CSR in each state has a unique story to tell. The efforts that the state government has taken, the support and contributions made by the stakeholders is an interesting narration. Some have done very well, some have potential, and others are learning. – M. Rajendran
Corporate Social Responsibility (CSR) in India has traditionally been a philanthropic activity; it was an activity that was performed but not deliberated. CSR in India remains within the philanthropic space, but it has moved from institutional building (educational, research, and cultural) to community development through various projects.
Enactment of the Companies Act, 2013 by the Ministry of Corporate Affairs, Government of India was one of the world’s largest experiments in introducing CSR as a mandatory provision by imposing a statutory obligation on Companies to take up CSR projects towards social welfare activities. The Company’s CSR activities revolve around five guiding principles – Impact, Partnerships, Affirmative Action, Communication, and Innovation.
This has made India the only country that has regulated and mandated CSR for some select categories of companies registered under the Act. These CSR Initiatives have pushed the nation towards achieving sustainable development goals and public-private partnerships to transform India. India is a country that has assured by mandating CSR through its legislative action.
Mandatory provisions of CSR under section 135 of the Companies Act 2013 became effective on April 1, 2014. The initiatives taken by the company are by projects and programs relating to the Companies Act 2013.
The importance of inclusive growth is widely recognized as an essential part of India’s quest for development. It reiterates the country’s firm commitment to include those sections of society in the growth process which had hitherto remained excluded from the mainstream of development. In line with this national endeavor, Corporate Social Responsibility (CSR) was conceived as an instrument for integrating social, environmental, and human development concerns in the entire value chain of corporate business.
The 21st Report of the Parliamentary Standing Committee on Finance is one of the prime movers for bringing the CSR provisions within the statute. The Standing Committee observed that annual statutory disclosures on CSR required by the companies under the Act would be a sufficient check on non-compliance.
Section 135(4) of the Companies Act 2013 mandates every company qualifying under Section 135(1) to make a statutory disclosure of CSR in its Annual Report to the Board. Rule 8 of the Companies (Corporate Social Responsibility Policy), Rules, 2014 prescribes the format in which such disclosure is to be made.
In the next few pages of this report, we examine each state and the status, progress, and success they have achieved in implementing Corporate Social Responsibility. The research was done based on the content and data from each state government and company’s websites, which explain their CSR policy, vision, and mission.
The government has clearly stated that the CSR ambit is getting bigger. It will become a unique knowledge base for analyzing and achieving sustainability goals among various large economies in the coming years.
States in India: