CSR in Punjab
Published on :- September 13th, 2021
Corporate Social Responsibility – Movement towards a strategic approach.On 1st April 2014, India became the first country to legally mandate Corporate Social Responsibility (CSR). Seven years after its inception, CSR spending across the nation has more than doubled, becoming a significant source of development funding in India. There are now five corporates that contribute over INR 500 crores annually through CSR itself. CSR investments have also evolved from being only compliance-focused to a more strategic impact-first approach, going beyond CSR regulations and standards. This form of strategic CSR leads to greater value creation for the communities, as well as gets greater buy-in from companies who now see the benefits of CSR on their businesses as well, making it a win-win for all. Sattva’s experience over the years showcases that data-backed insights provide an advantage for the decision-making process, specifically in socially responsible activities to implement more strategic CSR policies. The role of data is becoming increasingly critical in the social impact ecosystem to design and scale the most relevant and impactful initiatives.
Patterns in overall CSR spendingCSR Spend in India from 2014 - 2020
- INR 92,705 Crores of funding has been directed towards development causes by Corporates via CSR in the last six years.
- Analysing this broad ecosystem-level data, we see that PSUs account for close to one-fourth of the CSR funding in India.
- Additionally, projects that are tagged as pan-India have received 38% funding, followed by those located in Maharashtra at 15%. Punjab is the 17th highest recipient state of CSR funds in India.
- Projects worth 42% of the funds have been directed by implementing agencies, which has helped to further strengthen the non-profit sector in India.
- The sectors of education, healthcare, vocational skilling, and art and culture are among those that are receiving higher CSR amounts with each passing year, whereas Swachh Bharat Kosh Conservation of natural resources and women’s empowerment initiatives have seen a declining trend.
Some insights from overall CSR spending in Punjab:The Punjab CSR Story (2014-2020)
- Similar to the national story, the corporate sector is emerging as an important player in the development of Punjab.
- Over INR 631 crores of CSR funds cumulatively have been invested for social development projects in Punjab in the last six years (FY15 to FY21).
- Over the previous two Financial Years, the amount invested was INR 341 crores. 26% of the funds have been spent towards education, 21% towards healthcare and 15% towards environment and sustainability. This is in line with the broader national trend of these three sectors being the top areas of investment by corporates, cumulatively accounting for 55% nationally, against 63% in Punjab.
- Punjab has received over INR 341 crores of CSR funding in each of the last two financial years (FY19 and FY20), accounting for 54% of the total CSR funds received over the six years.
- The top four spending companies - HPCL Mittal Limited, Trident Limited, International Tractors Limited and Bharti Infratel Limited - have contributed 25% of the total CSR spend that the state has received over the years.
- Oil, gas, coal & petroleum and Telecom are the highest contributing sectors, providing 22% and 8% funds respectively. Also, 58% of the CSR funds from companies with headquarters in the state is invested in Punjab.
- 69% of the total funding is going to the Malwa region, which is also the hub for the state’s Aspirational districts, however, only 1.15% of the funds are going to two Aspirational districts, Moga and Ferozepur. This is also aligned with the national observation of the aspirational districts receiving ~1.4% of total CSR spends, and some of the more industrialised districts and cities such as Pune, Mumbai, Hyderabad, Kolkata, and so on attracting most funds from corporates in their respective states.