Corporate Social Responsibility (CSR) in India has grown substantially since the 2013 Companies Act mandated certain firms to spend 2% of their net profit on social initiatives. In FY 2020-21, CSR spending reached ₹24,865 crore ($3.3 billion), with education, healthcare, and rural development receiving the most funding.
Education alone accounted for 30-38% of this spending, covering school infrastructure, scholarships, and digital education tools. This focus on education aligns with India’s workforce needs, especially in STEM fields. Healthcare has also seen increased CSR contributions, making up about 25% of funds, particularly during the COVID-19 pandemic, when companies directed resources toward healthcare infrastructure and vaccination efforts.
Rural development initiatives received approximately 15% of CSR spending, helping to improve water, sanitation, and agricultural infrastructure, especially in underserved areas. Top contributors include Reliance Industries, Tata Group, and ITC, primarily targeting projects in Maharashtra, Karnataka, Gujarat, and Tamil Nadu. Although CSR compliance has generally improved, around 10-15% of CSR funds remained unspent in FY 2020-21, with challenges in project planning and remote execution cited as reasons.
Looking forward, there is a strong emphasis on using CSR for STEM education and digital literacy, as well as sustainability projects. The rise in CSR spending marks significant progress, but companies are encouraged to focus on creating lasting, community-aligned impact rather than solely meeting compliance requirements.
UNDERSTANDING CSR ACTIVITIES INIDIA
Corporate social responsibility has encouraged companies to contribute towards social causes leading to a holistic development of society.
INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY
CSR (Corporate Social Responsibility) activity refers to the initiatives that a company undertakes to positively impact society, the environment, and the economy beyond its core business operations. These activities are usually voluntary, though in some countries, such as India, companies meeting certain financial criteria are legally required to contribute a percentage of their profits to CSR. CSR activities can vary widely but are typically grouped into areas such as:
Education and Skill Development: Funding scholarships, building schools, supporting STEM education, or creating vocational training programs.
Healthcare: Supporting hospitals, running health camps, funding medical research, and addressing health crises (like COVID-19 support).
Environmental Sustainability: Reducing carbon footprints, promoting renewable energy, recycling programs, and preserving natural resources.
Community Development: Engaging in rural development, promoting clean water access, and building sanitation facilities.
Employee and Community Welfare: Ensuring fair labor practices, providing safe working environments, and creating policies that benefit employees and communities.
CSR activities demonstrate a company’s commitment to being socially responsible and help in building trust with stakeholders, enhancing reputation, and fostering long-term societal well-being. The overall goal of CSR is to create a positive, sustainable impact on society, while also aligning with the company’s values and mission.
CRITERIA FOR COMPANIES TO MAINTAIN CSR INITIATIVES AND CSR ACTIVITY IN INDIA
According to the Companies Act of 2013 in India, certain companies must comply with Corporate Social Responsibility (CSR) obligations. The law mandates that companies meeting any of the following financial criteria engage in CSR activities:
Net Worth: Companies with a net worth of ₹500 crore (about $60 million USD) or more.
Turnover: Companies with an annual turnover of ₹1,000 crore (about $120 million USD) or more.
Net Profit: Companies with a net profit of ₹5 crore (about $600,000 USD) or more in any financial year.
Companies meeting any one of these criteria are required to spend at least 2% of their average net profits from the preceding three years on CSR activities. These CSR activities should focus on areas such as education, healthcare, environmental sustainability, rural development, and other eligible categories listed in the Companies Act.
Additionally, such companies must set up a CSR committee at the board level to oversee and manage CSR policies, projects, and spending. This committee is responsible for formulating the company’s CSR policy, identifying relevant projects, and monitoring implementation.
Some of India’s largest corporations, including Reliance Industries, Tata Group, Infosys, HDFC Bank, and ITC, are major CSR contributors. They invest significant resources into initiatives that align with the mandate, often focusing on social development projects like education, health, rural development, and environmental conservation to create meaningful and sustainable community impact.
