Corporate Social Responsibility (CSR) initiatives in Dairy and Animal Husbandry Development

Corporate Social Responsibility (CSR) initiatives in Dairy and Animal Husbandry Development

Corporate Social Responsibility (CSR) initiatives have become an integral part of businesses worldwide, reflecting a commitment to social, environmental, and ethical responsibilities beyond profit generation. In the realm of dairy and animal husbandry, CSR initiatives have the potential to make a significant impact by promoting sustainable practices, improving animal welfare, and enhancing the livelihoods of farmers and rural communities. This essay explores the role and impact of CSR initiatives in the development of dairy and animal husbandry, highlighting their importance in promoting responsible and ethical business practices.

ABSTRACT

Livestock contributes a major share in the agriculture economy of the country, but unfortunately, low investment and insufficient funding have resulted in underperformance of the sector. Corporate Social Responsibility (CSR) activity is defined as any intervention by a company directed towards community development. Thus, funds available under CSR can be tapped for use in animal husbandry projects through concerted efforts. Furthermore, CSR initiatives can help explore the possibilities of newer and much needed public-private partnerships in livestock development. Most of the livestock development activities under CSR interventions by corporate involve partnerships with NGOs and government bodies. The evidence of several corporate organizations working in the field level has set an example for the elevation of the dairy and livestock sector in our country and thus enhancing the livelihood of small and marginal farmers. Therefore, there is a need for greater resource mobilization from other sources to support the development of animal husbandry in India. Enhancing investments in this sector through CSR funds offer one good opportunity to address this issue.

Keywords: livestock, corporate, sector, animal

INTRODUCTION

The livestock sector can be considered as a future engine of agricultural growth. Unfortunately, low investment and insufficient funding have resulted in the underperformance of the sector. Since government funding for several livestock development schemes remains limited (GOI, 2012), new opportunities need to be explored to meet the requirements. To this end, the recent notable development i.e., Companies Act 2013 could be one important avenue (CII, 2013). A Corporate Social Responsibility (CSR) activity is defined as any intervention by a company directed towards community development (NFCG, 2013). CSR endeavours of companies range from livelihood promotion, health, environment, education, rural infrastructure and women’s empowerment (Hussain, 2014). Despite the fact that India possesses vast livestock resources (512.05 million), besides 729.2 million poultry, a sizeable proportion of livestock suffer from poor production and productivity (GOI, 2014). The average milk productivity, for instance, hovers around 2.5 kg/day for indigenous cows, 4.91 kg/day for buffalo, 6.78 kg/ day for crossbred cows and 0.45kg/day for goat (DAHD&F, 2015). The productivity is thus far less than the average daily yield of cattle in the developed nations. Furthermore, average meat yields in different species remain abysmally low. The meat yield of most species in India is 20-60% lower than that of the world average. The Animal Husbandry sector receives 12 percent of the total public expenditure on agriculture and the allied sector (GOI, 2012), resulting in the underperformance of the sector. Hence, it is clear that government funding in this sector remains limited. There is a need for greater resource mobilization from other sources to support the development of animal husbandry in India. Enhancing investments in this sector through CSR funds offer one good opportunity to address this issue. Moreover, the Government of India has already emphasized the public-private partnership in livestock extension services (GOI, 2012). The Government has suggested making concerted efforts to tap funds available under CSR for implementing animal husbandry projects (GOI, 2015).

 Corporate Social Responsibility (CSR)

The concept of Corporate Social Responsibility (CSR) has emerged from philanthropic activities (charities and donations) of corporations. CSR can be defined as the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (WBCSD, 2015). A CSR activity is defined as any intervention by a company directed towards community development (NFCG, 2013). CSR in India has gone beyond mere philanthropy and it has a more strategic role in the overall organizational development (Gupta and Kaur, 2013). By incorporating CSR in their business portfolio, companies have made significant achievements in areas such as education, healthcare, livelihoods, rural development and urban development (NFCG, 2013). As per the Indian Companies Act 2013, it is mandatory for certain classes of enterprises to spend 2 percent of their profit to social development activities such as education, health, agriculture, animal husbandry and rural livelihood generation (CII, 2013).

