Citation
Hemant
Kumar-Research Scholar, Lords University-Alwar (Raj.)
Dr.
Meenakshi Bindal- Research Supervisor, Lords University-Alwar
(Raj.)
Abstract: -
Corporate
Social Responsibility (CSR) activities in Rajasthan's small sector (Small and
Medium Enterprises, or SMEs) provide significant benefits,
including enhanced reputation, improved access to markets and finance, and
increased employee retention. While most formal CSR funding in the state comes
from large corporations, SMEs often engage in "silent social
responsibility," which contributes to both community development and
business growth despite challenges like limited resources.
CSR
in Rajasthan involves government platforms like the Environment
Portal to guide corporate spending on projects in education, health,
environment (water, energy), and livelihoods, with industries like cement
leading in sustainability, focusing on community development and meeting legal
mandates, while research highlights trends in integrating CSR with business
strategy for inclusive growth, addressing local issues like 'Save the Girl
Child', and improving stakeholder collaboration.
Key-Words: -CSR,
MSME, NGO, CFP.
Introduction: -
In
FY 2023-24, Rajasthan received ₹1,145.67 crore in CSR funds. The
funds primarily targeted education, health, and rural development. However,
specific, collated data in a tabular form detailing the precise impact of these
activities only on the small sector (MSMEs) of
Rajasthan in 2024 is not available in the search results.
The
available data focuses on the overall CSR landscape in the state and the
government's supportive policies for MSMEs in 2024.
General
CSR Impact in Rajasthan (FY 2023-24 Data)
While
comprehensive impact data on the small sector specifically is unavailable, the
total amount of CSR funds received and their allocation to key sectors in
Rajasthan provides context. The main recipients of the funds were large-scale
community development projects, which indirectly benefit local small
sectors.
|
Focus
Area |
Amount
Received (INR Crore) |
Key
Initiatives/Impact |
|
Education |
₹546.43 |
Funding
for infrastructure, scholarships, and special education programs. |
|
Health |
₹213.45 |
Provision
of diagnostic machines, health camps, and TB elimination programs. |
|
Rural
Development |
₹150.15 |
Infrastructure
building, water conservation, organic farming, and livelihood programs. |
|
Environmental
Sustainability |
N/A
(Significant investment) |
Water
harvesting systems, waste management, and adoption of alternative fuels in
manufacturing units. |
Impact
on Rajasthan's Small Sector (MSMEs) in 2024
The
primary impact on MSMEs in 2024 stems from the Rajasthan MSME Policy
2024, which aims to make the sector globally competitive and locally
sustainable through fiscal and non-fiscal interventions rather than direct CSR
spending data.
- Financial Inclusion: The policy
provides subsidies and interest subventions to reduce borrowing costs for
MSMEs.
- Skill Development: To enhance
workforce quality, the government covers 50% of training costs for up to
six months for MSMEs.
- Sustainable Practices: MSMEs adopting
green growth initiatives receive incentives like 50% reimbursement on
environmental infrastructure projects, electricity duty exemptions, and
subsidies on clean machinery.
- Employment: The MSME sector in
Rajasthan is a significant employer, providing jobs to around 92 lakh
people, a figure the new policies aim to boost further.
The
impact on small businesses is largely measured by improvements in their
operating environment, access to capital and markets, and adoption of
sustainable practices, as outlined in government policies and reports.
Impact
on MSMEs
While
formal CSR is often associated with large corporations, many MSMEs in Rajasthan
engage in informal, self-driven social responsibility initiatives, which yield
numerous business benefits.
- Enhanced Brand and Reputation:
Engaging in CSR helps MSMEs build a strong public image and reputation,
which differentiates them from competitors and attracts socially conscious
customers and investors.
- Improved Financial Performance and
Operational Efficiency: Responsible practices such as efficient resource
use (e.g., water and energy saving) and waste reduction can lower
operating costs and increase efficiency.
- Talent Attraction and Retention:
Companies with strong CSR commitments often enjoy higher employee morale,
loyalty, and productivity, which helps in attracting and retaining a
skilled workforce in a competitive job market.
- Access to New Markets and Finance: A
commitment to sustainable and ethical practices can open up niche markets
and improve access to funding opportunities, as more investors look to
support responsible businesses.
- Risk Management: Integrating CSR into
business strategy helps manage risks associated with regulatory
non-compliance, environmental issues, and social concerns, safeguarding
the company's financial health.
