CORPORATE SOCIAL RESPONSIBILITY IN NATIONAL PRIORITY AREAS:EDUCATION, HEALTHCARE AND SKILL DEVELOPMENTGaps, Opportunities And Recommendations

June 2016

CREDITS

This is a summary of three briefs aiming to inform Corporate Social Responsibility (CSR) leaders looking to identify opportunities in public healthcare, education and skill development that they would like to address through CSR initiatives. The brief highlights key gaps, expert perspectives and opportunities in these three priority sectors that can bring about sustained long-term impact for the CSR investment.

This has been developed as a series of knowledge initiatives by the Indian Institute of Corporate Affairs (IICA) along with Sattva.

The full knowledge products can be downloaded from:http://iica.in/Events_school_of_corporate_management/Stp_About_us.aspx#www.sattva.co.in/knowledge

Authorship

Frameworks, Research, Writing, Editing and ProductionAarti Mohan , Rathish Balakrishnan and Sri Harshita Rallabhandi from Sattva

Knowledge Content and Domain Expertise Nikhil Pant and Mayuri Misra from IICA

Illustration and Design: Sakhi BansalRae ZachariahAnanya Ghosh

Healthcare publication supported by BRICS-CCIEducation publication supported by Jagran Lake University

June 2016©IICA and Sattva 2016

FOREWORD

GOOD HEALTH has a direct link in enabling other key thematic areas such as education, skill development, and sustainable livelihoods, which eventually leads to holistic social progress. In light of the magnitude of India's national health and development challenges, healthcare was enumerated within the Schedule VII of the CSR Act to play an important catalytic role in the government's effort.

There is growing recognition among corporates that unless we address current health challenges, the demands for the future growth of the nation will make business difficult. These are exciting times where we can look not only towards innovations to address the complex development challenges we face in India, but also grapple with how to take innovations to scale for greatest impact.

SKILL DEVELOPMENT for India is critical from both the socio-economic and demographic points of view. It is an important tool for reducing poverty, enhancing competitiveness and employability. Skill development in Schedule VII can greatly help the Make in India and Skill India efforts gather momentum and scale through Industry collaborations.

EDUCATION is the most powerful tool to break the inter-generational cycle of poverty - it helps overcome inequalities, promotes inclusive development, accelerates social transformation and is critical to realise human potential towards economic progress. Ours is the age of the knowledge economy. Only quality education for every child can help us achieve the goal of long-term economic and social equity we all are working towards.

On behalf of the Indian Institute of Corporate Affairs, I am pleased to present the following short summary of 3 critical knowledge publications outlining key gaps, opportunities, and strategic recommendations for corporates to invest in national priority areas under CSR. These publications are outcome documents of a series of deliberations carried out with Industry leaders, CSRs, Government bodies and Civil Society organisations through roundtable conferences through FY 15 and complemented with wide-ranging perspectives and experiences from academicians, education professionals, CSR heads, policy-makers and practitioners.

These roundtables and publications have been supported by BRICS-CCI, Jagran Lake University and Karve Institute of Social Service in the various sectors. I would like to express my sincere appreciation and thanks to our partner "Sattva", and our in-house Learning & Development Team at the National Foundation for CSR (NFCSR), IICA, for their diligent research and efforts in identifying key gaps and compiling insights across the 3 sectors.

I wish these publications wide circulation and acceptance across the social impact ecosystem.

Dr. Bhaskar ChatterjeeDG & CEO, Indian Institute of Corporate Affairs (IICA)June 22, 2016

India has taken significant strides towards realising its vision of providing access to education for all its children. In 2001, India launched the Sarva Shiksha Abhiyan (SSA or Education for All) to achieve

universal elementary enrollment and retention by 2010, through building a large number of schools, school incentives, food, and an increase in the number of teachers in school, to name a few.

But the biggest challenge that India's public education system faces today is that the tremendous success in achieving nearly 100% access to schooling has not translated to quality learning.

Low learning levels point to several gaps entrenched deeply within the system of education - retention rates after primary school are low. Several historically marginalised groups are left without

access to quality education. Teachers are often under-trained and over-worked. Rote-learning and language barriers lead to schools becoming an unattractive place for children to continue. Education

awareness programmes do not reach everyone, and the community is left uninformed.

