Based on the fact that majority of the people below the poverty line belong to the backward communities, it is important to create sustainable livelihood opportunities for them through development initiatives. As these communities remain vulnerable due to lack of opportunities, skills, education, finance etc, they keep entangling themselves in the viscous circle of poverty. Livelihood generation for these communities remain a cause of concern with widespread discrimination, climate change, no social security and other such constraints. Therefore, the alignment between the affirmative action, CSR and livelihood is crucial to not only target the right beneficiaries but also eradication of poverty. If the SC/ST communities are provided with adequate skill, infrastructure, resources and finance, it will help India achieve the set national goals of skill development, inclusive growth and higher GDP. Keeping in mind the role of corporations in generation of employment opportunities for the communities, the webinar will focus on the need to promote livelihood initiatives through affirmative action and CSR. The webinar will also highlight the benefits of inclusive development and how corporations can lead the change. Webinar Objectives: Understanding the alignment between CSR and Affirmative Action Exploring Livelihood Opportunities for SC/ST youth Highlighting the role of corporations in CSR and Affirmative Action Understanding how Livelihood initiatives can be linked to CSR and Affirmative Action Key Takeaways: Insights of the Livelihood Sector Knowledge on CSR in India Understanding methods to maximise CSR impact Target Audience: CEO's, COO's, Heads of PSU's, Heads of Organisations, HR Heads, CSR Heads, Heads of Educational Institutions, NGOs Presented by Mr. Soumitro Chakraborty - CEO - Fiinovation Motivated by the need to bring about constructive and meaningful social change, Soumitro Chakraborty, created a niche in the CSR and Sustainability industry and established Fiinovation in 2008. He has strategized and implemented CSR and Sustainability programs across India in partnership with various corporations and NGOs working in the field of health, environment, education and livelihood. He is also a visiting faculty to some institutions like the Institute of Directors for 'Sustainability - Corporate, Social and Environmental Responsibility'. He has participated at various events as a panelist, speaker, jury and moderator, and has also contributed his views on CSR & Sustainability in numerous publications.

1. PROMOTION OF LIVELIHOOD
THROUGH
AFFIRMATIVE ACTION &
CORPORATE SOCIAL RESPONSIBILITY
Presentation by:
Soumitro Chakraborty
Chief Executive Officer, Fiinovation

2. ABOUT THE MENTOR
Mentor of the Webinar
Soumitro Chakraborty, CEO, Fiinovation
About Fiinovation
A CSR based research organization working in areas of education, livelihood, environment
and health since last seven years
Assists businesses to support requirements of communities by designing and
implementation of sustainable projects
Through practices such as CSR-CSO Partnership, Initiative Design, Initiative Management,
Monitoring and Evaluation, Impact Assessment, Sustainability Reporting; Fiinovation
facilitates corporations for promotion of social enterprises

3. AGENDA OF THE WEBINAR
 Understanding the alignment between CSR and Affirmative Action
 Exploring livelihood opportunities for SC/ST youth
 Highlighting the role of corporations in CSR and Affirmative Action
 Understanding how livelihood initiatives can be linked to CSR and Affirmative Action
 Insights on CSR initiatives targeting livelihood generation for the marginalised
 Update on new policies as per 'Union Budget-2016'

4. AFFIRMATIVE ACTION – WHAT DOES
IT MEAN?
 Positive action, reverse discrimination
 It promotes inclusive development, equality on all aspects
 Focus on upliftment of the historically marginalised
 Important policy tool for holistic social development in many countries, including
developed ones
 In India, its implemented through 'Reservation' or the 'Quota' system

5. AFFIRMATIVE ACTION & INDIA INC
 In 2006, then Prime Minister Dr. Manmohan Singh appealed to India Inc to
incorporate affirmative action policies to diversify workforce
 Department of Public Enterprises (DPE) guidelines on CSR and Human Resources
for Central Public Sector Enterprises were released in 2010
 Non Voluntary Guidelines were established by Ministry of Corporate Affairs in
2011 which was later adopted by SEBI
 CII have been promoting affirmative action through Skill Trainings, Scholarships,
employment opportunities, education etc.

