Issue: #1 | April 2014

- 1st April, 2014- Dawn of a new era in CSR

- Unilever’s SHAKTI programme

- Unsung heroes from the field

- Fiinova�on & IOD partnership

- Fiinova�on awarded

- Fiinobserva�on of Interna�onal Days

- Fiinova�on revamped website

To subscribe visit : www.inovation.co.in

In this issue:

Influencers speak up on the New Companies Act, 2013

““

"CSR has been so narrowly defined within

companies... now they will feel that they be�er

follow the le�er of the law"

- Rohini Nilekani,

Chairperson and Founder, Arghyam

“India perhaps is the first country in the world

to have CSR in its statute… This is the

company's money. They have full freedom to

choose how they want to spend that money”

- Sachin Pilot,

Corporate Affairs Minister

"It will provide regulatory clarity and a

framework for organisa�ons to deliver on

their CSR goals within the larger social and

- Rana Kapoor,

CEO, YES Bank

Interesting trivia you missed out on...

- An es�mated 16000 companies fall under the CSR ambit and CSR investment is expected to amount up to Rs 20000 crores.

- Promo�on of rural sports, paralympic sports and olympic sports are included New Companies Bill, 2013.

- CSR rules state that ac�vi�es providing “exclusive” benefit to employees and their families will not be considered as CSR.

- The Act does not provide any guidance on what cons�tutes acceptable reasons for which a company may avoid spending 2 per cent on CSR.

- As per ETIG Data base Reliance Industries' CSR spend (285 crore) was the highest for the financial year end March 2013.

1st April, 2014 - Dawn of a new Era in CSR

1st April 2014 was a signicant day in the history of CSR in India. The

day that witnessed the enforcement of the New Companies Bill, 2013

transformed the essence of CSR from charity to strategy.

16,000 companies were set to release their corporate social

responsibility (CSR) which accounts for spending 2% of their prots.

An estimated amount of Rs 20,000 crores along with substantial

technical expertise are expected to flow into the social sector.

On being asked about CSR, Bhaskar Chatterjee, DG & CEO, Indian

Institute of Corporate Affair, viewed it as 'a leap of faith for India which

has become the rst country to legislate CSR'.

A landmark day which is a game changer is intended to further the

creativity and imagination of the corporations. It is aimed to provide

'great flexibility to business and industry for strategizing and

conducting their CSR initiatives. It will actually enhance their

efforts, provide an even broader platform and re-energize their

efforts”.

Considering the immediate effective date of April 1, 2014,

complying to timelines is a concern for the corporate. However, on

being asked on the way forward 'research, reporting and

sustainability that is inside out' is recommended by

S. Chakraborty , Fiinovation.

Speaking of the moment as a 'tidal wave of opportunity and a

challenge' Ravi Venkatesan stresses on the strategic

employment of CSR where corporations utilize it as a platform

to 'build corporate reputation and trust'. Graduating from

cheque book philanthropy to impact investing, suggested

Venkatesan. The way forward must look at viewing CSR not as

an onerous imposition and a 2% tax, but as a 2% investment in

building corporate reputation, employee engagement and

innovation.

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“It will be interes�ng to see how responsibility

can be mandated and the effect the mandate

will have on the responsibility.”

- S. Chakraborty,

CEO, Fiinova�on

Unilever's sustainable & smart CSR Model

Hindustan Unilever Limited (HUL) is an Indian FMCG company based in Mumbai,

Maharashtra. Unilever is the Anglo-Dutch company that owns 67% shares in

HUL. HUL is a market leader in consumer products that include items such as

food, beverages, cleaning agents and personal care items. They have over 700

million Indian consumers across the region.

India is the second largest populous country in the world that accommodates

people across rural and urban settings. The majority still resides in the rural areas

which amount for more than 6, 00,000 villages. These villages are characterized

by a complete lack of infrastructure in terms of transportation and basic amenities.

Accessibility to these far flung villages poses a big challenge for all ,especially the

local community who are deprived from basic services. In order to address this

gap, the GOI initiated an intervention to promote women entrepreneurship in

villages. HUL used that opportunity to design and develop a business program

model around it i.e. Shakti Entrepreneurship Programme. The idea was to create

a chain of HUL selected women entrepreneurs in each village who would not only

distribute HUL consumer products but also educate and sensitize the community

on product usage.

The process employed, for selecting new distributers and entrepreneurs was

carried forward through the help of NGOs. It was a model centered around

meaningful partnerships that got on board government and civil society

organizations which led to the development of microcredit nanced Self Help

Groups (SHGs). These SHGs were an effective tool that got women on board to

learn basic skills (math, life skills) and allowed them an opportunity to see

themselves in a position of power which was something very new for them. HUL's

invests its resources in training the entrepreneurs, helping them become

condent, business-savvy professionals who are capable of running their own

enterprise.

Today, Hindustan Unilever has over 25,000 entrepreneurs across 15 states of

India. These entrepreneurs earn a sustainable income of Rs 700- Rs 1000 per

month, which is double the average household income. 30% of the women

entrepreneur earn more than rural per capita income.

The community benets as the products are made available to them at a

substantially lower cost which helps reach the vulnerable population. This case

has had a direct effect on the social stature of millions of people who now have

access to personal care and home products. It is a self-sustaining model which

has benetted many rural women. Shakti programme is a successful CSR

initiative which has helped benetted the market and has also reinforce the brand

value of HU.

To know more, please visit: www.hul.co.in

The Shakt i Ini t iat ive can be

d e s c r i b e d a s a s a l e s a n d

distribution initiative that delivers

growth; a communication initiative

that bui lds brands; a micro-

enterprise initiative that creates

livelihoods; and a social initiative

that improves the standard of life in

rural India by providing quality

products.

What makes Shakti scalable and

sustainable is the fact that it

contributes not only to the business,

but also to the community it is a part

of.

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Unsung heroes from the field

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Fiinovation applauds the indomitable spirit of

people working in the eld who work

relentlessly to save the lives of millions.

Mentioned below are two such examples of

women working in the state of Rajasthan.

Rajkala Devi is the rst woman Sarpanch of

her village, Hingwahera in the Alwar district of

Rajasthan. Like most girls of her village, was

denied education by her parents and remained

conned to her home. Men in her village

discouraged women from taking active part in

the social, economic and political life. Breaking

away from the traditional gender role, she

contested the Panchayat elections twice in

2005 and 2010 and became the Sarpanch in

2010. Under her leadership women have participated in Panchayat meetings and voiced their opinions. She continues to

expand her scope of work for the betterment of the women through the effective functioning of panchayats, electoral campaigns

and collective action.I really believe that the village can only be progressive if girls are educated, “she says. Her success story

has inspired a signicant increase in the woman's participation in the Panchayat elections in Rajasthan and beyond.

Sajani, Saleemati and Chano and Bhagwati are change-makers from Rajasthan who through their innovative and unique work

have earned themselves the epithet of "barefoot engineers". These neo literates negotiated their traditional roles and received

training in solar engineering from Social Work and Research Centre a Tilonia-based NGO also known as 'Barefoot College'.

SWRC is working towards the delivery of Solar Electrication, Clean Water, Education, Livelihood Development, and Activism

since 1972. These women are now responsible for the installation, maintenance and repair of the solar lights in their villages in

Barmer.

Fiinovation & IOD MoU: A path

Breaking Partnership

A MOU has been signed between

Fi inovat ion and Inst i tute of

Directors (IOD) on 19th March,

2014. This comes as an ofcial

dec la ra t ion o f pa r tne rsh ip

between the two organizations

and puts Fiinovation in the ivy league of organizations

working in the CSR arena. The collaboration is aimed to

enhance the quality of discussions and debate that surround

the sector through research articles, round table discussions

and global events. Fiinovation would contribute to IOD'S

Master class for Directors that includes a wide spectrum of

subjects such as Corporate Governance, Sustainability, HR

practices, Finance, Corporate Social Responsibility,

Environment Management and Board Effectiveness.

