NEW DELHI (India CSR): Corporate Social Responsibility (CSR) has come a long way since being mandated by the government over a decade ago. Yet, despite remarkable strides, an analysis of CSR trends reveals that the distribution of funds and projects remains skewed, leaving several underserved regions behind. In FY 2023 alone, 1,871 eligible listed companies spent Rs 14,714 crore across over 3,200 unique projects, highlighting the potential for broader, more balanced impact.
CSR Concentration: A Few States Dominate
A detailed review of the CSR Yearbook 2023 paints a concentrated picture. Companies headquartered in Maharashtra and New Delhi accounted for 61% of total CSR spending and nearly half of all company headquarters. However, they implemented less than one-third of the total projects, indicating an imbalance in fund deployment. In contrast, states with fewer corporate headquarters struggled to attract adequate CSR investments.
This imbalance reflects a missed opportunity to foster inclusive growth across regions, particularly in areas designated as aspirational districts by Niti Aayog, where developmental challenges are most pronounced.
Key Facts Table: CSR Spending Insights 2023
| Key Insight | Details |
|---|---|
| Total CSR Spend (Listed Companies) | Rs 14,714 crore across 3,200 unique projects by 1,871 listed companies in FY 2023. |
| Concentration of CSR Spending | 61% of the total spend came from companies headquartered in Maharashtra and New Delhi. |
| Aspirational Districts Investment | Only Rs 473 crore (3% of total CSR spend) was directed toward aspirational districts. |
| Top 100 CSR-Spending Companies | 47 of the top 100 companies by CSR spend contributed to aspirational districts. |
| CSR Spending by Unlisted Companies | 22,500 unlisted companies contributed approximately Rs 15,000 crore collectively. |
| Social Stock Exchange (SSE) | Introduced to foster transparency and enable impactful CSR fund deployment. |
| Decline in NGO Partnerships | Only 37% of companies implemented CSR projects through NGOs or trusts, compared to 66% previously. |
| Environmental CSR Spend | Environmental projects received only 3% of the total CSR spending. |
| Companies Spending Over 2% | Over 60% of eligible companies met or exceeded the 2% CSR spending requirement. |
| Companies Spending Over 3% | ~14% of companies spent more than 3% of their net profit on CSR initiatives. |
Aspirational Districts: A Need for Greater Focus
Of the top 100 companies based on CSR spending, only 47 invested in aspirational districts, contributing Rs 3,970 crore cumulatively. However, these districts received only ₹473 crore—barely 3% of the total CSR expenditure. This statistic underscores the pressing need to redirect more CSR funds to high-need regions to reduce socio-economic disparities.
A significant issue is fragmentation: many unlisted companies spend in silos, making small contributions that lack the scale to create substantial impact. According to the National CSR Portal, 24,392 companies—both listed and unlisted—spent Rs 29,987 crore in FY 2023. This figure suggests that unlisted companies collectively spent around ₹15,000 crore, often through fragmented efforts.
Social Stock Exchange: A New Opportunity
One of the pivotal advancements in addressing this disparity is the establishment of the Social Stock Exchange (SSE). The SSE aims to connect corporates, non-profits, and social enterprises, enabling transparent and impactful deployment of CSR funds. It also offers smaller, unlisted companies a platform to amplify their contributions and focus on underfunded areas.
Maya Vengurlekar, Chief Operating Officer of Crisil Foundation, emphasizes the importance of this shift:
“The future of CSR in India lies in democratising impact. By focusing on aspirational districts and leveraging platforms such as the SSE, corporates can address critical developmental gaps and create measurable, lasting change. This is a call to action for all stakeholders to reimagine CSR’s role in shaping an equitable India.”
Balancing Priorities: Urban vs. Rural CSR
The path forward requires collaborative efforts to balance investments between urban and rural areas and align CSR goals with national priorities. While over 60% of eligible companies met or exceeded the mandatory 2% net profit CSR contribution, approximately 14% of companies went above and beyond, spending 3% or more.
Yet, environmental initiatives received only 3% of total CSR spending, despite global and national conversations on climate change. This reveals an opportunity for companies to prioritize environmental sustainability alongside social projects.
In-House Initiatives vs. NGO Partnerships
Another trend highlighted in 2023 is the decline in CSR projects implemented through NGOs or trusts, dropping from 66% in the previous fiscal to 37%. Companies are increasingly opting to implement initiatives using their in-house teams, possibly to maintain greater control and efficiency.
A Vision for Equitable Growth
For CSR to be a true force for inclusive development, it must prioritize equitable resource distribution, especially in regions with the greatest need. By fostering partnerships, embracing transparency through platforms like the SSE, and balancing project focus areas, India Inc. can drive meaningful change and help bridge socio-economic divides for a more resilient and inclusive nation.
(India CSR)
