Spend CSR Funds on Employable Skills

CSR Funds – Even while it might not be enough to close the gaps, investing a portion of the Corporate Social Responsibility (CSR) budget in skill development will undoubtedly have an impact on job creation. A gigantic, comprehensive Skill Development Center (SDC), supported by CSR, should be established in every district in addition to any already present facilities. The funding companies should be in charge of opening, running, and maintaining it. Each SDC should be in the district’s prospective areas and be outfitted with cutting-edge amenities like hostels for ladies and underprivileged hopefuls, especially those from economically and socially disadvantaged sections of society, so they won’t have to leave their homes in search of gainful employment.

Let me confirm that there is an urgent need to review our strategy and be more focused, with all due respect to all stakeholders and continued efforts to develop a skilled workforce in the nation. There are about 600 districts in the nation. The “Transformation of Aspirational Districts” initiative was introduced by the Indian government in January 2018 with the goal of creating a new India by 2022 with a focus on raising citizens’ living standards, ensuring inclusive growth, and improving our nation’s ranking on the Human Development Index.

Each SDC supported by CSR will pay closer attention to the empowerment of our underprivileged population, especially women. Let’s be honest: if the private sector does not expand its expenditure on CSR for the skilling and upskilling of women and the underprivileged, the government’s efforts won’t be successful. According to a 2019 report by the United Nations Development Programme (UNDP) in India titled “Corporate Engagement in Women’s Economic Empowerment,” the top 100 companies only spent 4% of their total Rs 6,314.30 crore CSR budget on women’s empowerment. Following the COVID limits, a number of commercial organizations appear to be focusing more on this.

CSR Funds

I want to leave you with a word of caution and advice. Running CSR-funded SDC should not be done by the implementing organizations listed on the Ministry of Corporate Affairs 21 Registry. Corporate houses’ CSR division ought to handle it. According to a review of CSR money reports submitted by the corporations, over 60% of the entire yearly CSR spending was made through implementing agencies. It is to ensure that SDCs are not conducted in a half-hearted manner, not to question the competence of implementing agencies. We must consider the financial impact of not having the necessary pool of trained, employable workers.

Only when employees have continually updated and enhanced abilities will they be able to advance in their careers. The scenario is a catch-22 for us. Although many attempts are being made, the yields are not up to par or in line with what the market requires. The skilling ecosystem has to be focused on expanding its capacity right now. By strategically using CSR funding, businesses can not only advance the Skill India Mission but also significantly improve millions of people’s livelihoods by preparing India’s workforce for the global market. By supporting activities across the skill development spectrum, CSR funding can also help scale up initiatives for skill development.