The Increasing Apprehension Surrounding Corporate Social Responsibility (CSR) in India and Its Causes

The Increasing Apprehension Surrounding Corporate Social Responsibility (CSR) in India and Its Causes

Corporate Social Responsibility (CSR) in India has undergone a remarkable transformation, evolving from a charitable activity to a strategic business approach. This shift is largely due to the legal framework established by Section 135 of the Companies Act, 2013, which mandates companies with a net worth of ₹500 crore or more, a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more to allocate at least 2% of their net profits towards CSR activities.

In 2025, the Companies (Corporate Social Responsibility Policy) Amendment Rules were introduced to enhance transparency and accountability in CSR practices. These amendments included mandatory impact assessments and revised reporting requirements to ensure that CSR initiatives are effective and sustainable.

The implementation of CSR in India offers numerous benefits to businesses. Enhanced brand value and reputation are among the key advantages as CSR activities can improve public perception and foster customer loyalty. Demonstrating responsible corporate behaviour can also attract socially responsible investors, contributing to long-term sustainability and financial stability.

Moreover, CSR is increasingly being integrated into core business operations, allowing companies to address societal challenges while aligning with their long-term strategic goals. This strategic alignment offers businesses the opportunity to create a positive impact while enhancing their competitive edge.

Indian companies have been actively involved in a wide range of CSR projects across sectors such as health, education, environmental conservation, and livelihood development. For instance, Mahindra's Nanhi Kali provides education to underprivileged girls across India, while Levis encourages sustainable fashion through its "Buy Better, Wear Longer" campaign. In the realm of education reform, Wipro invests in long-term impact, focusing on areas like environmental sustainability and disaster relief.

In the health sector, companies like Maruti Suzuki are increasing road safety awareness and providing driving training to thousands across India. Hindustan Unilever's Project Shakti empowers rural women to become direct-to-home sales representatives of Unilever products, while Vedanta's Nand Ghar Project aims to transform anganwadis into modern childcare centers across rural India.

Environmental conservation initiatives include reforestation, renewable energy projects, and waste management programs. ITC's CSR model is integrated into its business, with projects like e-Choupal and Social and Farm Forestry Initiatives transforming rural livelihoods. The Infosys Foundation supports projects in education, rural development, arts and culture, and healthcare, while the JSW Foundation works across water conservation, sanitation, skill development, and heritage conservation.

Tata Sons invest heavily in education, healthcare, and rural development through initiatives like Tata Water Mission and Tata STRIVE. Reliance Foundation works in rural transformation, health, education, and disaster response, with projects like Project Drishti and Reliance Foundation Digital Learning.

Uday Kotak, founder of Kotak Mahindra Bank, has emphasized the potential for India's CSR model to be adopted globally, highlighting its effectiveness as a sustainable development strategy. Overall, CSR in India is seen as a vital component of responsible corporate governance, contributing to both societal welfare and business sustainability. As companies continue to invest in CSR, they are building resilient, sustainable, and respected brands for the future.

1. In the fashion industry, companies can follow Levis' lead and encourage sustainable practices through campaigns like "Buy Better, Wear Longer," demonstrating their commitment to environmental education and self-development.
2. Indian companies like Maruti Suzuki also extend their CSR initiatives to sports, increasing road safety awareness and providing driving training, focusing on lifestyle improvements and reduced accidents.
3. Technology companies can learn from Wipro's long-term impact strategies, focusing on areas like environmental sustainability and disaster relief while maintaining a competitive edge in the education-and-self-development sector.
4. With sports, health, and education projects across India, foundations like the Infosys Foundation and JSW Foundation are utilizing CSR opportunities to make significant strides in water conservation, sanitation, skill development, heritage conservation, and more, demonstrating that CSR is not just a profitable business approach, but also a means of enhancing societal welfare.

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