The emerging data about the quality, access and equity of education in India point towards a crucial space where companies can intercede to create great impact through Corporate Social Responsibility.

EVERY CHILD IN SCHOOL AND LEARNING WELLInnovations and Partnerships in Education CSR in India

CSR IN EDUCATION

ENROLLMENT

RETENTION

LEARNING OUTCOMES

HOLISTIC DEVELOPMENT

Primary school enrollment has been a success story in India, with enrollment reaching 96.7% in 2014 for the 6th consecutive year, and girls making up 56% of new students between 2007 and 2013.

However, the 4% in terms of number of children who are out-of-school remains a high number: the UNICEF global initiative on out-of-school children estimates that 11.9 million children of primary school age were out-of-school, making India the country with the highest number of OoS children in Asia. Although the enrollment rates of SC and Muslim children have gone up, the enrollment of ST, migrant and slum area children still remains low.

Education has been one of the most popular causes to support through CSR. In FY 15, 21% of the total CSR expenditure, 1282 crores has gone towards education. A lion's share of education spending has however gone towards supply side interventions including infrastructure building and cash scholarships. We believe that taking a strategic approach towards education CSR would mean working on focused outcomes that contribute towards improving the quality of education in India.

While inputs like infrastructure building, technology enablement or notebooks may be necessary early interventions, CSR thinking should be critically focused on the long-term goal of helping students maximise their potential and learn well. There are 4 key outcomes that any education initiative could align to for maximising impact: Enrollment, Retention, Learning Outcomes and Holistic Development of the child.

It is one thing to enroll children in primary school education - a goal that has received much funding and attention - but it is yet another to compel them to return every day. 43% of children drop out before completing upper primary schooling, and of those that do go on, only 42% complete high school. According to the Twelfth Five-Year Plan, the average years of schooling in India are just 5.12 years - far below the international average for developing countries of 7.09 years.

Infrastructure, language barriers, the perceived value of household support over education, and social and caste discrimination all contribute to the lack of retention in institutions. Furthermore, amongst all gender, caste and minority groups the highest dropouts occur after upper primary, at secondary schooling levels.

The ASER 2014 report highlights the deepening crisis of poor learning levels among Indian children. Half the children go through 8 years of schooling without ever learning basic arithmetic. The pattern emerging from 10 years of ASER reports indicate the worrying trend of learning being "low and stuck", without ever improving over the years. Learning in private schools, while marginally better than Government schools, is still abysmal.

While academic attainment and cognitive development is a substantial measure of a good education, it is increasingly becoming apparent that children need other life skills to prepare them better for life and to contribute meaningfully as members of society - skills in decision making, analytical reasoning, communication, team work, creativity, and emotional intelligence.

EXPERT SPEAK ON GAPS AND OPPORTUNITIES IN EDUCATION CSR

"Although enrollment rates have consistently been at 96% last 6 years in India, I would say OoSC - child labourers, street children, children in conflict zones, PWDs - are still slipping through the cracks. For these children, intense efforts are required to enroll them in the education system and hence the cost per child is also higher than other programmes."

"From our decade-long experience of delivering holistic learning through empowering community teachers at Muktangan, I firmly believe that appropriate quality pedagogy delivered to a focused community is critical. In the whole gamut of delivering quality education for children, we believe that the relationship of the teacher with the child requires very intensive work."

"Sending girls to school and breaking down socio-cultural barriers takes efforts from all quarters - the Government, non- profits and everyone else in the ecosystem. Attaining girl child education outcomes requires addressing gaps across the chain - in enrollment, retention and learning, but the first two are unique with girl children and require focused efforts."

"The issue of STEM education quality in India directly correlates with teacher shortage and teacher training. We have very successful models that have established points of intervention - from science labs to mobile vans to events and international competitions - outside of the school classroom. Where I think the highest attention is needed is inside the classroom, situated within the the curriculum and daily lessons.