6. CORPORATE SOCIAL RESPONSIBILITY
 A strategic business management concept to obtain a balance of economic,
environmental and social imperatives
 Globally the concept of CSR encompasses all “related” concepts -Triple Bottom
Line, Strategic Philanthropy, Shared Value, Corporate Sustainability, Business
Responsibility
 Also known as Corporate Citizenship in North America and Corporate
Responsibility in Europe

7. CSR IN INDIA
 Pre-Independence era restricted to charitable and religious philanthropy by
businessmen & rich farmers
 Father of the nation Mahatma Gandhi urged rich to pool resources for India’s
upliftment, giving rise to trusteeship movement.
 Post-Independence, PSUs & govt. led initiatives played prime role in social
development sector
 It became a strategic business concept after the influx of MNCs in India
 In 2013, The Companies Act, quantified it and made it mandatory for companies
which fall under the CSR ambit

8. LIVELIHOOD
Definition:
It is the means of supporting one's existence, especially financially or vocationally;
Livelihood is a set of activities, involving securing water, food, fodder, medicine,
shelter, clothing and the capacity to acquire above necessities working either
individually or as a group by using endowments (both human and material) for
meeting the requirements of the self and his/her household on a sustainable basis
with dignity.
 Livelihood helps in tapping new opportunities, vulnerability reduction
 Livelihood has direct links with the environment, and global warming is having
adverse consequences on livelihood of the people

9. LIVELIHOOD IN INDIA
 The Work Participation Rate as per Census 2011 was 39.79%
 Majority of rural population dependent on agriculture and allied sectors as means
of livelihood
 Majority in urban areas are engaged in service and manufacturing sectors
 12 million people enter India's workforce every year
 India creates 5.5 million jobs every year to accommodate its growing workforce
Source: 68th Round, National Sample Survey Office, Employment Exchange Statistics, National Skill Development Corporation Skill
Development Reports

10. WHY PROMOTE LIVELIHOOD?
 Create jobs/employment for the youth
 Reduce vulnerability of the marginalised sections
 Increase Purchasing Power Parity
 Optimal use of resources, maximise scale
 Stable livelihood substantially increases income, asset ownership, self-esteem and
social participation among the marginalised
 It has cross-linkage with health, education, environment etc.

11. LIVELIHOOD CHALLENGES IN INDIA
 Lack of education and skills among the working class
 Lack of income generation opportunities
 Lack of infrastructural support
 Lack of financial support, social safety nets
 High dependency on climatic conditions/monsoons
 Large scale migration to bigger cities and towns in search of jobs and
employment opportunities
 Geo-political issues, population pressure

12. HOW TO PROMOTE LIVELIHOOD?
 Infrastructure development
 Skill development trainings
 Financial & technological support
 Creating employment and self-employment opportunities
 Building forward-backward linkages (value chain management)

13. APPROACH –
LIVELIHOOD INTERVENTIONS
 Spatial Approach: Promoting livelihoods in a specified geographical area, such as
a region, sub-region, command area or a watershed
 Sectoral Approach: Promoting livelihoods along a sector of the economy such as
agriculture, or a sub-sector such as cotton
 Segmental Approach: Promoting livelihoods for a vulnerable segment of the
population, such as landless households, tribal, women, SC/ST/OBC and the
differently-abled

14. PROMOTION OF LIVELIHOOD –
SKILL DEVELOPMENT
 Need to develop and empower the human capital to ensure India's global
competitiveness
 3 crore skilled people will be needed in the construction industry alone in the next five
years. Retail will need 1.6 crore skilled people, automobile 40 lakh, logistics 1 crore, and
textile and clothing industries, 1.42 crore people
 It is estimated that only 2.3% of the workforce in India has undergone formal skill
training as compared to 68% in the UK, 75% in Germany, 52% in USA, 80% in Japan and
96% in South Korea
 Target is to develop skills of 500 million Indians in less than 10 years with considerable
help from the private sector as per National Skill Development Corporation
 Narrow time-line to harness the demographic advantage which is predicted to last
until 2040
Source: National Skill Development Corporation, Union ministry of State for Skill development and Entrepreneurship

