Chemical sector most active in CSR activities: ASSOCHAM
Indian conglomerates engaged in sectors such as chemical, FMCG and textiles have been most active in taking up corporate social responsibility during 2008-09, as revealed by ASSOCHAM Eco Pulse study.
According to ASSOCHAM Study “India Inc. and CSR areas”, 300 Indian companies that have been grouped under 18 broad sectors based on their economic activity, the maximum initiatives have been undertaken by almost 74 companies engaged in chemical sector, contributing a share of 12.11 per cent. The 62 companies in FMCG and consumer durable are placed at second position with a CSR initiative's contribution to be 10.15 per cent. The textile sector with 53 companies occupied third place with effective CSR initiatives, contributing a share of 8.57 per cent, among others.
The 300 corporate houses on an aggregate have identified 26 various theme areas for their CSR initiatives.
Releasing the study, ASSOCHAM President, Mr. Sajjan Jindal said that out of the total 26 activities, community welfare perceived to be the top priority area on the corporate sector's list with a share of 21.93 per cent. It involve activities that focus more towards the under-privileged community that lives around the vicinity of company plants, facilitating education and health care and supporting projects that lead to employment generation.
The second most sort CSR initiative followed by Indian industrialist is towards providing education and enlightening the youth of the country. CSR initiative for education carved out a share of 19.64 per cent. The corporate sector helps in imparting education to the deprived kids in the urban areas along with the children from rural areas that do not have any access to medium of information. They provide funds that help in setting up local schools, colleges and centers for learning and education.
Since, global warming is the buzz word now-a-days, Indian corporate sector has initiated their efforts to preserve and save it. Thus, environment is the third most prioritized area undertaken in CSR activities, with a share of 17.02 per cent. CSR projects in this area deliver solutions that are both environmental and business friendly, providing financial benefits as well as improving the firm's image as an environmentally-aware company.
The fourth most popular area, that corporate sector get involves in is the health care. They offer mobile medical services with medical help along with organizing regular medical camps to eradicate diseases, creating awareness on preventive health care among others. Among the 26 various CSR initiatives, health carved out a share of 15.22 per cent.
The Indian conglomerates are equally extending their support in the development of the rural areas. They are providing both financial and infrastructural assistance towards agriculture, animal husbandry, cottage industries by developing local skills, using local raw materials and helping create marketing outlets. Thus, it is the fifth most prioritized area under CSR initiatives contributing a share of 6.06 per cent.
The 300 Indian industrialists has focused their CSR activities across 20 states/UTs, out of which, Maharashtra received maximum attention for initiating their CSR activities with a share of 35.68 per cent. It is followed by Gujarat (11.62 per cent), Delhi (9.66 per cent), Tamil Nadu (9.17 per cent) and Andhra Pradesh (7.04 per cent) among others.