Issue: #1 | April 2014

In this issue:
- 1st April, 2014- Dawn of a new era in CSR
- Unilevers SHAKTI programme
- Unsung heroes from the eld
- Fiinova on & IOD partnership

- Fiinova on awarded
- Fiinobserva on of Interna onal Days
- Fiinova on revamped website

To subscribe visit : www.inovation.co.in

01

1st April, 2014 - Dawn of a new Era in CSR

1st April 2014 was a signicant day in the history of CSR in India. The
day that witnessed the enforcement of the New Companies Bill, 2013
transformed the essence of CSR from charity to strategy.
16,000 companies were set to release their corporate social
responsibility (CSR) which accounts for spending 2% of their prots.
An estimated amount of Rs 20,000 crores along with substantial
technical expertise are expected to ow into the social sector.
On being asked about CSR, Bhaskar Chatterjee, DG & CEO, Indian
Institute of Corporate Affair, viewed it as 'a leap of faith for India which
has become the rst country to legislate CSR'.

Inuencers speak up on the

New Companies Act, 2013

"C S R has been so narrowly dened within

companies... now they will feel that they be er
follow the le er of the law"
- Rohini Nilekani,
Chairperson and Founder, Arghyam

It will be interes ng to see how responsibility

can be mandated and the eect the mandate
will have on the responsibility.
- S. Chakraborty,

A landmark day which is a game changer is intended to further the

CEO, Fiinova on

creativity and imagination of the corporations. It is aimed to provide

'great exibility to business and industry for strategizing and
conducting their CSR initiatives. It will actually enhance their

"It will provide regulatory clarity and a

framework for organisa ons to deliver on
their CSR goals within the larger social and

efforts, provide an even broader platform and re-energize their

- Rana Kapoor,

efforts.

CEO, YES Bank

Considering the immediate effective date of April 1, 2014,

being asked on the way forward 'research, reporting and
sustainability that is inside out' is recommended by
S. Chakraborty , Fiinovation.

India perhaps is the rst country in the world

to have CSR in its statute This is the
company's money. They have full freedom to
choose how they want to spend that money

complying to timelines is a concern for the corporate. However, on

- Sachin Pilot,

Corporate Aairs Minister

Speaking of the moment as a 'tidal wave of opportunity and a

challenge' Ravi Venkatesan stresses on the strategic
employment of CSR where corporations utilize it as a platform
to 'build corporate reputation and trust'. Graduating from
cheque book philanthropy to impact investing, suggested
Venkatesan. The way forward must look at viewing CSR not as

Interesting trivia you missed out on...

- An es mated 16000 companies fall under the CSR ambit and CSR
investment is expected to amount up to Rs 20000 crores.

an onerous imposition and a 2% tax, but as a 2% investment in

building corporate reputation, employee engagement and
innovation.

- Promo on of rural sports, paralympic sports and olympic sports

are included New Companies Bill, 2013.
- CSR rules state that ac vi es providing exclusive benet to
employees and their families will not be considered as CSR.
- The Act does not provide any guidance on what cons tutes
acceptable reasons for which a company may avoid spending 2 per
cent on CSR.
- As per ETIG Data base Reliance Industries' CSR spend (285 crore)
was the highest for the nancial year end March 2013.