SECTORS WHERE CSR INTIATIVES ARE TAKEN
Indian companies have long been charitable, but the 2013 law made formal corporate social responsibility more well-known. The goal of the law was to incentivize businesses to engage in more impactful and organized social responsibility. As businesses adjusted, CSR funding shifted to areas including healthcare, education, and environmental sustainability.
CSR is a way for companies to develop a socially conscious brand image and support national advancement in addition to being a legal requirement. How and where money is distributed will determine how successful these programs are.
TYPES OF CORPORATE SOCIAL INITIATIVES
Corporate philanthropy
Corporate philanthropy in India has evolved significantly, with corporations increasingly embracing social responsibility as a core part of their business ethos. In India, philanthropy efforts have been bolstered by the 2013 Companies Act, which mandates CSR spending for companies above certain revenue and profit thresholds. However, many companies go beyond mere compliance, dedicating substantial resources to create sustainable social impact.
India’s philanthropic landscape is largely driven by companies’ efforts in sectors like education, healthcare, environmental sustainability, rural development, and disaster relief. As per recent statistics, corporate philanthropy has seen significant growth, with Indian companies contributing around ₹24,865 crore (approximately $3.3 billion USD) to CSR activities in FY 2020-21. Major Indian corporations like Reliance Industries, Tata Group, Infosys, ITC, and HDFC Bank are among the highest contributors, with their cumulative CSR and philanthropic spending often surpassing the mandatory 2% threshold.
- Reliance Industries: Reliance is one of the largest CSR spenders in India, contributing over ₹1,000 crore annually, with a strong focus on healthcare, rural development, and education. During the COVID-19 pandemic, Reliance significantly expanded its healthcare contributions, setting up India’s first dedicated COVID-19 hospital.
- Tata Group: The Tata Group, known for its legacy of philanthropy, channels a substantial portion of its profits through the Tata Trusts, investing heavily in education, health, and rural development. In 2020, the Tata Group and Tata Trusts pledged ₹1,500 crore for COVID-19 relief efforts alone.
- Infosys: Infosys Foundation, the philanthropic arm of Infosys, focuses on education, healthcare, rural development, and environmental sustainability, spending an average of ₹360 crore annually. The foundation also invests in infrastructure projects, including libraries, hospitals, and sanitation facilities.
- ITC Limited: ITC’s CSR initiatives emphasize sustainable agriculture, watershed development, and skill-building in rural areas. ITC contributes over ₹300 crore annually toward CSR, with its flagship “Mission Sunehra Kal” aimed at fostering rural empowerment and environmental sustainability.
- HDFC Bank: HDFC Bank spends around ₹500 crore annually on CSR, with key initiatives like “Parivartan,” which supports education, healthcare, skill development, and sustainable livelihood projects, especially in underserved communities.
These corporations illustrate how Indian companies are not only fulfilling statutory CSR obligations but also embracing a proactive role in addressing social issues. With a growing focus on creating measurable and lasting social impact, corporate philanthropy in India is evolving into a more structured and impactful force, supporting the nation’s broader development goals.
Cause Promotions and Activism
Cause promotions and activism through CSR initiatives have become pivotal for companies aiming to create meaningful social impact while aligning with their brand values. In India, CSR initiatives increasingly focus on raising awareness for important social causes, ranging from environmental sustainability and gender equality to digital literacy and health awareness.
Through cause promotions, corporations leverage their resources and reach to educate the public, drive engagement, and mobilize support for pressing social issues. For example, companies like Tata Group and HDFC Bank invest in campaigns promoting education, skill development, and financial literacy, especially for underserved communities, while Infosys Foundation has launched initiatives to promote digital literacy across rural areas.