CSR interventions in dairying and animal husbandry development in India

Most of the livestock development activities under CSR interventions by corporates involve partnerships with NGOs and government bodies. For instance, BAIF is one prominent NGO working for livestock development by fostering partnerships with several corporates across states of Maharashtra, Madhya Pradesh, Andhra Pradesh, Rajasthan, Gujarat, Karnataka, Bihar and Uttar Pradesh (BAIF, 2015). Such linkages and partnerships through CSR activities also help corporates in enhancing the relationship with stakeholders such as customers, regulatory authorities, local communities and NGOs (Lojpur and Draskovic, 2013). Some of the prominent agro-based organizations that have undertaken livestock development as a CSR activity are Nestle, ITC, Chambal Fertilizers, Indian Immunologicals (IIL), Godrej and Rashtriya Chemicals and Fertilizers. In addition, many other corporates such as Tata Chemicals, Ambuja Cement Foundation, Bharat Petroleum, Raymond India have also involved themselves in the CSR activities focusing on animal husbandry. Animal health through animal health camps, animal sterility camps, vaccination and deworming camps are the most common activities organized under CSR interventions. Some of the corporates appreciably have also made efforts on enhancing the capacities of livestock owners.

Challenges in using CSR funds in dairying and animal husbandry development

The Companies Act 2013 specifies the list of activities under Schedule VII, which can be included by the companies in their CSR policies. The list of activities, however, seems to be heavily skewed towards health and education. These sectors are already high priority sectors for government funding. Agriculture development per se does not find a mention in the list of activities included in the Companies Act (2013). Animal Welfare has been grouped with activities like ensuring environmental sustainability, ecological balance, protection of flora and fauna, agro-forestry, conservation of natural resources and maintaining quality of soil, air and water, including contribution to the Clean Ganga Fund setup by the Central Government for rejuvenation of river Ganga. Apparently, CSR activities for animal husbandry under the new Companies Act have received minimal attention as necessary elaborations on the livestock development are currently unavailable. Further, meaningful co-ordination between several animal husbandry organisations with dairy organisations and people’s organisations remains absent (Hegde, 2012). Due to lack of co-ordination among state animal husbandry departments, dairy cooperatives and NGOs, duplication of livestock development efforts may happen through CSR activities especially in the matter of routine delivery of services by livestock development agencies.

WAY FORWARD

1. Prioritizing CSR activities on animal husbandry CSR funding can potentially add resources to an otherwise financially neglected animal husbandry sector. Some of the areas that deserve attention are as follows: feed and fodder research and development, Gosadhan and Gaushala development, expansion of cold chain infrastructure for milk collection, setting up of abattoirs, small ruminant development, managing government livestock farms, strengthening of extension educational infrastructure as well as increasing the livestock insurance coverage. In some instances, the companies can also provide human resource and expertise, such as in managing Government livestock and poultry farms, formation and functioning of dairy self-help groups, microfinance support for livestock based livelihood activities, value chain development and market linkages.

2. Sensitization of government machinery towards public private partnership through CSR Much of the CSR interventions in livestock development are delivered through partnerships of corporates and NGOs. The State Agricultural Universities and animal husbandry departments possess large amount of trained technical staff and infrastructure to carry out livestock development activities. CSR gives a good opportunity for these institutions to foster institutional pluralism and public private partnership. However, often government animal husbandry institutions work with hierarchical approach and the institutions are reluctant to accept such innovations. Hence, there is an urgent need to sensitize and create awareness among the authorities about the potential importance and the role of CSR for overall livestock development. This not only improves the delivery of services but also minimizes the chances of redundant activities and red tape.

3. Long term approach for animal husbandry development Often the private extension efforts are profit oriented and short term. These endeavours are concentrated on big farmers, more accessible regions and specific livestock species to earn maximum effort. Privatization may hamper free flow of information and create more inequalities among livestock owners. Also, eco-friendly and sustainable farming practices are not favored. The same can occur with the CSR interventions as well. The support of veterinary institutions to CSR in livestock development at present is limited to the sporadic delivery of technical services initiated by private agencies. The government veterinary institutions and private companies need to work for long term holistic livestock development through CSR. Most of the current activities are limited to organizing animal health camps and distribution of free medicines and health additives only.

4. Effective Monitoring and Evaluation of CSR activities Though some of the past CSR initiatives are commendable, yet one cannot deny the fact that companies also perform these activities to build their reputation as well as business expansion. This may also be the case for NGOs who often seek funds on the basis of credibility and reputation. Therefore, these organisations may misrepresent and exaggerate their CSR efforts. Appropriate independent agency must monitor the funds utilized as well activities performed. Impact analysis of livestock development is a specialized job and often has to be undertaken after providing sufficient time.

Understanding CSR in Dairy and Animal Husbandry

Definition of CSR:

CSR refers to a company’s commitment to operate ethically and contribute to economic development while improving the quality of life of its employees, their families, local communities, and society at large.

