New Delhi, March 7 (IANS) Participation in Corporate Social Responsibility (CSR) activities saw a significant rise in 2022-23, with the number of companies engaged in social initiatives growing by 22 per cent compared to 2021-22 and the total spending registering a 13 per cent increase, reflecting a stronger commitment to social responsibility, according to a Nasscom report released on Friday.
The findings are based on an analysis of over 270 companies across tech and non-tech domains and interactions with top CSR leaders.
Additionally, the proportion of companies allocating more than 2 per cent of their profits to CSR initiatives grew from 64 per cent in FY19 to 74 per cent in FY23, highlighting a steady shift toward higher corporate contributions to social impact, the report states.
Tech companies contribute significantly to CSR, accounting for 23 per cent of spending among India’s top 20 contributors.
In FY23, as many as 75 leading tech companies spearheaded over 2,610 CSR projects, driving large-scale impact across key areas such as education, healthcare, environmental sustainability, skilling, and climate change.
According to the survey findings, 41 per cent organisations are allotting top priority to CSR goals that align with SDGs and national agenda.
Key national priorities include employment creation, skilling, and social justice, while SDGs focus on quality education, gender equality, and good health.
The adoption of technology in CSR initiatives is accelerating, with approximately 65 per cent of projects in 2024 classified as tech-led. This integration has significantly enhanced impact, with 90 per cent of such projects reporting greater scalability, efficiency, and meaningful outcomes.
Companies are leveraging key tools such as AI-driven monitoring and optimisation solutions, digital finance platforms, digital learning platforms for curated courses, and advanced teacher training mechanisms to drive social change.
Additionally, tech companies are developing proprietary tech stacks for real-time data collection, processing, analysis, decision-making, and dissemination, further amplifying the effectiveness and reach of their CSR efforts, the report states.
Jyoti Sharma, CEO, Nasscom Foundation, said, “The evolution in the Indian CSR landscape since 2014 has been instrumental. It is encouraging to see key trends such as investments in aspirational districts, social innovation, skilling, and women entrepreneurship, reshaping the CSR landscape today.”
However, challenges remain in ensuring effective implementation and maximising impact.
Large corporations face hurdles in fostering collaboration, broadening their CSR focus beyond traditional areas, and identifying the right partners, while smaller companies require streamlined fund management, alignment of priorities, and simplified administrative and legal frameworks to drive meaningful change.
At the project implementation level, resistance to technology adoption, lack of coordinated efforts, and persistent social issues continue to pose challenges, according to the report.
As CSR priorities shift, companies are focussing on long-term, high-impact projects with greater stakeholder engagement and capacity building. Skill development and employability creation are emerging as key focus areas for both tech and non-tech organisations.
Additionally, social innovation is gaining prominence, with companies stating an increased focus from 6 per cent to 8 per cent over the next 3–5 years. Tech companies are also set to enhance their efforts in disaster relief and WASH (water, sanitation, and hygiene), while non-tech organisations are prioritising climate change initiatives.
To further enhance CSR effectiveness, a multi-stakeholder approach is essential.
According to the report, the government can play a pivotal role by facilitating collaborations, easing compliance regulations, and providing strategic direction.
NGOs must enhance operational efficiency, promote transparency, and build capacity for greater impact.
Companies, on their part, should increase collaboration, adopt strategic fund allocation for focussed outcomes, prioritise sustainable, long-term interventions, and invest in skill-building to create a lasting social impact, the report added.
–IANS
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