02

Unilever's sustainable & smart CSR Model

Hindustan Unilever Limited (HUL) is an Indian FMCG company based in Mumbai,
Maharashtra. Unilever is the Anglo-Dutch company that owns 67% shares in
HUL. HUL is a market leader in consumer products that include items such as
food, beverages, cleaning agents and personal care items. They have over 700
million Indian consumers across the region.
India is the second largest populous country in the world that accommodates
people across rural and urban settings. The majority still resides in the rural areas
which amount for more than 6, 00,000 villages. These villages are characterized
by a complete lack of infrastructure in terms of transportation and basic amenities.
Accessibility to these far ung villages poses a big challenge for all ,especially the
local community who are deprived from basic services. In order to address this
gap, the GOI initiated an intervention to promote women entrepreneurship in
villages. HUL used that opportunity to design and develop a business program
model around it i.e. Shakti Entrepreneurship Programme. The idea was to create
a chain of HUL selected women entrepreneurs in each village who would not only
distribute HUL consumer products but also educate and sensitize the community
on product usage.
The process employed, for selecting new distributers and entrepreneurs was
carried forward through the help of NGOs. It was a model centered around
meaningful partnerships that got on board government and civil society
organizations which led to the development of microcredit nanced Self Help
Groups (SHGs). These SHGs were an effective tool that got women on board to
learn basic skills (math, life skills) and allowed them an opportunity to see
themselves in a position of power which was something very new for them. HUL's
invests its resources in training the entrepreneurs, helping them become
condent, business-savvy professionals who are capable of running their own
enterprise.
Today, Hindustan Unilever has over 25,000 entrepreneurs across 15 states of
India. These entrepreneurs earn a sustainable income of Rs 700- Rs 1000 per
month, which is double the average household income. 30% of the women
entrepreneur earn more than rural per capita income.
The community benets as the products are made available to them at a
substantially lower cost which helps reach the vulnerable population. This case
has had a direct effect on the social stature of millions of people who now have
access to personal care and home products. It is a self-sustaining model which
has benetted many rural women. Shakti programme is a successful CSR
initiative which has helped benetted the market and has also reinforce the brand
value of HU.
To know more, please visit: www.hul.co.in

The Shakti Initiative can be

described as a sales and
distribution initiative that delivers
growth; a communication initiative
that builds brands; a microenterprise initiative that creates
livelihoods; and a social initiative
that improves the standard of life in
rural India by providing quality
products.
What makes Shakti scalable and
sustainable is the fact that it
contributes not only to the business,
but also to the community it is a part
of.

03

Unsung heroes from the eld

Fiinovation applauds the indomitable spirit of
people working in the eld who work
relentlessly to save the lives of millions.
Mentioned below are two such examples of
women working in the state of Rajasthan.
Rajkala Devi is the rst woman Sarpanch of
her village, Hingwahera in the Alwar district of
Rajasthan. Like most girls of her village, was
denied education by her parents and remained
conned to her home. Men in her village
discouraged women from taking active part in
the social, economic and political life. Breaking
away from the traditional gender role, she
contested the Panchayat elections twice in
2005 and 2010 and became the Sarpanch in
2010. Under her leadership women have participated in Panchayat meetings and voiced their opinions. She continues to
expand her scope of work for the betterment of the women through the effective functioning of panchayats, electoral campaigns
and collective action.I really believe that the village can only be progressive if girls are educated, she says. Her success story
has inspired a signicant increase in the woman's participation in the Panchayat elections in Rajasthan and beyond.
Sajani, Saleemati and Chano and Bhagwati are change-makers from Rajasthan who through their innovative and unique work
have earned themselves the epithet of "barefoot engineers". These neo literates negotiated their traditional roles and received
training in solar engineering from Social Work and Research Centre a Tilonia-based NGO also known as 'Barefoot College'.
SWRC is working towards the delivery of Solar Electrication, Clean Water, Education, Livelihood Development, and Activism
since 1972. These women are now responsible for the installation, maintenance and repair of the solar lights in their villages in
Barmer.

Fiinovation & IOD MoU: A path

Breaking Partnership
A MOU has been signed between
Fiinovation and Institute of
Directors (IOD) on 19th March,
2014. This comes as an ofcial
declaration of partnership
between the two organizations
and puts Fiinovation in the ivy league of organizations
working in the CSR arena. The collaboration is aimed to
enhance the quality of discussions and debate that surround
the sector through research articles, round table discussions
and global events. Fiinovation would contribute to IOD'S
Master class for Directors that includes a wide spectrum of
subjects such as Corporate Governance, Sustainability, HR
practices, Finance, Corporate Social Responsibility,
Environment Management and Board Effectiveness.

