When India amended the Companies Act in 2013 to introduce Section 135, mandating Corporate Social Responsibility (CSR) for qualifying companies, it marked a historic moment—not just for India, but for the global discourse on responsible business. India became the first country to legislate CSR, effectively transforming voluntary philanthropy into a structured, accountable, and strategic endeavor.
Now, as we complete a decade of this landmark legislation, the CSR landscape in India has undergone a remarkable evolution—moving from ad hoc donations to purpose-driven interventions aligned with national development priorities. This journey offers lessons in innovation, partnerships, governance, and the expanding role of businesses in nation-building.
CSR as a Boardroom Agenda
Over the past ten years, CSR has transitioned from the periphery to the core of corporate governance. No longer a mere tick-box activity, CSR today is anchored in boardroom discussions, integrated into business strategy, and linked to long-term sustainability goals. The inclusion of Independent Directors in CSR Committees, the emphasis on impact assessment, and public disclosure requirements have elevated CSR to a strategic function that now attracts senior management attention and accountability.
Financial Commitment: `2.17 Lakh Crore and Counting
Since the enforcement of CSR provisions on 1st April 2014, Indian companies have collectively spent over `2, 17,000 crores on CSR activities. According to the National CSR Portal, 27,188 companies spent `34,908.75 crores in FY 2023–24 alone, implementing more than 51,900 projects. These figures underscore not just the financial scale of CSR, but also its operational complexity, involving hundreds of NGOs, government bodies, and thematic interventions across the country.
States like Maharashtra, Gujarat, Karnataka, and Tamil Nadu have emerged as top recipients, but there is increasing attention on backward and aspirational districts to ensure more equitable resource allocation.
Evolution of the CSR Landscape
The last decade has witnessed a paradigm shift in how CSR is conceived and implemented in India:
- From Philanthropy to Strategy: Early CSR efforts were largely donation-driven. Today, most companies align CSR with their core competencies, stakeholder interests, and national goals like education, healthcare, skilling, and climate action.
- From Activity to Impact: The CSR Rules (amended in 2021) introduced requirements for impact assessments, outcomebased reporting, and unspent CSR fund transfers, ensuring a shift from input-output metrics to outcome-impact accountability.
- From Standalone to Collaborative: Multi-stakeholder partnerships involving corporates, NGOs, academia, and government have become common. Flagship initiatives like Vedanta’s Nand Ghar, NTPC’s Girl Empowerment Mission, and Infosys Foundation’s education programs exemplify this collaborative approach.
Sectoral and Thematic Shifts
CSR spending has matured across sectors:
- Education and Skilling remain dominant themes, but there is growing investment in WASH (Water, Sanitation & Hygiene), climate resilience, and digital inclusion.
- Health, especially post-COVID, has seen significant growth— e.g., CSR contributions towards healthcare infrastructure, telemedicine, and vaccine support.
- CSR is also supporting entrepreneurship, women empowerment, and rural development, often in synergy with Sustainable Development Goals (SDGs).
Challenges and the Road Ahead
Despite the progress, CSR in India still grapples with certain challenges:
- Geographical Imbalance: A disproportionate share of CSR funds goes to industrialized states.
- Capacity Constraints: Many implementing agencies lack adequate capacity to design, execute, and measure high-impact projects.
- Compliance vs. Commitment: For some firms, CSR remains compliance-driven rather than impact-led.
To overcome these challenges, the next phase must focus on:
- Innovative Financing Models (e.g., CSR bonds, blended finance),
- Data-driven Decision-Making (leveraging AI, GIS mapping, real-time dashboards),
- Capacity Building for NGOs and internal CSR teams, and
- Integration with ESG Frameworks to create shared value for business and society.
Conclusion
India’s CSR journey over the last decade is a testament to the potential of legislative innovation when coupled with corporate will. From an initial phase of confusion and compliance, we now stand at the cusp of a more mature, impact-oriented CSR regime.
As India aspires to become a $5 trillion economy and meet its SDG and net-zero targets, CSR will remain a vital lever in this transition—bridging gaps, building capacities, and creating a more inclusive, equitable, and sustainable society.
Indeed, the next decade of CSR must be about depth, not just breadth—about making every rupee count, and every project matter.
