation
ranging from a low of 63.8% in Bihar to as high as 93.9% in Kerala. Female
literacy in India is also very low (60%). A very positive development has been
the decline in the male-female gap in literacy from 21.59% in 2001 to 16.68% in
2011.

Table 1: Literacy rates in India (1961 to 2011)

Census Year Persons Male Female Male-Female Gap

in Literacy Rates
1951 18.33 27.16 8.86 18.30
1961 28.3 40.4 15.35 25.05
1971 34.45 45.96 21.97 23.98
1981 43.57 56.38 29.76 26.62
1991 52.21 64.13 39.29 24.84
2001 64.83 75.26 53.67 21.59
2011 74.04 82.14 65.46 16.68
In terms of the total literacy rates, Kerala ranks first with a literacy rate of 93.91%
followed by Lakshadweep (92.28%) and Mizoram (91.58%). Among the states
at the bottom of the ladder, Bihar ranks last with a literacy rate of 63.82%, preceded
by Arunachal Pradesh (66.95%) and Rajasthan (67.06%). Kerala tops the ranks
in female literacy with 91.98%. Rajasthan with 52.66% is last which is preceded
by Bihar (53.33%). Lakshadweep (96.11%) tops the list in terms of male literacy
and Kerala (96.02) ranks second. Bihar (73.39%) ranks last in male literacy
preceded by Arunachal Pradesh (73.69%).

3.2.2 Skill Status in India

As already discussed, India is one of the youngest nations in the world with 54%
of the population below 25 years of age and hence is in a state of leveraging the
benefits of demographic dividend provided India’s growing young workforce
acquire the market-relevant skills needed in today’s highly competitive job
market. Livelihood opportunities are affected by supply and demand side issues.
On the supply side, India is not able to create enough job opportunities for the
113
Key Thematic Areas in people, and on demand side, we fail to equip the workforce with needed skill set.
CSR-II
Skill is defined as the ability to carry out tasks and duties of a given job for
which the person earns remuneration. Nationally, only 1.8% of the population
reported receiving formal vocational/technical training in 2017; 18. 5.6% reported
receiving informal vocational training (such as hereditary, self-learning, and on-
the-job training). This means 93% of the population did not receive any vocational/
technical training from either formal or informal sources (Anand and Thampi,
2019). Another challenge that the country faces is of poorly trained workers in
the informal sector which incidentally is the largest employment generator in the
country. Most of the skill is learnt informally by observation, self-taught or taught
by some master craftsman. The proportion of formally skilled workers in India is
extremely low, at 4.69% of total workforce, compared to 24% in China, 52% in
the US, 68% in the UK, 75% in Germany, 80% in Japan and 96% in South Korea
(Shukla et. al., 2019). This mismatch between the supply and demand of trained
workers is leading to a situation in which employers are not able to get trained
people and the job seekers are not able to get the kind of job they desire. According
to the latest India Skill Report (2019), only 45.6% of the youth graduating from
educational institutions are employable.

According to the study conducted by (Shukla et. al., 2019), the skill levels can
be classified into four types as summarized in the table below.

Table 2: Types of Skill Levels

Skill Definition Examples

Level

1 Skills involving simple and Hawker, street vendor, gardner,

routine physical or manual tasks cook, household servant,
construction worker, mason etc.

2 Skills involving operation of Plumber, electrician, artisan,

machinery and electronic barber, mechanic, tailor etc.
equipment.

3 Skills involving written records Clerical, supervisory level etc.

of work, simple calculations,
good personal communication
skills in specialized fields

4 Skills involving decision making Doctor, lawyer, chartered

and creativity based on accountant, engineer, architect,
theoretical and factual knowledge scientist, actor, author etc.

According to the study, around 56%of the labour force is dominated by those
classified under level 2 skills and 30%by those classified under level 1. Nearly
11% can be classified under skill level 3 and a very few, i.e., only around 3% are
classified as those possessing level 1 skills. Table 2 clearly shows that there is a
very high level of correlation between education and skill level. The higher the
education, higher the skill level. There is an urgent need to re-qualify and re-
specialize the labour force with adequate skills so as to make them able to compete
in this fast-changing globalised job market.

114
 Education and Skill
3.3 EFFECTS OF ILLITERACY AND LACK OF Development

SKILLS
The impacts of illiteracy are inter-generational. The educational capital of the
household is essential to a child’s physical and social development. Such
development is unquestionably limited among children whose parents have not
acquired basic reading and writing skills, or have lost them through disuse
(Martinez and Fernandez, 2010). Adult illiteracy also increases socio-economic
vulnerability. Illiterate people face several difficulties. On a personal level, they
face difficulties with social inclusion, work issues and high rates of diseases; at
family level, they face problems related to child nutrition, hygiene, health and
schooling and at societal level they face lower productivity and higher health
care costs. People with lack of formal schooling also face serious employability
related issues. Illiterate people are less aware of their rights and duties and hence
end up accepting precarious and low quality employment.

The impact of adult illiteracy can be divided into the following categories:
1) Health: Illiteracy limits a person’s ability to understand and absorb the
knowledge related to self care. The inability to comprehend such messages
has a negative impact on household health, hygiene and nutrition.
2) Education: Illiterate parents tend to have little expectations and aspirations
for themselves and their children. Children of parents who have not attended
school or failed to complete primary education tend to do the same. Parent’s
schooling also has a close correlation with a child’s academic performance
and behaviour.
3) Economic: Literacy and schooling are believed to have a significant impact
on individual’s income. People who have not completed primary education
are less likely to get good jobs or avoid poverty.
4) Social Integration and Cohesion: In terms of social integration and cohesion,
illiterate persons are often denied the social recognition they deserve, and
suffer from low self-esteem, display little autonomy and possess little ability
for critical thinking (UNESCO, 2006). Illiterate people have less
opportunities to be aware of and to make use of individual rights or
participate in attainment of collective rights.

Activity 1
Discuss with your friends/colleagues regarding various skill sets that would
help in better employment of youth in your district. Write down the
suggestions given.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
115
Key Thematic Areas in Check Your Progress -1
CSR-II
Note: a) Use the space given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) Explain the different skill levels.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

2) What are the effects of illiteracy on human lives?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

3.4 GOVERNMENT PROGRAMMES FOR

EDUCATION AND SKILL DEVELOPMENT
3.4.1 Education
There are several programmes started by the Government of India in order to
achieve universalization of elementary education. The National Policy on
Education was first promulgated in 1968 with the objective of promoting
education among the people. A new policy was then developed in 1986 which
was later revised in 1992. In 2019, the Ministry of Human Resource Development
released a Draft New Education Policy, 2019. In line with the principles of
National Education Policy, the government has come up with various schemes
from time to time to ensure equitable education for all. For more details, you can
click on the link provided.

