8: Integration Socio-Economic in Development Project as Responsibility for Commercial Entities

In our discussion on socio-economic development responsibilities for commercial entities, several key aspects stand out. Let’s delve into these:

Firstly, we have the Right to Fair Compensation and Transparency in the Land Acquisition, Resettlement & Resettlement Act 2013 (RFCTLARR). Under the R&R Program, this act comprises 13 chapters with 114 sections. As socio-economic (SE) professionals, our focus is primarily on Chapter 2, which covers the Determination of Social Impact and Public Purpose, encompassing Sections 4-9. Our role involves creating two types of databases: one related to households or families, and the other to the area/villages, particularly concerning properties that will be submerged or otherwise affected by the development project. This information is crucial for calculating compensation and solatium, using public documents as references.

The second aspect pertains to Corporate Social Responsibility (CSR), as outlined in Section 135 and the sub-sections (1) and (2) of Section 469 of the Companies Act, 2013 (18 of 2013)/ Companies Policy Rules, 2014. Here, there is a mandate for companies to allocate 2% of their average net profits of the last three years towards CSR activities. These activities, listed under Schedule VII, are intended to align with the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs).

Another important aspect is Corporate Environmental Responsibility (CER), as per F.NO.22-65/2017-IA.III dated 1st. This is project-based and involves budget allocation according to various predefined slabs for capital investment in green and brownfield projects.

Special provisions are also made for specific population groups, particularly focusing on tribal populations, Other Backward Classes (OBC), Scheduled Castes (SC), and indigenous groups. Additionally, there are special projects undertaken by international NGOs and national corporate entities. Although only a small number of NGOs and corporations are actively engaged in grassroots-level development work, their contributions are significant.

Before we proceed further, it’s important to understand the difference between CSR and CER. While both are crucial for socio-economic development, they serve different purposes and operate under different guidelines and objectives. CSR is broader in scope, encompassing a range of social initiatives, whereas CER is more focused on environmental aspects of corporate activities.