Anda di halaman 1dari 39

PROMOTION OF LIVELIHOOD

THROUGH
AFFIRMATIVE ACTION &
CORPORATE SOCIAL RESPONSIBILITY
Presentation by:

Soumitro Chakraborty
Chief Executive Officer, Fiinovation

ABOUT THE MENTOR


Mentor of the Webinar
Soumitro Chakraborty, CEO, Fiinovation

About Fiinovation
A CSR based research organization working in areas of education,
livelihood, environment and health since last seven years
Assists businesses to support requirements of communities by designing
and implementation of sustainable projects
Through
practices such as CSR-CSO Partnership, Initiative Design,
Initiative Management, Monitoring and Evaluation, Impact Assessment,
Sustainability Reporting; Fiinovation facilitates corporations for promotion
of social enterprises

AGENDA OF THE WEBINAR


Understanding the alignment between CSR and Affirmative Action
Exploring livelihood opportunities for SC/ST youth
Highlighting the role of corporations in CSR and Affirmative Action

Understanding how livelihood initiatives can be linked to CSR and


Affirmative Action
Insights on CSR initiatives targeting livelihood generation for the
marginalised
Update on new policies as per 'Union Budget-2016'

AFFIRMATIVE ACTION
WHAT DOES IT MEAN?
Positive action, reverse discrimination
It promotes inclusive development, equality on all aspects
Focus on upliftment of the historically marginalised
Important policy tool for holistic social development in many
countries, including developed ones
In India, its implemented through 'Reservation' or the 'Quota'
system

AFFIRMATIVE ACTION &


INDIA INC
In 2006, then Prime Minister Dr. Manmohan Singh appealed to
India Inc to incorporate affirmative action policies to diversify
workforce
Department of Public Enterprises (DPE) guidelines on CSR and
Human Resources for Central Public Sector Enterprises were
released in 2010
Non Voluntary Guidelines were established by Ministry of
Corporate Affairs in 2011 which was later adopted by SEBI
CII have been promoting affirmative action through Skill Trainings,
Scholarships, employment opportunities, education etc.

CORPORATE SOCIAL
RESPONSIBILITY
A strategic business management concept to obtain a balance of
economic, environmental and social imperatives
Globally the concept of CSR encompasses all related concepts
-Triple Bottom Line, Strategic Philanthropy, Shared Value, Corporate
Sustainability, Business Responsibility
Also known as Corporate Citizenship in North America and
Corporate Responsibility in Europe

CSR IN INDIA
Pre-Independence era restricted to charitable and religious
philanthropy by businessmen & rich farmers
Father of the nation Mahatma Gandhi urged rich to pool resources
for Indias upliftment, giving rise to trusteeship movement.
Post-Independence, PSUs & govt. led initiatives played prime role
in social development sector
It became a strategic business concept after the influx of MNCs in
India
In 2013, The Companies Act, quantified it and made it mandatory
for companies which fall under the CSR ambit

LIVELIHOOD
Definition:
It is the means of supporting one's existence, especially financially
or vocationally;
Livelihood is a set of activities, involving securing water, food,
fodder, medicine, shelter, clothing and the capacity to acquire
above necessities working either individually or as a group by using
endowments (both human and material) for meeting the
requirements of the self and his/her household on a sustainable
basis with dignity.
Livelihood helps in tapping new opportunities, vulnerability
reduction
Livelihood has direct links with the environment, and global
warming is having adverse consequences on livelihood of the
people

LIVELIHOOD IN INDIA
The Work Participation Rate as per Census 2011 was 39.79%
Majority of rural population dependent on agriculture and allied
sectors as means of livelihood
Majority in urban areas are engaged in service and manufacturing
sectors
12 million people enter India's workforce every year
India creates 5.5 million jobs every year to accommodate its
growing workforce
Source: 68th Round, National Sample Survey Office, Employment Exchange Statistics, National Skill
Development Corporation Skill Development Reports

WHY PROMOTE
LIVELIHOOD?
Create jobs/employment for the youth
Reduce vulnerability of the marginalised sections
Increase Purchasing Power Parity
Optimal use of resources, maximise scale
Stable livelihood substantially increases income, asset ownership,
self-esteem and social participation among the marginalised
It has cross-linkage with health, education, environment etc.