1) Samagra Shiksha: It was introduced in the Union Budget, 2018-19 with

the aim to treat school education holistically without segmentation from
pre-nursery to Class 12. Samagra Shiksha aimed to extend school education
from pre-school to class 12 so as to improve school effectiveness measured
in terms of equal opportunities for schooling and equitable learning
outcomes. It subsumes the three schemes of Sarva Shiksha Abhiyan (SSA),
Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education
(TE) (http://samagra.mhrd.gov.in/).

2) Right to Education: According to the Right of Children to Free and

Compulsory Education (RTE) Act, 2009, every child has a right to full time
elementary education of satisfactory and equitable quality in a formal school
116
 which satisfies certain essential norms and standards. ‘Compulsory Education and Skill
Development
education’ casts an obligation on the appropriate government and local
authorities to provide and ensure admission, attendance and completion of
elementary education by all children in the 6-14 age group (https://
mhrd.gov.in/rte)

3) Mid-Day Meal Scheme: The National Programme of Nutritional Support

to Primary Education (NP-NSPE) was launched on 15th August 1995 with a
view to enhancing enrolment, retention and attendance and simultaneously
improving nutritional levels among children. In 2001, it became a cooked
Mid-Day Meal Scheme under which every child in every Government and
Government aided primary school was to be served a prepared Mid-Day
Meal with a minimum content of 300 calories of energy and 8-12 gram
protein per day for a minimum of 200 days. In 2002, the Scheme was further
extended to cover not only children studying in Government, Government
aided and local body schools, Education Guarantee Scheme (EGS) and
Alternative & Innovative Education (AIE) centres. (https://mhrd.gov.in/mid-
day-meal)

4) Scheme to Provide Quality Education in Madrasas: SPQEM seeks to

bring about qualitative improvement in Madrasas to enable Muslim children
attain standards of the national education system in formal education
subjects. (https://mhrd.gov.in/spqem)

5) Scheme for Infrastructural Development in Minority Institutions: In

order to enhance quality of education to minority children, IDMI was
operationalised to augment infrastructure in private aided/unaided minority
schools/institutions.

6) Sakshar Bharat: This programme was formulated in 2009 with the objective
of achieving 80% literacy level at national level. It aims to reduce the gap
between male and female literacy to not more than 10 percentage points by
focusing on adult women literacy. The principal target of the programme is
to impart functional literacy to 70 million non-literate adults in the age
group of 15 years and beyond. (https://mhrd.gov.in/saakshar_bharat)

3.4.2 Skill Development

Skill development is a critical factor for employability. A very small percentage
of fresh graduates are considered employable and majority of them lack the skills
required to needed to be hired by corporates. In order to enhance the employability
of the workforce, Government of India has taken several initiatives for skill
development. For more details, you can click on the links provided.

1) Pradhan Mantri Kaushal Vikas Yojana (PMKVY): PMKVY is the

flagship scheme of the Ministry of Skill Development & Entrepreneurship
(MSDE). The objective of this scheme is to enable the youth to take up
industry relevant skill training that will help them in securing a better
livelihood. Individuals with prior learning experience or skills will also be
assessed and certified under Recognition of Prior Learning (RPL). Under
this Scheme, training and assessment fees are completely paid by the
Government. (https://www.msde.gov.in/pmkvy.html)

117
Key Thematic Areas in 2) Skill Acquisition and Knowledge Awareness for Livelihood Promotion
CSR-II
(SANKALP): SANKALP was launched on 19th January, 2018. SANKALP
aims to address the ongoing challenges like bringing about convergence,
infusing quality in skill development programmes and making them market
relevant and accessible while ensuring private participation in the context
of short-term training. (https://www.msde.gov.in/assets/images/sankalp/
note.pdf).

3) UDAAN: Udaan is a Special Industry Initiative for Jammu & Kashmir

implemented by National Skill Development Corporation. It is based on
partnership between the corporates of India and the Ministry of Home Affairs
and aims to provide skills training and enhance the employability of
unemployed youth of J&K. The scheme covers graduates, post graduates
and engineering diploma holders. It has two objectives:

i) To provide an exposure to the unemployed graduates to the best of

corporate India;

ii) To provide corporate India, an exposure to the rich talent pool available
in the state. (https://www.msde.gov.in/udaan.html).

4) Vocationalization of Higher Education: In order to bridge the industry

academia gap – NSDC (National Skill Development Corporation), this
scheme was developed to integrate skill-based trainings into the academic
cycle of the Universities. These are based on National Occupational
Standards set by industry through sector skill councils. (https://
www.msde.gov.in/higher-education.html)

5) Sub-Mission on Polytechnics under the Coordinated Action for Skill

Development 2015-16: The schemes under this sub-mission are:
i) Setting up of new polytechnics in unserved and underserved districts
ii) Scheme of community development through polytechnics
iii) Central assistance for construction of women’s hostel in selected
polytechnics
iv) Central assistance for upgradation of selected polytechnics
v) Scheme for integrating persons with disabilities in the mainstream of
technical and vocational education.

3.5 ROLE OF CSR IN PROMOTING EDUCATION

AND SKILL DEVELOPMENT
Education and skill development are fast emerging as preferred choices for CSR
initiatives in India.

3.5.1 Role of CSR in Promoting Education

Education is the backbone of any developed economy. In spite of the Right
Education Act passed in 2009, which envisages free and compulsory education
for children, many children are still deprived of education and forced into child
labour. Most of the government schools lack basic amenities, adequate
118 infrastructure, adequate teachers, effective teaching aids and efficient school
management, etc. Also, the drop out rates are high especially among girls. The Education and Skill
Development
governments are constrained with resources to tackle these issues and hence the
involvement of corporate sector is important to complement the efforts of the
government. In India, CSR in education mostly involves steps towards
construction of school building, scholarships for underprivileged children,
sponsorships of teaching aids, books, uniform, bags etc. awareness creation,
transport facilities, teacher’s training and providing other related infrastructure.

Other CSR practices for the education sector that are increasingly gaining
popularity among specific industries include the promotion of computer illiteracy,
establishment of gender equity by targeting girls from economically disadvantaged
families for quality education, provision of toilets and maintenance of a clean
and hygienic school environment, customization of programmes designed to
provide educational support to children with disabilities, provision of nourishment
to students, psychological support to underprivileged students by providing
motivational talks on leadership development, personality development,
establishment of training institute for teachers, libraries for rural school education
of slum children and night schools for uneducated adults for empowerment of
illiterate public in surrounding villages, tribal areas (Deshmukh, 2017).

