Cement, Energy and Environment

3. Challenges in Implemen ng CSR Implementa on of the new legisla on would pump crores of rupees into the development sector. Ensuring that these funds are op mally u lized, we feel, it will be a big challenge. Inability of companies to spend as per the 2% criteria is another area that would require quick ramping up of CSR delivery bandwidths. CSR training across all levels is another mammoth task that would need to be taken up at a fast pace. Iden fying credible NGOs that have the capacity to deliver effec vely at scale, is also a daun ng task. Some notable challenges are listed below: a. Lack of Community Par cipa on in CSR Ac vi es - CSR, the term is a combina on of Corporate and socie es responsibility together. However, there is a lack of interest of the local community in par cipa ng and contribu ng to CSR ac vi es of companies. This is largely a ributable to the fact that there exists li le or no knowledge about CSR within the local communi es as no serious efforts have been made to spread awareness about CSR and ins ll confidence in the local communi es about such ini a ves. The situa on is further aggravated by a lack of communica on between the company and the community at the grassroots. b. Need to Build Local Capaci es - NGOs can prove to be a boon for performing/carrying out various CSR ac vi es. However, NGO as a tool is rarely considered due to reasons like their inefficiency, incompetency, lack of resources and support for their development. Hence, there is a need for capacity building of the local non- governmental organiza ons as there is serious dearth of trained and efficient organiza ons that can effec vely contribute to the ongoing CSR ac vi es ini ated by companies. This seriously compromises scaling up of CSR ini a ves and subsequently limits the scope of such ac vi es. c. Issues of Transparency - Lack of transparency is one of the keys. There is an expression by the companies that there exists lack of transparency on the part of the local implemen ng agencies as they do not make adequate efforts to disclose informa on on their programs, audit issues, impact assessment and u liza on of funds. This impacts the process of trust building between companies and local communi es, which is a key to the success of any CSR ini a ve at the local level. d. Non-availability of Well Organized Non-Governmental Organiza ons - It is also seen that there is non-availability of well-organized nongovernmental organiza ons in remote and rural areas that can assess and iden fy real needs of the community and work along with companies to ensure successful implementa on of CSR ac vi es. This also builds the case for inves ng in local communi es by way of building their capaci es to undertake development projects at local levels. e. Visibility Factor - Communica on in the right sense, of the right act, to the group of right people leads to success and mo va on to perform perpetually. The role of media in highligh ng good cases of successful CSR ini a ves is welcomed as it spreads good stories and sensi zes the local popula on about various ongoing CSR 37