• India CSR Awards 2025
  • Guest Posts
Friday, July 4, 2025
  • Login
India CSR
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
India CSR
No Result
View All Result
Home More

A ‘business case’ for Corporate Social Responsibility

India CSR by India CSR
in More
Reading Time: 5 mins read
21
VIEWS
Share Share Share Share

By Manish Desai

India CSROver the past several decades, the Tatas have established Trusts, which enabled setting up of institutions like the Indian Institute of Science (IISc) and the Tata Institute for Fundamental Research (TIFR). Wipro Chairman Azim Premji has pledged to donate nearly Rs 10,000 crores for improving school education in the country. Infosys commits one per cent of its profits every year to social causes through the Infosys Foundation. The Birlas, the Mahindras, the Kalyanis and several other large corporations have been spending a fraction of their profits on social causes.

It is clear that in India there are an existent but small number of companies which practice Corporate Social Responsibility (CSR). These companies have been deeply involved with social development initiatives in the communities surrounding their facilities. Tata’s CSR activities in Jamshedpur include the provision of full health and education facilities for all employees and their family members.

However, CSR in the Indian context is still one of the least understood development initiatives. Barring the Navaratna and the Mini-Ratna PSUs, the reputed MNCs and a handful of large Indian companies, most others have a confused approach to CSR, interpreting it as philanthropy. To a great extent, companies see CSR as an add-on function and not core to their business. Hence, the approach has largely remained parental and generally cheque-book oriented.

But the situation is changing. CSR is coming out of the purview of doing social good and is fast becoming a business necessity.The Government, on its part has accepted the proposal of Parliamentary Standing Committee headed by former finance minister Yashwant Sinha, which makes it mandatory for companies with a turnover of Rs 1,000 crores or net profit of Rs 5 crores to allocate 2 per cent of their profits towards CSR.

CSR extends beyond corporate philanthropy
The guidelines on CSR for Central Public Sector Enterprises state that “corporate social responsibility extends beyond philanthropic activities and reaches out to the integration of social and business goals. These activities need to be seen as those which would, in the long run, help secure a sustainable competitive advantage”. The CPSEs have also been mandated to create a CSR budget with contribution up to 5% of their net profit every year.

However, several individual companies as well as industry chambers had lobbied hard against the move to make CSR mandatory.Those who are opposed to the proposal argue that the very concept of CSR is built on the premise of ‘voluntary’ contribution and hence it should not be imposed on the companies by the Government.  According to them, it is just a new form of tax on company’s profits.

Supporters of CSR say the opposition  stems from a short-sighted  viewpoint. The environment  in which the companies operate today has changed vastly.  A company can not operate efficiently without the support of the community. This is particularly true in the face of growing activism of the Civil Society Organizations (NGOs), which support the cause of the under-privileged.   Increasingly, the Governments, both at the Centre as well in several States are making inclusive growth intrinsic to their developmental strategies. The customers, the public and the investors also expect  companies to act sustainable as well as responsible. Hence, CSR is becoming an outcome of  a variety of social, environmental and economic pressures.

Genesis of Corporate Social Responsibility
The concept of Corporate Social Responsibility was first mentioned 1953 in the publication ‘Social Responsibilities of the Businessman’ by William J. Bowen. But, the term CSR became popular only in the 1990s. The term is still imprecise and its application differs widely.

Worldwide, honouring of a triple bottom line – people, planet, profit has gained universal acceptance. An approach to CSR that is becoming more widely accepted is community-based development . In this approach, corporations work with local communities to better themselves.Philanthropy, where corporates give monetary donations and aid to local organizations and impoverished communities, continues to dominate CSR, though it faces serious criticism.Progressive organizations do not support this form of CSR as it creates a dependence syndrome amongst its recipients rather than developing long-term capabilities.Another approach that is garnering support is deliberate inclusion of ‘public interest’ and ‘fair trade’ in corporate decision making.