"If classroom teaching is reinforced through a Project Based Learning (PBL) approach that provides a methodology of multiple-reinforcement of core scholastic concepts, every child can learn much better. PBL must connect core concepts in math, science and language curriculum to the real world of the child. The community teacher should be the author and implementer of such PBL modules for any impact on learning outcomes. This is called LEARN (Learning in Education through Applied Reinforcement as per Need)"

"The gap is in education scale-up; we have decoded education models and the product/pedagogy/ process quite successfully. However, we haven't yet discovered what can help scale up so many good models that are delivering quality education on the ground. Companies could be integral partners in the development of the district - with goals being mapped out in consultation with the block development teams and local panchayats, outcomes linked to all stakeholders, implementation experts and partners brought in, and programmes built for the long-term. The key skill that corporates can bring in is the know-how in systems building for scalable solutions."

A focus on out-of-school children is essential

The relationship between the teacher and the child requires intense work

Girl child education needs solutions that can change mindsets

STEM education requires high quality tools in local languages

Community based teacher training and in/after school support/reinforcement programmes can strengthen learning outcomes for school children

CSR can help build scalable education models in the districts

Farida Lambey, Pratham

Sunil Mehta, co-founder, Muktangan

Maharshi Vaishnav, Educate Girls

Bhagya Rangachar, Children's Lovecastle Trust

Nikhil Pant, Reacha

Vivek Sharma, Kaivalya Education Foundation

CSR FOCUS AREAS FOR EDUCATION

Drawing from the 4 outcomes of Enrollment, Retention, Learning Outcomes and Holistic Development, we recommend 13 different programmatic areas where CSRs can invest in education. The areas have been divided into interventions that place the child at the centre (child-centric) and those that enable quality learning by building capacity of people and institutions and introducing new systems (school-centric).

Early Childhood Education (ECE) Girl Child Focus PWD Focus

Tribal Children Education

E-learning &Edtech

Reading &STEM

Remedial Learning Programmes

Cash Schemes &Scholarships

InfrastructureAlternative Education

Sports, Arts, Life Skills Education

PeopleDevelopment

Pedagogy, Curriculum

Development, R&D

CHILD CENTRIC

SCHOOL CENTRIC

The shortfalls in the public healthcare system in India are well documented: just 4% of the Gross Domestic Product being spent on healthcare which is low by all benchmarks, unaffordability of health access for a majority, high disease burden rates among the poor, chronic lack of access to clean water and sanitation that compounds the problem. There is a lack of awareness, all of which trap many in a

cycle of debilitating malnutrition and disease.

Much can be said of the progress in healthcare initiatives in the last decade: the National Rural Health Mission set up by the Government in 2005 is one of the most noteworthy initiatives in public health. The 1983 drafting of the National Healthy Policy provided impetus to primary healthcare and has helped map the length and breadth of the country with PHCs (functional or not). The healthcare industry has emerged as the second largest service sector employer, and private sector partnerships

through PPPs in health are gradually gaining acceptance.

The 'Universal healthcare' goal laid down by the National Health Mission and all State missions, presents a huge challenge and an equally huge opportunity for partnerships and solutions through

innovation and entrepreneurship by both public and private players.

IN GOOD HEALTHInnovations and Partnerships in Healthcare

HEALTHCARE AND SANITATION CSR

Healthcare and WASH presented the top spending among corporates in FY 15: over 24% of the CSR outlay, 1500 crores have been invested in achieving health outcomes.

Opportunities: Supporting The Delivery Of Quality Healthcare That Is Both Affordable And Accesible

The value chain of healthcare delivery presents 6 points of possible intervention and partnerships for the corporates, in line with the key gaps and challenges faced by the public healthcare system today.

HEALTHCARE INFRASTRUCTUREIndia needs to invest heavily in beds and diagnostic equipment. To match bed availability to the standards of more developed nations, India needs to add 100,000 beds this decade, at an investment of $50 billion. Funding and support for hard and soft infrastructure, including mobile health clinics, Emergency Response Systems, ambulances, are areas where CSR funds could be utilised to strengthen the existing infrastructure or create an affordable equivalent. PEOPLETo even come close to the global average, India has to double its capacity of physicians and nursing professionals. The distribution of doctors and nurses in the service ecosystem is extremely lopsided, primarily due to the lack of adequate educational infrastructure in certain states. The doctor to population ratio in the rural areas is at least six times lower than that in the urban areas. A critical need is para-professionals in the health care space.

