Collaborations, just transition, and governance issues redefine corporate responsibility in India’s business landscape
By Rusen Kumar
BENGALURU (India CSR): Corporate Social Responsibility (CSR) in India is entering a new phase of maturity, where compliance is giving way to impact-driven initiatives, and philanthropy is being replaced by strategic responsibility. According to P.D. Jose, Professor of Strategy and Professor in Charge of the UG Campus at the Indian Institute of Management (IIM) Bangalore, the evolving landscape of CSR is marked by three dominant themes: education, skill development, and women empowerment.
Prof. Jose, who also serves as a jury member for the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) CSR Awards, said the quality of CSR initiatives has improved significantly in recent years. He emphasized the growing role of partnerships, the importance of inclusion and governance, and the pressing need for corporates to embrace the concept of a “just transition” in their sustainability strategies. His insights shed light on how CSR is being integrated into both corporate practice and business education, offering a roadmap for responsible and sustainable growth in India.
CSR in India: From Obligation to Opportunity
India remains the only country in the world with a legislated CSR framework, following the 2013 amendment to the Companies Act that mandated qualifying companies to spend 2 percent of their net profits on social development. Over the past decade, this regulatory requirement has pushed thousands of companies into formal CSR engagement, but the journey has not been uniform.
In the early years, CSR largely took the form of ad hoc donations, infrastructure support, or short-term welfare programs. Today, however, Prof. Jose observes a shift. “What we are witnessing now is a transition from compliance to strategy. Companies increasingly view CSR as integral to their long-term sustainability and reputation,” he said.
This shift reflects not just regulatory pressure but also rising stakeholder expectations. Investors, customers, and employees demand that businesses operate responsibly, and corporates are beginning to respond with more structured, transparent, and impactful interventions.
Rising Quality of CSR Entries
Serving as an FKCCI jury member for two consecutive years, Prof. Jose has had a front-row seat to observe how CSR initiatives are evolving on the ground. He noted that the entries being evaluated reflect a clear improvement in both quality and intent.
“Earlier, many projects were focused on outputs—like how many schools were built or how many trees were planted. Now companies are presenting outcomes—such as how many students improved their learning levels or how livelihoods were sustained,” he explained.
This shift from quantity to quality signals maturity. Companies are using tools for impact measurement, applying frameworks like the UN Sustainable Development Goals (SDGs), and aligning CSR outcomes with national development priorities. This makes CSR not just a social obligation but also a way of contributing to India’s larger economic and social progress.
Education and Skill Development: The Cornerstones
Education remains the most preferred CSR domain for Indian corporates, and for good reason. India has one of the largest young populations in the world, but access to quality education continues to be uneven.
Prof. Jose emphasized that companies are increasingly focusing on bridging gaps in foundational learning, digital literacy, and employable skills. “Education is not just about infrastructure. Corporates are funding digital classrooms, training teachers, and partnering with ed-tech platforms to make learning accessible and relevant,” he said.
Skill development, closely tied to employability, is another emerging area. From vocational training to STEM education, companies are designing programs that prepare youth for modern workplaces. According to Prof. Jose, this focus on employability is vital, as India aims to leverage its demographic dividend and build a globally competitive workforce.
Women Empowerment: A Growing Priority
CSR efforts around women empowerment are gaining traction, reflecting the recognition that gender equality is central to sustainable development. Companies are investing in programs that support women entrepreneurs, provide vocational training, and address health and nutrition needs.
“Women empowerment is no longer a peripheral issue. Companies realize that empowering women has multiplier effects on communities,” Prof. Jose remarked. Initiatives range from skilling women for non-traditional roles, such as in manufacturing and technology, to supporting self-help groups engaged in micro-enterprises.
Some corporates have even integrated gender equality into their supply chains, ensuring women-owned businesses have fair access to markets. These initiatives reflect a deeper understanding that CSR can reshape structural inequalities.
Partnerships: The Future of CSR
One of the most striking trends, according to Prof. Jose, is the rise of partnerships between corporates and foundations. Instead of working in isolation, companies are collaborating with non-profits, government agencies, and academic institutions.
“Impact at scale is possible only when stakeholders join hands,” he said. These partnerships allow organizations to leverage each other’s strengths—corporates bring financial resources, NGOs bring grassroots experience, and governments provide enabling frameworks.