Extent of CSR in India
In India, most leading corporates are involved in CSR programmes in areas like education, health, livelihood creation, skill development, and empowerment of weaker sections of the society.  According to a study undertaken by an industry body in June 2009, which studied the CSR activities of 300 corporate houses, corporate India has spread its CSR activities across 20 states and Union territories, with Maharashtra gaining the most from them. About 36 per cent of the CSR activities are concentrated in the state, followed by about 12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu.The companies had on an aggregate, identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, environment, health, as well as rural development.

The survey reveals that, not surprisingly, the corporates targeted most of their activities around the areas they operate. This trend is likely to continue. But the flip side is that, it is generally the more developed states that have been the beneficiaries of CSRs, rather than the ones languishing at the bottom, whose developmental needs are more central.

Another survey, which ranked Indian companies’ CSR activities on a scale of 0-5, showed that none of the Indian companies got placed in the highest level. Only 16 % of the 500 companies surveyed had well defined CSR activities.The concept was yet to catch up with the remaining 86% of the companies.Lack of understanding, inadequately trained personnel, non availability of authentic data and specific information on the kinds of CSR activities, coverage, policy etc. further added to the reach and effectiveness of CSR programmes.

The Central Government is now working on a framework for quantifying the CSR initiatives of companies to promote them further. Efforts are also on to develop a system of CSR credits, similar to the system of carbon credits which are given to companies for green initiatives.

The National CSR Hub
The establishment of the National CSR Hub at the Tata Institute of Social Sciences, Mumbai is a major step towards institutionalizing CSR activities in the country. TISS will act as a think-tank, undertake research for the corporate social responsibility projects.Funded by the Department of Public Enterprises, the National CSR Hub will also undertake nation-wide compilation, documentation and creation of database. The purpose is to dovetail CSR activities with overall national development goals.

The new Guidelines on CSR lay stress on shift from casual approach to the project based accountability approach. There is greater emphasis on identification of projects based on surveys, laying down clear cut path to implement programmes as well as their monitoring. It is also prescribed that activities under CSR are to be implemented by specialized agencies and not by the staff of the companies. Specialized agencies would include community based organizations (NGOs), panchayat organizations, academic institutes, trusts and missions, Self-Help Groups, Mahila Mandals etc.

Noted CSR expert Prof. Leo Burke of the Notre Dame University, USA says India needs to adopt ‘national-local’ approach. “National in the sense that there will be need for nationwide alliances and databases in order to quickly learn best practices, share innovations, and ‘scale-up’ pilot programmes. Local  in the sense that it will require organizations to efficiently implement programmes at the grassroots level, as well as mobilize volunteers to serve their local communities.”

Conclusion
The argument that the primary goal of business is to make profits and pay taxes, and it is the responsibility of the governments – local, state and central to create necessary social infrastructure, continues to remain valid. But, a business needs a healthy, educated workforce, sustainable resources to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income and opportunities.This is called ‘Creating Shared Values’ and it is here that the interests of the companies and the society converge.This has led to the ‘business case’ for CSR gaining ground and many corporate houses are realizing that ‘what is good for workers – their community, health, and environment is also good for the business’.

(Manish Desai is Director  (Media & Communications), PIB Mumbai)

IndiaCSR Whatsapp Channel

India CSR offers strategic corporate outreach opportunities to amplify your brand’s CSR, Sustainability, and ESG success stories.

📩 Contact us at: biz@indiacsr.in

Let’s collaborate to amplify your brand’s impact in the CSR and ESG ecosystem.

India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

Related Posts

India’s Veteran journalist Vinod Dua passes away
More

India’s Veteran journalist Vinod Dua passes away

4 years ago
373
India CSR
More

Republic or Democratic?

4 years ago
280
Dr. H. Chaturvedi on Stem Education in India at STEM – CSR Roundtable
Corporate Social Responsibility

How can we conserve water amidst the Coronavirus crisis?

