Leading battery manufacturer Amara Raja Batteries Ltd (ARBL)spent Rs 14.35 crores, exceeding its prescribed CSR budget. The Hyderabad-based company also took several CVOID relief measures to help communities.
In this interview with TheCSRUniverse, Prem Sagar Raju A, Senior Manager- CSR, Amara Raja Group talks on the group’s CSR activities and new initiatives. He also talks about the CSR vision of the group and talks about a few changes that can help corporates to make their CSR programmes more effective.Scroll down to read his interview…
Interview Highlights:
- CSR should be a part of the core purpose of the company and not an afterthought.
- We see a role for implementation partners who have specialized skill sets with ability to suggest innovative solutions to specific problems.
- As schools remain closed due to COVID, we have invested in upgrading the IT infrastructure & teacher training at the schools that we support, so that even students with limited means, can have access to quality online education.
- CSR provisions have created a firewall between the company’s core business and its CSR activities. If this was amended it would allow many companies to leverage their core competences to better serve the needs of communities.
Interview with Prem Sagar Raju A, Senior Manager- CSR, Amara Raja Group
Q: Your organization’s spent on CSR exceeded the prescribed budget. What drives your CSR vision?
A: At the heart of the Amara Raja group’s CSR vision is our core purpose - "To transform our increasing spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities to more people . . . all the time." In keeping with this philosophy, the Rajanna Trust (the CSR arm of the Amara Raja Group) has been investing in the communities that we serve well before the CSR rules became mandatory.
Q: What are your ongoing key CSR activities?
A: The group’s CSR initiatives are focused largely on the core areas of Education, Healthcare, Skill Development, Rural Development and Environmental conservation.
Education: Rajanna Trust provides financial and operational support to three schools in villages close to the Company’s operating units. Mangal Vidyalayam, Pettamitta, Amara Raja Vidyalayam, Karakambadi and Amara Raja Vidyalayam, Diguvamagham are setting new standards of excellence in the region by providing access to high quality academic opportunities to over 4000 students.
Healthcare: Our Trustfinancially and operationally supports a 30-bed primary health center in Chittoor district. Qualified staff and experienced doctors provide preventive and primary healthcare to more than 50,000 people living in 81 neighboring villages. The Trust continued to organise health camps with specialists from India and abroad for people from 86 villages across 12 Panchayats. The services provided by the health center have been of particular importance, during the lockdown, as it was the only PHC in the entire region to remain open and continued to address the healthcare needs of nearby communities.
Skill Development: The Amara Raja Skill Development Centre (ARSDC) runs a skill development program, carried out with a mission - Skilling Rural India to Make in India, is a fully funded 24-month residential course comprising a mix of on-job training at various plants of Amara Raja Group and class-room training.
The ARSDC complex houses well-equipped classrooms, laboratories, workshops and hostel facilities for boys and girls. The entire course, inclusive of food, accommodation, uniforms and study material, is free for the candidates. The students are also paid an on-the-job stipend as a recognition for their efforts. More than 945 students have cleared the course so far. Most of these students have been inducted into various companies in the Amara Raja Group. The Trust is also planning to set up similar skill development centers at other locations to focus on skilling the rural youth, especially women, and help empower them and foster inclusive growth.
Rural Development: The Trust has developed rural infrastructure by building proper connecting roads, water tanks for safe drinking water in villages through RO plants, street lighting, leisure parks with internet access and a library in Chittoor district. These facilities are maintained by the Trust on an ongoing basis. The Trust continues to support the adopted panchayats of Karakambadi, Pettamitta and Diguvamagham in Chittoor district under the ‘Smart Panchayat Scheme’. The Trust has also built 23 check dams and desilted three tanks under RajannaJalasayamu Program in Chittoor district. Around 60 villages, covered under 12 panchayats, continue to benefit from this project.
Environmental conservation: We haveadopted a 250-hectare plot on a hillock in Pemmagutta, in Chittoor district, to develop a plantation. The plantation project provides livelihood to about 40 tribal families. More than 60,000 saplings were planted in and around the hillock.
Q: How has your CSR programme implementation been impacted/affected due to COVID pandemic?
A: We have responded to the pandemic by doubling down on our commitment to the communities that we serve. Throughout the pandemic, we have continued to the serve communities in need through our regular programs, while making significant contributions to new programs designed to meet the needs specific to COVID, such as significant donation towards state and local government programs, donations of PPE and medicines to hospitals, food distribution drives, etc.
Q: What are the new measures and initiatives you are taking to continue your CSR activities while adhering to the COVID protocols?
A: The group has gone to great lengths to ensure that the disruption to our CSR activities is at a minimum, while strictly ensuring COVID protocols are followed. In areas such as our primary health center, this has meant a significant investment in sanitization infrastructure and additional manpower to continue to serve people in a safe manner. We have also invested in upgrading the IT infrastructure & teacher training at the schools that we support, so that even students with limited means, can have access to quality online education.
Q: What are your thoughts on CSR laws in India?
A: Changes brought about by the Companies Act 2013 have forced firms to view themselves as corporate citizens, that are part of a larger community, with obligations to that community. This has in effect raised the bar by enforcing the same best practices that have been followed by organizations like the Amara Raja Group, well before any such legal mandate existed. One of the positive outcomes of this act is that companies with good CSR programs are starting to better understand and appreciate the needs of the communities that they live and work in.
Q: What can be the changes in the current CSR provisions that can help corporates in being more productive and effective in implementation of their CSR activities?
A: One of the consequences of the rules imposed by CSR laws is that it puts significant restrictions on the activities that a company can undertake, as part of its CSR program. It also creates a firewall between the company’s core business and its CSR activities. If this was amended it would allow many companies to leverage their core competences to better serve the needs of communities.
Q: What are your expectations from your CSR implementation agencies/partners in today’s changing scenario?
A: While the Amara Raja group focusses on a direct delivery model, leveraging the strong connection that we have with the communities that we serve; we also see a role for implementation partners with specialized skill sets. Such partners often have the ability to suggest innovative solutions to problems by bringing in their experience and know-how towards solving the specific problems.
Q: What are your suggestions and message to your corporate colleagues on building a strong CSR environment in the country?
A: CSR should be viewed not as an obligation but as an opportunity to not only give back to the communities that we are a part of but also to innovate and find new solutions to the problems faced by these communities. As such CSR should be a part of the core purpose of the company and not an afterthought.
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