Awareness creation is one of the important ways in which CSR initiatives can
spread awareness about the importance of education. Companies can provide
their active support to the public education system through providing support in
development of curriculum and study materials, teacher’s training, academic
monitoring of school, etc.

With the increased virtualization of education, opens up huge potential for CSR
initiatives to use the potential of digital India to spread education to the huge,
diverse population of the country. Teacher’s can be trained in the use of computers
to impart education to students across the country. Several companies can also
come together to make available to the students in the remote areas the needed
infrastructure and training to be able to reap the benefits of digital India.

There are three models prevailing in the country wherein corporates can carry
out their CSR activities in the field of education. They can own the programme,
be a fund provider for an educational programme or be an implementation partner.

1) Corporates can initiate, conceptualize and implement an educational

programme on their own through their foundations.

2) Corporate can provide support, either financial or material, to development

initiatives in education run by NGOs, Government Institutions or partner
with other corporate.

3) Corporates can help in designing and implementing development initiatives

of third party entities like government or other corporates.

3.5.2 CSR and Skill Development

CSR by corporates has a crucial role to play in accomplishing national agenda
for skilling India. There are several ways in which skill development can be
supported through CSR initiatives of the corporate.

119
Key Thematic Areas in 1) By funding the training of socially and economically disadvantaged,
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underprivileged and differently abled by establishing their own foundations
or funding training organized by other organizations or NGOs.

2) Corporates can either set up new institutions or modernise the existing ITIs
or vocational training institutes with latest tools and technologies, software,
support services, knowledge transfer, finances or infrastructure.

3) In order to enable livelihoods in rural areas, corporates can facilitate

microfinance so as to supplement training and skill development. Corporates
can also support programmes involving vocational trainings in schools.

4) Corporates can sponsor professional counselling for mobilizing people to

enrol for skill development courses. Corporates can also provide funding
for capacity development and meeting the requirement of qualified human
resources to manage their projects effectively.

5) Encourage startups, self help groups and micro enterprises through seed
funding, mentoring and incubation support. Besides sharing knowledge and
best practices, corporates can sponsor projects that have demonstrated high
impact through innovative models and technology-enabled initiatives in skill
development and vocational education. They can also support entrepreneurs
who are working on initiatives to support work-integrated training through
entry level skilling and upskilling. Specific skills intervention for self help
groups could increase their efficiency and outcomes. Innovative ideas that
could help scale at the village level could be supported through the incubation
phase and also mentor support be provided (Chenoy, 2016)

3.6 CASE STUDIES OF CSR INITIATIVES IN

EDUCATION AND SKILL DEVELOPMENT
3.6.1 CSR Initiatives of Corporates in Education
1) Promotion of education in Jharkhand and Orissa by Tata Steel Limited
The project aims at increasing access of children to school by improving the
quality of education in government schools in these states. Tata Steel operates
two all girls schools at Pipla and Noamundi and an all boys school (Masti Ki
Pathshala) at Jamshedpur. In order to reintegrate the out of school children into
the formal education system, residential bridge courses are provided by these
schools. Also, to provide quality education to 30 educationally backward blocks
in Orissa, Tata Steel entered into a MOU with the government of Orissa to
construct 30 model schools.

Impact: By the end of FY 2017-18, the initiative has benefited 2 lakh children in
2800 habitations in Orissa and Jharkhand. 1165 habitations are now free of child
labour. There has also been quality improvement in the functioning of the schools
in Orissa with attendance going upto 90 percent in some of the schools, regular
PTA meetings, good quality mid day meals, school projects, children’s festivals,
active libraries etc. Overall there has been an improved learning environment
due to better infrastructure for 5000 children in 9 model schools.

120
2) Project Catch Them Young with Road Safety Clubs (RSC) by Hero Education and Skill
Development
MotoCorp Limited
In order to sensitize students about road safety, the company has created road
safety clubs in 1150 schools across India by the end of FY 2017-18. The company
also supports 2200 Student Police Cadets who propagate road safety message
and help in overall personality development and inspire their peers to be conscious
and responsible citizens. The mobile safety vans of the company support the
road-safety awareness activities of the clubs as well as the SPCs.
Impact: i) The project has been successful in creating RCS in 1,150 schools.
ii) It has created 2,200 SPC’s.
3) Learning Made Fun and Promoting Educational Initiatives by HDFC
Bank Limited

In order to bring about an improvement in the quality of education, the programme

focuses on teacher’s training, scholarships and career guidance so as to improve
the standard of education in communities across India. Their flagship programmes,
‘Zero Investment Innovations for Education Initiatives’, ‘Teaching the Teacher’
seek to transform education in government schools across India. This programme
aims at benefitting the students by improving the skills of the teachers.

Impact: By the end of FY 2017-18, the programme has oriented 10, 47, 250
teachers covering 1, 47,021 schools.

4) CSRL Super 30
It is the flagship programme of Centre for Social Responsibility and Leadership.
It provides one year free residential coaching and mentorship for admissions to
IITs, NIITs etc. This initiative began in 2009 when the first CSRL Super 30 unit
was established in Kanpur with support from GAIL India Ltd. The success of
this programme fuelled the opening of 2 more units in 2010 and today there are
20 units (spread across UP, Delhi, Assam, Arunachal Pradesh, Odisha, Rajasthan,
Maharashtra, Kashmir and Uttarakhand) where more than 750 students are
receiving the benefit. The well thought out system of residential mentoring focuses
on a one-to-one relationship with our students and enables us to invest in their
holistic development. Several such initiatives have since been established across
India with the support of PSUs like Indian Oil, ONGC, NTPC, etc.

5) Satya Bharati School Programme of Bharati Airtel Limited

Satya Bharati School Programme is the flagship programme of Bharati Airtel
Limited. It is a rural education initiative and aims to provide quality education to
students in the rural areas free of cost. This programme has a special focus on the
girl child and aims at transforming students into confident, self reliant, educated
employable citizens. The programme also encourages involvement of parents of
students, the community and other organizations involved in education. It operates
in 13 states across India and aims at developing replicable and scalable
components of quality education which can be adopted by government and other
educational institutions.

Impact
By the end of FY 2017-18 it has reached 45,388 students and 1,617 teachers
in 254 schools. 121
Key Thematic Areas in 50% of the total students are girls of which 76% are from minority community
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70 % of the teachers employed are women.
Nine Satya Bharti students among the coveted top 100 at the ‘Design For
Change’ contest that recognizes impactful community campaigns addressing
social change.