For example, several education-focused partnerships now involve corporates funding large-scale digital learning platforms while non-profits implement them in rural schools. Such collaborative models are proving far more effective than stand-alone CSR projects.
Multidisciplinary CSR Education at IIM Bangalore
At IIM Bangalore, CSR and sustainability are integrated into the business curriculum. A flagship course, Business Responsibility and Sustainability, is taught by eight faculty members from different disciplines including strategy, finance, operations, governance, and organizational behavior.
“This multidisciplinary approach mirrors the real world, where sustainability challenges cannot be solved by one lens alone,” Prof. Jose explained. The course encourages students to think critically about trade-offs—how to balance profitability with responsibility, and efficiency with inclusivity.
By equipping future business leaders with such holistic perspectives, IIM Bangalore is preparing them to lead organizations that are not only profitable but also socially and environmentally responsible.
The Idea of a Just Transition
The concept of a “just transition” is increasingly entering corporate sustainability conversations. It refers to ensuring that the shift to a low-carbon economy does not disproportionately harm vulnerable communities.
Prof. Jose stressed that while India must urgently embrace renewable energy and sustainable practices, the transition should not come at the cost of livelihoods in fossil-fuel-dependent industries. “The idea is to balance environmental urgency with social equity. Workers, small businesses, and communities cannot be left behind in the green transition,” he said.
Several companies are already exploring how to reskill workers for green jobs, support small suppliers in transitioning, and invest in community adaptation projects. This approach could make India a global leader in inclusive climate action.
Inclusion and Human Rights: The Unfinished Agenda
Despite progress, inclusion and human rights remain under-addressed in corporate strategies. Prof. Jose observed that while companies are investing in community projects, fewer are embedding these values within their core business operations.
“CSR should not be separate from business. Respect for human rights, workplace diversity, and ethical supply chains must become mainstream,” he argued.
Issues such as fair wages, migrant worker rights, and non-discrimination policies need greater corporate attention. By ignoring them, companies risk not only reputational damage but also regulatory scrutiny and investor backlash.
Governance: The Backbone of Responsible Business
Prof. Jose underscored that governance is emerging as a key pillar of responsible business. “Without robust governance, even the best CSR strategies can collapse,” he said.
Effective governance ensures accountability, transparency, and alignment with long-term goals. This includes board-level oversight of CSR, independent audits, and stakeholder engagement mechanisms. Strengthening governance also helps companies mitigate risks, maintain investor trust, and demonstrate credibility in their CSR claims.
Global Trade and CSR Challenges
CSR cannot be seen in isolation from global economic trends. Prof. Jose cautioned that the rise of protectionist trade policies and tariff wars is undermining international trust. “If global trade becomes fragmented, sustainability efforts too will suffer. We need global agreements and consistent rules,” he said.
For example, carbon border taxes being discussed in Europe could affect Indian exporters. Companies will need to not only adopt greener practices but also advocate for fair and cooperative trade frameworks. According to Prof. Jose, this intersection of trade and sustainability is an area Indian corporates cannot afford to ignore.
CSR as Corporate Strategy
The overarching message from Prof. Jose is that CSR is not about charity—it is about strategy. When aligned with core business goals, CSR strengthens brand reputation, builds customer loyalty, attracts talent, and opens new market opportunities.
“The future belongs to companies that see CSR as central to their business model. Those who treat it as compliance will struggle to remain relevant,” he said.
You Learn
India’s CSR journey has come a long way in just over a decade of mandated spending. The shift from philanthropy to strategy, the rise of partnerships, the focus on women empowerment and education, and the integration of sustainability into business schools all reflect a maturing ecosystem.
However, as Prof. P.D. Jose points out, the work is far from done. Human rights, inclusion, and governance need greater attention, while global trade dynamics present new challenges. For Indian corporates, the path forward is clear—CSR must be integrated into strategy, guided by collaboration, and driven by a long-term vision for equitable and sustainable growth.
As India positions itself as a global economic leader, the evolution of CSR will play a crucial role in shaping not only business reputations but also the country’s development trajectory.
About Rusen Kumar
Rusen Kumar is a distinguished journalist, author, and visionary knowledge entrepreneur specializing in Corporate Social Responsibility (CSR) and sustainability in India. He is the founder and managing editor of India CSR Network, a leading platform dedicated to CSR and sustainability issues.
(Copyright@IndiaCSR)