Impact
on the Community in Rajasthan
CSR
initiatives by MSMEs contribute to the socio-economic development of Rajasthan,
particularly in rural areas, by focusing on key development areas.
- Employment Generation and Skill
Development: MSMEs play a critical role in creating jobs, especially at
the low-skill level, and providing training and skill-enhancement programs
for local people, including rural women.
- Women Empowerment: Many CSR projects
specifically target women's empowerment through entrepreneurship programs,
self-help groups, and education, helping them achieve financial
independence and improve their communities.
- Community and Infrastructure
Development: CSR funds are channelized into various community projects
such as improving healthcare access, renovating school infrastructure,
providing clean drinking water facilities, and building anicuts (small
dams) for water conservation.
- Environmental Sustainability:
Initiatives include tree plantation drives, promoting the use of renewable
energy (like solar pumps for farmers), and managing waste, which helps
address local environmental challenges like water scarcity and
pollution.
Challenges
and Opportunities
MSMEs
in Rajasthan face challenges in formal CSR implementation, such as limited
resources, financial constraints, and a lack of expertise. However, government
initiatives like the state's dedicated CSR web portal help channel
funds and provide a platform for collaboration between companies, NGOs, and
government bodies to ensure effective implementation of projects in alignment
with state priorities.
By
overcoming these barriers through collaboration and integrating CSR into core
business strategy, MSMEs can unlock their full potential for both business
growth and sustainable development in Rajasthan.
Literature
Review:
Oh
& Park (2023) examined the connections between CSR and corporate financial
performance (CFP) of Korea from 2004 to 2010. The result shows that the CSR is
positively affects CFP in Korea and the investors concept is appears to be
legitimate. The investigation of industries indicates distinctive outcomes by
every industry's appearances. And the result also say the impact of CSR on CFP
didn’t increment after the global financial crisis.
Roy,
Vyas & Jain (2020) examined the important influencing factors for SMEs to
involve in CSR practices. The result of factor analysis said that the main
factors included customer proposition, stakeholder value, founder
characteristics, business values and motives. Also, SMEs were ready and able to
make important contributions to backing principally local events.
Shetty
(2019) examined the trend and current status of CSR in Karnataka to gain an
understanding of its contribution towards inclusive growth. The result of
survey analysis is saying that positive attitude to CSR and the degree of their
connection in CSR activities has enhanced. The CSR activities are increasing
and the government also support for executing CSR initiatives will be
supportive for channelizing private as well as public sector funds for
strategic development of the nation.
Sharma
&Kiran (2018) examined the position and growth and initiatives of CSR
policy inclosing and execution in big firms of India. The result shows the IT
and Auto industry is high going for taking up CSR activities and FMCG segment
is not concentrated on CSR activities. The government is also enforcing to
increase or initiate the proper CRM strategies for the development of human
resources and increase the status and profit and performance of the firms.
Key
Impacts on SMEs and the Community
- Enhanced Brand and Reputation: SMEs
engaging in CSR are seen as more committed to social responsibility, which
builds goodwill, attracts customers who value ethical practices, and helps
differentiate them from competitors.
- Improved Employee Morale and
Retention: CSR initiatives boost employee morale and loyalty by
fostering a sense of purpose and pride in the workplace, aiding in
attracting and retaining skilled talent.
- Access to New Markets and Capital: A
commitment to CSR, such as fair trade or sustainable practices, can open
up niche markets and attract investors looking for socially responsible
businesses.
- Operational Cost Savings: Pursuing
sustainability can lead to innovations like more efficient production
processes, reduced waste, and lower energy costs, which directly benefits
the bottom line.
- Community Development: Activities
are often locally focused (e.g., in Jaipur, Udaipur, Ajmer) and aim to
improve education, healthcare, and rural infrastructure, directly
addressing local needs.
- Women's Empowerment and Livelihoods: Many
projects focus on women's empowerment through skill development, self-help
groups (SHGs), and entrepreneurship programs, leading to greater financial
independence.
Challenges
for SMEs
SMEs
in Rajasthan face specific challenges in implementing formal, large-scale CSR:
- Limited Resources: Financial and
human resource constraints make it difficult to invest in extensive,
formal CSR programs.
- Lack of Expertise: SMEs often
lack the knowledge or dedicated personnel to design, implement, and
measure the impact of strategic CSR initiatives.
- Focus on Short-Term Profitability: The
urgency of maintaining profitability often leads to a short-term focus,
making long-term CSR investments seem less appealing.
