Spending is expected to triple by 2035 and surpass Rs 1.2 lakh crore annually, becoming Corporate Social Responsibility (CSR) the nation’s greatest source of charitable funding ten years after it was became a legal requirement. While the government has played a significant role as a funder of the social sector, with an annual social sector expenditure of Rs 25.7 lakh crore, or 8% of India’s GDP, CSR spending in FY 2024 was Rs 30,000 crore.

In their research, India Inc. for Building Bharat: How Systemic CSR is Building Enduring Impact for Tomorrow, the Convergence Foundation (TCF) and its network organisation, SCALE, collaborated with India Impact Sherpas to provide a number of findings. The report, which was unveiled in Mumbai on Wednesday, forecasts the anticipated expansion of the CSR funding pool over the next ten years and makes the case that CSR can influence government spending by fostering innovation among Systems Support Organisations, a new group of nonprofits that assist governments strategically and seek systemic solutions. “By viewing CSR as a long-term investment that generates non-linear social returns, CEOs may set a bold goal.

According to Ashish Dhawan, Founder-CEO of The Convergence Foundation, “hiring a strong CSR leader with a genuine commitment to social impact is one of the most important decisions a business leader can make to create large-scale impact.” “A business’s CSR can be thought of as a portfolio that consists of a variety of programmatic, direct initiatives as well as more systemic ones that address the underlying causes of social problems. Companies might aim to devote 10–20% of their portfolio to long-term investments in systemic initiatives as the corpus of CSR expands over the coming years, according to Dhawan. Over the past few years, CSR has advanced considerably, especially since it was made a legal requirement in 2013.

“There is a chance to use CSR as a strategic investment and a vehicle for transformative change in its second innings over the next ten years,” stated Govind Iyer, who chairs the Infosys CSR Committee and serves on the TCF advisory board. By highlighting the experiences of 13 chosen CSR foundations, this research has set a strong precedent that CSR may have a systemic impact. “The profiled models offer numerous practical insights that can be applied to a broader business and corporate social responsibility agenda,” he stated.