Similarly, ITC’s CSR initiatives include widespread cause promotions to support sanitation, clean water access, and sustainable farming practices. By embedding activism into their CSR strategies, companies not only fulfill their regulatory obligations but also catalyze large-scale societal change, building a responsible and engaged corporate identity that resonates with stakeholders.
Cause-based marketing
Cause-based marketing involves companies investing CSR funds to promote social causes while enhancing their brand image, creating a synergy between corporate responsibility and consumer engagement.
In India, several companies use cause-based marketing to address social issues, raising awareness and inspiring positive action that aligns with their business values. For example, Hindustan Unilever’s “Swachh Aadat Swachh Bharat” campaign uses CSR funds to promote hygiene and sanitation, aligning with the government’s Swachh Bharat (Clean India) Mission.
Through advertisements, community outreach, and celebrity endorsements, the campaign encourages consumers to adopt healthy practices, simultaneously enhancing the brand’s association with public health. Another example is Tata Tea’s “Jaago Re” campaign, which invests in cause-based marketing to raise awareness on issues such as electoral participation, women’s rights, and climate change. By combining CSR funds with strategic marketing efforts, Tata Tea educates the public on social issues while reinforcing its identity as a socially conscious brand.
These efforts reflect a growing trend among companies to blend CSR with marketing, turning social responsibility into a core aspect of brand equity and consumer engagement.
ELIGIBLE SECTOR FOR CSR ACTIVITIES
Education and Skill Development
CSR initiatives in education focus on enhancing educational infrastructure, providing scholarships, and promoting skill development programs, particularly in STEM fields. These efforts aim to bridge the skills gap in the workforce and provide underserved communities with access to quality education.
Healthcare and Sanitation
Healthcare remains a critical sector for CSR investments. Companies channel their resources into improving medical facilities, supporting health camps, funding vaccinations, and promoting sanitation practices. These activities contribute to better healthcare access and public health outcomes, particularly in rural or underprivileged areas.
Environmental Sustainability
Environmental conservation is an essential aspect of CSR activities. Companies invest in initiatives that address climate change, promote renewable energy, preserve biodiversity, and enhance water conservation. Additionally, efforts in waste management and sustainable agriculture contribute to a greener and more sustainable future.
Rural Development
CSR efforts aimed at rural development focus on improving infrastructure, such as roads, sanitation, and access to clean water, as well as supporting agricultural sustainability. These initiatives help uplift rural communities, improve their quality of life, and promote balanced regional development.
Women’s Empowerment and Gender Equality
Many CSR programs prioritize gender equality and the empowerment of women. Companies support initiatives that provide women with skills training, entrepreneurship opportunities, and access to healthcare and sanitation. These programs aim to create economic opportunities and foster greater social inclusion for women.
Support for Marginalized Communities
CSR activities also focus on supporting marginalized and disadvantaged groups, including tribal communities, people with disabilities, and other vulnerable populations. These initiatives aim to integrate these groups into the broader socio-economic framework through education, skill-building, and livelihood support.
Preservation of Cultural Heritage and Promotion of Traditional Arts
Investments in the preservation of cultural heritage and traditional arts form an important aspect of CSR. Companies engage in projects that protect and promote India’s diverse cultural heritage, support artisans, and foster appreciation for indigenous crafts and practices.
WHY INVEST IN EDUCATIONAL SECTOR FOR CSR ACTIVITIES
Initiatives in all sectors are equally important for the growth of the nation but educational sector is at the apex. “Padhega India, Tabhi To Badhega India”- the progress of the nation is solely dependent upon the how literate the workforce of the nation is. Education doesn’t only open new working opportunities but also increases the standard of living.
According to the reports of 2023, there has been an increase of 5% in the literacy rate from the census of 2011.
