Future of CSR in India | The Impact Post
Issue #29 | Tue, Feb 7, 2023
Dear Patron,
With the Corporate Social Responsibility mandate, companies are playing an increasingly important role in addressing social problems.. Around 60% of CSR funds are spent for education, healthcare and rural development in India, between 2014 and 2021. Corporates have spent around Rs 25,714.65 crore in 2020-21, with healthcare getting maximum priority. As of November 2022, 35% of the total CSR spent by the companies are in the states of Maharashtra, Rajasthan, Karnataka, Gujarat, Andhra Pradesh and Tamil Nadu, which also signified geographical inequity in investments.
Reliance Industries Ltd, HDFC Bank, Tata Consultancy Services, Oil and Natural Gas Corporation and Infosys Ltd are the Top 5 companies that have spent the maximum amount on CSR in the last few years.
Let’s jump right to it. This month we’re going to look at the Top 5 trends that will shape the future of CSR in India in 2023
1. Digital Transformation
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With the advent of AI, Digital transformation in the CSR space is not far behind. As CSR becomes a stronger tool in a corporation’s vision and strategy, the right tools to digitise and innovate become imperative to achieving the best results. CSR softwares can prove to be a real gamechanger, allowing companies to automate their CSR efforts, helping them to manage, track and report defined goals and activities. Clear and defined goals push companies towards monitoring and measurement by both the public and private sector and increase the chances of adoption of digital tools in CSR design and program implementation.
What can we expect to see going forward?
Companies who have invested in digital tools can expect to see better outcomes and higher impact, as they work more efficiently and intelligently with enhanced data collecting generation and analysis. With this report-building and writing can completely change. An added bonus is better branding for the business, with clear and evident impact.
2. No More Greenwashing
Long gone are the days where it’s easy to greenwash a brand. Greenwashing is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organisation's products, aims and policies are environmentally friendly. In 2021, several companies were called out for greenwashing practices.
What can we expect to see going forward?
100% transparency with a company’s sustainability efforts. Companies working with a consistent approach to progress are going to be appreciated more than a ‘perfect looking’ company. Overblown environmental messaging is no longer a fit with a sceptical public, looking for concrete proof. If you can’t provide the statistical evidence of your success, don’t push the message externally.
3. Close Focus On SDGs
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In 2015, the United Nations created the Sustainable Development Goals (SDGs) to encourage people to protect the planet to ensure a better future for all. As businesses look to improve their CSR strategies, SDG’s are increasingly used as a gold standard for creating an impactful and responsive framework.
What can we expect to see going forward?
SDGs Influence - CSR trends include a higher prominence of SDG framework in external and internal communications of CSR strategy. As 2030 approaches, companies must rethink their existing CSR strategy to include and better align with the SDGs going forward.
4. Thinking Global, Acting Local
As important as it is for companies to take action on an international scale, there is an opportunity for businesses to make a really significant impact closer to home, within the community surrounding their various premises.
What can we expect to see going forward?
Businesses are thinking more strategically and creatively about how they help local causes. For example, companies can use their team’s professional skills to create a lasting impact by providing volunteer training sessions to small local businesses
5. Enhanced, Transparent Reporting
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Reporting is an essential practice across multiple aspects of business, allowing organisations to track their activities and identify areas of improvement. As a result, there is a strong correlation between reporting and CSR, and a rising need to generate clearer and more transparent reports.
What can we expect to see going forward?
More Reports with an increased efficiency to engage with results and constantly improve. With CSR becoming a more precise and measurable practice, analytics will also be more complete, benefiting from better tracking of progress, stats, facts and figures.
Did you enjoy reading this article? Let us know by responding to our email. We’ll be sure to have more pieces like this coming in the future.
Regards,
The NuSocia Team