This case is based on Section 135 of India’s Companies Act, 2013, which makes India the only country in the world to mandate CSR spending. Corporations meeting certain criteria must spend 2% of their net income on CSR activities. Based on the experience of one NGO, students are asked how non-profit organizations should respond to the new provisions, such as how should they adjust their policies, procedures, internal monitoring, and project implementation processes. Ultimately students are asked to answer how organizations should respond to a shift in funding from government sources to corporate foundations.
India’s Mandatory CSR: New Opportunities or Challenges for NGOs?
by: Suresh Kalagnanam, Priya Rajeev, Sumit Mitra
Publication Date: May 1, 2015
Length: 12 pages
Product ID#: 1-430-434
Core Disciplines: Leadership/Organizational Behavior, Social Impact, Strategy & Management
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Description
Teaching Objectives
After reading and discussing the material, students should:
- Describe the background and context of CSR in India.
- Generalize the capacity-building issues confronting NGOs in the wake of Section 135.
- Analyze the strategic implications for existing NGOs to continue on their path of values, mission, and vision, given the new challenges arising out of Section 135.ynthesize the funding challenges faced by NGOs.
- Predict the challenges of expanding the scope of NGO services and depth of resources needed to meet the increase in demand for CSR offerings.