Relevance in Dairy and Animal Husbandry:

In the context of dairy and animal husbandry, CSR initiatives focus on sustainability, animal welfare, and social responsibility. These initiatives aim to address challenges and promote responsible practices in the industry.

Sustainable Dairy Farming Practices

Environmentally Friendly Practices:

• • CSR initiatives in dairy farming encourage practices that minimize the environmental impact, such as sustainable waste management, reduced water usage, and lower greenhouse gas emissions.

Optimizing Resource Use:

• • Companies engage in responsible water and energy management to reduce waste and improve resource efficiency.

Animal Welfare and Health:

• • CSR initiatives often include programs to improve the welfare and health of dairy animals. This includes ensuring proper living conditions, nutrition, and healthcare.

III. Community Development

1. Rural Livelihood Enhancement:
   • CSR programs focus on improving the livelihoods of small-scale dairy farmers by providing them with training, resources, and access to markets.
2. Capacity Building:
   • Initiatives offer training and education to farmers on sustainable and ethical dairy farming practices, helping them enhance their skills and incomes.
3. Infrastructure Development:
   • Companies invest in rural infrastructure, such as roads, cold storage facilities, and transportation, to facilitate the efficient supply chain for dairy products.

Promoting Ethical Animal Husbandry

1. Humane Practices:
   • CSR initiatives encourage the adoption of humane animal husbandry practices, emphasizing the importance of proper care, nutrition, and stress reduction for livestock.
2. Antibiotic and Hormone Use Reduction:
   • Ethical initiatives promote responsible use of antibiotics and hormones in animal husbandry to ensure animal health and food safety.
3. Disease Control:
   • Companies engage in disease prevention and control programs to safeguard the health of livestock.

Corporate Engagement in CSR Initiatives

1. Financial Investments:
   • Companies allocate a portion of their profits to fund CSR initiatives. These investments contribute to community development and sustainability efforts.
2. Partnerships:
   • Collaborations with NGOs, government agencies, and local communities are common in CSR programs, allowing for a broader and more effective impact.
3. Transparency and Reporting:
   • Many companies are committed to transparency and report their CSR activities, allowing stakeholders to assess their impact and hold them accountable.

Case Studies

1. Amul – The Taste of India:
   • Amul, a dairy cooperative in India, has a long history of promoting dairy and animal husbandry development through its CSR initiatives. They have provided training, veterinary care, and financial assistance to small dairy farmers, significantly improving their livelihoods.
2. Nestlé’s Commitment to Dairy Sustainability:
   • Nestlé, a global food and beverage company, has a comprehensive program for sustainable dairy sourcing. They work with dairy farmers worldwide, providing training and support to promote sustainable practices, animal welfare, and responsible sourcing.

VII. Challenges and Future Prospects

1. Scaling Up Initiatives:
   • One challenge in CSR initiatives in dairy and animal husbandry is scaling up efforts to reach a broader audience and make a more significant impact.
2. Monitoring and Evaluation:
   • Ensuring the effectiveness and impact of CSR programs requires robust monitoring and evaluation systems.
3. Consumer Awareness:
   • Raising consumer awareness about the importance of supporting companies with responsible CSR initiatives is crucial to encouraging ethical business practices.
4. Global Collaboration:
   • The global nature of the dairy and animal husbandry industry calls for collaboration between companies, governments, and NGOs to address complex issues such as climate change and animal welfare.

VIII. Conclusion

Corporate Social Responsibility initiatives in dairy and animal husbandry development are pivotal in promoting ethical, sustainable, and responsible practices in the industry. By focusing on environmentally friendly practices, community development, and ethical animal husbandry, companies can contribute to the betterment of society and the environment while enhancing their own reputations and long-term viability. The challenges and prospects in this field highlight the need for continued efforts, partnerships, and awareness to drive positive change in the dairy and animal husbandry sector, making it a model for responsible and ethical business practices.

Looking at the bright prospects of dairying and livestock sector to further enhance its contribution to National GDP, it is imperative that more funds should flow in this sector. But this seems not likely from the conventional funding sources. The CSR interventions under the Companies Act 2013, therefore, may be seen as one good opportunity to be cashed upon to fund developmental activities in livestock sector. This, however, calls for better coordination among different agencies viz. State Departments of Animal Husbandry, cooperatives and NGOs involved in livestock sector to make good use of the available funds. We are of the firm view that the CSR funds can strengthen the livestock sector.

Compiled  & Shared by- This paper is a compilation of groupwork provided by the

Team, LITD (Livestock Institute of Training & Development)

 Image-Courtesy-Google

 Reference-On Request.

CAN CSR FUNDS STRENGTHEN INDIAN LIVESTOCK SECTOR?

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