3.6.2 CSR Initiatives of Corporates in Skill Development

1) Construction Skills Training Institutes (CSTIs) by Larsen and Toubro

L&T Ltd has set up eight Construction Skills Training Institutes (CSTIs) running
across the country to contribute to the demand for quality craftsmanship in
construction. These institutes provide free vocational training in constructional
skills to the unorganized workers. Skills like bar-bending, formwork, carpentry,
masonry, scaffolding, and welding are taught to illiterate youth and school
dropouts. To encourage the participants to complete the course, stipend, hostel
facilities and a completion certificate are also given.

Impact: By FY 2016-17, 7000 youths have been trained under this programme.

2) Skill development programmes by Oil India Limited

The company offers various industry relevant placement linked skill training
and capacity building programmes in construction industry (plumbing, masonry,
carpentry, welding, etc.) housekeeping & hospitality, food & beverages,
electrician, sewing machine operator, BPO/Voice calling, general duty assistant,
etc.. in Dibrugarh, Tinsukia and Sivsagar districts of Assam for youth aging
between 18 to 35 years. These programmes are certified by NSDC government
of India. The implementation partners of the programme include IL&FS Education
& Technology Services (New Delhi), Construction Industry Development Council
(New Delhi), Indian Institute of Entrepreneurship (Guwahati), Pragati Edutech
(Guwahati), Gyanjyoti Foundation (Guwahati), Gram Tarang (Guwahati) and
Downtown Hospital (Guwahati).

Impact: Since the launch of the project in 2013-14 till 2016-17, a total of 8,560
candidates have been successfully trained, 78% of which have found placement
in various industries across the country. Further, entrepreneurship education
programmes for students and teachers of schools and colleges were conducted
under the project benefitting 4290 participants.

3) Skill development programmes by adopting and upgrading ITI’s by

Maruti Suzuki India Limited

Maruti Suzuki is working with 141 ITIs across India. A Japanese expert through
a Japan-based Human Resources and Industry Development Association (HIDA)
was invited by the company for a period of two weeks to train teachers/students
on latest technologies at ITI Pusa, Delhi. Students were imparted training on
global best practices in vehicle service and repair and latest automobile
technologies along with training in soft skills like discipline, punctuality,
cleanliness, safety, and quality in the field of service.

Impact: A total of 144 students, studying the Maruti Suzuki training module has
been employed by Maruti Suzuki dealers in all.
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4) Skill development through ISO certified rural BPOs by JSW Steel Education and Skill
Development
Limited
With a vision of skilling 2 Lakh people of the age group of 18 to 35 years over a
period of five years, the company has designed the CSR initiatives in line with
the ‘Kushal Bharat Kaushal Bharat’ vision of Hon’ble Prime Minister. The project
operates in three states of Tamil Nadu (Vijaynagar), Maharashtra (Vasind, Dolvi,
Kamleshwar), Uttarakhand (Tarapur).

Impact: From initiation till FY 2016-17, 6000 people have been already skilled
through an ISO certified rural BPO and nearly 280 women have started enjoying
financial empowerment and have become instrumental in motivating others.

5) Skill development programmes by establishing vocational education

and training centers through the implementing partner by Idea Cellular

Livelihood education training is imparted to youngsters in the age group of 18 –

30 years who have completed 12th and dropped out of college. For this purpose,
they are operating Vocational Education and Training (VET) centers, operating
in 6 States. Training is provided in sustainable and marketable skills and 10
other training programmes with six technical services namely, Household
Electrician, Hardware & Mobile Technician, Field Technician CD & WG, Salon
Executive, Tailoring, Logistics Operations Executive and four Service Sector
Programmes; Retail Stores Exec, BFSI Executive, Hospitality Executive and
OA/DEO are provided to the candidates.
Impact: The project reaches out to 1800 youngsters in 6 States
Activity 2
Visit a nearby CRS programme on education or skill development and write
about its impact on the community.
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Check Your Progress -2
Note: a) Use the space given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) Write in brief about the Right to Education Act, 2009.
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123
Key Thematic Areas in 2) What are the models prevailing in the country wherein corporates can carry
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out their CSR activities in the field of education?
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3.7 LET US SUM UP

Education equips people with the required knowledge, skill, technique and
information required to empower people to lead a meaningful life. Skill
development is another important aspect which helps in improving employment
opportunities among the masses. In this unit you have read about the status of
literacy and skill development in India. The ill effects of illiteracy and lack of
skills has also been discussed. The government has initiated several programmes
towards enhancing the literacy and skill levels of the people. Various such
government programmes have also been discussed in this unit. You have also
read about the role of CSR in literacy and skill development. Finally, several
case studies on how CSR has helped in promoting literacy and skills have been
discussed.

3.8 KEYWORDS
Skill : The ability, coming from one’s knowledge, practice, aptitude,
etc., to do something well
Literacy : The ability to both read and write with understanding in any
language.

3.9 BIBLIOGRAPHY AND SELECTED READINGS

Anand, I. and Thampi, A. (2019). 33% of India’s skilled youth jobless: official
survey. Live Mint, August 7, 2019.

Chenoy, D. (2016). CSR in Skill Development- Five Models. In CSR in Skill

Development: Avenues, Insights and Impacts. National Skills Network on 29th
October, 2016.

Shukla, Shree and Rani, G. (2019). Explained: Gap between Skill India goals
and current status. Financial Express, 19th March, 2019.

UNESCO, (2006). “Why Literacy Matters.” In UNESCO (Ed.), Education for

All. Literacy for Life (pp. 135-145). Paris: UNESCO Publishing

Martinez R. and Fernandez A. (2010). The Social and Economic Impact of

Illiteracy- Analytical Model and Pilot Study. United Nations.

https://economictimes.indiatimes.com/news/economy/indicators/india-enters-37-
year-period-of-demographic-dividend/articleshow/70324782.cms
124
https://csrbox.org/India_CSR_news_Top-10-Education-CSR-Projects-in-India- Education and Skill
Development
in-2018_361

https://csrbox.org/India_CSR_news_-A-list-of-10-big-CSR-projects-in-skills-
development-in-India-(FY-2016-17)_289

