Corporate Social Responsibility (CSR), in transition from being merely compliance-driven to being impact-informed and strategic, now requires firms to care about the nature and quality of their social impact. Some firms have the bandwidth- personnel and financial- to meet compliance requirements and ensure the nature and quality of their social change efforts.
Other organisations work with Non-Government Organisations (NGOs) who operate as implementing partners. In the last fiscal year, approximately 60 percent of CSR expenditure has been done through implementing agencies, as per analysis of CSR filings. (India CSR Network )
Given this high volume of contribution, it becomes important to recognise the value that NGOs bring to the table for CSR activities.
1) Connect with communities: Credible and effective NGOs are hyper-local, recognising that making and sustaining inroads into communities is imperative to ensure community buy-in and ownership i.e., sustainability of intended social change. As a result, NGOs have a better understanding of ground realities and are also likely to be known and trusted amongst communities they work with. (DasGupta, 2020)
2) Last mile delivery: Given their field presence, contextual awareness, and relevant skills, NGOs contribute towards reaching less visible and more vulnerable populations. As was highlighted by the Impact of Covid-19 on India’s Nonprofit Organisations study by the Centre for Social Impact and Philanthropy at Ashoka University, 75% of non-profits were actively engaged in COVID-19 relief work, using their presence in communities towards delivering ration and sanitation kits, setting up health camps, and supporting stranded labour during the pandemic.
3) Proof of concept: As compared to firms that may have to start afresh with their social good activities, NGOs have already tested the feasibility of their intervention/s through research and implementation. Thus, the latter operates from a point of having some validation of their concepts, with evidence to support efforts that work, recognising shortcomings in the process as well.
4) Recognition of corporate support in communities: CSR, when undertaken effectively, can contribute towards image building and credibility for the firm. Drawing on the first two aspects- community connect and last mile delivery, well-intended CSR efforts supplemented with relevant NGO partner actions, can help with firm reputation and brand value. (Poret, 2017)
5) Compliance: Working with NGOs that have met the multiple compliance norms set in place by the government, helps to ensure efficiency of CSR efforts. Compliance norms check the possibility of unfavourable consequences such as expenditure with inadequate outcomes or concerns around money-laundering. (Tata Sustainability Group) Thus, by working with compliant NGOs, CSR efforts can have transparency, ensure government approval, and maintain the firm reputation.
To summarise, NGOs have the necessary skills, expertise, reach, determination, and personnel to implement efforts for social change. (Ek Sankalp) When coordinated with funding from corporate firms, it becomes possible to ensure impact and effectiveness of CSR efforts.
The 4th Wheel plays an important role in supporting organisations to deliver social impact in a scalable and sustainable manner. Our service offerings span strategic programme design, capacity building of programme teams for effective implementation, and impact evaluation studies for evidence-based decision making.
Works Cited
DasGupta, Nivedita. “The role of NGOs – Ensuring commitment to social responsibility amidst the Covid-19 pandemic”. The Times of India. 1 October, 2020. https://timesofindia.indiatimes.com/blogs/voices/the-role-of-ngos-ensuring-commitment-to-social-responsibility-amidst-the-covid-19-pandemic/
Due Diligence of NGOs: Guidelines”. Tata Sustainability Group. https://www.tatasustainability.com/pdfs/Highlights/DueDiligence-NGOsGuidelines.pdf
“Make CSR Funds More Effective”. India CSR Network. 10 May 2022, https://indiacsr.in/make-csr-funds-more-effective/
“Impact of Covid-19 on India’s Nonprofit Organisations”. Centre for Social Impact and Philanthropy, Ashoka University, 2020, https://csip.ashoka.edu.in/research-and-knowledge/#reports
Poret, Sylvaine. “Corporate-NGO partnerships in CSR activities: why and how”. 2017. https://hal.archives-ouvertes.fr/hal-01512199/document
Role of Non-Government Organisations in CSR. Ek Sankalp. https://eksankalp.com/role-of-non-government-organizations-in-csr/