LIVELIHOOD CHALLENGES
IN INDIA
Lack of education and skills among the working class
Lack of income generation opportunities
Lack of infrastructural support
Lack of financial support, social safety nets
High dependency on climatic conditions/monsoons
Large scale migration to bigger cities and towns in search of jobs
and employment opportunities
Geo-political issues, population pressure

HOW TO PROMOTE
LIVELIHOOD?
Infrastructure development
Skill development trainings
Financial & technological support
Creating employment and self-employment opportunities
Building forward-backward linkages (value chain management)

APPROACH
LIVELIHOOD
INTERVENTIONS
Spatial Approach: Promoting livelihoods

in a specified
geographical area, such as a region, sub-region, command area or a
watershed
Sectoral Approach: Promoting livelihoods along a sector of the
economy such as agriculture, or a sub-sector such as cotton
Segmental Approach: Promoting livelihoods for a vulnerable
segment of the population, such as landless households, tribal,
women, SC/ST/OBC and the differently-abled

PROMOTION OF
LIVELIHOOD
Need to develop
and empower the human capital to ensure India's
SKILL
DEVELOPMENT
global competitiveness
3 crore skilled people will be needed in the construction industry
alone in the next five years. Retail will need 1.6 crore skilled people,
automobile 40 lakh, logistics 1 crore, and textile and clothing industries,
1.42 crore people
It is estimated that only 2.3% of the workforce in India has
undergone formal skill training as compared to 68% in the UK, 75% in
Germany, 52% in USA, 80% in Japan and 96% in South Korea
Target is to develop skills of 500 million Indians in less than 10 years
with considerable help from the private sector as per National Skill
Development Corporation
Source: National Skill Development Corporation, Union ministry of State for Skill development and

Narrow time-line to harness the demographic advantage which is


Entrepreneurship
predicted to last until 2040

CSR & LIVELIHOOD


Tata Group, HUL, HDFC, Axis Bank, Aditya Birla Group, ITC etc are
involved in livelihood promotion activities
Chambers of commerce such as CII are also engaged in livelihood
promotion activities
Major focus of CSR has been health, education and sanitation;
livelihood is yet to become the top priority
There is a need to create employable skilled opportunities in labor
intensive industries and sectors
In livelihood, major focus is now on skill development for higher
growth and sustainability
Source: KPMG Survey 2015, NGOBox Survey of BSE Listed Companies 2015

SKILL DEVELOPMENT
SC/ST COMMUNITIES
Need for skill development higher among these backward
communities as they are most vulnerable (as discussed in previous
webinars)
Lack of financial support, education, technology, infrastructure,
social capital etc.
Majority mostly engaged in unsustainable and low productivity
practices
High rate of unemployment, seasonal unemployment
Lack of self employment opportunities leading to migration, rural
distress

SKILL DEVELOPMENT
GOVT. INTERVENTIONS
National Skill Development Corporation India (NSDC) was setup in 2009 as a
one of its kind, Public-Private-Partnership company with the primary mandate
of catalysing the skills landscape (500 million skilled workforce) in India
Some of the major skill development programmes are:
Craftmen Training Scheme,
Skill Development Initative on Modular Employable skill,
National Rural Livelihoods Mission, Rural Self employment Training
Institutes,
Skill Training for Employment promotion amongst Urban Poor,
Support to training and employment Programme (STEP),
Parvaz,
Entrepreneurial skill development Programme,
Hunar Se Rozgar Scheme,
Integrated Skill Development Scheme,
Udaan,
Roshni
NRLM is the largest livelihood programme support by World Bank with a
credit
of $1
Source:line
National
Skillbillion
Development Corporation, Union Ministry of Skill development and

Entrepreneurship
Skill India Mission will directly benefit more than 94000 SC, ST candidates

CONTINUED
NSDA

NSDC

DT

Autonomous body registered under Societies Act. Rationalise skill


development schemes of govt. of India
Anchor and implement the National Skills Qualifications Framework
(NSQF)
Create integrated Labour Market Information System (LMIS), engage
with states to plan their skill development and facilitate skills
innovation
Public private partnership entity set up to promote and fund private
training providers and set up Skill Development Centres; Funds to
NSDC are received through NSDF
Facilitate setup of Sector Skill Councils (SSC) which are autonomous
industry-led bodies. SSCs design Qualification Packs (Qps) and
National Operation Standards
Implement STAR (Standard, Training, Assessment and Reward) and
UDAAN schemes
Training and Apprentice Divisions have been transferred from Labour
department from April 2015
Comprises government and private ITIs, PPP skill schools and other
institutions
25 new advanced training institutes to be setup

