Corporate philanthropy: How India Inc's big hearts are paying back society

Worth Rs 1,560 cr last year, with a per-donor contribution of Rs 40 cr, corporate philanthropy is more about professional involvement today, than symbolic dole-outs

Any drawing room conversation on philanthropy would be incomplete with the omission of some of its biggest advocates and practitioners such as George Soros, Warren Buffett, Bill Gates and Jeff Bezos.

But what's the scene in India? While corporate leaders are generally admired for their business acumen and the fact that they are, well, super successful, you wouldn't miss the occasional whisper about their being a greedy, self-indulgent lot who dodge taxes and who couldn't care less for the communities they are working in. Why do you think CSR norms were forced down their gullets, some might ask.

The ground reality, however, is quite different. As most business houses grow, their promoters are directing their time, effort and money towards causes they are passionate about. And their charitable drives are more professional than symbolic today.

Indian philanthropy was valued at Rs 1,560 crore last year, with an average per-donor contribution of Rs 40 crore. These were findings by Hurun Research Institute which released the 'Hurun Indian Philanthropy List 2018', a ranking of the most generous individuals from India. The study identifid those who donated Rs 10 crore or more between October 1, 2017 and September 30, 2018.

India's magnanimous magnates

Prominent names featuring in the list included Reliance Industries, which channelises its charity through Reliance Foundation led by Nita Ambani. According to the Hurun report, the firm donated Rs 437 crore towards education, rural development and healthcare last year. Groups that have contributed generously for inclusive growth of society include the likes of Ajay Piramal’s Piramal Foundation (healthcare and education), Azim Premji Foundation (education, environment sustainability and healthcare), Adi Godrej’s Godrej trust (environment, health and education), Dr Priti Adani-led Adani Foundation (education and inclusive community development covering health, livelihood and rural infrastructure), Shiv Nadar Foundation (education and art), Savji Dholakia’ Hari Krishna Exports (Hari Krishna Sarovar), Shapoorji Pallonji Foundation (environmental, healthcare and educational causes).

Many industrialists have been at the forefront of giving away generously during natural calamities, such as Lulu Group Chairman Yusuff Ali, who contributed Rs 50 crore to the Chief Minister’s Distress Relief Fund for Kerala flood victims. Several in the past have organised huge and timely relief measures during the Tsunami tragedy, Uttarakhand floods and landslides, and Jammu and Kashmir floods.

Where the money goes

Education remains the most popular philanthropic cause, with nearly 30 per cent of all donations going towards it, followed by Healthcare (12 per cent).

Take the case of the Shiv Nadar Foundation, which is billionaire technology czar and HCL group founder, Shiv Nadar. Says Nadar's wife, Kiran, who is spearheading India’s first private museum on art: “We have an intrinsic interest in education and promoting literacy at all levels, child or adult, through our Shiksha schools, where the aim is that 90 per cent of the people should absorb 90 per cent of the material.” 

She adds that while their philanthropic work is in the field of education, they also promote art. "It is also a form of education. We have such a rich heritage and it is important that the younger generations understand it.” 

The foundation also run two schools under the name Vidya Gyan, at Bulandshahr and Sitapur in Uttar Pradesh. The schools have more than 1,400 children on their rolls and education is free for those whose families earn less than Rs 1 lakh a year. Then there are Shiv Nadar Schools and a University. “The Foundation is also working on the Samudai programme, under which we are trying to build model villages with everything available such as water, electricity, sanitation, health and education. We hope the government will take it up as we belive that it has the potential to be replicated.”

Some of the most amazing global wealth creation stories of this century will be from India, says Anas Rahman Junaid, Managing Director and Chief Researcher, Hurun Report India. “The philanthropic landscape of India is changing and evolving because of the active participation and contribution of the top Indian entrepreneurs. Consequently, in the next 5-10 years, I expect to see exponential increase in active philanthropy emanating from India.”

Most of the philanthropists have an average age of 63 years. Interestingly, Mumbai is home to most of the philanthropists followed by Bengaluru, Ahmedabad, New Delhi.

The list of global HNIs was topped by George Soros, 87, who is officially most generous philanthropist in the US with $18 billion donation while the top five includes Bill Gates, Warren Buffett, Mark Zuckerberg and He Xiangjian of Midea. Here too, education remains the preferred cause with 58 per cent, followed by healthcare 18 per cent. The top three industries that global philanthropists made their money, as per Hurun research, are investments, real estate and technology. While the average age of global philanthropists is 66 years, there were eight who were under 40, including Zhang Zetian, 25, the youngest philanthropist, followed by Mark Zuckerberg of Facebook, 33. 

Top 10 philanthropists of 2018
Rank	Name	Donation (Rs cr)	Primary Cause	Company
1	Mukesh Ambani	437	Education	Reliance Industries, Mumbai
2	Ajay Piramal & family	200	Education	Piramal Group, Mumbai
3	Azim Premji & Family	113	Education	Wipro, Bengaluru
4	Adi Godrej & family	96	Livelihood enhancement	Godrej Group, Mumbai
5	Yusuff Ali MA	70	Disaster relief	Lulu, Abu Dhabi
6	Shiv Nadar	56	Education	HCL, New Delhi
7	Savji Dholakia	40	Livelihood enhancement	Hari Krishna Exports, Surat
8	Shapoor Pallonji Mistry	36	Education	Shapoorji Pallonji, Monaco
9	Cyrus Pallonji Mistry	36	Education	Shapoorji Pallonji, Mumbai
10	Gautam Adani	30	Education	Adani Enterprises, Ahmedabad
Source: Hurun Research Institute & Hurun India Rich List 2018