Government
and Collaborative Support
The
Rajasthan government is working to facilitate CSR, particularly by encouraging
collaboration and providing support systems.
- Rajasthan CSR Portal: The state
has developed a unique interactive platform (csr.rajasthan.gov.in) to
connect companies with government-approved projects and implementing NGOs,
making it easier to channel funds effectively.
- Collaboration: Pooling resources
through cluster associations allows SMEs to undertake larger, more
impactful, and long-term projects that they could not manage individually,
while also reducing operational costs.
- MSME Policy: The state's MSME
Policy provides various incentives like interest subsidies and
reimbursements for obtaining quality and environmental certifications,
encouraging sustainable practices.
Top
CSR initiatives in Rajasthan
Major
flagship programmes and latest CSR initiatives in Rajasthan inlcude:
Shree
Cement’s Partnership with Fifty Villagers Seva Sansthan for Rural Girls in
Rajasthan
Shree
Cement Ltd. has partnered with Fifty Villagers Seva Sansthan, a Barmer-based
grassroots NGO dedicated to transforming the lives of underprivileged rural
children through education. Under this partnership, Shree Cement will support
25 underprivileged girls from across Rajasthan through a residential medical
entrance coaching program, helping them prepare for NEET and pursue careers in
medicine. The company has committed ₹25 lakh per year for two years to the
program.
Founded
in 2012 by Dr. Bharat Saran, a government medical officer, the initiative began
in a small, rented room where he taught children after hospital hours. Over
time, this small act of service became a movement, one that has so far
supported 286 students, including 119 admitted to medical colleges, 23 at AIIMS
and 52 serving in government roles such as teachers, police officers and Air
Force personnel. His dedication has inspired hundreds of children to rise
beyond their circumstances and build meaningful futures.
These
children come from some of Rajasthan’s most remote and underprivileged areas,
often facing hunger, long walks to school and limited resources. Despite these
challenges, many have excelled academically, scoring over 75% without access to
coaching.
Football
Academy by Hindustan Zinc Ltd.
Football
Academy is a pioneering effort by Mining major Hindustan Zinc Ltd. (a
subsidiary of Vedanta Limited.) in Rajasthan to identify local football talent
at an early age and train them to be Indian Football Stars. The objective of
the project is to initiate a large scale holistic Football programme for
strengthening grassroots community connect by setting up the HZL Football
Academy as well as Community Football Centres in communities around HZL
operations; identifying talented young footballers from Rajasthan; training
them using the latest methodologies and technological interventions to create
Indian Football stars.
The
project has 4 pillars:
Community
Outreach Programme – Geared to generate mass community engagement in football.
64 Community Football Centers are being set up in select communities around HZL
operations. Children coming to these centers receive training for 2 hours a day
for 3 days a week. Goal-Post campaigns to train 32 local community coaches have
also been initiated. In just 4 months since the initiation of the Project, the
outreach programme reached out to 2500 children from Zawar, Debari and Dariba.
Talent Hunts are being initiated across Rajasthan. Given the interest shown by
girls during outreach camps, plans have been put in place to explore
possibilities of forming girls Football teams in the Community Football
Centers.
HZL
Football Academy – Set up as a residential programme for the most talented
players. Training is provided by highly qualified expert coaches using world
class infrastructure facilities, latest scientific methodologies and
technology. The students selected for this football Centre of Excellence
receive intensive football training as well as formal education till class 12.
The Academy now has a capacity of 80 boys.
Performance
Analysis Center – A high technology centre to provide world class scientific
and technological training facilities to local football talents from an early
age. It is being built at Zawar and will be ready by February 2018.
Zinc
Football League – The best way to become a football champion is to play
football matches and to win games and championships. A grassroots football
league is being created to strengthen community connect and to give our young
champions a taste of playing real games.
Unchi
Udaan by Hindustan Zinc Ltd.
The
‘Unchi Udaan’ programme is built on the base being created by Shiksha Sambal,
another Flagship programme by Hindustan Zinc. The objective of the programme is
to give wings to dreams of meritorious students, studying in government schools
in communities around HZL operations, to study in IITs and other prestigious
Engineering Colleges by providing quality coaching and residential schooling.
