CSR in India: From Philanthropy to Policy Integration

Corporate Social Responsibility (CSR) has evolved from being a mere philanthropic act to becoming an integral part of corporate governance. Globally acknowledged today as a tool for integrating social, environmental, and developmental concerns into business operations, CSR in India has taken a unique trajectory—from voluntary action to culminating in a legally mandated framework. The term Corporate Social Responsibility was first introduced by American economist Howard Bowen in 1953 through his publication Social Responsibilities of the Businessman. Bowen is often considered as the father of CSR Bowen’s ideas planted the seed for what would become a global conversation around the moral obligations of businesses. However, the concept remained largely theoretical for several decades, with minimal traction in policy or practice.

As per the information of India CSR portal of Ministry of Corporate Affairs, Government of India, there is a consistent upward trend in total CSR spending across India, rising from ₹10,065.93 crore in 2014–15 to ₹34,908.75 crore in 2023–24—an increase of over 3.4 times in a decade. The growth accelerates sharply after 2018–19, indicating expanded programme coverage, higher corporate social responsibility (CSR) flows, or larger government-linked allocations. Maharashtra has remained the highest spending state throughout the period, reaching ₹6,065.95 crore in 2023–24, followed by Gujarat at ₹2,707.54 crore and Karnataka at ₹2,254.88 crore. At the other end, Lakshadweep, Mizoram, and Nagaland consistently record the lowest spending, with allocations in double digits or less in most years. Odisha’s expenditure rose steadily from ₹252.18 crore in 2014–15 to ₹1,389.39 crore in 2023–24. In terms of national ranking for 2023–24, Odisha stands around 10th place, ahead of many states with smaller tribal populations but behind high-spending industrial states. This positioning reflects Odisha’s growing share in the national expenditure pattern, though its per capita reach—given its sizeable tribal population—may be more modest compared to smaller states with concentrated spending.

Analysis of per capita CSR expenditure in different states, it is found that The per capita CSR expenditure in India averages ₹288.31, with notable variation across states. In 2023–24, Delhi ranks highest at ₹1,161.52, followed by Chandigarh (₹1,073.57), Sikkim (₹685.74), and Goa (₹588.19), largely due to smaller populations or concentrated corporate presence. The lowest per capita spending is in Bihar (₹25.03), Tripura (₹25.72), and Mizoram (₹40.83), reflecting either fewer industries or dispersed CSR activity. Odisha, with ₹331.01 per capita, stands above the national average and ranks around 10th nationally, indicating a relatively strong CSR inflow. However, given its large tribal population, the per capita impact may still be less pronounced than in smaller high-ranking states.

In terms of priority of CSR money spent on different sectors, the data on CSR spending trends across development sectors in India from FY 2014–15 to FY 2023–24 shows that Education consistently receives the highest allocation, rising from ₹2,589.42 Cr in 2014–15 to ₹12,134.57 Cr in 2023–24, reflecting its top priority in CSR spending. Health care ranks second, growing sharply to ₹7,150.81 Cr in 2023–24, followed by rural development projects (₹2,408.09 Cr) and livelihood enhancement projects (₹2,360.09 Cr), highlighting strong focus on human development and poverty alleviation. Environmental sustainability also sees significant investment (₹2,429.97 Cr in 2023–24). In contrast, areas like technology incubators, clean Ganga fund, and setting up orphanages receive minimal funds, often under ₹100 Cr in recent years. Interestingly, some categories like Prime Minister’s National Relief Fund and Swachh Bharat Kosh peaked in certain years but later saw steep declines. Spending on vocational skills, animal welfare, and sports promotion has grown steadily, suggesting diversification of CSR objectives. Overall, CSR spending in India is heavily skewed toward education, healthcare, and rural development, with smaller sectors competing for limited allocations.

Despite huge spending and persistent engagement by corporates in social sector development, they continue to face the fundamental paradox of balancing profit with social responsibility. This tension arises from the conflict between profit maximization and genuine community welfare, underscoring the need for a right mix between business interests and social development goals. Studies highlight that corporations often lack the expertise, democratic accountability, and long-term commitment essential for sustainable development. Unlike government institutions or specialized NGOs, they generally have a limited understanding of complex social issues and community needs. Moreover, corporates sometimes replicate their business-oriented approaches in social interventions—such as monetizing community benefits or focusing excessively on reporting outcomes to higher authorities—rather than fostering meaningful, participatory, and transformative change. On the other hand, non-government organizations often lack smart approaches to quantify impact and make results visible. Many of them face challenges in reporting interventions effectively to corporations and tend to follow conventional development practices, which makes it difficult for corporate professionals to align these initiatives with their business strategies and long-term profit goals. The government, too, fails to use these resources as an opportunity for long-term community development, instead applying them in a sporadic, short-term, and stop-gap manner.

Thus, there is a need for convergence and integration of CSR resources with state development plans, which will enhance the overall resource envelope of the government. Creating a common pool of CSR funds and developing a long-term strategy can enable their effective use for sustained and inclusive development. While the Government of Odisha had once formed a CSR Council to oversee CSR activities, its presence is not strongly felt in the current development discourse. At the same time, many life-changing initiatives are being undertaken under CSR, but they often remain outside the public domain, limiting opportunities for replication. Corporates, therefore, need to come forward to create a common learning platform that will foster cross-learning among themselves and support the government in wider dissemination and replication of successful models. To conclude, CSR presents a significant opportunity for India, but there is a pressing need for an integrated and cohesive framework for its implementation. Sporadic and scattered use of CSR resources will fail to generate long-term and sustainable impact at the grassroots level.

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