15. CSR & LIVELIHOOD
 Tata Group, HUL, HDFC, Axis Bank, Aditya Birla Group, ITC etc are involved in
livelihood promotion activities
 Chambers of commerce such as CII are also engaged in livelihood promotion
activities
 Major focus of CSR has been health, education and sanitation; livelihood is yet to
become the top priority
 There is a need to create employable skilled opportunities in labor intensive
industries and sectors
 In livelihood, major focus is now on skill development for higher growth and
sustainability
Source: KPMG Survey 2015, NGOBox Survey of BSE Listed Companies 2015

16. SKILL DEVELOPMENT –
SC/ST COMMUNITIES
 Need for skill development higher among these backward communities as they
are most vulnerable (as discussed in previous webinars)
 Lack of financial support, education, technology, infrastructure, social capital etc.
 Majority mostly engaged in unsustainable and low productivity practices
 High rate of unemployment, seasonal unemployment
 Lack of self employment opportunities leading to migration, rural distress

17. SKILL DEVELOPMENT –
GOVT. INTERVENTIONS
 National Skill Development Corporation India (NSDC) was setup in 2009 as a one of its kind,
Public-Private-Partnership company with the primary mandate of catalysing the skills landscape
(500 million skilled workforce) in India
Some of the major skill development programmes are:
Craftmen Training Scheme,
Skill Development Initative on Modular Employable skill,
National Rural Livelihoods Mission, Rural Self employment Training Institutes,
Skill Training for Employment promotion amongst Urban Poor,
Support to training and employment Programme (STEP),
Parvaz,
Entrepreneurial skill development Programme,
Hunar Se Rozgar Scheme,
Integrated Skill Development Scheme,
Udaan,
Roshni
 NRLM is the largest livelihood programme support by World Bank with a credit line of $1 billion
 Skill India Mission will directly benefit more than 94000 SC, ST candidates
Source: National Skill Development Corporation, Union Ministry of Skill development and Entrepreneurship

18. DT
CONTINUED
NSDC
Public private partnership entity set up to promote and fund private training
providers and set up Skill Development Centres; Funds to NSDC are received through
NSDF
Facilitate setup of Sector Skill Councils (SSC) which are autonomous industry-led
bodies. SSCs design Qualification Packs (Qps) and National Operation Standards
Implement STAR (Standard, Training, Assessment and Reward) and UDAAN schemes
NSDA
Autonomous body registered under Societies Act. Rationalise skill development
schemes of govt. of India
Anchor and implement the National Skills Qualifications Framework (NSQF)
Create integrated Labour Market Information System (LMIS), engage with states to
plan their skill development and facilitate skills innovation
Training and Apprentice Divisions have been transferred from Labour department
from April 2015
Comprises government and private ITIs, PPP skill schools and other institutions
25 new advanced training institutes to be setup

19.  Boost to SC/ST entrepreneurship through Stand Up India scheme
 Rs 500 cr has been allocated to promote entrepreneurship
 At least 2.5 lakh entrepreneurs will benefitting from it
 All Bank branches to provide support to at least two projects
 Rs 10 lakh to Rs 1 crore will be provided as loan to them for new ventures
BUDGET 2016 PROPOSITION (DIRECT)
Category SC/ST Women
Example 1
1.5 Lakh
(Men & Women)
1 Lakh
(General + SC/ST)
Example 2
1.5 Lakh
(Men)
1 Lakh
(SC/ST)
Example 3
2.5 Lakh
(Women SC/ST)
Source: Budget Speech, Union Finance Minister Arun Jaitley

20.  Year of Economic Empowerment for SC/ST Entrepreneurs
 125th Birth Anniversary of Dr. B.R. Ambedkar
 National Scheduled Caste and Scheduled Tribe Hub in the MSME Ministry
 Partnerships with industry associations such as DICCI, CII
 The Hub will provide professional support to Scheduled Caste and Scheduled Tribe
entrepreneurs
 to fulfil the obligations under the Central Government procurement policy 2012,
 adopt global best practices and
 leverage the Stand Up India initiative
CONTINUED
Source: Budget Speech, Union Finance Minister Arun Jaitley

