10 Years of Corporate Social Responsibility in India

Apr 25, 2024

10 Years of Corporate Social Responsibility in India

1. What is the historical background of CSR in India?

CSR in India has roots in philanthropy during the industrialization period (1850-1914) and evolved post-independence as a tool for social development. The “mixed economy” period (1960-1980) further emphasized regulatory frameworks, including for public-sector undertakings (PSUs).

2. When did the concept of CSR officially start?

The concept of Corporate Social Responsibility was officially coined by American economist Howard Bowen in 1953, who is often regarded as the “father of CSR.”

3. What was the significant turning point for CSR in India?

A major turning point was in 2013 when India implemented the mandatory CSR law under the Companies Act of 2013, becoming the first country to require eligible companies to allocate at least 2% of their three-year average net profit towards CSR activities.

4. How have CSR activities transitioned from compliance to impact in India?

Initially, CSR efforts were more about compliance, focusing on convenient causes within legal boundaries. Over the past decade, there has been a shift towards creating measurable impacts on society and aligning CSR with business strategies.

5. Can you provide an example of an effective CSR program in India?

The JSW Foundation, part of the JSW Group, exemplifies effective CSR. It has sectoral heads for areas such as agriculture, health, and education, and location-specific initiatives in regions like rural Maharashtra and Karnataka.

6. What are the main challenges facing CSR in India today?

A significant challenge is the uneven allocation of CSR funds, with wealthier regions and sectors like education and healthcare receiving most of the funding. This leaves critical areas such as socio-economic inequalities less addressed.

7. What are the future directions for CSR in India?

The future of CSR in India involves addressing the root causes of inequalities and focusing on underserved states and districts. Long-term, sustainable projects that aim for deeper impacts and broader outreach are expected to become more prevalent.

These FAQs provide a detailed look at the evolution and impact of CSR in India, illustrating its progression from a compliance-driven approach to a more strategic and impactful practice.

SRIRAM’s