83% tech companies reported spending more than 2% of their total spends on CSR – Nasscom and Nasscom Foundation Report

NEW DELHI (India CSR): Over the past decade, CSR has empowered millions through education, skilling, and sustainability, with the Indian tech industry driving progress by aligning digital solutions with national priorities and global goals. To deep dive into the evolving trends in India’s CSR landscape, Nasscom and Nasscom Foundation in partnership with Bod Consulting, today unveiled their report titled, ‘Tech Industry and CSR: Insights and Impactful Stories of Change’. The findings are based on an analysis of over 270 companies across tech and non-tech domains and interactions with top CSR leaders.

Corporate Participation in CSR Activities on the Rise

In FY23, corporate participation in CSR activities saw a significant rise, with the number of companies engaged in CSR growing by 22% compared to FY22. Total CSR spending also witnessed a 13% increase over the previous year, reflecting a stronger commitment to social responsibility. Additionally, the proportion of companies allocating more than 2% of their profits to CSR initiatives grew from 64% in FY19 to 74% in FY23, highlighting a steady shift toward higher corporate contributions to social impact.

Tech Companies Leading CSR Investments

Tech companies contribute significantly to corporate social responsibility, accounting for 23% of CSR spending among India’s top 20 contributors. In FY23, 75 leading tech companies spearheaded over 2,610 CSR projects, driving large-scale impact across key areas such as education, healthcare, environmental sustainability, skilling, and climate change. With a majority adopting foundation-based models, 83% of tech companies reported spending more than 2% of their profits on CSR—1.27 times higher than non-tech companies—underscoring their strong commitment to social impact.

CSR Goals Aligned with SDGs and National Priorities

According to the survey findings, 41% of organizations are allotting top priority to CSR goals that align with SDGs and the national agenda. Key national priorities include employment creation, skilling, and social justice, while SDGs focus on quality education, gender equality, and good health. In response, Nasscom Foundation has designed multiple programs to accelerate progress toward these goals, offering organizations strategic opportunities to direct their CSR investments into impactful initiatives like the Aspirational Districts Programme and Aspirational Blocks Programme. Notably, CSR spending in aspirational districts, home to 17.5% of India’s population, has surged over 5 times from FY19 to FY23, though its share remains low, rising from 1.2% to 4.5% of total CSR expenditure.

Shifting Focus in CSR Impact Measurement

Speaking on the report, Achyuta Ghosh, Senior Director and Head Insights, Nasscom, said, “The measurement of CSR impact in India is undergoing a significant shift, moving beyond traditional metrics such as absolute spending value and urban vs. rural distribution. New impact assessment approaches now focus on marginalized lives reached, overall lives impacted, and carbon footprint reduction. The tech industry has been instrumental in this journey, leveraging its capabilities to drive innovation and efficiency in CSR through tech-enabled solutions that are accelerating progress towards national priorities and global goals. As we move forward, addressing challenges in equitable distribution and building stronger collaborations will be key to unlocking the full potential of CSR and amplifying its transformative impact across India.”

Technology Accelerating CSR Initiatives

The adoption of technology in CSR initiatives is accelerating, with approximately 65% of projects in 2024 classified as tech-led. This integration has significantly enhanced impact, with 90% of such projects reporting greater scalability, efficiency, and meaningful outcomes. Companies are leveraging key tools such as AI-driven monitoring and optimization solutions, digital finance platforms, digital learning platforms for curated courses, and advanced teacher training mechanisms to drive social change. Additionally, tech companies are developing proprietary tech stacks for real-time data collection, processing, analysis, decision-making, and dissemination, further amplifying the effectiveness and reach of their CSR efforts.

Evolving CSR Landscape and Social Innovation

Jyoti Sharma, CEO, Nasscom Foundation, added, “The evolution in the Indian CSR landscape since 2014 has been instrumental. It is encouraging to see key trends such as investments in aspirational districts, social innovation, skilling, and women entrepreneurship reshaping the CSR landscape today. At Nasscom Foundation, we have been at the forefront in enabling organizations to undertake targeted efforts to scale social impact through our TechForGood initiatives. As part of the Nasscom ecosystem, we are committed to leveraging technology to drive inclusive growth, through community-level programs and drive systemic change. We look forward to continued collaboration with stakeholders, ensuring that social impact remains a priority and that together, we drive a more inclusive and transformative change at scale.”

Challenges in CSR Implementation

However, challenges remain in ensuring effective implementation and maximizing impact. Large corporations face hurdles in fostering collaboration, broadening their CSR focus beyond traditional areas, and identifying the right partners, while smaller companies require streamlined fund management, alignment of priorities, and simplified administrative and legal frameworks to drive meaningful change. At the project implementation level, resistance to technology adoption, lack of coordinated efforts, and persistent social issues continue to pose challenges.

Future CSR Priorities and Emerging Trends

As CSR priorities shift, companies are focusing on long-term, high-impact projects with greater stakeholder engagement and capacity building. Skill development and employability creation are emerging as key focus areas for both tech and non-tech organizations. Additionally, social innovation is gaining prominence, with companies stating an increased focus from 6% to 8% over the next 3–5 years. Tech companies are also set to enhance their efforts in disaster relief and WASH (water, sanitation, and hygiene), while non-tech organizations are prioritizing climate change initiatives.

Multi-Stakeholder Approach for CSR Effectiveness

To further enhance CSR effectiveness, a multi-stakeholder approach is essential. According to the report, the government can play a pivotal role by facilitating collaborations, easing compliance regulations, and providing strategic direction. NGOs must enhance operational efficiency, promote transparency, and build capacity for greater impact. Companies, on their part, should increase collaboration, adopt strategic fund allocation for focused outcomes, prioritize sustainable, long-term interventions, and invest in skill-building to create a lasting social impact.

(India CSR)