21.  Overall procurement of minimum of 20 per cent, of total annual purchases of products produced and
services from MSEs
 Out of 20 per cent target of annual procurement from Micro and Small Enterprises, a sub-target of 20
per cent (i.e., 4 per cent out of 20 per cent) shall be earmarked for procurement from Micro and Small
Enterprises owned by the Scheduled Caste or the Scheduled Tribe entrepreneurs
 Enhancing participation of Scheduled Castes or Scheduled Tribes in government procurement, the
central government ministries, departments and public sector undertakings
 Special Vendor Development Programmes or Buyer-Seller Meets shall be conducted by the
departments/public sector undertakings for SC, ST;
 Outreach programmes shall be conducted by National Small Industries Corporation to cover more
and more Micro and Small Enterprises from SC or ST under its schemes of consortia formation; and
 National Small Industries Corporation shall open a special window for SCs or STs under its Single Point
Registration Scheme (SPRS).
PUBLIC PROCUREMENT POLICY FOR
MSEs ORDER 2012
Source: Budget Speech, Union Finance Minister Arun Jaitley

22.  28.5 lakh hectares will be brought under irrigation under Pradhan Mantri Krishi
Sinchai Yojana
 At least 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits
for production of organic manure
 Soil Health Card Scheme to cover 14 cr farm holdings by Mar, 2017
 The ‘Parmparagat Krishi Vikas Yojana’ which will bring 5 lakh acres under organic
farming over a three year period
 The Government has launched a value chain based organic farming scheme called
“Organic Value Chain Development in North East Region”
BUDGET 2016 PROPOSITION
(INDIRECT)
Source: Budget Speech, Union Finance Minister Arun Jaitley

23.  The government is implementing the Unified Agriculture Marketing scheme which
envisages a common e-market platform for APMCs will be launched on 14th April- Ambedkar
Jayanti
 To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore has
been made in the BE 2016-17 towards interest subvention
 Government has approved the path breaking Prime Minister Fasal Bima Yojana and
allocated Rs 5,500 cr
 Animal Husbandry – Rs 850 cr for the next few years
 first, the ‘Pashudhan Sanjivani’, an animal wellness programme and provision of
Animal Health Cards (‘Nakul Swasthya Patra’);
 second, an advanced breeding technology;
 third, Creation of ‘E-Pashudhan Haat’, an e market portal for connecting breeders and
farmers; and
 fourth, a National Genomic Centre for indigenous breeds
CONTINUED
Source: Budget Speech, Union Finance Minister Arun Jaitley

24.  Digital Literacy Mission scheme for rural India to cover around 6 crore households
within the next 3 years
 A sum of Rs 2,000 crore to meet the initial cost of providing these LPG connections for
1.5 cr BPL households in 2016-17
 A new health protection scheme which will provide health cover up to Rs. 1 lakh per
family
 Increased share in SSA and 62 new Navodaya Vidyalayas will be opened in the remaining
uncovered districts over the next two years
 Higher Education Financing Agency (HEFA) with an initial capital base of Rs 1,000 cr
 Under Pradhan Mantri Kaushal Vikas Yojna 1500 Multi Skill Training Institutes will be set
up across the country with Rs 1700 cr
CONTINUED
Source: Budget Speech, Union Finance Minister Arun Jaitley

25.  Government of India will pay the Employee Pension Scheme contribution of 8.33%
for all new employees enrolling in EPFO for the first three years of their employment
(Job Creation and bringing into books informal employees)
 100 Model Career Centres to be operational by the end of 2016-17 - National
Career Service
 Entrepreneurs will be able to operate buses on various routes, subject to certain
efficiency and safety norms - Amendments to Motor Vehicles Act
 100% FDI will be allowed through Foreign Investment Promotion Board route in
marketing of food products produced and manufactured in India
CONTINUED
Source: Budget Speech, Union Finance Minister Arun Jaitley

