Diversion of Rs 121cr by PSUs for Statue of Unity is sheer violation of social responsibility

In a bid to fulfil their "corporate social responsibility", four public sector companies contributed more than Rs 121 crore for the construction of the Statue of Unity, dedicated to Sardar Vallabhbhai Patel, according to a Mint report.

The companies that have tried to "serve the society" by contributing to the statue, include Oil and Natural Gas Corporation (Rs 50 crore), Hindustan Petroleum Corporation Ltd (Rs 25 crore), Indian Oil Corporation Ltd (Rs 21.83 crore) and Oil India Ltd (Rs 25 crore).

The Mint report is based on the data analysed by Goodera, a corporate social responsibility (CSR) and sustainability management platform.

In a state where 18 infants have died in a government hospital in just over three days for want of proper medical care, a contribution of Rs 121 crore to a statue is reflective of everything that is wrong with the government's priorities. But the instance also shows how CSR remains an ambiguous concept under the garb of which such reckless spending is allowed.

What is corporate social responsibility

India is the only country in the world to have an actual legislation to ensure the corporate world shoulders "social responsibility". The law mandates that all companies, including foreign firms, with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore and net profit of at least Rs 5 crore, spend at least two per cent of their profits on CSR. A board of directors are supposed to review and ensure compliance.

By definition, CSR is a concept that requires companies to "voluntarily" (the contributions by the oil companies have reportedly come on the directions of the petroleum ministry) contribute to a better society and a cleaner environment both through their business practices and social investment. The concept aims to ensure businesses are both "sustainable" and "responsible".

Why a contribution of Rs 125 crore to the Statue of Unity defies the idea of CSR can best be understood by looking at the concept of "creative capitalism", as explained by American business magnate and philanthropist, Bill Gates. Gates encouraged companies to identify their expertise and come up with products that could "stretch the market forces". The idea of "doing good", as understood and explained by Gates, meant honing business' specialties, not just throwing money at various charities.

It is precisely this aspect that the board of directors at the public sector understakings (PSUs) - tasked with ensuring compliance - seem to have missed. CSR is not about throwing money just to ensure that a two per cent expenditure compliance is achieved. This money should be spent on areas that need urgent intervention.

In the case of these oil PSUs, perhaps the money could have gone to research on evolving more sustainable fuel sources or for a study on how reliance on oil can be reduced. It could have also gone towards the ailing hospitals, broken roads, children dying because of lack of nutrition or our dilapidated schools. All these ailments afflict the society we live and breathe in. The corporate world's biggest responsibility is towards the betterment of this society.

The most plausible explanation that can be offered for the Rs 121 crore contribution to the Statue of Unity is that this expenditure falls under the preservation of national heritage category. The argument, however, falls flat at a time the country is divided over the need for the statue.

How the Statue of Unity has divided India

For those who may not know, Statue of Unity is under-construction near the Sardar Sarovar Dam in Gujarat.

The statue will stand at 597ft when completed in October 2018, almost 100ft taller than China's Spring Temple Buddha, the current world's tallest statue at 502ft. Once finished, it will dwarf many iconic structures around the world, including the Statue of Liberty in New York, which is 305ft and Nelson's Column in Trafalgar Square at 170ft.

This marvel, a brainchild of Prime Minister Narendra Modi, is coming up at an estimated cost of over Rs 2,000 crore. Justifying the construction of the statue, Modi had once said, it will force "the world to look towards India". But Rs 2,000 crore is a huge cost to pay to play the head-turner for the world. Also when the heads do turn to India, the eyes will sadly also fall on the all-pervasive poverty, crumbling infrastructure and a social sector in tatters.

The structure is already shrouded in controversy. The statue's bronze parts are being imported from China and thousands of Chinese workers are supposed to work on the statue to make the "world's heads turn to India". Certainly, not an achievement to be proud. And most certainly not an area most Indians want their resources diverted to.

Unlike private enterprises, money being spent by the PSUs needs to be accounted for. It is by definition public money and must thus be spent on public welfare. The diversion of CSR money towards the statue by PSUs is plunder and a violation of social responsibility.

The height of the statue cannot dwarf the fact that this diversion of funds is a blatant joke directed at myriad Indians who die because they don't get food for months, or those who carry the bodies of their loved ones on their backs because the hospitals they turn to do not have enough ambulances.

It is perhaps time, public sector undertakings explain to the public how they allowed this money to be diverted to a statue when millions of underprivileged and marginalised Indians are awaiting social intervention for mere survival.

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