PRNewswire
Mumbai (Maharashtra) [India], January 17: A decade since government regulations mandated spending and reporting on corporate social responsibility (CSR), there is a need for deeper and more inclusive action, an analysis of 1,871 eligible listed companies that spent Rs 14,714 crore on over 3,200 unique projects in fiscal 2023 indicates.
The analysis categorised these companies based on their headquarter locations, CSR spend and the states where their CSR projects were implemented. Separately, it examined the top 100 companies by CSR spend in aspirational districts, as identified by Niti Aayog.
The results of the analysis, captured in Crisil's CSR Yearbook2024, show significant concentration of CSR spend, companies and projects in a few clusters of states, while others -- some more in need of intervention -- get little. The Crisil CSR Yearbook covers yearly trends on how India Inc is driving the CSR mandate, based on disclosures by listed companies in their annual reports.
Companies headquartered in Maharashtra and New Delhi dominated the CSR landscape, together accounting for 61% of the CSR spend and nearly half of the company headquarters but just short of a third of the projects implemented. A second cluster had five states, accounting for over a quarter of the spend and a third of the company headquarters and projects implemented.
The high concentration of corporate headquarters in the seven states/union territories perhaps best explains the skew in spending as the remaining states accounted for barely a tenth of the spend, a fifth of the company headquarters, and just over a third of the projects implemented.
Meanwhile, of the top 100 companies by CSR spend, only 47 implemented projects in aspirational districts. These 47 companies accounted for a cumulative CSR spending of Rs 3,970 crore, or almost 27% of the total CSR spend during the fiscal, but spent only Rs 473 crore on aspirational districts, which was barely 3% of the total.
Further, the National CSR Portal indicates 24,392 listed and unlisted companies cumulatively spent Rs 29,987 crore on CSR projects in fiscal 2023. Factoring out the 1,871 listed companies that spent Rs 14,714 crore as per CSR Yearbook 2024, the portal data suggests as many as 22,500 unlisted companies collectively spent ~Rs 15,000 crore. This indicates fragmented CSR spending, with a large number of entities making small, less impactful contributions.
Thus, a more equitable resource allocation is imperative for sustainable socio-economic growth across India.
A pivotal development to this end in recent years is the introduction of the Social Stock Exchange (SSE), designed to connect corporates, social enterprises and non-profits, foster transparency and ensure impactful deployment of CSR funds. Importantly, SSE offers unlisted companies and smaller organisations a unique opportunity to channel their contributions effectively and reach underfunded areas.
Maya Vengurlekar, Chief Operating Officer, Crisil Foundation, said, "The future of CSR in India lies in democratising impact. By focusing on aspirational districts and leveraging platforms such as SSE, corporates can address critical developmental gaps and create measurable, lasting change. This is a call to action for all stakeholders to reimagine the role of CSR in shaping a more equitable and inclusive India."
The path ahead requires fostering collaboration, balancing rural and urban investments and aligning corporate efforts with national priorities. As India's CSR framework evolves, the role of concentrated efforts in bridging socio-economic divides becomes paramount.
Among other findings, fiscal 2023 saw the number of companies and their cumulative spending print higher yet again, with over 60% of the eligible listed ones spending 2% or more of their net profit on CSR initiatives, and ~14% spending 3% or more. Besides, despite the buzz around climate change, environment got barely 3% of the spend.
Also, the number of companies preferring to implement their CSR mandate through non-government organisations or trusts plunged to 37% in 2023, compared with 66% the previous fiscal. This could be because companies are increasingly implementing projects with their own teams.
About Crisil Foundation
Crisil Foundation, a public charitable trust, was set up in March 2013 as Crisil's corporate social responsibility (CSR) arm. Our mission is to empower socially and economically disadvantaged communities within and beyond our areas of operations.
In Assam and Rajasthan, we have established a robust scalable intervention through our flagship programme Mein Pragati - strengthening the financial capabilities of over 2.3 million community members, mostly rural women; as well as an ecosystem that sustains behaviour change through a well-trained community cadre called sakhis - which is active, self-sustainable, and delivering outcomes. Under the Reserve Bank of India (RBI) MoneyWise Centre for Financial Literacy (CFL) Project, Crisil Foundation has set up 675 CFLs across 14 States and 4 Union Territories till date, in partnership with 11 PSU banks and NABARD.
Crisil RE, Crisil's environment conservation programme under the aegis of the Crisil CSR Policy, is focused on tree plantation and several other initiatives. The programme includes centrally driven and employee-led projects, and strives to engage employees and their families, friends, and relatives in conservation activities.
The Foundation's efforts have also been recognised by the Government of India under the prestigious National Corporate Social Responsibility (CSR) Award, 2020 in the category 'Corporate Awards for Excellence in CSR' for financial capability building and environment conservation. This is the second time in a row that Crisil has received the accolade, after winning the 'CSR in Challenging Circumstances, North-East' award for its flagship programme Mein Pragati in Assam, which was conferred by the Hon'ble President of India in 2019.
About Crisil
Crisil is a global, insights-driven analytics company. Our extraordinary domain expertise and analytical rigour help clients make mission-critical decisions with confidence.
Large and highly respected firms partner with us for the most reliable opinions on risk in India, and for uncovering powerful insights and turning risks into opportunities globally. We are integral to multiplying their opportunities and success.
Headquartered in India, Crisil is majority owned by S&P Global.
Founded in 1987 as India's first credit rating agency, our expertise today extends across businesses: Crisil Ratings, Crisil Intelligence, Crisil Coalition Greenwich and Crisil Integral IQ.
Our globally diverse workforce operates in the Americas, Asia-Pacific, Europe, Australia and the Middle East, setting the standards by which industries are measured.
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