Corporate Social Responsibility (CSR) has become an
essential component of contemporary business operations. In India, CSR
endeavors have witnessed substantial growth, not merely as a statutory
obligation but as a genuine dedication to societal well-being.
From a Regulatory Standpoint: In India, the
Companies Act of 2013 mandates CSR activities for certain businesses. According
to this legislation, companies meeting specific financial thresholds must
allocate at least 2% of their average net profit towards CSR activities. This
legal requirement has led to a significant surge in CSR initiatives, which have
positively influenced various sectors of society.
Over the years, CSR funds have predominantly concentrated on
Education & Skills, and Healthcare & WASH (Water, Sanitation &
Hygiene) projects, aligning with the categories outlined in Schedule VII of the
Companies Act, 2013. Other noteworthy areas of funding include Rural
Development, Environmental Conservation, and Gender Equality.
Trends in Indian CSR: Since the enforcement of
mandatory CSR provisions in 2014, corporate India's CSR spending has
experienced substantial growth. It has surged from INR 20,217 crore in 2018-19
to INR 26,278 crore in 2021-22. The proportion of companies surpassing the prescribed
CSR expenditure has risen to 56.08% in 2021-22 from 22.97% in 2017-18.
Donations to the Prime Minister's National Relief Fund
(PMNRF) more than doubled in 2020-21 compared to 2019-20, and donations to
other Central Government Funds increased by 67% during the same period.
Contributions to PMNRF have been escalating over the years, reaching INR 1679
crores in 2020-21 from INR 228 crores in 2014-15, marking an over 7-fold
increase.
Healthcare and WASH have emerged as the primary CSR
priorities for 26% of companies, followed by Environment and Sustainability
(23%), and Education Promotion (23%). Environment and Sustainability have
become the second most prominent CSR priority areas, attracting more than
one-third and one-fourth of companies, respectively.
Welfare Impact of CSR : Through CSR
initiatives, philanthropic efforts, and volunteerism, businesses can
significantly contribute to social welfare while enhancing their brand
reputations. Socially responsible businesses proactively integrate issues such
as climate change, poverty, equality, diversity, and inclusion into their
operational ethos.
Companies are nurturing India's human capital by investing
in education, skill enhancement, and entrepreneurial programs. Collaborating
with NGOs and vocational training institutions, they provide skill-based
training to disadvantaged youths, thus fostering economic growth. A skilled
workforce enhances productivity, elevates competitiveness, and propels economic
advancement.
CSR initiatives are catalyzing social development in India
by addressing poverty and advocating gender equality. Companies are actively
involved in community development projects that empower marginalized
populations through education, healthcare, and livelihood opportunities.
Investments in telemedicine and digital health solutions are expanding
healthcare access in remote regions.
The future of CSR in India seems to be increased seriousness
for CSR activities and genuinely contributing to social wellbeing. Corporate
Robin hoods are here to stay and make India a better place to stay for the
needy.
ICC and CSR
ICC regularly organises CSR Awards for organizations doing
outstanding work in Social Development. Some of the past winners are TRL
Krosaki Refractories Limited (Belpahar, Odisha), ITC Limited, Munger Plant
(India Tobacco Division), Dalmia Cement (OCL Bengal Cement Works, A Unit of OCL
India Ltd) under Manufacturing & Processing, Bharat Aluminium Co. Ltd.
(Korba, Chhatisgarh) under Mining Operation & Processes, Tata Consultancy
Services, Kochi and WIPRO LTD., Saltlake Sector-V , Kolkata under Services
sector.
