A Roadmap to an Ideal CSR initiative

In 2014, India became the first country to legally mandate CSR spending under Section 135 of the Companies Act, 2013. After a decade of this Law being passed the notion of Indian Companies towards CSR initiatives is changing. In the financial year FY23, India spent a total of ₹29,986.92 crores on Corporate Social Responsibility with the number of projects increased from 44,425 to 51,966. 

Indian corporations are evolving, and many are voluntarily focusing on CSR initiatives. This shift reflects a growing recognition that companies are responsible not just to shareholders but also to society and the environment. Along with adding to the brand image and goodwill of the company, companies are also focused on the actual changes their CSR initiatives are bringing in the society.

This roadmap outlines a few questions that are essential while setting up any impactful CSR initiative:

Is this CSR initiative relevant?

The first step to creating an ideal CSR initiative is to assess its relevance to both the community and the company. A relevant initiative focuses on the current needs of the community, whether it’s education, healthcare, environment, or social welfare. Companies should research local issues or global challenges that align with their mission and expertise. By ensuring that the CSR initiative is relevant, the project gains traction and is more likely to make a tangible difference.

By undertaking relevant CSR activities, companies are contributing towards the common goal of Vikasit Bharat @ 2047. These CSR activities are inculcating economic growth, social progress, environmental sustainability, and good governance which is in turn laying the foundation for a developed Nation.

What is the vision behind this CSR initiative?

A clear and concise vision behind an initiative will help not just the company but also the community it is for. This vision should outline the desired future outcome, purpose and ultimate goals of the initiative. It could be a long-term commitment to improving the lives of a specific group or creating a lasting positive effect on the environment. It is important to align the vision of an initiative with the current needs of the community. However, it is also equally important for companies to align with CSR initiatives that fit their vision best.

What kind of an impact will this CSR initiative have?

A CSR initiative can have both short-term and long-term effects on a community. Understanding the potential impact of a CSR initiative is critical. An impact assessment of the initiative prior to the execution of the steps is of utmost importance. A measurable impact is essential to evaluate success and maintain accountability.

Whether it’s through improved educational opportunities, better healthcare, or reduced environmental harm, companies must define clear metrics for success. Accessing the impact in a step-by-step manner allows companies to showcase tangible results, helping them refine and improve future projects.

Is this CSR initiative sustainable in the future?

Sustainability is crucial for any CSR initiative. When it comes to CSR initiatives, companies need to evaluate the long-term viability of their initiatives. They need to evaluate if they have sufficient resources and continuous support. Sustainable projects can continue to thrive even as external conditions change. This could involve partnering with local organizations or ensuring that initiatives are self-sustaining after initial investments. Without sustainability, even the best-intentioned projects risk losing momentum over time.

While focusing on Sustainability, we need to also focus on Sustainable Development Goals. The Union budget for 2024-25 outlines a comprehensive strategy to achieve ‘Viksit Bharat’ by focusing on nine key priorities that aim to create opportunities for all Indians. For any CSR initiative to be successful, government initiatives need to be in cohorts with corporate initiatives.

An ideal CSR initiative is relevant, visionary, impactful, and sustainable. By addressing these key questions, companies can launch initiatives that not only benefit society but also strengthen their reputation and long-term success. A strategic approach to CSR initiatives ensures that companies contribute meaningfully to the world, with lasting positive effects for all involved.