Corporations Increasing CSR Investments to Align with National Objectives: Nasscom
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Synopsis
The CSR landscape in India is evolving, with a 22% increase in company engagement and 13% rise in spending during 2022-23, as firms align their initiatives with national goals, according to Nasscom.
Key Takeaways
- 22% increase in companies participating in CSR from 2021-22.
- Total CSR spending rose by 13%.
- 41% of organizations aligning CSR with SDGs.
- Approximately 65% of projects in 2024 are tech-led.
- Focus on long-term, impactful CSR initiatives.
New Delhi, March 7 (NationPress) Engagement in Corporate Social Responsibility (CSR) activities witnessed a notable surge in 2022-23, with the number of firms participating in social initiatives rising by 22% compared to 2021-22, and total expenditures increasing by 13%. This trend indicates a deeper commitment to social responsibility, as outlined in a report by Nasscom released on Friday.
The analysis encompasses over 270 companies from both tech and non-tech sectors, along with insights from leading CSR executives.
Moreover, the percentage of companies dedicating more than 2% of their profits to CSR efforts has increased from 64% in FY19 to 74% in FY23, signaling a consistent shift toward enhanced corporate contributions to social impact, according to the report.
Tech firms play a pivotal role in CSR, contributing 23% of the total spending among India’s top 20 contributors.
In FY23, 75 prominent tech companies led over 2,610 CSR initiatives, creating substantial impacts in critical areas such as education, healthcare, environmental sustainability, skill development, and addressing climate change.
Survey results indicate that 41% of organizations are prioritizing CSR objectives that correspond with SDGs and national priorities.
Essential national focuses encompass job creation, skill enhancement, and social equity, while SDGs emphasize quality education, gender equality, and health.
The integration of technology in CSR efforts is accelerating, with approximately 65% of projects in 2024 identified as tech-driven. This incorporation has significantly improved outcomes, as 90% of these projects report enhanced scalability, efficiency, and meaningful results.
Firms are employing vital tools such as AI-powered monitoring and optimization solutions, digital finance platforms, digital learning hubs for tailored courses, and advanced teacher training systems to foster social transformation.
Additionally, tech corporations are building proprietary technology stacks for real-time data collection, processing, analysis, decision-making, and dissemination, amplifying the effectiveness and reach of their CSR initiatives, as noted in the report.
Jyoti Sharma, CEO of the Nasscom Foundation, remarked, “The transformation in the Indian CSR landscape since 2014 has been significant. It is uplifting to witness key trends such as investments in aspirational districts, social innovation, skill development, and women entrepreneurship reshaping today’s CSR landscape.”
Nonetheless, challenges persist in ensuring effective execution and maximizing impact.
Large firms encounter obstacles in fostering collaboration, broadening their CSR focus beyond conventional areas, and identifying suitable partners, whereas smaller enterprises need streamlined fund management, aligned priorities, and simplified administrative and legal frameworks to enact substantial change.
At the implementation level, resistance to technology adoption, lack of coordinated efforts, and ongoing social issues continue to present obstacles, according to the report.
As CSR priorities evolve, companies are concentrating on long-term, high-impact initiatives with increased stakeholder engagement and capacity building. Skill development and job creation are emerging as focal points for both tech and non-tech entities.
Furthermore, social innovation is gaining traction, with companies indicating an increased focus from 6% to 8% over the next 3–5 years. Tech firms are also poised to enhance their involvement in disaster relief and WASH (water, sanitation, and hygiene), while non-tech organizations are prioritizing climate change initiatives.
To boost CSR efficacy, a multi-stakeholder approach is crucial.
The report suggests that the government can play a vital role by promoting collaborations, easing compliance requirements, and providing strategic guidance.
NGOs must improve operational efficiency, foster transparency, and enhance capacity for greater impact.
Companies should, in turn, increase collaboration, adopt strategic fund allocation for targeted outcomes, prioritize sustainable long-term interventions, and invest in skill-building to create a lasting social impact, the report concluded.
