By Business India Editorial
I

ntegrity needs to be at the heart of CSR initiatives to make a real difference," says Arpinder Singh, India and Emerging Markets Leader (Forensics and Integrity Services), Ernst and Young, in a recently released report titled Corporate Social Responsibility in India: re-engineering compliance and fraud mitigation strategies.

"However implementing programs and broadening outreach in the current era can prove to be an arduous task," he adds.

The survey was conducted through an online questionnaire and over 100 responses were received. The respondents were senior executives from CSR functions, representing a mix of Indian enterprises as well as the Indian subsidiaries of MNCs.

The study highlights that Corporate India’s dependence on third-party vendors or specialists has increased over time. Bringing forth one of the most common challenges: a lack of readily available and transparent information on specialists. Due diligence has become more important during the pandemic, with companies mobilising resources to support the government and address the immediate threat.

For Ernst and Young, the definition of due diligence includes getting information from the NGO, and conducting independent and reference checks with different stakeholders of the NGOs. Such a study has at times led to reveal issues around legal disputes, regulatory defaults, and information about funding channels.

The consultancy firm has also highlighted risks emanating from sub-contracts issued by the NGO during the execution of the program, sometimes without the knowledge and consent of the company. There have also been some cases around conflict of interest, to assess possible linkages with employees.