MEDICINESAvailability of essential medicines is a must to lower OOP expenses. The 12th Five Year Plan recommends a comprehensive set of measures including revision and expansion of the Essential Drugs List, ensuring the rational use of drugs, strengthening the drug regulatory system and setting up of national and state drug supply logistics corporations. Expansion of the Jan Ausadhi network of drug stores is also crucial in lowering expenses. Recruitment of trained pharmaceutical professionals is essential for public delivery of drugs.

INSURANCEThere is no country in the world where healthcare is entirely funded by the Government; co-payment models, subsidized treatments and private funding are critical for sustaining healthcare. About 22 crore individuals were covered under health insurance in 2013-14. This is approximately 18% of the total population.

TECHNOLOGYTechnology transcends over and above just a CSR programme – it is a tremendous opportunity for corporatesto innovate and develop varied lines of new businesses, products and solutions based on healthcare-technology for the BOP. 3 immediate areas where corporates can step in to support tech for health either through funding, resources of strengthening solutions are the following:Technology for community workersTele-medicineLow cost diagnostic tools

AWARENESS & EDUCATIONPreventive healthcare is an important dimension of health that needs significant attention and investment from all sections of the society. It is a national health priority and a notified area under Schedule VII of the CSR Section 135 of the Companies Act. Preventive healthcare directly improves health, wellbeing and productivity of the community, families and individuals, and promotes equity by benefiting most the disadvantaged and marginalised groups. It covers range of public health activities focused on prevention of diseases, promotion of good health and strengthening of health systems.

EXPERT SPEAK ON GAPS AND OPPORTUNITIES IN HEALTHCARE CSR

"Karuna Trust works with PHCs in 6 different states, reaching 1.5 million people. Government provides infrastructure and we completely take charge of the PHC operation, including manpower, access to medicines, technology for diagnosis and follow-ups or tracking. Government pays 90% in some states, we add something to it and run the PHC. These PHCs need gap filling and that is where CSRs can contribute. The bigger value of this contribution is being a fulcrum to get the government money to be utilised in a better way."

"We have programmes for skill building in duty attendants. These workers, often from rural areas, can then take up jobs anywhere in the healthcare space. The need of the hour is subsidising unaffordable secondary/tertiary care, just as we invest in tackling primary care so that it doesn't come to secondary/tertiary stage. As a corporate, here is where we need to step in with our resources and expertise to help the underprivileged."

"There is adequate political will around the issues, as well as the money travels further. Education and healthcare are two sectors where the market cannot fully provide and neither is the Govt. So from a sustainability perspective, anything that CSR supports should be work that can be carried forward by the State."

"At Narayana Health, a good portion of the patients from lower economic backgrounds come to tertiary care units with a primary care illness - these could have been stemmed right at the Primary Care level itself. Since Primary Care delivery systems are non-functional, with the perception & confidence level being low, people travel long distance to get to tertiary care to get treated for primary care issues. This drives up healthcare costs."

"There are three paradigms in healthcare CSR:1. Healthcare is more than medical care2. Healthcare is a collective responsibility (and there are various actors including the state, and corporates)3. Partnerships are critical in order to achieve the challenging goals posed by healthcareThe pattern I see among corporates in supporting medical care includes hospital expenditure, medical equipment and free or subsidised surgeries. While this is much needed, I would urge corporates to examine healthcare beyond curing diseases and look at the larger objective of helping people lead a healthier life."

"Technology cannot work with the exclusion of human beings. One is in complement to the other and this is how opAsha works - our technology aids our health workers in delivering care effectively. We need to ensure that all stakeholders realise there is tangible impact and outcomes through using technology. Out of OpAsha's workers, 30% of the workers have only studied upto Class 4. They serve illiterate patients and we are proud to deliver the best results in healthcare. The same technology is now being used to reduce dropout rates in secondary schools and pharma companies to distribute medicines."

