Why CSR funds must be channelled towards tackling the Covid-19 pandemic

The coronavirus has completed one year of devastation across the country, disrupting production and distribution systems, and crippling lives.

Covid-19 has entered the second phase even before the scar of the first wave could be erased. The society and its activities have not returned to normal, the economy is still on the path of recovery and people are yet to give up their fear. Public authorities are in different stages of creating and augmenting health infrastructure, that too, at a very slow pace. The governments are yet to fully equip themselves to face the challenges posed by the pandemic, let alone manage it. While this is the state of affairs, the virus, on the other hand, has given enough indications to strike back even harder. It has also cautioned us to be ready with better health infrastructure to manage its devastating impact.

The second wave is fuelling cases across the country. Unfortunately, the government is yet to come out with a strong public commitment in terms of intervention policy, institutional infrastructure and other needed mechanisms. It is not yet fully ready to vaccinate or immunise the entire population, especially the vulnerable. Above all, the treatment of Covid-positive cases and subsequent deaths leave a lot to be desired. It even questions the very presence of the health system.

CORONAVIRUS SPECIAL COVERAGE ONLY ON DH

Health is a state subject, but unfortunately, the governments seem to have taken the pandemic for granted and failed to live up to the situation. They have fared badly in the creation of necessary environment in their health systems in general and specific infrastructure for Covid treatment in particular. Lack of dedicated beds for Covid patients, shortage of medical oxygen, medicines and medical personnel have been widely reported even after the lapse of one year of the pandemic.

Barring public sensitisation, the announcement of lakhs of crores in financial packages has not translated into action. This is nothing but stark failure at a time when Covid deaths are spiking every day. Interventions like partial or weekend lockdowns have failed to check the rise in cases. It is clear that the current measures are inadequate; public authorities should increase the number of beds and ensure supply of oxygen in hospitals. Private hospitals should be made partners in the management and treatment of Covid patients with strict vigilance on compliance. Public financing being a major constraint in delivering the needed intervention, the government should explore the possibilities of alternative funding. Corporate social responsibility (CSR) funds is a potential source for the cause.

Studies have shown that the CSR Act 2013 has facilitated the formation of substantial capital at the corporate level, due to mandatory earmarking of 2% of profit towards CSR activities to be undertaken in the society. The funds thus created can be transferred to government authorities or invested on company-approved CSR activities. Due to the absolute freedom enjoyed by corporate bodies, the transfer of funds to government or public authorities has not worked out effectively.

Defeating the purpose

The health sector, which is in need of a better pandemic infrastructure, has seen very limited investments. The biggest disappointment is the creation of trusts and societies by corporate entities to promote their own interests, and a number of money-spinning activities in the field of education. It goes without saying that educational opportunities are created only for the affordable section, who can pay exorbitant fees.

Such steps have defeated the very purpose of these funds. The government should use CSR funds only for developmental activities. Having provided the required facilities to the corporate world and to special economic zones, the government should enforce the implementation of CSR activities to achieve social welfare.

Given the needs of the health sector, CSR funds shall be used to create infrastructure in government hospitals on priority to address challenges like the one posed by the pandemic. Creation of additional beds in all government and public hospitals is of paramount importance so as to ensure that all affected patients can be admitted for treatment. It would be ideal to augment the capacity to such a level that no patient is kept waiting for want of beds, as is the case now in major urban centres.

Corporate bodies should be encouraged to adopt government hospitals, create more bed facilities and sustain them. Private hospitals must earmark their beds to the poor, especially during a pandemic situation like this, and provide treatment under their own CSR activity. Secondly, medical oxygen and medicines should be made available, and a courteous service extended to patients. As far as possible, the private sector must be encouraged to enhance the supply of these essentials. Thirdly, crematorium facilities should be doubled, especially in major urban centres, to do away with queues and minimise delay in last rites. Finally, there must be a substantial augmentation of ambulance fleet without any second thoughts, given the present scenario. Also, the malpractices associated with hailing ambulance services need to be tackled at municipal/corporation level.

(The writer is a Professor in Research at the Institute of Finance and International Management (IFIM), Bengaluru)