BUDGET 2016 PROPOSITION


(DIRECT)

Boost to SC/ST entrepreneurship through Stand Up India scheme

Rs 500 cr has been allocated to promote entrepreneurship


At least 2.5 lakh entrepreneurs will benefitting from it
All Bank branches to provide support to at least two projects
Rs 10 lakh to Rs 1 crore will be provided as loan to them for
new ventures

Category

SC/ST

Women

Example 1

1.5 Lakh
(Men & Women)

1 Lakh
(General + SC/ST)

Example 2

1.5 Lakh
(Men)

1 Lakh
(SC/ST)

Example 3

2.5 Lakh
(Women SC/ST)

Source: Budget Speech, Union Finance Minister Arun Jaitley

CONTINUED
Year of Economic Empowerment for SC/ST Entrepreneurs
125th Birth Anniversary of Dr. B.R. Ambedkar
National Scheduled Caste and Scheduled Tribe Hub in the MSME
Ministry
Partnerships with industry associations such as DICCI, CII
The Hub will provide professional support to Scheduled Caste and
Scheduled Tribe entrepreneurs
to fulfil the obligations under the Central Government
procurement policy 2012,
adopt global best practices and
leverage
theUnion
Stand
Up
India
initiative
Source:
Budget Speech,
Finance
Minister
Arun
Jaitley

PUBLIC PROCUREMENT
POLICY FOR MSEs ORDER
2012

Overall procurement of minimum of 20 per cent, of total annual purchases of


products produced and services from MSEs
Out of 20 per cent target of annual procurement from Micro and Small
Enterprises, a sub-target of 20 per cent (i.e., 4 per cent out of 20 per cent) shall be
earmarked for procurement from Micro and Small Enterprises owned by the
Scheduled Caste or the Scheduled Tribe entrepreneurs
Enhancing participation of Scheduled Castes or Scheduled Tribes in government
procurement, the central government ministries, departments and public sector
undertakings
Special Vendor Development Programmes or Buyer-Seller Meets shall be
conducted by the departments/public sector undertakings for SC, ST;
Outreach programmes shall be conducted by National Small Industries
Corporation to cover more and more Micro and Small Enterprises from SC or ST
under its schemes of consortia formation; and
Source: Budget Speech, Union Finance Minister Arun Jaitley

National Small Industries Corporation shall open a special window for SCs or STs
under its Single Point Registration Scheme (SPRS).

BUDGET 2016 PROPOSITION


(INDIRECT)
28.5 lakh hectares will be brought under irrigation under Pradhan
Mantri Krishi Sinchai Yojana
At least 5 lakh farm ponds and dug wells in rain fed areas and 10
lakh compost pits for production of organic manure
Soil Health Card Scheme to cover 14 cr farm holdings by Mar, 2017
The Parmparagat Krishi Vikas Yojana which will bring 5 lakh acres
under organic farming over a three year period
The Government has launched a value chain based organic
farming scheme called Organic Value Chain Development in North
East Region
Source: Budget Speech, Union Finance Minister Arun Jaitley

CONTINUED
The government is implementing the Unified Agriculture Marketing
scheme which envisages a common e-market platform for APMCs will be
launched on 14th April- Ambedkar Jayanti
To reduce the burden of loan repayment on farmers, a provision of Rs
15,000 crore has been made in the BE 2016-17 towards interest subvention
Government has approved the path breaking Prime Minister Fasal Bima
Yojana and allocated Rs 5,500 cr
Animal Husbandry Rs 850 cr for the next few years
first, the Pashudhan Sanjivani, an animal wellness programme and
provision of Animal Health Cards (Nakul Swasthya Patra);
second, an advanced breeding technology;
third, Creation of E-Pashudhan Haat, an e market portal for
connecting breeders and farmers; and
fourth, a National Genomic Centre for indigenous breeds
Source: Budget Speech, Union Finance Minister Arun Jaitley

CONTINUED
Digital Literacy Mission scheme for rural India to cover around 6 crore
households within the next 3 years
A sum of Rs 2,000 crore to meet the initial cost of providing these LPG
connections for 1.5 cr BPL households in 2016-17
A new health protection scheme which will provide health cover up to
Rs. 1 lakh per family
Increased share in SSA and 62 new Navodaya Vidyalayas will be
opened in the remaining uncovered districts over the next two years
Higher Education Financing Agency (HEFA) with an initial capital base
of Rs 1,000 cr
Under Pradhan Mantri Kaushal Vikas Yojna 1500 Multi Skill Training
Source: Budget
Speech,
Unionup
Finance
Minister
Arun
Jaitley
Institutes
will
be set
across
the
country
with Rs 1700 cr

