The Purposeful Corporate - Purpose before profit needs to be the guiding mantra of Corporate India. Sports is a wonderful way to fulfill your social purpose in a way that creates long term sustainable communities impact
The Purposeful Corporate - Purpose Beyond Profit
Corporate Social Responsibility (CSR) encourages companies to be more aware of their impact on society. Its focus can be wide-ranging, addressing issues such as education, health, gender inequalities and the environment.
As stipulated under Section 135 of the Companies Act, companies with a net worth of INR 500 Crore or more, a turnover of INR 1000 Crore or more, or a net profit of INR 5 Crore or more in a given financial year are mandated to 2 percent of their average net profit (of previous three years) on CSR programs.
Only socially driven and purpose led organizations will be of relevance in the near future. Companies with a narrow profiteering purpose will become irrelevant to society at large.
Consumers are increasingly becoming averse to buying products & services from companies that are profit-centric in their approach to business.
Investments in sports is a collective effort towards nation building. It empowers communities and develops skill and improves national health. In time, it leads to a healthy and vibrant ‘youth force’ that propels the country forward. Most importantly, sports unites communities, builds national pride, changes mentalities, creates community icons and breeds next generation leaders.
BENEFITS OF INVESTING IN SPORTS DEVELOPMENT THROUGH CSR
TOTAL CSR SPEND TOWARDS SPORTS DEVELOPMENT
Sports spending through CSR doesn’t seem to be high on the priority list of Corporate India. While sports has been included in the list of acceptable CSR spends, not many companies consider it while choosing their CSR projects.
Corporate India only spent INR 795 Crores out of INR 49,600 Crores towards Sports between FY 2014 and FY 2019. That amounts to a meagre 1.6% of the total CSR spend.
SPORTS IS A WINNING PROPOSITION
For sports to deliver a ‘winning proposition’ to all parties concerned, government policy, corporate intent and the sports ecosystem need to align.
In addition, ‘systemic enablers (independent advisors and not for profit entities) need to find a way to stitch together a value proposition that meets all stakeholder objectives.
Moreover, a nationwide communication effort to create awareness needs to be initiated to build focus and momentum towards corporate investing through CSR in sports development.
CSR FUNDS ALLOCATED TO SPORTS DEVELOPMENT COULD BE USED TO MAKE A SIGNIFICANT IMPACT
Indicated below is a range of options that could be used to propel sports forward.
THE NATIONAL SPORTS DEVELOPMENT FUND (NSDF)
A National Sports Development Fund (NSDF) was created with a promise of combining private & public sector spend to better fund talent, services and infrastructure in sports. The government was to equally match any contribution that was made by the private sector to the NSDF.
In order to reenergize the intent, the NSDF will need to be restructured and repositioned to reassure Corporate India around governance, accountability, transparency, focus, capability and execution. In addition, the NSDF provides the opportunity to synergize and integrate sports development efforts under one roof in order to drive cumulative impact on sports development.
NSDF - OPERATING MODEL
NSDF - CORE ROLES & FOCUS
"Sports has the power to build an immediate emotional connect with society and can help Corporate India establish credibility, loyalty and enhance reputation. The talent in this country is immense. We have to collectively find a way to provide this talent, an opportunity to develop and deliver to its full potential."
For further details, please reference "Sports & the Purposeful Corporate, a seminal research published by GoPlaySport in partnership with the Federation of Indian Chambers of Commerce & Industry (FICCI)