UNCHI
UDAAN identifies and prepares young meritorious students
from government schools in communities around HZL’s operational areas in Ajmer,
Bhilwada, Chittorgarh, Rajsamand, Udaipur districts of Rajasthan and Pantnagar
district of Uttarakhand. It gives wings to children’s dreams, of studying in
IITs and other institutions of national repute. This is a multi-year
residential programme being implemented in partnership with ‘Resonance
Eduventures Pvt. Ltd.’ (coaching institute) as the technical partner and Vidya
Bhawan as the school and hostel partner.
CSR
of Bajaj Finance Limited: Healthy Motherhood-Healthy Childhood
Bajaj
Finance Limited (BFL), a subsidiary of Bajaj Finserv Limited, is one of the
major spenders for CSR in Rajasthan. The company has a project for Healthy
Motherhood-Healthy Childhood and Targeting the Hardcore Poor (Rural
development) in Sikar and Dungarpur districts. They have been working towards
addressing issues of Child Protection and Nutrition (Healthcare and promoting
gender equality) in Bharatpur, Alwar, Sikar, Baran and Ajmer district and Early
Childhood Care in Rural Areas (Healthcare) in Udaipur district.
They
also have projects for education of autistic and slow learner children,
community based management of disability- childhood to livelihood, holistic
nutrition support to underprivileged children afflicted with cancer, mother and
child care, construction of school building, comprehensive tribal model village
development program, imparting vocational training and rehabilitation services
in different areas of Rajasthan.
Vedanta
Nand Ghar
Nand
Ghars are a flagship social impact project dedicated to benefit rural children
and women in India. A measure undertaken by Vedanta Resources Ltd. under the
Anil Agarwal Foundation Initiative, together with the Ministry of Women and
Child Development (MoWCD), the project aims at progress of rural India.
Nand
Ghar has over 200 centres across Rajasthan’s Jodhpur district. A network of a
model Anganwadi, Nand Ghar provides pre-school education through e-learning,
BaLa designs, and smart kits. Nand Ghars are equipped with solar panels to
ensure 24X7 electricity, water purifiers, clean toilets, and smart television
sets and have become a model resource centre for the local communities.
Pre-school education is provided to children in the age group of 3-6 years.
Nutritious meals and take-home rations are being provided for children,
pregnant and lactating women. Primary healthcare services are rendered through
mobile health vans & telemedicine facilities and women are empowered
through skilling, credit linkage, and enterprise development.
To
transform the lives of women and children, Vedanta signed a MOU with the
Government of Rajasthan last year to develop 25,000 Nand Ghars across 13
districts.
ICICI
Rural Self-Employment Training Institutes
The
Central government’s Ministry of Rural Development (MORD) has roped in banks to
set up RSETIs (Rural Self Employment Training Institutes) for young people from
rural communities. On behalf of ICICI Bank CSR, the Foundation has been
managing a residential RSETI in Udaipur and its satellite centres for a decade.
Satellite centres provide doorstep training and flexible courses on location.
ICICI
RSETIs have a high success rate, with more than 75% of the trainees continuing
gainful employment long after they have passed out; nearly 58% are women. The
curriculum is designed after surveying local employers. There are skilling
courses in more than 30 trades, which also align with the guidelines of the
National Skills Qualifications Framework. Other activities include roadshows
and Ratri Choupal gatherings to generate interest in entrepreneurship.
These
centres build micro-entrepreneurs and attempt to walk them through the venture
end-to-end support. They will inform them about credit schemes from the
government, fill out application forms and show the procedure to set up their
business enterprise. There are follow-ups for two years after training where
the team checks up on their progress.
HDFC
Bank Parivartan
HDFC
bank’s CSR initiatives in Rajasthan mainly focus on rural development
initiatives, education, vocational skill training and healthcare. HDFC Bank
Parivartan, the bank’s umbrella programme for social initiatives impacted lives
of over 35.43 lakh people in Rajasthan in the FY 2020-21, as per their
announcement. The bank reached out to 132 villages across 13 districts –
Bhilwara, Sikar, Baran, Alwar, Jaipur, Chittorgarh, Pratapgarh, Dhaulpur,
Jaisalmer, Karauli, Dausa, Pali, Rajasmand and Alwar. #Parivartan aims at
mainstreaming economically & socially-challenged groups across the country
by ushering growth, development and empowerment.
HDFC
Bank’s Holistic Rural Development Programme (HRDP) includes farm and
nonfarm-based livelihood, water conservation, on-ground training for farmers,
creation of Farmer Producer Organisations, sanitation and Natural Resource
Management. The bank facilitates livelihood enhancement opportunities,
particularly for women and youth, primarily in agriculture and allied areas
such as dairy and poultry. The objective is to help them find jobs locally,
enhance their household income and discourage migration.
