Corporate

Social
Responsibilit
y in India
By
Darshan B
 Definition of CSR

•Introduction • CSR stands for Corporate Social Responsibility. It is a

business approach that integrates social and
environmental concerns into a company's operations
and interactions with stakeholders. CSR goes beyond
profit-making and focuses on making a positive
impact on society and the environment.
CSR
01 02 03
Corporate: Relating to Social: Pertaining to Responsibility: The
businesses or companies, society and the well- obligation or duty to act
often referring to large being of people, in a way that benefits or
organizations with a including societal issues does not harm others, the
structured hierarchy and and human interactions. environment, or the
ownership. common good.
 • In today's business landscape, CSR has become
increasingly significant. Here's why:

Significance • Enhancing Reputation: CSR initiatives can

enhance a company's reputation, making it more
attractive to customers and investors.

and Relevance • Attracting Talent: Businesses that prioritize CSR

often attract top talent who want to work for
socially responsible organizations.

of CSR in the • Risk Mitigation: Engaging in CSR can help

mitigate legal and reputational risks by ensuring
ethical business practices.

Modern • Meeting Stakeholder Expectations: Customers

and investors are increasingly demanding that
companies take responsibility for their impact on
Business World society.
• Sustainability: CSR supports sustainability by
addressing environmental and social challenges,
contributing to long-term business viability.
 A Brief History of CSR Globally
Early Roots: The concept of CSR has
early roots in philanthropy and
charity, with businesses making
occasional contributions to social
causes.
1950s-60s: The modern CSR
movement gained momentum in the
mid-20th century, with companies
recognizing the need to address social
and environmental concerns.
Industrial Revolution: During the
Industrial Revolution in the 19th
century, some companies began to
address social issues arising from
industrialization.
1970s-80s: Global events, such as the
environmental movement, led to
increased CSR awareness, and the
idea of business sustainability started
to take shape.
A Brief History of CSR in India

•Pre-Independence: Philanthropy was a dominant

form of CSR in India during the pre-independence
era, with prominent industrialists contributing to
social causes.

•Post-Independence: After independence, the

government encouraged companies to invest in
community development.
•1990s Onward: Economic liberalization in the
1990s brought a shift towards more structured CSR
initiatives, culminating in the introduction of
mandatory CSR spending in the Companies Act,
2013.
 •Education: Companies invest in schools, scholarships, and
vocational training for social and economic development.

Types Of
•Healthcare: CSR includes funding hospitals, clinics, and health
awareness for better healthcare access.
•Environment: Initiatives focus on sustainability, conservation, and

CSR clean energy promotion.

•Poverty Alleviation: Programs target income generation and skill
development for marginalized communities.

Activities •Women Empowerment: CSR works towards gender equality and

financial inclusion.
•Rural Development: Activities involve clean water, sanitation, and

CSR Areas infrastructure in rural areas.

•Community Development: Projects include community centers and
disaster relief support.

in India •Skill Development: Investment in training and upskilling for better

job opportunities.
•Clean Energy and Climate Action: CSR addresses environmental
challenges through clean energy and climate mitigation
Legal Framework
Companies Act, 2013: Mandatory CSR
Provisions

• The Companies Act, 2013, introduced a

significant legal framework for CSR in India.
• Section 135 of the Act mandates that certain
companies meet specific CSR requirements.
• These provisions came into effect in April 2014
and have since played a pivotal role in shaping
CSR activities in the country.
Thresholds for Mandatory CSR Spending in India

AS PER THE COMPANIES ACT, 2013, THE FOLLOWING THRESHOLDS APPLY:

Applicability: Companies With A Net Companies With A Companies With A Net CSR Spending: Such Reporting: Companies
Worth Of At Least INR Turnover Of At Least Profit Of At Least INR 5 Companies Are Must Disclose Their
500 Crore. INR 1,000 Crore. Crore. Required To Spend At CSR Activities In Their
Least 2% Of Their Annual Reports.
Average Net Profits Of
The Preceding Three
Years On CSR
Activities.
Regulatory Bodies
Ministry of Corporate Affairs (MCA) National CSR Portal Central Public Sector Enterprises
(CPSEs)

1 2 3 4 5 6 7 8

The Ministry of It is responsible The MCA The National It acts as a central Public sector The Department In India,
Corporate Affairs for formulating administers and CSR Portal is an repository of companies in of Public regulatory bodies
(MCA) in India is and amending enforces the online platform CSR-related India, known as Enterprises oversee and
a key regulatory policies related to Companies Act, where companies information, CPSEs, are also (DPE) oversees regulate CSR
body for CSR. corporate 2013, including are required to making CSR subject to CSR CSR activities of activities to
governance and the CSR report their CSR reporting more regulations and CPSEs and ensure companies
CSR activities. provisions. activities and transparent and reporting. ensures meet their
expenditures. accessible to the compliance with obligations for
public. CSR guidelines. social
development.
CSR and Sustainable Development
Goals (SDGs)
Linking CSR Initiatives to the United
Nations' Sustainable Development Goals

