CSR grant for sustainable livelihood; few strategic approaches

CSR grant for sustainable livelihood; few strategic approaches 

Authors: Joydeep Sen and Jhimly Baruah

CSR funding and programmes supported through CSR grants have significantly increased in last four years. Looking into the current trends, it is likely that CSR grants to NGOs and government programmes/schemes are going to outpace the grants from the traditional bi-lateral, multilateral agencies and foundations. The current trends also beg the questions whether the CSR grants have become effective, do they have clear strategy on how to influence public policy and if they are able to design programmes which many of the agencies like UN, DFID, USAID or other aid agencies have done in the past.

Today, most companies are primarily investing CSR grants in various government schemes/programmes. This is a healthy trend and it also shows that there is an inclination among the companies to invest back to society. Undeniably, investing in CSR has several benefits for the companies from helping them in ease of doing business, build good relations with stakeholders including community, government, industry bodies and regulators to providing the social license to operate.

It has been observed that CSR grants are given to government programmes and schemes such as Swach Bharat, Ayushman Bharat, Skill India etc. as it is an expectation from government that Corporate India should invest in these schemes. This justified from a business point of view. However if CSR grants are to be effective then corporate India need not just comply with government/s expectations but also influence the policies/schemes and make them more effective for better public good. 

In the current scenario, CSR grants are more focused on addressing problems which are visible but not investing in the root cause and complex relation between numerous factors. For example, construction of toilets under Swach Bharat is a good idea and a noble cause but we must also understand whether families will be able to operate and maintain these toilets. Similarly, Skill India aims to develop skills of youth to get better employment opportunities, but it is also essential to understand if the resources and assets are available for the youths to get employment in their home towns and villages. Loan waiver to farmers or increasing the MSP may temporarily relieve farmers of their cyclic distress but it may not empower them or improve their socio-economic situation

Therefore, it is imperative that projects supported by CSR grants should be ready to invest in long term programmes where the problems are mapped and analyzed from community lens and from a holistic perspective. Listed below are some of the approaches which may help CSR programmes to improve community participation as well as ownership and will help in sustainable community-based livelihood enhancement.

Vulnerability mapping the analysis of complex relationship between numerous factors which are causing vulnerability in the life of an individual or a community and how they cope with vulnerability. These factors can be economic, financial, infrastructure, health, market forces, credit, saving habits etc. At every stage of life, all these factors play a vital role in the decisions which are taken by individuals and communities and how these decisions impact overall livelihood. Therefore, it is important to study and understand the interplay of these complex factors before we embark on implementing projects. This should become the benchmark for baseline studies.

Handing over the stick to the communities:  As Prof. Robert Chambers famously said on Participatory Rural Appraisal “We should handover the stick to the communities”. They should be the key stakeholder during participatory need assessment studies. Evidence from various studies show that development programmes based on people’s participation have higher rates success. CSR grants should be ready to invest time and resources to understand the needs of the community. This will help in identifying the solution from a holistic point of view and ensure sustainability.

Mapping the local resources/assets: Communities also have various resources and assets; natural resources such as land, water for irrigation, drinking, forest, common property resources such as pastures, orchards, skills like farming, animal husbandry, traditional knowledge of medicine, access to financial resources like saving and credit from SHG/cooperative etc. It is important to do a resource mapping with the communities to learn as well as make them aware about their resources/assets. As  communities learn to value their resources/assets, they will be more empowered to have sustainable livelihood opportunities.

Build strong local/community institutions: CSR resources should be invested in building strong village and community level institutions. These may be farmers’ cooperative, Rogi Kalyan Samiti, water users group, SHG, women groups, Panchayati Raj Institutions, milk cooperatives etc. Investment in these institutions helps to create mechanisms for local communities to cope with vulnerabilities. When people come together in groups or become part of institutions they have a strong voice to fight for their rights. More importantly institutions provide mechanisms for individuals, communities, families to pool their assets and resources such as land, skills, finance etc. This resource pooling is critical to maximize the benefits. Institutions also play a key role of an arbitrator through their systems, processes and rules. Institutions helps to resolve local disputes, build trust and provide social resources thereby building strong and resilient communities.

More people can pursue sustainable livelihood and become part of institutions more likely they will be able to cope with vulnerabilities. This may help in improving income, education, health and overall wellbeing of the communities.

In summary, companies need to view CSR as an opportunity to invest in sustainable livelihood. CSR grants should think long term and holistic development focusing on community’s intrinsic knowledge and engaging them in the idea generation process. CSR grant making should be rooted in these key approaches for making deep impact.