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Interview with DCM Shriram CSR Head: 'CSR laws have pushed for technical compliance whereas change is needed in boardroom mindset'

csr

Aman Pannu heads Corporate Social Responsibility (CSR) division at DCM Shriram besides leading Corporate Communication wing at the business conglomerate comprising agri-rural business, farm solution business, chlor-vinyl business, Power and Cement business, with a group turnover of more than Rs 7,000 crores.

In this interview with TheCSRUniverse, Pannu elaborates on various Covid relief measures taken by her DCM Shriram after the outbreak of the pandemic. 

Pannu says that her company has CSR budget outlay of about Rs 20 crore for the year 2020-21 and the COVID related community support have already been integrated in most of its existing CSR programmes.

On India’s CSR policies, she opines that the laws only pushed companies towards technical compliance whereas the change in needed in mindsets in the boardroom. She says that Corporate Social Responsibility shouldn’t just be something that companies do but should be embedded in the culture of the organisation.

Interview Highlights

  • Corporate Social Responsibility shouldn’t just be something that companies do but should be embedded in the culture of the organisation.
  • We don’t simply hand out cheques, all our CSR programmes are well thought of and based on the needs of our communities around our manufacturing units
  • The CSR budget in DCM Shriram for 2020-21 is Rs 20 crore.
  • Rs 15 crore COVID-19 contingency fund, from which Rs 10 crore contribution has already been made to the PM CARES fund.
  • Low internet service in villages is a challenge which our team is facing constantly while implementing this program.
  • Collaboration and convergence should be part of implementation, monitoring and evaluation to create strong social impact.

Scroll down to read the full interview:

Full Interview with Ms Aman Pannu, Head - CSR at DCM Shriram

Q: The CSR planning and implementation has evolved in India since it was made mandatory by Companies Act 2013. What are your thoughts on CSR laws in India?

A: The CSR laws and mandate have pushed companies towards technical compliance, but there is a need of changing mindsets in the Boardroom, as it is not only about complying with the law but changing the organizations’ outlook towards CSR. The Corporate Social Responsibility shouldn’t just be something that companies do but should be embedded in the culture of the organization.

For us at DCM Shriram Corporate Social Responsibility forms the very core of all our activities and functions at which is a part of the DNA of our organization. We have been contributing to the society and communities through our initiatives and responsible business practices, much before the Companies Act prescribed a mandatory CSR spend in 2014.

The principle of giving back to the society stems from our visionary Founder- Sir Shri Ram. Our strategic business units nurture the rural communities through their CSR work in project villages across Kota in Rajasthan, Bharuch in Gujarat and Hardoi and Lakhimpur districts in Uttar Pradesh. We don’t believe in cheque-book philanthropy. We don’t simply hand out cheques, all our CSR programs are well thought of and based on the needs of our communities around our manufacturing units. The company will continue to amplify its CSR programs by actively engaging with the communities and local NGO partners to leave a meaningful and long-lasting impact coming straight from the heart.

Q: COVID crisis has thrown challenges for CSR activities as well. What are the key initiatives you have taken to support fight against the pandemic?

A: DCM Shriram has been supporting communities around its areas of operations, with various impact generating initiatives. We have taken a number of initiatives for COVID relief. As part of our corporate social responsibility, we have set up a Rs 15 crore COVID-19 contingency fund, from which Rs 10 crore contribution has already been made to the PM CARES fund. The balance Rs 5 crore is committed for initiatives taken up by the company to help communities and towards relief funds to state Governments.

Further, we have repurposed our manufacturing facilities in Kota (Rajasthan) and Bharuch (Gujarat) to produce Sodium hypochlorite, a disinfectant and donated approximately 12 lakh liters to various state authorities for sanitization purposes. In our two distilleries at Hariawan and Ajabapur in Uttar Pradesh, we have been producing hand sanitizers. Approximately 10,000+ litres of the same have been donated to the communities, Community Health Centers and district administrations.

We also partnered with Tata Trusts for resource support to supply hand sanitizer and sodium hypochlorite for a period of six months, these resources will be used in the Government hospitals of Gonda and Noida, which have been upgraded as COVID- 19 hospitals by Tata Trust. In Gurugram, DCM Shriram has also partnered with Medeor to establish 150 beds with 25 critical care units exclusively dedicated to treating COVID-19 patients.

Q: What are the key emerging CSR opportunities and needs in the COVID scenario?

A: The COVID-19 pandemic has an immediate need of handling the healthcare issue at hand, but in medium and long term, there is socio-economic impact and assessing the impacts of the crisis on societies, economies and vulnerable groups is fundamental to tailor the responses of governments and partners to recover from the crisis.

The government has also allowed CSR investment in COVID related research and development activities.

We are also engaged our extensive network of stakeholders, including local community representatives, NGO partners, ASHA workers etc to create awareness at mass level regarding COVID-19 with a message of ‘stay home, stay safe and maintain social distancing’.

Q: What are the challenges you have faced while implementing your CVOID related CSR initiatives?

A: Tele-consultation has helped increase our reach while maintaining social distance and also providing the required care and treatment through proper consultation. However, an uninterrupted internet service in villages is a challenge which our team is facing constantly while implementing this program.

Q: What is the budget outlay for your CSR activities in the financial year 2020-21?

A: The CSR budget in DCM Shriram for 2020-21 is Rs. 20 Crore.

Q: How your company’s focus area for CSR has evolved over the last 4-5 years?

A: Our CSR programs are identified keeping in mind the need of the community, strengths and capabilities of our Business teams as well as Government priorities specific to the concerned geography in which the program is to be implemented. At present the Company focuses on the following sectors - Preventive Healthcare and Sanitation, Education, Vocational Skills and Livelihood; Environment Sustainability and Rural Development.

In our project areas, the local panchayat and community plays an integral role in designing as well as implementing the projects. Our geographic location for the CSR projects are in the villages across in Rajasthan (Kota), in Gujarat (Bharuch), and in UP (Hardoi ad Lakhimpur). The Company’s manufacturing facilities are also located in these areas and the proximity helps us to regularly monitor these programs and interact with the beneficiaries, thus maximizing impact.

Q: What is the CSR outlook for your company for the next 2-3 years?

A: We will keep undertaking a systematic and participatory lifecycle approach, which will be followed across the CSR projects addressing multiple concerns. Going ahead, we hope to achieve scale in our programs pertaining to Sanitation, Education, Health, water conservation and rural development. This will help create a bigger impact from our CSR interventions. Our successful CSR models will also be replicated across business locations.

In the current New Normal our focus will be on Scalability, Replicability and Sustainability of our programs while monitoring impact as an important base of the strategic direction for the programs. Also, the pandemic’s impact on the socio-economic conditions of our communities will need regular monitoring and assessment, to plan programs and deviation in existing programs to further our social impact.

Q: What would be your advice to your corporate colleagues on building a strong CSR environment in the country?

A: CSR is an umbrella term encompassing companies’ contribution towards societal development, aspects of human rights, external and internal stakeholder management. The idea is to work in collaboration and convergence and be part of implementation, monitoring and evaluation of creating a social impact. The foremost point is not to take CSR "for granted". Rather, CSR can be utilized to combat the impending disasters, pandemics, and climate change.

The larger question is how to utilise CSR funds effectively? The corporations must gear up - start with systemic approach - plan, implement, monitor, and evaluate the impact. Peer reviewing, third party impact assessment and employee engagement will be effective measures.

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