• Companies tailor CSR to specific SDGs:Poverty

Alleviation (SDG 1) through livelihood support and
microfinance.
• Quality Education (SDG 4) with scholarships and
infrastructure.
• Gender Equality (SDG 5) through training and
entrepreneurship.
• Clean Water and Sanitation (SDG 6) with improved
access.
• Affordable and Clean Energy (SDG 7) via renewable
energy.
• Climate Action (SDG 13) with eco-friendly practices.
 Future •Technology Integration: Leveraging tech for efficient and impactful CSR,
including data analytics and digital platforms for transparency.
•Innovative Partnerships: Collaborating with non-profits, startups, and

Trends government agencies to address complex social issues.

•Sustainable Practices: Embracing circular economy, waste reduction, energy
efficiency, and carbon footprint reduction.

Emerging •Focus on Localized Impact: Adopting community-centric CSR approaches.

•Skill Development and Employability: Focusing on skill development,
especially for marginalized populations.

Trends in •Financial Inclusion: Promoting access to financial services, particularly in

underserved areas.

CSR in the
•Healthcare Access: Using technology to improve healthcare access, especially in
remote areas.
•Sustainable Supply Chains: Emphasizing ethical and sustainable supply chain

Indian
practices.
•Crisis Response and Disaster Relief: Shifting towards preparedness, relief, and
crisis response in CSR initiatives.

Context •CSR for Startups and Small Enterprises: Encouraging smaller businesses to
engage in CSR for inclusive growth.
 •Prominent Indian companies actively engaged in CSR:

•1. Tata Group: - Notable CSR Initiatives: Extensive activities supporting

education, healthcare, and social and environmental challenges, with the Tata Steel
Rural Development Society (TSRDS) as a highlight.

•2. Reliance Industries: Notable CSR Initiatives: Focus on healthcare, education,

Tata Group and rural development, spearheaded by the Reliance Foundation with projects for
healthcare accessibility and education for underprivileged communities.

Hindustan
Unilever Reliance •3. Infosys: Notable CSR Initiatives: Support for education and employability
programs, led by the Infosys Foundation, promoting literacy, healthcare, and social
Limited Industries
welfare.
(HUL)

•4. ICICI Bank: Notable CSR Initiatives: Activities in skill development, healthcare,
and financial inclusion, highlighted by the 'ICICI Academy for Skills' offering
vocational training to youth.
ICICI Bank Infosys
•5. Hindustan Unilever Limited (HUL): Notable CSR Initiatives: Emphasis on
water conservation, hygiene, sanitation, and women's empowerment, notably
through the 'Swachh Aadat Swachh Bharat' campaign.
CSR • Regulatory Compliance: Navigating complex and evolving CSR
Challenges in •
regulations.
Alignment with Business Goals: Balancing CSR with core business

India
objectives.
• Impact Measurement: Measuring long-term, indirect outcomes.
• Lack of Awareness: Small companies may lack CSR knowledge.
Challenges • Resource Allocation: Deciding fund allocation and project selection.
• Monitoring and Reporting: Resource-intensive transparency and
Faced by •
reporting.
Stakeholder Engagement: Complex engagement with local communities.

Companies in •
•
Long-Term Commitment: Sustaining CSR efforts over time.
Measuring Social Impact: Quantifying social change beyond finances.

Fulfilling CSR • Competition for Resources: Intense resource competition among CSR and
business priorities.

Obligations
 Cumulative CSR
CSR spending in

This data is obtained

Company spending since 2014-
2022-23 (INR crore)
15 (INR crore)

from these sources

Tata Group 9,760 1,213
Reliance Industries Limited 7,376 922

Tata Consultancy
5,688 711
Services Limited
• Ministry of Corporate Affairs (MCA) website HDFC Bank Limited 5,080 635
• CSRBox website
ICICI Bank Limited 3,720 465
• India CSR Outlook Report 2015 by NGOBox
Infosys Limited 3,056 382
• Times of India articles on CSR spending
• US Bureau of Economic Analysis (BEA) website Hindustan Unilever
3,144 393
• UK Department for International Development (DFID) website
Limited
• Japanese Ministry of Economy, Trade and Industry (METI) website State Bank of India 3,664 458
• German Federal Ministry of Economic Development and Cooperation
Housing Development
(BMZ) website Finance Corporation 4,112 514
• Australian Government Department of Foreign Affairs and Trade Limited
(DFAT) website Adani Enterprises Limited 3,664 458

Bharti Airtel Limited 3,280 410

 CSR spending in India CSR spending in other countries by Indian
Year Country (INR crore) companies (INR crore)
2022 United States 650 250
2022 United Kingdom 400 200
2022 Japan 300 150
2022 Germany 250 100
2022 Australia 200 50
2021 United States 600 230
2021 United Kingdom 350 180
2021 Japan 250 130
2021 Germany 220 90
2021 Australia 150 40
2020 United States 550 210
2020 United Kingdom 300 160
2020 Japan 200 110
2020 Germany 190 80
2020 Australia 100 30
 •Importance of CSR Reporting:

•Transparency: Builds trust by showing commitment to responsibility.

