Identified as aspirational by the government.
This month marks 10 years since India became the first country in the world to mandate CSR by law — requiring companies that fulfilled certain profitability criteria to spend at least 2 per cent of their average net profits over the preceding three years on social responsibility programmes.
What began as a unique experiment has unleashed significant capital for the social sector and the nation. CSR giving unlocked a total of ₹1,53,000 crore worth of capital towards social impact from FY15 to FY22, and a 2022 Bridgespan Group report noted that CSR giving represents the second-largest source of social sector funding in the country. At this rate of growth, CSR could channel an additional ₹6,38,000 crore of capital for social development through 2033.
Before the law was implemented in April 2014, corporate giving was largely voluntary and unregulated, encouraged by the Ministry of Corporate Aairs. Whilst several companies gave back to society historically, many others began CSR in earnest only after the law came into eect, strategically aligning their CSR focus with business priorities.
In the initial years, a compliance mindset reigned with companies funding safely within the boundaries of the law what was convenient or proximate to their locations, and, often, what could get them publicity.
COMPLIANCE TO IMPACT
With a decade of experience, the focus of some CSR organisations has gradually shifted to the impact of their initiatives on both society and the business. They are investing in projects with clear, measurable outcomes, and beginning to bring a geographic and thematic focus to their work — believing that eective CSR programmes do fewer things well, rather than many things in a fragmented way.
For instance, JSW Foundation, the social development arm of the JSW Group, has sectoral heads for areas like agriculture and livelihoods, health and nutrition, and education, in addition to location heads in regions like rural Maharashtra and Karnataka.
The focus on impact has also changed CSR stang from lone CSR leads — frequently double-hatting in their roles with administrative or HR or marketing functions — to dedicated CSR teams across roles and functions.