5 years ago
42
Dr. H. Chaturvedi on Stem Education in India at STEM – CSR Roundtable
Corporate Social Responsibility

Toyota Kirloskar Motor temporarily halts production at its Plant in Bidadi, Karnataka

5 years ago
57
Dr. H. Chaturvedi on Stem Education in India at STEM – CSR Roundtable
Corporate Social Responsibility

Govt. seeks public comments on Corporate Social Responsibility Policy (CSR) Amendment Rules, 2020

5 years ago
79
Dr. H. Chaturvedi on Stem Education in India at STEM – CSR Roundtable
Corporate Social Responsibility

Govt to amend CSR rules under companies law, invites public comments

5 years ago
57
Dr. H. Chaturvedi on Stem Education in India at STEM – CSR Roundtable
Corporate Social Responsibility

MCA sanctions Prosecution in 366 cases given in violation of CSR Provisions

5 years ago
87
More

Schindler India launches an additional employee assistance program

5 years ago
32
More

NMDC Committed to fight COVID 19 for a safe and healthy India

5 years ago
12
Load More

Leave a Reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

India CSR Awards India CSR Awards India CSR Awards
ADVERTISEMENT

LATEST NEWS

हिन्दुस्तान जिंक ने लैंग्वेज गाइड बुक लांच कर कार्यस्थल समावेशन में नए मानक स्थापित किए

Hindustan Zinc Sets New Standard for Workplace Inclusion with Language Guide

ONGC Supports Amarnath Yatra

Karnataka: Infosys Foundation Commits over Rs. 48 Crore to Boost Maternal and Child Healthcare

India’s ESG Vision Unfolds

Modern Luxury Sofa Sets: Redefining Comfort Through Design Intelligence

HZL HZL HZL
ADVERTISEMENT

TOP NEWS

Mizoram Gets One of India’s Lowest CSR Fund Shares, Says CM Lalduhoma

FedEx Fosters PRIDE and Purpose by Creating Equal Opportunities Across India

Shriram Finance CSR Spending Report of Rs 131.46 Crore for FY25

CSR: Jindal Foundation Rolls Out ‘Hospital on Wheels’ to Boost Rural Healthcare in Jharkhand

Key Challenges Faced in Securing Business Loans in India and How to Tackle Them

Bambrew Raises Rs 90 Cr to Drive Global Growth in Sustainable Materials

Load More

Advertisement

Image Slider
content writing services Guest Post Top 5 Reasons to have Sponsored Posts at India CSR – India’s Largest CSR Media stem learning R2V2 Technologies Private Limited

Interviews

Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak Mahindra Bank
Interviews

Driving Sustainable Impact: An Interview with Himanshu Nivsarkar, Kotak Mahindra Bank

by India CSR
May 22, 2025
140

By Rusen Kumar NEW DELHI (India CSR): Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak...

Read moreDetails
Balamurugan Thevar, CSR Head at Shriram Finance

Empowering Women Drivers: An Interview with Balamurugan Thevar, CSR Head at Shriram Finance

May 20, 2025
214
N E Sridhar, the Chief Sustainability Officer at Titan Company Ltd.

Empowering Rural Craft Entrepreneurs: An Interview with N E Sridhar, Titan Company

May 15, 2025
101
Geetaj Channana, the Head of Corporate Strategy at Vivo India

Empowering Young Innovators Across India: An Interview with Geetaj Channana, the Head of Corporate Strategy at Vivo India

April 25, 2025
54
Load More
Facebook Twitter Youtube LinkedIn Instagram
India CSR Logo

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium services, we invite you to partner with us.

Follow us on social media:


Dear Valued Reader

India CSR is a free media platform that provides up-to-date information on CSR, Sustainability, ESG, and SDGs. They need reader support to continue delivering honest news. Donations of any amount are appreciated.

Help save India CSR.

Donate Now

donate at indiacsr

  • About India CSR
  • Team
  • India CSR Awards 2025
  • Partnership
  • Guest Posts
  • Services
  • Content Writing Services
  • Business Information
  • Contact
  • Privacy Policy
  • Terms of Use
  • Donate

Copyright © 2025 - India CSR | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers

Copyright © 2025 - India CSR | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.