Big retailers (including online ones that offer fast home delivery) often don't source from informal suppliers because their papers are often not in order. e.g. Big retail only stocks garbage bags with thickness >= legal minimum. But many kirana shops stock the thinner, cheaper ones. So the access to big, organised markets is limited for the informal sector in some cases.
"the survey only asks whether firms grant employees this time" to be sure, it should have cross-checked with employees too.
While the arguments about relaxing the location where CSR money can be spent and possible tax relief sound fine, the other arguments against CSR spending seem out of place
Reduced CSR spending due to reduced visibility/bragging rights is difficult to understand. If someone wants to brag, they can still make arguments like"we contribute more than mandatory requirements, do not need regulations to force us to spend as we like to contribute" or "contribution was made mandatory taking into account our CSR spending" if someone really wants to be overboard….
Capital market does not punish because of CSR, they punish due to lack of revenue/profit growth…as also happens during wars, interest rate hikes, tariffs etc…if at all CSR spending makes a dent P&L, then ways to increase revenue/profits should be explored, knowing apriori that this expenditure is certain and mandatory
So yes, CSR is certainly a wonderful initiative and should continue going forward
Thanks Ashish for weighing in. Honestly, the questions that you ask are very hard to answer, and even the research that we quoted just gives us data based observations, and then making conclusions.
On Informal Competition:
Big retailers (including online ones that offer fast home delivery) often don't source from informal suppliers because their papers are often not in order. e.g. Big retail only stocks garbage bags with thickness >= legal minimum. But many kirana shops stock the thinner, cheaper ones. So the access to big, organised markets is limited for the informal sector in some cases.
"the survey only asks whether firms grant employees this time" to be sure, it should have cross-checked with employees too.
Good article.
While the arguments about relaxing the location where CSR money can be spent and possible tax relief sound fine, the other arguments against CSR spending seem out of place
Reduced CSR spending due to reduced visibility/bragging rights is difficult to understand. If someone wants to brag, they can still make arguments like"we contribute more than mandatory requirements, do not need regulations to force us to spend as we like to contribute" or "contribution was made mandatory taking into account our CSR spending" if someone really wants to be overboard….
Capital market does not punish because of CSR, they punish due to lack of revenue/profit growth…as also happens during wars, interest rate hikes, tariffs etc…if at all CSR spending makes a dent P&L, then ways to increase revenue/profits should be explored, knowing apriori that this expenditure is certain and mandatory
So yes, CSR is certainly a wonderful initiative and should continue going forward
Thanks Ashish for weighing in. Honestly, the questions that you ask are very hard to answer, and even the research that we quoted just gives us data based observations, and then making conclusions.