26.  2 crore tax payers in this category who will get a relief of Rs 3,000 in their tax
liability many of whom would be from SC/ST communities
 Increase the limit of deduction in respect of rent paid under section 80GG from Rs
24,000 per annum to Rs 60,000 per annum, which should provide relief to those who
live in rented houses
 A special patent regime with 10% rate of tax on income from worldwide
exploitation of patents developed and registered in India
 Deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh
sanctioned during the next financial year, provided the value of the house does not
exceed Rs 50 lakh
 Krishi Kalyan Cess, @ 0.5% on all taxable services to benefit farmers
BENEFITS FOR YOUTH (SC/ST)
Source: Budget Speech, Union Finance Minister Arun Jaitley

27.  Corporate Tax from 30% to 25% over a period, accompanied by rationalization and
removal of various tax exemptions and incentives
 The benefit of section 10AA to new SEZ units will be available to those units which
commence activity before 31.3.2020
 100% deduction of profits for 3 out of 5 years for startups set up during April 2016
to March 2019
 Big relief to a large number of assesses with turnover of maximum 2 cr in the
MSME category as it frees them from the burden of maintaining detailed books of
account and getting audit done
BENEFITS FOR ENTREPRENEURS
(SC/ST)
Source: Budget Speech, Union Finance Minister Arun Jaitley

28.  Suitable changes in customs and excise duty rates on certain inputs, raw materials,
intermediaries and components and certain other goods and simplify procedures, so
as to reduce costs and improve competitiveness of domestic industry
 100% deduction for profits to an undertaking from a housing project for flats up to
30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during
June 2016 to March 2019, and is completed within three years of the approval
 Equilization Levy to tap tax on income accruing to foreign e-commerce companies
from India
Source: Budget Speech, Union Finance Minister Arun Jaitley
CONTINUED

29.  Prime Minister Narendra Modi launched the Skill India Mission on 15th July 2015 unveiling the
new National Policy for Skill Development & Entrepreneurship
 Aim to become Human Resource Capital of the World by providing 4-5 crore skilled professionals
to work abroad
 Develop ITIs like the IITs
 Skill India Mission target is to provide skill trainings to 40.02 crore by 2022
 Skill loans will be made available for 34 lakh youth
 Scientific mapping of job market and manpower requirements
 Linked to Pradhan Mantri Kaushal Vikas Yojana, Startup India, Make in India and other campaigns
 The country's first skill development university will be set up in Maharashtra
 Pradhan Mantri Kaushal Vikas Yojana completed 10 lakh enrolments under Skill India till Feb 2016
Source: Union Ministry of Skill development and Entrepreneurship
SKILL INDIA CAMPAIGN

30.  Tata companies are training thousands of youth across India in skill sets that make
them employable and productive. TCS was the first company to sign an MoU with
National Skills Development Corporation (NSDC) under project Udaan in 2011
 To better equip aspirant youths of Nagaland, the state government and TATA Motors
Private Limited have started a PPP mode project by upgrading Diesel Mechanic Trade,
the automotive section of the Industrial Training Institute (ITI), Kohima
 IL&FS Skills Development Corporation in partnership with National Skills
Development Corporation (NSDC), aims to train 40 lakh people by 2022 through a
network of 100 multi skill Institutes and 300 single skill Schools
Source: Website – Tata Group, IL&FS Skills, CII
SKILL INDIA – INDUSTRY SUPPORT

31.  CII has been supporting the Ministry of Skill Development & Entrepreneurship,
Ministry of Labour & Employment and Ministry of Rural Development and other
ministries to create a conducive ecosystem for skill development in India, especially
targeting SC/ST Communities
 NSDC has urged the corporations to promote skill development through CSR
targeting 150 million people
Source: Website – Tata Group, IL&FS Skills, CII
CONTINUED

