India Inc has a heart. Going beyond financial investment, corporations are investing in social causes and community development.
Thanks to the non-government organisation United Way of Mumbai, over 35-40 corporate entities have contributed Rs 6-7 crore through 4,000-odd employees.
The money will be invested in various community development projects across the country.
"We are targeting more employees to contribute for a social cause through an arrangement of deducting certain amount from their salary on a regular basis. We are in talks with 25 companies for this. By 2007, United Way of Mumbai is expecting 100 corporates with an employee base of 50,000 to get involved in this," American International Group Inc Country Head & Chief Executive Sunil Mehta said.
United Way of Mumbai, an affiliate of United Way International, is the country's first professional corporate and employee giving charity. It was established in 2002 with the support of AIG, Citibank India, Ernst & Young, Hunt Partners, Jasubhai Group, J M Stanley Securities, Mahindra & Mahindra, Morgan Stanley New York, Principal Asset Management and Sony Television.
Mehta, who is also the chairman of United Way, said the key community action areas would be children, education, women empowerment, civic development and rehabilitation of disaster victims in urban and rural India.
United Way International President and CEO Christine James Brown said the main chunk of contribution in India is for community development projects. At present, payroll giving is only Rs 1 crore and remaining is from corporate giving and other sources.
"Currently, we are focusing on disaster rehabilitation projects in tsunami affected areas of Tamil Nadu. We are maintaining high level of internal auditing and tracking for executing community development projects via various local NGOs," Brown said.
United Way CEO Shibani Sachdeva said Korean major Samsung was making a school at Chinnangudi in Nagapattinam district, Tamil Nadu, for the tsunami-affected children at the cost of Rs 1.67 crore.
"Tamil Nadu government has allocated the land for the school. This school initially will be having facility for 150-200 students. The dream is to raise the school up to Tenth standard from the proposed current third standard," Sachdeva said.
Meanwhile, AIG would be constructing 50 houses and distribute boats, nets and motors for tsunami affected village of Poopohar in Tamil Nadu.
"The project is executing after 3 month due diligence. AIG will be extending necessary help for livelihood in four different villages," Sachdev said.