-Rupa Cha erjee

Fiinova on

Fiinovation felicitated on World CSR

Day by the World CSR Congress & the
Indian Overseas Bank
The World CSR Congress in
association with Indian Overseas
Bank celebrated the third World
CSR Day on 18th February, 2014
at Taj Lands Hotel, Mumbai. The
international event ' CSR: Good to
Great' brought together members from 86 countries. Policy
makers, corporate houses, NGOs and academia ensured the
event was thorough and comprehensive.
Innovative Financial Pvt Ltd ( Fiinovation) were awarded for
being the Best Innovation - Product / Service for the year 2014
from 2500 entries. The felicitation ceremony and discussions
were attended by the whose who of the sector. It was a
platform for dialogue and debate which pushed the issue of
CSR discussions from the 'backroom to the boardroom'.

04

Fiinobservation of International Days

Interna onal Day of Forests

World Water Day

World Tuberculosis Day

21st March

22nd March

24th March

International Day of Forests is a

platform for people with an interest in
forests and climate change to share
their views and work together
effectively. It is a consultation which
brings to together stakeholders who
deliberate on issues pertaining to
climate change especially mitigation
and adaption strategies. Deforestation
is a big problem and each year more
than 13 million hectares (32 million
acres) of forests are lost. Fiinovation
advocates for an approach that
includes redening the idea of
development and have a sustainable
course of action for future which is
inclusive in nature rather than
exclusive.

Water scarcity is a reality we are faced

with everyday of our lives. The UN
estimates that, more than 700 million
people lack access to improved water
sources and 2.5 billion people have no
improved sanitation. Water is a basic
human need and an essential tool for
economic development. Research
suggests an annual investment of $103
billion by developing countries to
nance water, sanitation and
wastewater treatment through 2015.
The theme for this year is 'Water and
Energy'. The strong interlace between
the two are reiterated while looking at
water utilization strategies especially
extraction, pumping, treatment and
transportation. Fiinovation
programmes aim to raise awareness
about the water-energy nexus and
address the concerns of the people
placed at the bottom of the pyramid who
lack access to basic amenities.

According to the World Health Ranking

standard, India stands at 58th position
on tuberculosis with a death rate of 28.8
persons per 100,000 persons. The
World Tuberculosis Day is celebrated
to create awareness among the general
public on the causes of TB which cause
nearly half-a-million annually, mostly in
developing countries. Research
estimates 9 million new TB infections
annually among which 3 million fail to
benet from the available healthcare
services. The slogan for this year is to
reach that 3 million. Fiinovation works
on developing programmes that work in
tandem with the WHO Stop TB strategy
which has helped save the lives of 22
million people over the course of
seventeen years of its implementation.
Fiinovation advocates for an approach
that engages care providers,
empowers people with TB, and
communities through enabling
partnerships and promotes fruitful
research.

The need to include all stakeholders is

the key as communities continue to be
faced with issues of displacement, man
animal conict and loss of livelihood.

Revamp of Fiinova on Website

Fiinovation revamped the organization website with added features and
information and launched it on 15th March, 2014. The new website is more
informative and user friendly and has a dedicated section covering
Fiinovation practices, sectors, research papers, projects etc. It also
comprises:
An Online member directory,
A Newsletter section,
New photo galleries,
Upcoming calendar of events,
Updated information about projects.

About Fiinovation
We are a research based rm specializing in the
CSR domain. We are integrated solution
enablers, who provide simple solutions that
enhance quality across the value chain. We are
a proposal research laboratory that takes
research on policy drafting and implementation
design a step ahead than the others.

To know more please visit our website

Web: www.inovation.co.in
www.inovation.co.in
Email: media@inovation.co.in