Investing in the education sector through Corporate Social Responsibility (CSR) initiatives is a powerful and strategic decision for companies, as it provides numerous long-term benefits not only to society but also to businesses themselves. Below are several reasons why companies prioritize education as a key area for CSR investments:
Building a Skilled Workforce
One of the most compelling reasons to invest in education is to ensure the development of a skilled, competent, and employable workforce. By funding educational programs, schools, and vocational training, companies help bridge the skill gap in the labor market. This leads to a pool of well-trained employees, which is crucial for the future of industries, particularly in sectors like technology, manufacturing, and services. A strong, educated workforce drives productivity and innovation, benefiting both society and the companies that invest.
Fostering Socio-Economic Development
Education is widely regarded as the foundation of socio-economic development. By investing in the education sector, companies contribute to breaking the cycle of poverty and inequality, especially in underserved communities. An educated population has better access to employment opportunities, healthcare, and financial independence, which in turn promotes economic growth, stability, and prosperity. This aligns with companies’ broader goals of creating a sustainable and equitable society.
Long-Term Impact and Sustainability
Unlike other sectors where the impact may be immediate but temporary, investments in education tend to have long-term, transformative effects. By contributing to education, companies lay the foundation for future generations to become self-sufficient, innovative, and economically active. The results of such investments may not be visible right away, but they are enduring, helping to build sustainable communities and future leaders who will contribute positively to the economy.
Brand Reputation and Corporate Image
Companies that invest in education enhance their brand reputation by demonstrating a commitment to societal well-being and long-term development. Corporate social responsibility programs in education are often highly visible and positively received by both the public and employees, as they reflect the company’s role in fostering positive societal change. This helps build trust, strengthens relationships with stakeholders, and can be a key differentiator in a competitive marketplace.
Addressing Global Challenges
Education plays a central role in solving many of the world’s pressing challenges, from poverty reduction and gender equality to climate change awareness and technological advancement. By focusing on education through CSR, companies not only contribute to solving local issues but also align with global Sustainable Development Goals (SDGs). This demonstrates their commitment to global issues, enhancing their reputation as responsible corporate citizens.
Enhancing Employee Engagement
Investing in education can also create opportunities for employee engagement and volunteerism. Many companies encourage their employees to participate in education-related CSR activities, such as mentoring, tutoring, or donating educational resources. This fosters a sense of pride and purpose among employees, enhancing their job satisfaction and loyalty while contributing to the company’s overall CSR goals.
Promoting Innovation and Technological Advancement
Education is a powerful driver of innovation. By investing in educational initiatives, particularly in STEM fields, companies can cultivate the next generation of innovators and problem-solvers. This investment not only helps meet the demand for skilled talent but also stimulates progress in emerging technologies and industries critical to future development.
COMPANIES INVESTING IN STEM EDUCATION IN INDIA
Support from Corporate Social Responsibility (CSR) can hasten a comprehensive strategy to change the educational landscape. In keeping with today’s educational demands, this will entail supporting interrelated projects that consider the influence of education on society. A lasting legacy will be ensured by making consistent, long-term investments in education to fundamentally alter the way that learning is approached. These investments will lead to extensive advancements that will influence the country’s educational environment for many years to come.
A key player in STEM education is Tata Group, which allocates a significant portion of its CSR funds towards supporting education, especially in STEM fields. Through initiatives like the Tata Trusts’ STEM programs, they focus on equipping students with the skills needed for future careers in technology and engineering. In FY 2020-21, the Tata Group spent approximately ₹2,000 crore on various education-related projects, with a focus on digital literacy and skill development.
Infosys is another major contributor, with the Infosys Foundation focusing on improving STEM education through digital learning platforms and funding initiatives in rural and underserved areas. Infosys spent over ₹360 crore in CSR activities in 2020, with a substantial portion directed toward educational programs promoting technology and innovation.
Wipro has also invested in STEM through its Wipro Cares program, which supports science and technology education and provides infrastructure to schools across India. These corporate initiatives are crucial in creating a skilled workforce, reducing the skill gap, and contributing to India’s growing tech economy.
