India's CSR Evolution

A Journey from Philanthropy to Sustainable Development

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India's CSR spending trends from 2017 to 2023 reveal increasing participation, with education and healthcare remaining key focus areas. Ayush Rai, Anjali Sachdev and Dr Amit Kumar Thakur trace how India's CSR has evolved through four significant phases going from philanthropy-driven actions to strategic business initiatives aimed at mitigating social issues.

India's Corporate Social Responsibility (CSR) journey has evolved through four significant phases, shaped by socio-economic, cultural, and political contexts. Over time, CSR has shifted from philanthropy-driven initiatives to a more structured and strategic business function that aligns with both corporate goals and societal needs.

Phase 1: CSR Driven by Charity and Philanthropy (1850-1914)

During the pre-industrial era and early stages of industrialization, CSR was largely synonymous with charity and philanthropy. Influential business families, such as the Tatas, Birlas, and Godrejs, engaged in welfare activities, establishing schools, temples, and hospitals. The roots of CSR during this period were deeply intertwined with culture, traditions, family values, industrialization, and religion. The concepts of dhan (wealth), dharam (duty), and dakshina (charitable offering) were fundamental in shaping the CSR landscape.

Phase 2: Gandhi's Theory of Trusteeship (1914-1960)

Mahatma Gandhi's theory of trusteeship revolutionized CSR by linking it to social justice and nation-building. During this period, family businesses established trusts for building schools, colleges, and training institutions. Gandhi advocated that industrialists view themselves as trustees of society's wealth, promoting equitable distribution and contributing to India's independence movement and community development through initiatives in education, healthcare, and rural upliftment.

Phase 3: CSR in a Mixed Economy (1960-1980)