•Accountability: Measures impact and goal achievement.
CSR •Regulatory Compliance: Avoids legal penalties.
•Investor Expectations: Attracts investment with ESG reporting.

Reporting •Benchmarking: Identifies areas for improvement.

•Global Reporting Standards and Frameworks:

Importance •Global Reporting Initiative (GRI): Comprehensive sustainability

of CSR standards.
•Sustainability Accounting Standards Board (SASB): Industry-specific
sustainability standards.

Reporting •Integrated Reporting Framework: Integrates financial and non-financial

data.
•UN Global Compact Principles: Aligns with global sustainability goals.
•Task Force on Climate-Related Financial Disclosures (TCFD): Focuses
on climate-related disclosures.
 •Enhanced Corporate Reputation: Builds trust and attracts customers,
investors, and employees.

Benefits of
•Sustainable Business Growth: Ensures stability, profitability, and
environmental protection.
•Improved Financial Performance: Leads to financial success and social
CSR for contribution.
•Enhanced Employee Engagement: Boosts morale, productivity, and societal

Companies, well-being.
•Innovation and Competitive Advantage: Encourages innovation and addresses
societal challenges.
Society, and •Reduced Environmental Impact: Reduces footprint, conserves resources, and
minimizes pollution.

the •Stakeholder Trust and Loyalty: Builds trust and loyalty among customers and
investors.

Environment •Social and Environmental Impact: Addresses societal and environmental

challenges, improving quality of life.
•Legal Compliance and Risk Mitigation: Reduces legal and reputational risks,
ensuring responsible operations.
•Global Goals Alignment: Enhances global reputation and supports
international efforts to address major challenges.
 •Employees: Engage in volunteer activities, boost job satisfaction,
CSR and and promote skill development.
•Customers: Enhance brand image, build customer loyalty, and

Stakeholders align with ethical consumer values.

•Communities: Benefit communities directly, foster collaboration,
and create a positive impact on quality of life.

Engagement with •Investors: Attract socially responsible investors, reduce long-term

risks, and potentially improve financial performance.
•Government and Regulatory Bodies: Ensure compliance and
Various advocate for positive policy changes.
•Suppliers and Business Partners: Promote supply chain

Stakeholders responsibility and strengthen partnerships.

•NGOs and Non-Profit Organizations: Collaborate for greater
impact and amplify CSR efforts.
 • Company: Tata Group, India's conglomerate.
• CSR Initiative: "Swachh Aadat, Swachh Bharat."
• Focus: Enhancing rural sanitation and hygiene.
Case Study •
•
Key Highlights:
Objective: Create a 'Swachh Bharat' by promoting clean habits and
Tata •
building rural toilets.
Sanitation: Constructed community and household toilets, conducted

Group's •
awareness campaigns.
Impact: Reduced waterborne diseases, encouraged clean habits.
•
"Swachh
Community Involvement: Engaged local communities, empowered
women.
• Scale and Recognition: Reached thousands of villages, received awards.
Aadat, •
•
Sustainability: Implemented a model for long-term facility maintenance.
Impact:
Swachh •
•
Communities: Better health and environment.
Tata Group: Enhanced reputation and social responsibility.

Bharat" •
•
Lessons Learned:
Community involvement is vital.
• Combining infrastructure and awareness is effective.
• Sustainability ensures lasting impact.
 CSR is mandatory for certain Indian companies,
driving social and environmental investment.
Conclusion CSR covers various focus areas, from education
to sustainability.
The Companies engage with stakeholders to create
Pivotal positive impacts.

Role of CSR brings wide-reaching benefits, enhancing

reputation and profitability.

CSR in Emerging trends reshape CSR with technology

and SME involvement.

India Effective CSR relies on global standards,

transparency, and commitment.
 CTRL + CLICK TO FOLLOW THE
LINK

https://csrbox.org/CSR-in-India
https://www.csr.gov.in/content/csr/global/master/home/home.ht
ml

https://core.ac.uk/download/pdf/229672785.pdf

https://www.mca.gov.in/content/mca/global/en/home.html

REFERENCES https://www.india-briefing.com/news/corporate-social-responsib
ility-india-5511.html/

https://en.wikipedia.org/wiki/Corporate_social_responsibility

https://www.pwc.in/assets/pdfs/publications/2013/handbook-on-
corporate-social-responsibility-in-india.pdf

Internet In General
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