HOW CAN CSR INITIATIVES PROMOTE STEM EDUCATION IN INDIA
Here’s how CSR money is being effectively allocated in the STEM education sector:
Infrastructure Development and Modernization
CSR funds are used to enhance educational infrastructure in underserved areas. Companies like Infosys and Tata Group contribute to building and upgrading school facilities with state-of-the-art labs, libraries, and digital classrooms. This enables students to engage in hands-on learning, access modern teaching tools, and develop critical skills in fields like coding, robotics, and electronics.
Scholarships and Financial Support
Many companies allocate CSR money to fund scholarships for students pursuing STEM courses, particularly for underprivileged groups, including girls and marginalized communities. Wipro, through its Wipro Cares program, provides scholarships to students excelling in STEM fields, ensuring that financial constraints do not prevent talented individuals from pursuing their aspirations.
Teacher Training and Capacity Building
A significant portion of CSR funds is directed toward professional development for educators. Companies fund teacher training programs to help educators improve their STEM teaching methods, integrate digital tools in the classroom, and stay updated with the latest advancements in technology. This ensures that teachers can effectively impart STEM knowledge to students, enhancing learning outcomes.
Digital Learning Platforms
CSR funds are also used to develop and support digital learning platforms, making STEM education more accessible. For instance, Tata Trusts and Reliance Industries have invested in initiatives that promote digital literacy and provide online STEM resources for students, especially in rural and remote areas. These platforms offer interactive lessons, courses, and tutorials in subjects like coding, mathematics, and engineering.
Mentorship Programs and Internships
Companies also invest in mentorship programs where professionals from STEM industries guide and mentor students. CSR funds are used to organize internships, industry visits, and exposure programs, allowing students to gain real-world experience in STEM fields. Infosys Foundation, for instance, supports programs where students are mentored by industry experts, helping them gain insights into careers in technology, engineering, and science.
Promoting Gender Equality in STEM
To promote diversity and gender equality in STEM, CSR initiatives focus on encouraging young girls and women to pursue careers in technology and engineering. Companies like Microsoft India and Google India allocate funds to support initiatives that offer STEM education specifically targeted at young girls, helping them overcome societal barriers to pursuing technical careers.
Innovation and Research Projects
Some CSR funds are directed toward supporting innovation hubs, tech incubators, and research projects that engage students in real-world STEM challenges. Companies like Cognizant have collaborated with educational institutions to establish innovation labs where students can work on developing solutions for pressing issues like climate change, healthcare, and sustainability.
Collaboration with Government and NGOs
In addition to direct investments, many companies collaborate with government agencies and NGOs to scale up their STEM education initiatives. These collaborations amplify the impact of CSR funds, ensuring that a larger segment of the population benefits from quality STEM education. For example, HDFC Bank partners with various NGOs to implement STEM programs in rural schools, ensuring that marginalized students have access to technology and STEM learning opportunities.
COMPANIES IN COLLABORATION WITH ISF THROUGH CSR INITIATIVES
Between 2022 and 2024, India STEM Foundation (ISF), in collaboration with leading companies, has significantly advanced STEM education through impactful CSR initiatives.
With approximately ₹2 crores invested by donors such as Fluor Daniel India Private Limited, The Spectris Foundation, Athenahealth Technology Private Limited, SBI Capital Markets Ltd., Tata Technologies Ltd., Rockwell Automation India Pvt Ltd., and Faiveley Transport Rail Technologies India Pvt Ltd., numerous programs were launched to make STEM learning accessible and engaging for students.
Initiatives like Atal Tinkering Labs (ATLs), FIRST LEGO League (FLL), and various skill development programs have provided cutting-edge resources and training in emerging technologies like AI, robotics, and IoT. These efforts have enhanced accessibility, empowered marginalized communities, and equipped teachers to deliver effective STEM education. By fostering innovation and inclusivity, this collaboration is paving the way for India to become a global hub for STEM enthusiasts. Hence it aligning with the country’s vision of a knowledge-driven economy..