A brief history of Indian CSR - Gateway House

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M E M B E R S H I P ( H T T P S : / / W W W. G AT E WAY H O U S E .

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WE DNES DAY, 4 JANUA RY 20 23

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(https://www.gatewayhouse.in/a-brief-history-of-indian-csr/print/) M OST PO PUL AR
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Gateway House I NDI A’ S DI GI TA L RUPE E:
Articles O PPORT UNI TIE S AND CONCE RN S
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A brief history of Indian CSR


(https://www.gatewayhouse.in/publications/articles/)
DIG I TAL - RUP EE -O P PORTUNI TI ES -A N D -
Blogs
(https://www.gatewayhouse.in/publications/blogs/) CONCER NS/)
By Bazil Shaikh
Maps and
Tracing the history of CSR in India, from Independence to the Companies Act. (Https://Www.Gatewayhouse.In/Author/Bazil-
Shaikh/)
Infographics This a first in a series of articles examining CSR and the Indian Companies Act | P OST ED O N DE CEM BER 2 2, 20 22
(https://www.gatewayhouse.in/publications/maps-
and-infographics/) (2013) A BRIE F HI STORY OF INDIAN C S R
Reports ( HTT PS: // WW W.G ATE WAYH OU SE. IN /A -
(https://www.gatewayhouse.in/publications/research- BRIEF - HIS TO RY- OF- IN DIAN- CSR /)
reports/) BY Nandini Deo (Https://Www.Gatewayhouse.In/Author/Nandini-Deo/) By Nandini Deo
Conference Reports
(Https://Www.Gatewayhouse.In/Author/Nandin
Deo/)
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The 2013 Companies Act for the first time mandates that private corporations join CYB ERSE CURI T Y- AND- IT S- I M PA C T- ON -
Books
T HE - ECONOM Y /)
(https://www.gatewayhouse.in/publications/books/)
public sector firms in annual donations for Corporate SocialResponsibility (CSR). All By Brijesh Singh
Interviews firms with net worth above Rs 500 crore, turnover over Rs 1,000 crore, or net profit (Https://Www.Gatewayhouse.In/Author/Brijesh
(https://www.gatewayhouse.in/publications/interviews/) Singh/)
over Rs 5 crore are required under Section 135 to spend at least 2% of their annual | P OST ED O N A UGUST 4 , 2 02 2
Speeches
profits (averaged over 3 years) and establish a CSR committee to oversee the spending.
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Time period Economic
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reviews/)
currents 2 3 JUNE 2 02 2
GH Wiki
(https://www.gatewayhouse.in/publications/gh- Analysing India’s Economic Security
wiki/) 1850-1914 Industrialisation Colonial, Dynastic charity Challenges
extraction (HTTPS://WWW.GATEWAYHOUSE.IN/ANALYSIN
PA RT N E R P U B L I C AT I O N INDIAS-ECONOMIC-SECURITY-
( H T T P S : / / W W W. G AT E WAY H O U S E . I N / P U B L I C AT I O N S / PA RT N E R - CHALLENGE/)
P U B L I C AT I O N / ) 1914-1947 Trade barriers for Colonial, Support freedom BY Gateway House
new industries exploitative struggle
GH IN THE MEDIA
( H T T P S : / / W W W. G AT E WAY H O U S E . I N / P U B L I C AT I O N S / G H -
1947-1960 Socialism, Five year plans Support new
IN-THE-MEDIA/)
protectionism state; launch own
rural initiatives

1960-1990 Heavy regulations Licence raj; Corporate trusts


development
failures
(HTTPS://WWW.GATEWAYHOUSE.IN/ANALYSIN
INDIAS-ECONOMIC-SECURITY-
1991-2013 Liberalisation Shrinking in Family trusts, CHALLENGE/)
production; private-public
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2013-present Globalisation Need to manage Introduction of 1 6 JUNE 2 02 2
inequality; new mandatory 2%
The New Nuclear Age
reforms to rule
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liberalise further NEW-NUCLEAR-AGE/)
BY Andrew F. . Krepinevich, Jr. ()

Religious traditions of daan, seva, and zakat operated in India for centuries helping to
shape the relationship between the privileged and the dispossessed. The vast majority
of philanthropy in India has always been to religious institutions and that continues to
be the case. The earliest industrialists of the 19th Century launched the practices of
corporate giving via trusts, and endowed institutions controlled by members of
business families.

After the First World War, a new phase of corporate philanthropy arose that drew (HTTPS://WWW.GATEWAYHOUSE.IN/THE-
NEW-NUCLEAR-AGE/)
business leaders into the political fight for independence. The close relationship
between M.K. Gandhi and leading industrialists is well-known. He proposed a model
BO OK RE VIE WS
of trusteeship for business in which tycoons should understand their position as ( HTT PS: // WW W.G ATE WAYH OU SE. IN /P UB L ICAT IO N S /B
fiduciaries of society’s wealth. REV I EWS / )
3 NOV EM B ER 2 02 2
In the period immediately after Independence, the role of the Indian State expanded The Pashtuns: A Contested History
greatly and the corporate sector took a backseat in development efforts. After some (HTTPS://WWW.GATEWAYHOUSE.IN/THE-
PASHTUNS-A-CONTESTED-
time, the failures of the State to end poverty and support economic growth led to HISTORY/)
BY Shalini Chawla (Http://Gateway)
Shares
dissatisfaction. The liberalisation of the Indian economy in 1991 ushered in a new
globalised economic environment, with rapid growth in overall wealth and also in
inequality.

The rising gap between the wealthiest Indians and those at the bottom sparked
innovation in efforts by the corporate sector to address social problems. It also led the
State to think about how to pull in more support from the booming business world. In
the context of a shrinking State, a more globalised economy, and great divisions in
economic and social worlds, the landscape of Indian CSR is fascinating
(HTTPS://WWW.GATEWAYHOUSE.IN/THE-
PASHTUNS-A-CONTESTED-
Gateway House and Lehigh University, Pennsylvania, U.S., have teamed up to conduct HISTORY/)
a study of how these regulations are shaping corporate giving. Based on dozens of
interviews with corporations, lawyers, journalists, consultants and NGOs as well as
research on almost 200 of India’s largest corporations we are presenting a series of
articles on Indian CSR today.

Nandini Deo is an Assistant Professor at Lehigh University, Pennsylvania, U.S.

This blog was exclusively written for Gateway House: Indian Council on Global
Relations. You can read more exclusive content here
(https://www.gatewayhouse.in/publications/).

For interview requests with the author, or for permission to republish, please
contact outreach@gatewayhouse.in (mailto:outreach@gatewayhouse.in).

© Copyright 2015 Gateway House: Indian Council on Global Relations. All rights
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