CONTINUED
Government of India will pay the Employee Pension Scheme
contribution of 8.33% for all new employees enrolling in EPFO for the
first three years of their employment (Job Creation and bringing into
books informal employees)
100 Model Career Centres to be operational by the end of 2016-17
- National Career Service
Entrepreneurs will be able to operate buses on various routes,
subject to certain efficiency and safety norms - Amendments to Motor
Vehicles Act
100% FDI will be allowed through Foreign Investment Promotion
Board route in marketing of food products produced and
manufactured
inUnion
India
Source: Budget Speech,
Finance Minister Arun Jaitley

BENEFITS FOR YOUTH


(SC/ST)
2 crore tax payers in this category who will get a relief of Rs 3,000
in their tax liability many of whom would be from SC/ST communities
Increase the limit of deduction in respect of rent paid under section
80GG from Rs 24,000 per annum to Rs 60,000 per annum, which
should provide relief to those who live in rented houses
A special patent regime with 10% rate of tax on income from
worldwide exploitation of patents developed and registered in India
Deduction for additional interest of Rs 50,000 per annum for loans
up to Rs 35 lakh sanctioned during the next financial year, provided
the value of the house does not exceed Rs 50 lakh
Krishi Kalyan Cess, @ 0.5% on all taxable services to benefit
Source: Budget Speech, Union Finance Minister Arun Jaitley
farmers

BENEFITS FOR
ENTREPRENEURS (SC/ST)
Corporate Tax from 30% to 25% over a period, accompanied by
rationalization and removal of various tax exemptions and incentives
The benefit of section 10AA to new SEZ units will be available to
those units which commence activity before 31.3.2020
100% deduction of profits for 3 out of 5 years for startups set up
during April 2016 to March 2019
Big relief to a large number of assesses with turnover of maximum
2 cr in the MSME category as it frees them from the burden of
maintaining detailed books of account and getting audit done

Source: Budget Speech, Union Finance Minister Arun Jaitley

CONTINUED
Suitable changes in customs and excise duty rates on certain
inputs, raw materials, intermediaries and components and certain
other goods and simplify procedures, so as to reduce costs and
improve competitiveness of domestic industry
100% deduction for profits to an undertaking from a housing
project for flats up to 30 sq. metres in four metro cities and 60 sq.
metres in other cities, approved during June 2016 to March 2019, and
is completed within three years of the approval
Equilization Levy to tap tax on income accruing to foreign ecommerce companies from India

Source: Budget Speech, Union Finance Minister Arun Jaitley

SKILL INDIA CAMPAIGN


Prime Minister Narendra Modi launched the Skill India Mission on 15th July
2015 unveiling the new National Policy for Skill Development & Entrepreneurship
Aim to become Human Resource Capital of the World by providing 4-5 crore
skilled professionals to work abroad
Develop ITIs like the IITs
Skill India Mission target is to provide skill trainings to 40.02 crore by 2022
Skill loans will be made available for 34 lakh youth
Scientific mapping of job market and manpower requirements
Linked to Pradhan Mantri Kaushal Vikas Yojana, Startup India, Make in India
and other campaigns
The country's first skill development university will be set up in Maharashtra
Pradhan Mantri Kaushal Vikas Yojana completed 10 lakh enrolments under Skill
Source: Union Ministry of Skill development and Entrepreneurship

India till Feb 2016

SKILL INDIA INDUSTRY


SUPPORT

Tata companies are training thousands of youth across India in skill


sets that make them employable and productive. TCS was the first
company to sign an MoU with National Skills Development
Corporation (NSDC) under project Udaan in 2011
To better equip aspirant youths of Nagaland, the state government
and TATA Motors Private Limited have started a PPP mode project by
upgrading Diesel Mechanic Trade, the automotive section of the
Industrial Training Institute (ITI), Kohima
IL&FS Skills Development Corporation in partnership with National
Skills Development Corporation (NSDC), aims to train 40 lakh people
by 2022 through a network of 100 multi skill Institutes and 300 single
skill Schools
Source: Website Tata Group, IL&FS Skills, CII