3.10 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress - 1
Answer 1: There are four levels of skills.
Level 1 Skills involving simple and routine physical or manual tasks
Level 2 Skills involving operation of machinery and electronic equipment.
Level 3 Skills involving written records of work, simple calculations, good
personal communication skills in specialized fields
Level 4 Skills involving decision making and creativity based on theoretical and
factual knowledge
Answer 2: The impact of adult illiteracy can be divided into the following
categories:
1) Health: Illiteracy limits a person’s ability to understand and absorb the
knowledge related to self care.
2) Education: Children of parents who have not attended school or failed to
complete primary education tend to do the same
3) Economic: People who have not completed primary education are less likely
to get good jobs or avoid poverty.
4) Social Integration and Cohesion Illiterate people have lesser opportunities
to be aware of and to make use of individual rights or participate in
attainment of collective rights.
Check Your Progress - 2
Answer 1: According to the Right of Children to Free and Compulsory Education
(RTE) Act, 2009, every child has a right to full time elementary education of
satisfactory and equitable quality in a formal school which satisfies certain
essential norms and standards. ‘Compulsory education’ casts an obligation on
the appropriate Government and local authorities to provide and ensure admission,
attendance and completion of elementary education by all children in the 6-14
age group.
Answer 2: There are three models prevailing in the country wherein corporates
can carry out their CSR activities in the field of education.
1) Corporates can initiate, conceptualize and implement an educational
programme on their own through their foundations.
2) Corporate can provide support, either financial or material, to development
initiatives in education run by NGOs, Government Institutions or partner
with other corporate.
3) Corporates can help in designing and implementing development initiatives
of third party entities like government or other corporates. 125
Key Thematic Areas in
CSR-II UNIT 4 AWARENESS CREATION
Structure
4.1 Introduction
4.2 What is Awareness?
4.3 Major Challenges in India
4.4 Approaches and Steps for Awareness Campaign
4.5 Case Studies-Awareness Creation
4.6 Let Us Sum Up
4.7 Keywords
4.8 Bibliography and Selected Readings
4.9 Check Your Progress - Possible Answers

4.1 INTRODUCTION
Awareness is the first essential step in any kind of development, awareness
creation is meant to convey the knowledge and skills that will contribute to more
ideas about the products. Awareness offers more than just hope. It can lead to
action. To be effective in our efforts, we need to make sure we help others translate
that awareness into actionable items. This can be through helping to change
behavior or acting upon beliefs. Raising awareness can be an important part of
developing community support for changes in the informal justice sector, it has
been shown to change knowledge and attitudes about violence against women,
raising public awareness involves creating a specific messaging campaign about
a particular issue. Public awareness is important because safe cities for women
are created when people in cities work together to eliminate violence against
women and girls. The public also has to believe and share values that women’s
safety is an important issue in the community.

After reading the unit, you will be able to:

Understand what is awareness
Explain the various awareness initiatives taken to spread awareness
Describe the steps for successful awareness campaigns

4.2 WHAT IS AWARENESS?

Awareness means understanding of a situation or subject at the present time,
based on information or experience. Raising public awareness involves creating
a specific messaging campaign about a particular issue. Awareness creation is
important to change the knowledge and attitude of a community towards any
particular issue. Awareness creation can be done through various awareness
campaigns including events, poster campaigns, websites, documentaries,
newspaper articles, radio, TV, or theatre programmes.

It is generally accepted that to raise public awareness of a topic or issue is to

attempt to inform a community’s attitudes, behaviours and beliefs. Furthermore,
it is our intention through information to influence these attitudes, behaviours
126
and beliefs positively in the achievement of a defined purpose or goal: for example, Awareness Creation
improving public health or promoting information literacy. The theory and practice
of public awareness-raising has always drawn heavily on the literature of mass
communication and social or “social change” marketing. Social change marketing
refers to the practice of communicating or selling a ‘good idea’ with the stated
object of changing community attitudes and actions. Seeking and using
information (Information Literacy) is one such good idea, but other examples
include messages about public health and education, environmental concerns
and social inclusion (Sayers, 2006).

To raise awareness about something entails promoting its visibility and credibility
within a community or a society. The destruction caused by the tsunami in 2004
directed attention of NGOs and scientists alike towards the importance of
awareness in influencing people’s response and behaviour during such a crisis.
It brought home the realization that the early warning systems by themselves
would not work unless the people were told how to respond to the warnings. The
technical means of detecting the undersea earthquake would be useful only if the
awareness of the people is raised so as to ensure correct actions in the event of
detection of another tsunami in that region.

4.3 MAJOR CHALLENGES IN INDIA

Let us now discuss some of the major challenges in India where awareness creation
would help in mitigating these challenges.

I) Rural Healthcare
The rural populations, who are the prime victims of the policies, work in the
most hazardous atmosphere and live in abysmal living conditions. Unsafe and
unhygienic birth practices, unclean water, poor nutrition, subhuman habitats,
and degraded and unsanitary environments are challenges to the public health
system. The majority of the rural population are smallholders, artisans and
labourers, with limited resources that they spend chiefly on food and necessities
such as clothing and shelter. They have no money left to spend on health. The
rural peasant worker, who strives hard under adverse weather conditions to
produce food for others, is often the first victim of epidemics.

The majority of rural deaths, which are preventable, are due to infections and
communicable, parasitic and respiratory diseases. Infectious diseases dominate
the morbidity pattern in rural areas (40% rural: 23.5% urban). Waterborne
infections, which account for about 80% of sickness in India, make every fourth
person dying of such diseases in the world, an Indian. Annually, 1.5 million
deaths and loss of 73 million workdays are attributed to waterborne diseases.

Three groups of infections are widespread in rural areas, as follows.

i) Diseases that are carried in the gastrointestinal tract, such as diarrhoea,

amoebiasis, typhoid fever, infectious hepatitis, worm infestations and
poliomyelitis. About 100 million suffer from diarrhoea and cholera every
year.

ii) Diseases that are carried in the air through coughing, sneezing or even
breathing, such as measles, tuberculosis (TB), whooping cough and
127
Key Thematic Areas in pneumonia. Today there are 12 million TB cases. Over 1.2 million cases
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are added every year and 37,000 cases of measles are reported every year.

iii) Infections, which are more difficult to deal with, include malaria, filariasis
and kala-azar. These are often the result of development. Irrigation brings
with it malaria and filariasis, pesticide use has produced a resistant strain
of malaria, the ditches, gutters and culverts dug during the construction of
roads, and expansion of cattle ranches, for example, are breeding places for
snails and mosquitoes. About 2.3 million episodes and over 1000 malarial
deaths occur every year in India. An estimated 45 million are carriers of
microfilaria, 19 million of which are active cases and 500 million people
are at risk of developing filariasis. Awareness on the importance of sanitation
and hygiene would help to reduce the incidences of such diseases.

