Companies can make a meaningful difference in society and support the growth of the sports industry by increasing their investments in sports CSR.
NEW DELHI: From the roar of the crowd to the thrill of victory, sports have the power to unite people from all walks of life. In India, the sports industry has been booming, with a year-on-year increase of 62% in 2021. However, while the industry continues to thrive, there is an issue lurking beneath the surface: the lack of investment in sports Corporate Social Responsibility (CSR) activities.
According to recent data, the Indian sports industry has experienced remarkable growth over the past few years, with a year-on-year increase of 62% in 2021, reaching a value of over Rs. 9,500 crore. However, the growth of funding for sports Corporate Social Responsibility (CSR) activities has been relatively stagnant, matching the overall CSR growth rate of 27% between 2014-15 and 2020-21.
Despite the promising growth of sports CSR activities, it still only comprises less than 1% of the cumulative CSR spend in the same period. Health and education activities received the majority of total funding, capturing 51% of the total CSR spend.
The sports industry has the potential to make a significant impact on society, from promoting physical fitness to enhancing community development. However, the lack of investment in sports CSR activities remains a significant challenge for the sector.
As the Indian sports industry continues to thrive, it is imperative for corporations to recognize the role they can play in promoting social and community development through sports CSR activities. By increasing their investments in sports CSR, companies can make a meaningful difference in society while also supporting the growth of the industry.
In 2016, the scope for companies to invest their CSR funds towards sports was widened to include construction, renovation, maintenance of stadiums, gymnasiums, and sports science support. A KPMG report showed that the largest Indian origin companies spent Rs. 123 crore on sports under CSR in 2018-19. This trend continues to grow, with big companies setting examples of great investments in sports. These CSR activities have impacted sports development by nurturing grassroots levels, promoting sports as a whole, and creating a multi-sporting nation. Company leaders are incorporating their passion for sports and achieving both social impact and business profit.
The introduction of sports under CSR in India was aimed at uplifting lesser-known sports lacking recognition and resources. Companies are investing in these sports, building infrastructure, creating tournaments, and promoting grassroots development. This has led to a burst of talent on the big stage and increased the importance of CSR in sports. Companies are contributing by creating infrastructure, providing sponsorships, investing in teams, and more.
Reliance Industries Limited is a company that has contributed to sports for many years through its Reliance Foundation and Sports For All program. They have implemented campaigns to support the education of underprivileged children and developed a digital learning van to help children develop their sporting and life skills.
Tata Steel Limited is another company that contributes to sports through its CSR programs and has established sports academies for various sports.
Parimatch, through its foundation, engages in charitable activities aimed at promoting sustainable long-term initiatives in the territory where the company operates.
Central Coalfields Limited has established sports academies in various locations to contribute to the overall development of children from different coalfields. Many of the corporates in India are willing to spend their CSR funds on sports, which has created a significant impact on the development of sports in the country.
(India CSR)