For primary healthcare, we need robust PHCs across the country

We need more trained personnel to deliver quality care at the last-mile

Focus on supporting State-sponsored schemes and programmes

Focus on primary health for better living

Going beyond medical care in healthcare CSR

Technology in the hands of health workers can transform healthcare

Dr. Sudarshan, Karuna Trust

Mohini Daljeet Singh, Max Foundation

Kaveri Gill, Chief Economist, Oxford Policy Management

Ravichanrdran Natarajan, Former Head, CSR, Narayana Health

Dr. Balasubramaniam, Co-founder, SVYM

Sandeep Ahuja, CEO, OpAsha

CSR FOCUS AREAS FOR HEALTHCARE

Corporates have valuable resources, technology and expertise that could support in making a substantial contribution to the healthcare delivery system in India. Under Section VII of the CSR Act, as specified by the Companies Act 2013, we believe there are 7 strategic areas within the framework of healthcare service delivery that CSRs can focus on.

Each of these areas aligns with the Sustainable Development Goals (SDGs) laid out by the United Nations, the National Health Mission and 12th Five Year Plan priorities as well as WHO models.

The 7 areas we recommend are:

Maternal Health

Infant and Early Childhood Care

TB, HIV/AIDS, Malaria and

Communicable DiseasesNon-Communicable Diseases (NCDs)

Addiction

Water and Sanitation (WASH)

Adolescent and Reproductive Health

India is one of the youngest nations in the world today with more than 62% of its population in the working age group of 15 to 59 years and over 54% of its population below 25 years of age.

This manpower underpins India's growth story and economic advances since liberalisation and is especially significant in the face of a decline in labour workforce in the industrial world.

While the surplus young workforce gives India a strategic advantage, the challenge the country faces is that a vast majority of the youth joining the workforce are unskilled and unemployable. The

Economic Survey of 2014-151 brings to light this jarring concern: while India is adding about 12 million to the job market every year, only 3% of the workforce has undergone skill training of any form.

This gap underlines the pressing need for targeted skill training that can help ready the country's workforce to enter into gainful livelihood and create a significant impact on the nation's economic

growth and social stability.

BRIDGING THE GAPDriving Scale and Impact in Skill Development and

Employability through CSR

SKILLING INDIA: A NATIONAL PRIORITY

The first National Policy on Skill Development was notified in 2009. As an offshoot of this policy, the National Skill Development Corporation (NSDC) was established in 2010 to promote public-private partnerships through innovative funding models. Aiding the NSDC in its objective to make India the skill capital of the world are its partners - the sector skill councils, training centres, the Industrial Training Institutes (ITI), and polytechnics.

In 2014, the central government made a renewed effort at skill development, calling it a strategic priority for the country and a key enabler to the "Make in India" anthem. The government set up the country's first Ministry of Skill Development and Entrepreneurship to create an enabling ecosystem to impart employable skills to its growing workforce over the next few decades and streamline investments in the sector.

In 2015, the Government of India unveiled the National Policy for Skill Development and Entrepreneurship.

CSR IN SKILL DEVELOPMENT

Corporations play a significant role in the context of skill development. Besides defining the demand and setting the hiring benchmarks and policies, corporates provide the relevant technical expertise that is essential to build capacity in the ecosystem.

Corporates can provide an enabling environment for hands-on skill training to the workforce. In addition, as a leading stakeholder in the skills ecosystem, corporates play a key role in supporting the scale-up of the skill development ecosystem in the country.

1. As the driver of demand for talent, corporations set the talent standards through their business needs and hiring policies.

2. Beyond their own immediate business needs, corporations build the overall capacity of the ecosystem to effectively skill the youth for gainful employment. With the Corporate Social Responsibility mandate on profit-making companies, it makes imminent sense for companies to engage in efforts that effectively skill the youth as they help build the overall capacity of the industry, which is currently facing a demand-supply crisis.

AREAS OF FOCUS FOR SKILL DEVELOPMENT CSR

Investing in skill development to enable access to skilled resources to the industry also provides long-term business value to the corporations and the entire industry ecosystem. Companies are increasingly creating structured skill development initiatives in their specific sectors while leveraging the ecosystem support that is enabled by NSDC.

Here are the recommendations for areas to focus on within skill development:

Special print for National CSR ConclaveSupported by HPCL