II) Environment
i) Water pollution: India has major water pollution issues. Discharge of
untreated sewage is the single most important cause for pollution of surface
and ground water in India. There is a large gap between generation and
treatment of domestic waste water in India. The problem is not only that
India lacks sufficient treatment capacity but also that the sewage treatment
plants that exist do not operate and are not maintained. The majority of the
government owned sewage treatment plants remain closed most of the time
due to improper design or poor maintenance or lack of reliable electricity
supply to operate the plants, together with absentee employees and poor
management. The waste water generated in these areas normally percolates
in the soil or evaporates. The uncollected waste accumulates in the urban
areas and cause unhygienic conditions and release pollutants to surface
and ground water.

ii) Air pollution: Air pollution in India is a serious issue with the major sources
being fuel wood and biomass burning, fuel adulteration, vehicle emission
and traffic congestion. Air pollution is also the main cause of the Asian
brown cloud, which is causing the monsoon to be delayed. India is the
world’s largest consumer of fuel wood, agricultural waste and biomass for
energy purposes. Traditional fuel (fuel wood, crop residue and dung cake)
dominates domestic energy use in rural India and accounts for about 90%
of the total. In urban areas, this traditional fuel constitutes about 24% of the
total. Fuel wood, agri waste and biomass cake burning releases over 165
million tonnes of combustion products into India’s indoor and outdoor air
every year. These biomass based household stoves in India are also a leading
source of greenhouse emissions contributing to climate change.

iii) Solid waste pollution: Trash and garbage is a common sight in urban and
rural areas of India. It is a major source of pollution. Indian cities alone
generate more than 100 million tons of solid waste a year. Street corners
are piled with trash. Public places and sidewalks are despoiled with filth
and litter.

III) Road Accidents

As per the government data, almost 1.5 lakh people lost their lives in road
accidents in 2017, which means every hour 17 people died on the road due to an
accident. The number of fatalities is one third of the number of accidents, which
128
amounts to 53 road accidents every hour. Awareness on importance of following Awareness Creation
traffic rules to avoid accidents can help avert them.

IV) Infant Mortality rate

India has reduced its infant mortality rate (IMR) by 42% over 11 years-from 57
per 1,000 live births in 2006 to 33 in 2017 (as per the latest government data
released on May 30, 2019). Despite the reduction, India’s IMR in 2017 remained
higher than the global 29.4, a rate equivalent to that of the West African nation
of Senegal and higher than most South Asian neighbours except that of Pakistan
and Myanmar. IMR is considered a rough indicator of a country’s overall
healthcare scenario. In 2017, India’s rural areas had an IMR of 37 and urban
areas 23, revealing difference in healthcare quality and access despite
implementation of a national programme to bridge this gap, the National Rural
Health Mission, since 2005. Creating awareness about various government
programmes in the rural areas would help in bringing down the mortality rates in
the rural areas.

4.4 APPROACHES AND STEPS FOR

AWARENESS CAMPAIGN
In this section we will learn about the various approaches for raising awareness
and steps involved in successful awareness campaigns.

4.4.1 Approaches for Raising Public Awareness

Common approaches and techniques for raising public awareness include:
Personal communication with community members through public meetings,
presentations, workshops and informal social events
Structured education and training programmes in schools, colleges and
universities
Exhibitions and displays
Printed materials - like brochures, billboards, cartoons, comics, pamphlets,
posters, and resource books
Audiovisual resources - for example, pre-recorded video CDs
Interviews and articles in newspapers, magazines and e-publications
Interviews and news items on radio and television
Social awareness through celebrity endorsement- for example, actress Vidya
Balan became the brand ambassador of sanitation campaign of the
government of India and would promote the construction and use of toilet
in rural India.
Where oral traditions dominate, performances of specially composed stories,
songs, dances, plays and poems, eg., Kerala police dance video to encourage
hand washing during Corona times, 2020. https://www.youtube.com/
watch?v=Nun2xJdY68E
Strategic partnerships and alliances with other organizations - for example,
local schools and civil society
Political advocacy
129
Key Thematic Areas in
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Activity 1

Go through some of the awareness campaigns endorsed by an Indian celebrity

and write about it. Do you think people respond more to campaigns endorsed
by celebrities?
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4.4.2 Steps for Successful Awareness Campaign

Let us now look at some of the steps to be followed for a successful awareness
campaign.

1) Set objectives- Develop a comprehensive campaign plan, including the

clearly defined short-term, long-term and SMART = specific, measurable,
achievable, realistic, time bound objectives. This would help to guarantee
to establish initial realistic goals and to develop each promotional activity
in a well paced manner that would work towards the achievement of the
objectives.

2) Target Groups – Identifying target groups will go a long way in helping to

select the most relevant approach to reach and influence their behavior.

3) Identify tools and channels to use campaign– Identify which tools should
be used to spread the messages should be identified, like mass media, social
media, print media.

4) Identify partners and networks - Campaign developers are advised to

pick suitable partners with well established sectoral networks within their
field of competence so that they could act as an efficient multiplier and
complement each other when implementing campaign activities.

5) Identify sources of funding - In this step the importance of identification

of multiple sources of funding and pooling of resources to reduce costs is
emphasised. The latter one optimizes campaign and programme outcomes
in terms of promotion and awareness raising of each other, reduced costs,
avoiding the repetition of efforts and reducing the proliferation of disjoined
initiatives with limited potential of impact. While multiple funding sources
strengthen financial sustainability of the campaign. Also, sponsors usually
want to highlight their participation in the campaign. In this way greater
promotion of the activity may be achieved.

6) Develop campaign messages- Awareness raising campaigns should clearly

communicate the message or messages.

130
7) Other planning considerations- A campaign’s success can be furthered Awareness Creation
by ensuring that it is not a standalone initiative, i.e., by integrating it within
broader initiatives. Also, campaigns with a wide geographical reach should
be adapted to meet needs across different areas. At the same time, the one
identity of the campaign should remain. Additionally, to be sustainable and
successful, the campaign should include an aspect of capacity building,
i.e., participants and disseminators should be well aware of its aim and
have to feel a sense of ownership regarding the outcomes of the campaign.
Also, they have to ensure that all stakeholders involved with the campaign
have the same understanding of what they are working towards

8) Develop campaign- It is recommended that campaigns be centralized, but

its implementation decentralized. This would allow enough flexibility to
address local-level challenges and adapt the campaign to each specific
context whilst ensuring national consistency.