The
bank aims to reduce the carbon and ecological footprint of communities by
promoting clean and renewable energy solutions. This includes undertaking
projects such as tree plantation for carbon sequestration and biodiversity
conservation. In addition, it is providing solar home lights, biomass chulha,
biogas plant, solar study lamp, and a solar irrigation unit, covering 25% of
the households in each village. The biomass stoves have helped improve indoor
air quality, creating a direct positive impact on women’s health.
HDFC
Bank is implementing a programme to promote education in line with India’s
Sarva Shiksha Abhiyaan. Under this theme, a multi-faceted support is provided
to schools, to enhance the quality of education – which includes training the
teachers, providing scholarships and career guidance to students, as well as
infrastructure support to schools, such as building toilets and improving
classrooms.
The
Bank has dedicated programmes for improving teachers’ skills and scaling up
no-cost solutions for improving existing systems and processes. It has also
been working towards establishing libraries, scientific labs and digital
classrooms. Under this theme, the aim is to enhance the quality of education in
government schools through a three-dimensional, target-driven approach.
CSR
of Honda Motorcycle And Scooter India
Honda
Motorcycle & Scooter India Pvt. Ltd. (HMSI), a leader in two-wheeler
manufacturing is a major spender in CSR projects in Rajasthan. The company has
undertaken CSR initiatives like computer lab training and hardware (Gyantantra
Digital Dost), water conservation projects through Self Help Groups, hospital
upgradation and maintenance of toilets at community health centres in Alwar
district.
Apart
from these, they also have initiatives for education, health camps and mobile
medical unit & static medical unit. Honda has invested in developing the
existing local government Community Health Centres (CHC) in two locations
around the Honda plants in Tapukara and Tijara in Alwar district. These include
redevelopment of boundary walls, post-mortem room, parking area for ambulance,
X-ray machines, medical equipment, first aid care, oxygen pipeline, cleaning
staff and cleaning equipment, facilitating over 800 local residents.
The
company’s water conservation projects through Self Help Groups in Alwar include
construction and restoration of water structures and a dam in Kalikhol village,
Skill development of an SHG by providing them training in the field of water
conservation along with infrastructure development.
They
have also supported the learning of 75,000 government school students in
Rajasthan through a WhatsApp based home learning model. Honda has also
developed playgrounds and sports ground facilities in the villages of Burera,
Ishroda and Tapukara villages in Alwar district
Satya
Bharti Schools
With
a strong belief that education is critical to empower children, particularly in
rural India, Bharti Foundation (the CSR arm of Bharti Enterprises) launched its
flagship Satya Bharti School programme in 2006. The CSR programme imparts free,
quality education to less privileged children of India. Currently, 28 schools
are functioning in Jodhpur district, directly impacting the lives of over 170
teachers and 6,300 students with a 50-50 ratio of girls and boys and more than
75% being from disadvantaged communities.
All
the schools provide free quality education to underprivileged children, with a
special focus on the girl child. Specially designed girl-child policy, separate
toilet for girls, one female teacher in each shift and special sensitization
campaigns have been put in place to encourage parents to send their daughters
to school. The curriculum followed in the schools is at par with curricular
structures followed in schools across the country. It is also integrated with
community campaigns, which helps children in developing life-skills as well as
critical and creative thinking skills through hands-on experiences.
CSR
of LIC Housing and Finance Ltd. for rural development
LIC
Housing and Finance Ltd collaborated with NGO AROH Foundation in 2021 for an
aspirational Holistic Rural Development Project ‘Hriday’ for seven indigent
villages of Rajasthan. Hriday aimed at socio-economic reformation of villagers
in the Antah block of Baran District in Rajasthan. These were targeted to
achieve through various interventions in agriculture, animal husbandry, water
& natural resource management, health, education, employment, nutrition,
awareness & advocacy.
The
Holistic Rural Development Programme seeks to bring about dignified and healthy
living among the rural communities and strengthen community self-governance.
The project also instils and fosters scientific innovations in its
implementation and substantiation processes. Some of these include SMART class
set ups for government schools, scientific agricultural practices,
chemical-free and organic farm activities, use of GPS for asset tagging and
monitoring, extensive use of technology for monitoring and tech based models
for access to water and education interventions.
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