32.  Supports Various Ministries to promote Skill Development
 Targets SC/ST Communities to provide skill development trainings
 It launched the India Skills Report in 2015
 Provided recommendations for the new Skill policy
 CII members are adopting and upgrading 390 ITIs and strengthening the system through
implementation of recommendations
 CII has set up Skill Hubs in Chindwara, Madhya Pradesh; Bhiwadi, Rajasthan; Kendrapara,
Odisha and Skill Gurukuls in association with Pan IIT (PARFI)
 CII is also working on various on ground initiatives with PSUs like HPCL, IOCL, NSFDC etc
and organising Job fairs across India
Source: Website – Tata Group, IL&FS Skills, CII
CII & SKILL DEVELOPMENT

33.  Reliance Industries – Project Drishti initiated to bring back eyesight of people from
the economically weaker sections
 Tata Group – Providing books, stationary, school bags etc. to SC/ST students of 46
senior secondary government schools
 ONGC – Emphasises on higher education, scholarship, grant for youth from the less-
priviledged sections of societies
 Coca Cola – Programme for empowerment of 5 million women entrepreneurs
Source: Corporate Citizen Volume 2, Issue 1
ALIGNMENT OF AFFIRMATIVE ACTION
& CSR BY INDIA INC

34.  Amity – Amitasha and Atulasha programmes for SC/ST boys and girls providing free
education
 Bajaj Electricals – Social work in areas such as education, rural development and
environment
 GlaxoSmithKline – Donates funds, medicines and equipments towards improving
health and education
 BHEL & Indian Airlines – Adopted 56 villages having nearly 80,000 inhabitants
CONTINUED
Source: Corporate Citizen Volume 2, Issue 1

35. ALIGNMENT OF AA, CSR & SKILL
DEVELOPMENT
What
Why
Where
How
Providing skill development trainings under CSR to the
SC/ST communities
SC/ST communities most vulnerable, marginalised and are
the poorest sections in India
Geographical areas with high percentage of SC/ST
communities
Community based interventions, skill development centres,
EDP, ERC, supporting govt. initiatives

36.  The way forward can be elaborated by highlighting few CSR models by companies which can
be incorporated by other companies:
 HUL contributed 42 crores in watershed development initiative by partnering with the
government under MGNREGA, extending soil and water conservation wages to the people.
 Axis Bank Foundation work in Dang, Gujarat to enhance livelihood and food security of
the tribal communities through conservation of natural resources and providing them with
options and techniques for increased income from agriculture.
 Rashtriya Ispat Nigam Limited through Kaushal - a skill development programme designed
exclusively for youth belong to SCs of Vishakapatanam, imparts placement-based training
to beneficiaries in garment construction technique and industrial sewing machine operator
(basic and advanced).
 Similar initiatives can be taken up by corporations under their corporate social
responsibility targeting SC and ST communities.
THE WAY FORWARD

37. SUGGESTED TRIPARTITE MODEL
Illustration
Corporation X’s total
CSR expenditure:*
Rs 500 cr
Product: Handicrafts / Food Processing
Registration : The Companies Act, 2013
Organization
Structure
Operations:
Sourcing from community
members, processing of finished
products, marketing
Sharing of Revenues:
Yearly dividends, remuneration
of community members, salaries
to staff, operational
expenditure, expansion costs
Entity
Board
Managers
SC/ST Communities
ManagersManagers

38.  Provide an opportunity to gain financial sustainability & independence for the SC/ST
communities
 CSR grant will allow corporations to spend money on livelihood issues, not otherwise
funded
 Assets of entity will belong to the community and cannot be sold off for private financial
gain
 People, who are local stakeholders in the area of benefit, play a leading role in the entity
ensuring inclusive development
 Local community are the shareholders who ensure accountability of the entity to the
community
 The entity will be able to generate profits or a surplus that can be re-invested or
distributed for community benefits
BENEFITS OF SUCH INITIATIVES

39. THANK YOU
Soumitro Chakraborty
Chief Executive Officer, Fiinovation
Rahul Choudhury
Dy. Manager - Content, Fiinovation
Rohit Srivastava
Graphic Designer, Fiinovation
Contribution by: