Mandatory provisions of CSR under section 135 of the Companies Act 2013 became effective on 1st April 2014. The importance of inclusive growth is widely recognized as an essential part of India’s quest for development. The Companies Act 2013 was enacted to promote the economic development and welfare of the country by making it easier for Indian companies to start and operate their businesses. The Act also aims at improving corporate governance in India. Since the Companies Act came into force, it has become the core corporate responsibility of each company to practice its corporate values through its commitment to grow socially and environmentally while meeting the interests of its stakeholders and intending to make a positive difference in society.
In 2024, the Indian government has articulated an ambitious and visionary approach to Corporate Social Responsibility (CSR), aiming to leverage the power of businesses to foster sustainable development and social equity. This forward-looking strategy is designed to integrate CSR deeply into the business ethos, ensuring that economic advancement goes hand in hand with environmental stewardship and social welfare.
The New Indian Government’s CSR Vision and Mission Vision: Crafting a Sustainable and Inclusive India
The cornerstone of the Indian government’s CSR vision is creating a sustainable and inclusive society where economic growth does not compromise social just ice or environmental sustainability. The vision emphasizes:
Sustainability: Promoting eco-friendly practices that ensure long-term environmental health, such as reducing carbon footprints, enhancing waste management, and expanding renewable energy use.
Inclusivity: Ensuring that economic benefits reach all sections of society, particularly marginalized and underrepresented communities.
Innovation: Encouraging businesses to innovate to contribute to societal well-being, from green technology development to job creation in underserved regions.
Mission: Implementing Effective and Impactful CSR Strategies
The government’s mission outlines strategic steps to achieve CSR vision, focusing on regulatory frameworks, incentives, and collaborative efforts:
Regulatory Frameworks: Establishing clear guidelines and standards for CSR activities. This includes mandatory CSR reporting for larger corporat ions, ensuring transparency and accountability in how businesses contribute to social and environmental goals.
Incentives for Businesses: Offering tax benefits, subsidies, and other financial incentives to companies demonstrating significant contributions to CSR initiatives. This encourages businesses to embed CSR into their strategic planning.
Public-Private Partnerships: Promoting collaboration between the government, private sector, and civil society to leverage resources and expertise in addressing complex social and environmental challenges.
Community Engagement: Encouraging businesses to actively engage with local communities to understand their needs and develop impactful CSR initiatives. This includes support for healthcare, education, and infrastructure development.
Monitoring and Evaluation: Implementing robust systems to monitor and evaluate the impact of CSR activities, ensuring that initiatives are effective and beneficial.
Key Focus Areas:
The government’s CSR strategy identifies several key areas requiring urgent attention and action: Environmental Sustainability: Addressing climate change through initiatives that promote renewable energy, natural resource conservation, and reduction of greenhouse gas emissions.
Healthcare Access: Improving healthcare infrastructure and services, particularly in rural and underserved areas, through partnerships with healthcare providers and investments in telemedicine.
Education and Skill Development: investing in education and vocational training programs to build a skilled workforce. This includes promoting STEM education and enhancing digital literacy.
Economic Empowerment: supporting entrepreneurship and small businesses, especially among women and youth, to drive financial inclusion and job creation.
Human Rights and Ethical Practices: Ensuring that business operations adhere to the highest standards of human rights and ethical practices, including fair labour practices, non-discrimination, and anti-corruption measures.
Strategic Implementation:
To achieve these objectives, the Indian government has outlined the following specific strategies:
Strengthening Regulations: Revising existing CSR laws to include clearer guidelines on compliance, transparency, and impact measurement.
Enhanced Reporting Mechanisms: Mandating comprehensive CSR reports that include detailed impact assessments, ensuring accountability.
Capacity Building: Providing training and resources to businesses, SMEs, etc., to effectively implement CSR initiatives.
Innovation Hubs: Establishing centres for innovation that focus on sustainable technologies and practices, supported by government grants and incentives.
The new Indian government’s CSR vision and mission for 2024 marks a significant step towards a more sustainable and equitable future. The government aims to create a symbiotic relationship between economic growth and social responsibility by embedding CSR into the core of corporate strategy and operations. With well-defined goals, strategic partnerships, and rigorous monitoring mechanisms, India is set to lead by example in fostering a future where progress today does not compromise the prosperity of future generations. The CSR vision sets the stage for transformative impacts on society and the environment, ensuring that India’s growth is inclusive, sustainable, and resilient.
Dr. Somnath Singh (PhD)
Deputy Director at UN
Global Compact Network India
