Revisit CSR Policies On The Adequate Distribution Of CSR Funds To Where They Are Needed The Most

In a paper published by Goeman Bind HTO, Corporate Social Responsibility, Trends in India, it was highlighted that some of India’s most developed states like Karnataka and Maharashtra account for the maximum share of CSR funds when it comes to poverty eradication. The two states, Uttar Pradesh and Bihar that account for the highest percentage of the Below-poverty line population in India still get a very small percentage of CSR funding for poverty eradication programs.??

Further, the skewness is reflected in intrastate CSR funding as well. For e.g., the border district of Bihar received almost no CSR funding. Almost similar trends were observed in Jharkhand, as more the district lagged in development parameters, lesser CSR funds it received. However, for more developed states like Gujarat and Karnataka, the distribution of CSR funds was better done.?

Mr. Vedant Batra, Founder, Goeman Bind HTO said “The purpose of any CSR initiative gets defeated when the deployment is based on tax structures of states and presence of industrial /resource base. For better distribution of such funds, we need to focus on the creation of incentives for better distribution. Organizations also need to look beyond their regional office locations and cater to areas/states where there is a greater need. An ethical approach in the allocation of CSR funds and better incentive structure at a national level can help address the socio-economic needs of the country.”?