Page 2 - CRISP-Newsletter-Feb-2024

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ExpertSpeak

The Future of CSR in India

Mr. Sitaram Kunte (IAS Retd.)
Founding Member- CRISP
Former Chief Secretary- Maharashtra
What is the concept of CSR?

In the public policy literature, inclusive growth concept
Introduction: is an essential part of the development strategy. Its aim
to include those sections of the society that had thus far
Corporate Social Responsibility (hereinafter CSR) is remained excluded from the mainstream of development.
making a significant impact on our country’s development.
In the Companies’ Act 2013 a groundbreaking provision
was made. Companies were required to allocate a CSR was “conceived as an instrument for integrating
minimum of 2% of their net profits over the preceding social, environmental and human development concerns
three years to CSR, and spend the said amount on in the entire value chain of corporate business”(Voluntary
livelihood, health, education and environment for Guidelines on CSR 2009, Ministry of Corporate Affairs).
the betterment of communities. Section 135 of the This policy was further modified and presented as
Companies’ Act formalised CSR as a legal requirement, “National Voluntary Guidelines on Social, Environmental
while its Schedule VII and the Companies (CSR Policy) and Economic Responsibilities of Business 2011”. Finally
Regulations 2014 provided the operational guidelines. the concept of CSR found a place in the Companies’ Act
2013. Now, I will deep dive into the questions that I set
It has been ten years since then; which provides a good out to explore.
opportunity to look back and evaluate. To do that I will
look into the following questions: what is the concept of
CSR; what has been achieved in these ten years; what
were the shortcomings; and how can CSR become better,
going forward?

Background:

The opportunity to reflect on the aforesaid
questions came to me during the 18th
Annual CSR conference on the theme ‘CSR
and Exploring Evolution of ESG in the New
World Economy’ organised by the Institute
of Directors in Mumbai on December 2023.
The conference had panel discussions on
various aspects of CSR, where experts and
practitioners expressed their candid views.
The deliberations of the conference are
covered in the January 2024 issue of the
Director Today Magazine, a publication of the
Institute of Directors, India.

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