9) Promote Campaign - campaign developers should focus on measuring all

the outcomes and collect evidence on what activities have impact on adults
and when. During the campaign its promoters should also fully use internal
networks, contacts and informal channels of communication as it can be
useful in promoting the debate and attention to specific issues.

10) Monitor and evaluate campaign - Campaign policy developers are advised
to monitor national research. This would help to identify the existing needs
of the target groups and, consequently, develop relevant activities. Also,
this would help to identify the research gaps and to concentrate original
research on these gaps. Additionally, before launching a campaign, campaign
developers are advised to pilot programmes. This would help to identify
and verify the approaches, channels and activities prepared for the target
group and select the best ones. Besides, support for external evaluation
with internal monitoring should be provided. Such combination would help
to prepare a comprehensive evaluation encompassing all emerging trends
and tendencies on campaign and, respectively, develop specific
recommendations for actors in charge of implementing the programme.
Finally, to strengthen a campaign’s success collection of best practice
examples is advised.
Check Your Progress - 1
Note: a) Use the space given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) What do you understand by awareness?
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131
Key Thematic Areas in 2) Write down the steps involved in successful awareness campaigns.
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4.5 CASE STUDIES-AWARENESS CREATION

1) DLF Foundation: Rural Health Awareness
DLF Foundation aims at evolving innovative and action based solutions to help
needy sections of society fulfill their unrealized aspirations for a better life through
interventions in the areas of health, education, and employment linked skill
development. The foundation empowers communities by creating multiple
opportunities and providing platforms for the underprivileged by promoting
inclusive growth which is holistic, sustainable and socially uplifting, thus enabling
them to emerge as significant contributors in India’s growth story.

Rural healthcare is one of the biggest challenges that India is facing today. High
mortality rates are subjected to poor health care facilities in the rural areas of
India. More than 70% of India’s population is living under the roof of rural setup.
These poorly established houses experience lack of proper supply of water and
electricity. They manage to get a little water from far away distant places in
order to proceed with their daily activities.

Apart from this, their situation is vulnerable because of lack of education and
public health awareness. The key challenges in the health care domain are poor
accountability, low quality care, lack of health awareness and limited access to
health facilities. As a result, majority of people in India, turn to local private
health sector as their first choice of care. Local private health care is expensive
and unregulated sometimes. Considering the entire picture, DLF Foundation took
the initiative of introducing rural India to health awareness programme. With the
objective to fill the gaps in implementation of various policies and programmes
which failed to meet the goals of a healthy rural India. It aims to educate rural
India and make them aware of how to take proper care of their health. This
programme is focused towards addressing issues of personal health care,
vaccination, hygiene, and illness prevention.

The Foundation operates with the commitment to health for all. Organizing various
health camps at regular intervals are targeted towards providing health solutions.
These health camps impart health education and sensitize the community on
preventive and promotive health grounds. These camps are aimed at generating
awareness, diagnosis and treatment of numerous health hazards. Specialized
health camps are organized for eye care, TB, malaria, anemia, dengue, and
diarrhea, worm infestation, skin infections and STD/HIV diseases.

For all these, people are encouraged to incorporate healthy habits and take various
preventive measures. In addition, people are also spurred to boost up their daily
nutrition intake. They are also given information on how to integrate and maintain
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hygiene in their lifestyle. Apart from that, special attention is given to women’s Awareness Creation
reproductive health. Women’s health care camps also foster women to seek
medical aid for their reproductive health and well being. Counseling couples,
educating adolescent girls and other informative activities too are undertaken by
DLF Foundation.
The complete health awareness programme is focused towards making rural
people aware of how they can maintain a healthy lifestyle while undertaking
various preventive measures.
2) Tata Steel
Tata Steel launched ‘The Green School Project’ in association with TERI. The
project was launched at Tata DAV Public School, Joda. This initiative is aimed
at creating awareness and understanding about environment issues in school
campuses in the operational areas of Tata Steel. The Energy and Resources
Institute (TERI), a leading research institute in the fields of energy, environment
and sustainable development based in New Delhi, will be actively involved in
promoting environment messaging through classrooms and outdoor activities.
There are 10 schools identified across the state of Jharkhand and Odisha in the
1st phase of the ‘Green School Project’. The schools selected are: Model School
Jamposi, Jajpur; Stewart School, Sukinda; St Mary’s High School, Noamundi;
DAV Public School, Noamundi; St Teresa School, Joda; DAV Public School,
Joda; Residential Bridge School, Joda; Holy Cross School, West Bokaro; DAV
School, Jamadoba and Government High School, Tomka, Bamnipal.

The project will run for 15 months in these schools. There will be year-round
activities related to environment in these schools. “Whole school” approach will
be adopted with emphasis on students of Class 6 to 8 in the formal schools for
capacity building initiatives. For students from Bridge Schools, focus will be on
striving to mainstream them in project activities by promoting communication
through art and craft, theatre, folklores etc.

3) Reliance Industries Limited (RIL)- (Alert today – Alive Tomorrow)

This initiative was started to improve road safety awareness among students
with a view to reduce their risks of road accidents and develop capacity and
awareness of students as well as their parents regarding road safety. This is an
initiative to promote the health and well being of children in the traffic
environment and sensitize the parents through high school students. Basic
instructions such as importance of using a seat belt, places children can use in
order to ride their cycle, how one should cross the road etc. were meted out to
students in an effort to ensure their safety.

i) Safety Matters
Training and demonstration activity on fire and safety was organized for 250
students of Sanjeevani Primary School, Damka village. Basic knowledge about
fire and its types, mitigation methods were explained to the students with proper
demonstration.