CONTINUED
CII has been supporting the Ministry of Skill Development &
Entrepreneurship, Ministry of Labour & Employment and Ministry of
Rural Development and other ministries to create a conducive
ecosystem for skill development in India, especially targeting SC/ST
Communities
NSDC has urged the corporations to promote skill development
through CSR targeting 150 million people

Source: Website Tata Group, IL&FS Skills, CII

CII & SKILL DEVELOPMENT


Supports Various Ministries to promote Skill Development
Targets SC/ST Communities to provide skill development trainings
It launched the India Skills Report in 2015
Provided recommendations for the new Skill policy
CII members are adopting and upgrading 390 ITIs and strengthening
the system through implementation of recommendations
CII has set up Skill Hubs in Chindwara, Madhya Pradesh; Bhiwadi,
Rajasthan; Kendrapara, Odisha and Skill Gurukuls in association with Pan
IIT (PARFI)
CII is also working on various on ground initiatives with PSUs like HPCL,
Source: NSFDC
Website Tata
Skills, CII Job fairs across India
IOCL,
etcGroup,
and IL&FS
organising

ALIGNMENT OF
AFFIRMATIVE ACTION & CSR
Reliance
Industries INC
Project Drishti initiated to bring back eyesight
BY
INDIA
of people from the economically weaker sections
Tata Group Providing books, stationary, school bags etc. to SC/ST
students of 46 senior secondary government schools
ONGC Emphasises on higher education, scholarship, grant for
youth from the less-priviledged sections of societies
Coca Cola Programme for empowerment of 5 million women
entrepreneurs

Source: Corporate Citizen Volume 2, Issue 1

CONTINUED
Amity Amitasha and Atulasha programmes for SC/ST boys and
girls providing free education
Bajaj Electricals Social work in areas such as education, rural
development and environment
GlaxoSmithKline Donates funds, medicines and equipments
towards improving health and education
BHEL & Indian Airlines Adopted 56 villages having nearly 80,000
inhabitants

Source: Corporate Citizen Volume 2, Issue 1

ALIGNMENT OF AA, CSR &


SKILL DEVELOPMENT
What
Why
Where
How

Providing skill development trainings under CSR


to the SC/ST communities
SC/ST communities most vulnerable,
marginalised and are the poorest sections in
India
Geographical areas with high percentage of
SC/ST communities
Community based interventions, skill
development centres, EDP, ERC, supporting
govt. initiatives

THE WAY FORWARD


The way forward can be elaborated by highlighting few CSR models by
companies which can be incorporated by other companies:
HUL contributed 42 crores in watershed development initiative by
partnering with the government under MGNREGA, extending soil and
water conservation wages to the people.
Axis Bank Foundation work in Dang, Gujarat to enhance livelihood and
food security of the tribal communities through conservation of natural
resources and providing them with options and techniques for increased
income from agriculture.
Rashtriya Ispat Nigam Limited through Kaushal - a skill development
programme designed exclusively for youth belong to SCs of
Vishakapatanam, imparts placement-based training to beneficiaries in
garment construction technique and industrial sewing machine operator
(basic and advanced).
Similar initiatives can be taken up by corporations under their corporate
social responsibility targeting SC and ST communities.

SUGGESTED TRIPARTITE
MODEL
Entity

Illustration
Corporation Xs
total CSR
expenditure:*

Rs 500 cr

Product:

Handicrafts / Food
Processing

Registration :

The Companies Act, 2013

Board

Organization
Structure
Operations:

Sourcing from community


members, processing of
finished products,
marketing

Sharing of
Revenues:

Yearly dividends,
remuneration of
community members,
salaries to staff,
operational expenditure,
expansion costs

Managers Managers Managers

SC/ST Communities

BENEFITS OF SUCH
INITIATIVES
Provide an opportunity to gain financial sustainability & independence
for the SC/ST communities
CSR grant will allow corporations to spend money on livelihood issues,
not otherwise funded
Assets of entity will belong to the community and cannot be sold off for
private financial gain
People, who are local stakeholders in the area of benefit, play a leading
role in the entity ensuring inclusive development
Local community are the shareholders who ensure accountability of the
entity to the community
The entity will be able to generate profits or a surplusthat can be reinvested or distributed for community benefits

THANK YOU
Contribution by:
Soumitro Chakraborty
Chief Executive Officer,
Fiinovation

Rahul Choudhury
Dy. Manager - Content, Fiinovation

Rohit Srivastava
Graphic Designer, Fiinovation