Fiinovation felicitated on World CSR

Day by the World CSR Congress & the

Indian Overseas Bank

The World CSR Congress in

association with Indian Overseas

Bank celebrated the third World

CSR Day on 18th February, 2014

at Taj Lands Hotel, Mumbai. The

international event ' CSR: Good to

Great' brought together members from 86 countries. Policy

makers, corporate houses, NGOs and academia ensured the

event was thorough and comprehensive.

Innovative Financial Pvt Ltd ( Fiinovation) were awarded for

being the Best Innovation - Product / Service for the year 2014

from 2500 entries. The felicitation ceremony and discussions

were attended by the whose who of the sector. It was a

platform for dialogue and debate which pushed the issue of

CSR discussions from the 'backroom to the boardroom'.

-Rupa Cha�erjee Fiinova�on

www.inovation.co.in

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www.inovation.co.in

Fiinobservation of International Days World Water Day

22nd March

Water scarcity is a reality we are faced

with everyday of our lives. The UN

estimates that, more than 700 million

people lack access to improved water

sources and 2.5 billion people have no

improved sanitation. Water is a basic

human need and an essential tool for

economic development. Research

suggests an annual investment of $103

billion by developing countries to

n a n c e w a t e r , s a n i t a t i o n a n d

wastewater treatment through 2015.

The theme for this year is – 'Water and

Energy'. The strong interlace between

the two are reiterated while looking at

water utilization strategies especially

extraction, pumping, treatment and

t r a n s p o r t a t i o n . F i i n o v a t i o n

programmes aim to raise awareness

about the water-energy nexus and

address the concerns of the people

placed at the bottom of the pyramid who

lack access to basic amenities.

Interna�onal Day of Forests 21st March

International Day of Forests is a

platform for people with an interest in

forests and climate change to share

the i r v iews and work toge ther

effectively. It is a consultation which

brings to together stakeholders who

deliberate on issues pertaining to

climate change especially mitigation

and adaption strategies. Deforestation

is a big problem and each year more

than 13 million hectares (32 million

acres) of forests are lost. Fiinovation

advocates for an approach that

inc ludes redening the idea of

development and have a sustainable

course of action for future which is

inc lus ive in nature rather than

exclusive.

The need to include all stakeholders is

the key as communities continue to be

faced with issues of displacement, man

animal conflict and loss of livelihood.

World Tuberculosis Day 24th March

According to the World Health Ranking standard, India stands at 58th position on tuberculosis with a death rate of 28.8 persons per 100,000 persons. The World Tuberculosis Day is celebrated to create awareness among the general public on the causes of TB which cause nearly half-a-million annually, mostly in developing countr ies. Research estimates 9 million new TB infections annually among which 3 million fail to benet from the available healthcare services. The slogan for this year is to reach that 3 million. Fiinovation works on developing programmes that work in tandem with the WHO Stop TB strategy which has helped save the lives of 22 million people over the course of seventeen years of its implementation. Fiinovation advocates for an approach t h a t e n g a g e s c a r e p r o v i d e r s , empowers people with TB, and commun i t ies th rough enab l ing partnerships and promotes fruitful research.

We are a research based firm specializing in the

CSR domain. We are integrated solution

enablers, who provide simple solutions that

enhance quality across the value chain. We are

a proposal research laboratory that takes

research on policy drafting and implementation

design a step ahead than the others.

To know more please visit our website

Web: www.fiinovation.co.in

Email: media@fiinovation.co.in

About Fiinovation

Fiinovation revamped the organization website with added features and

information and launched it on 15th March, 2014. The new website is more

informative and user friendly and has a dedicated section covering

Fiinovation practices, sectors, research papers, projects etc. It also

comprises:

An Online member directory,

A Newsletter section,

New photo galleries,

Upcoming calendar of events,

Updated information about projects.

Revamp of Fiinova�on Website