Indian firms embrace strategic CSR, seek impact investments: Deloitte Survey

New Delhi: Corporate social responsibility (CSR) initiatives among Indian companies are evolving beyond just statutory compliance, with firms increasingly exploring strategic impact investment avenues like social bonds and pay-for-success models, according to a survey by Deloitte India.

Though a strong 50 per cent of the 185 organisations surveyed showed keen interest in such innovative models, including engaging with the Social Stock Exchange, only 28 per cent felt "very prepared" to navigate the complexities involved in impact investing, the survey found.

"CSR has evolved from a compliance function to a strategic driver of corporate strategy, now prominently featured on boardroom and investor agendas," Deloitte India Partner Sumeet Salwan said.

He noted that the growing CSR expenditure trend demonstrates it is becoming an "indispensable component" of India's development narrative by catalysing societal progress.

Around 50 per cent of the companies covered in the survey stated they are re-evaluating their CSR strategies in view of the changing regulatory landscape and enhanced disclosure norms related to Environmental, Social and Governance (ESG) aspects.

Interestingly, about 25 per cent of the participating organisations reported an annual CSR spend of over Rs 100 crore. Firms operating for over 15 years have established dedicated foundations to drive such initiatives.

The findings revealed that 80 per cent of the organisations now recognise CSR as a critical element for shaping their overall corporate strategy and vision.

Highlighting the importance of technology, Deloitte India Partner Amit Tandon said more than one-third of the companies expressed willingness to invest in tech solutions for effective CSR management and implementation.

"However, about half of the organisations cited technology as one of the top three challenges. To boost tech adoption, there is a need for prioritising knowledge sharing, collaboration and upskilling through training programmes," he said.

The survey showed that following amendments to the CSR rules mandating impact assessments from January 2021, 65 per cent of the organisations have started conducting such assessments with a focus on output-led decision-making.

Healthcare, sustainability, education and promoting gender equality emerged as the key focus areas for CSR programmes.