ii) Road Safety Awareness Programmes

RIL conducts rigorous safety programmes to ensure and instill road safety among
bus drivers and cleaners. The road safety briefing session was conducted for
drivers and cleaners and included various aspects of road safety. 133
Key Thematic Areas in iii) Drivers Safety Training Centre
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In an endeavour to prevent road accidents, truck / tanker drivers are trained for
‘Defensive Driving Techniques’ and ‘Material Transportation’ at Drivers Safety
Training Centre (DSTC), Hazira. This Centre is fully equipped with audio video
equipment to impart training to truck drivers on safety rules, efficient driving
techniques, understanding hazards associated with various materials and
emergency responses. 21,092 drivers were trained through this initiative during
FY 2014-15 (over 2,60,000 since its inception).
4) Swachh Bharat Abhiyan (SBA) or Swachh Bharat Mission (SBM)
Swachh Bharat Abhiyan is a nationwide campaign in India, which was initiated
by Government of India. Phase I of the mission was for the period 2014 to 2019
that aims to clean up the streets, roads and infrastructure of India’s cities, towns,
urban and rural areas. The objectives of Swachh Bharat include eliminating open
defecation through the construction of household-owned and community-
owned toilets and establishing an accountable mechanism of monitoring toilet
use. Run by the Government of India, the mission aims to achieve an “open-
defecation free” (ODF) India by 2 October 2019, the 150th anniversary of the
birth of Mahatma Gandhi, by constructing 90 million toilets in rural India at a
projected cost of 1.96 lakh crore (US$28 billion). The mission will also contribute
to India reaching Sustainable Development Goal 6 (SDG 6), established by the
UN in 2015. The Phase II of the mission will be implemented between 2020-21
to 2024-25.
The campaign was officially launched on 2 October 2014 at Rajghat, New
Delhi by Prime Minister Narendra Modi. It is India’s largest cleanliness drive to
date with three million government employees and students from all parts of
India participating in 4,043 cities, towns, and rural areas. Prime Minister Modi
has called the campaign Satyagrah se Swachhagrah in reference to
Gandhi’s Champaran Satyagraha launched on 10 April, 1917.
The mission has two thrusts: Swachh Bharat Abhiyan (“gramin” or ‘rural’), which
operates under the Ministry of Drinking Water and Sanitation; and Swachh Bharat
Abhiyan (‘urban’), which operates under the Ministry of Housing and Urban
Affairs.
As part of the campaign, volunteers, known as Swachhagrahis, or “Ambassadors
of cleanliness”, have promoted indoor plumbing and community approaches to
sanitation (CAS) at the village level. Other non governmental activities include
national real time monitoring and updates from non-governmental
organizations (NGOs) such as The Ugly Indian, Waste Warriors, and SWACH
Pune (Solid Waste Collection and Handling) that are working towards its ideas
of Swachh Bharat. The government has constructed 86 million toilets since 2014.
5) Tata Tea’s Jago Re
Jaago Re has been the clear call of a lot of Tata Tea advertising initiatives from
the year 2009. But the object of Jaago Re has been changed through the years.
The very first reminder of this campaign was for the country’s citizens in order
to assert their political franchise, vote as well as elect their leaders who would be
accountable to them in the process of governance. But later the campaigns have
rolled out the message about anti-bribery, spreading of knowledge in a simplified
form as well as Chotishuruaat for the empowerment of women.
134 Source: https://www.brandloom.com/best-cause-marketing-campaigns-in-india
6) Educate the Girl Child by Nestle Awareness Creation

Consumer goods magnate Nestle set foot into one of the partnerships with
Mumbai-based education reform non-profit Nanhi Kali in late 2016 in order to
Educate the Girl Child in a long term project of the same name. Nanhi Kali has
also worked before for many years in order to improve opportunities for Indian
girls from low income as well as otherwise disadvantaged families to avail
opportunities for education.
(Source: https://www.brandloom.com/best-cause-marketing-campaigns-in-india)

Activity 2

Write about any one of the awareness campaigns that has influenced you the
most. Give your reasons.
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Check Your Progress - 2
Note: a) Use the spaces given below to note your answers.
b) Check your answer with those given at the end of this unit.
1) Explain any one awareness programme initiated by a corporate group.
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2) What is Swachh Bharat Abhiyan (SBA) or Swachh Bharat Mission (SBM)?

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4.6 LET US SUM UP

Awareness creation is a significant corporate social responsibility endeavour for
corporates. The corporates can do it in large scale as a lot of money and other
resources is involved. Awareness creation helps in sensitizing members of society
135
Key Thematic Areas in towards social problems. Awareness creation is not only for the government, but
CSR-II
for individuals, NGO’s, and educational institutions too. In this unit you have
read about the meaning of awareness. You have also read about the major
challenges in India that need awareness creation. We also discussed the approaches
and various steps in successful awareness creation. Finally, we discussed various
case studies on awareness creation.

4.7 KEYWORDS
Awareness Campaign : Awareness campaigns typically are defined as
a sustained effort to educate individuals and
boost public awareness about an organization’s
cause or issue.
Target Group : The primary group of people that something,
usually an awareness campaign, is designed to
appeal to.
e-publication : The publication of works in an electronic format
like e-books, digital magazines, etc.

4.8 BIBLIOGRAPHY AND SELECTED READINGS

Patil, A.V., Somasundaram1 K. V. and Goyal, R. C. (2002). Current Health
Scenario In Rural India. Aust. J. Rural Health 10, 129–135 Blackwell Science,
Ltd

Pawar, D.D. (2017). Present Scenario of Environmental Issues. International

Journal of Pharmacy and Pharmaceutical Research, 248-253

Margaret K. Y. (1973). The Concept Of Awareness. Journal of Thought, 8 (4).

259-269, Caddo Gap Press

Sayers, R. (2006). Principles of Awareness Raising. Communication and

Information (CI), UNESCO, Thailand

https://www.google.com/search ? q = definition + of + awareness + creation &

oq = definition + of + awareness + creation & aqs = chrome .. 69i57j0 . 9830j1j8
& sourceid=chrome&ie=UTF-8
https://www.avenuemail.in/jamshedpur/green-school-project-create-awareness-
environment/107181/
https://en.wikipedia.org/wiki/Swachh_Bharat_mission
https://www.brandloom.com/best-cause-marketing-campaigns-in-india

4.9 CHECK YOUR PROGRESS - POSSIBLE

ANSWERS
Check Your Progress - 1
Answer 1: Awareness means understanding of a situation or subject at the present
time, based on information or experience. Raising public awareness involves
creating a specific messaging campaign about a particular issue. Awareness
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creation is important to change the knowledge and attitude of a community Awareness Creation
towards any particular issue.
Answer 2: Steps to be followed for a successful awareness campaign
1) Set objectives
2) Target Groups
3) Identify tools and channels to use campaign
4) Identify partners and networks
5) Identify sources of funding
6) Develop campaign messages
7) Other planning considerations
8) Develop campaign
9) Promote campaign
10) Monitor and evaluate campaign.
Check Your Progress - 2
Answer 1: Alert today – Alive Tomorrow by Reliance Industries Limited
This initiative was started to improve road safety awareness among students
with a view to reduce their risks of road accidents and develop capacity and
awareness of students as well as parents regarding road safety.

Answer 2: Swachh Bharat Abhiyan (SBA) or Swachh Bharat Mission (SBM) is

a nation-wide campaign in India for the period 2014 to 2019 that aims to clean
up the streets, roads and infrastructure of India’s cities, towns, urban and rural
areas.

137