Only 28 per cent of organisations feel “very prepared” to navigate the complexities of impact investing, despite over 50 per cent of them having strong interest in it, including engagements with India’s Social Stock Exchange and other innovative models, such as social bonds and pay-for-success, reveals Deloitte India’s CSR preparedness survey.
The survey further highlights that 50 per cent of organisations are re-evaluating their CSR strategies due to changing local and global regulatory landscapes and enhanced disclosure requirements. Interestingly, India’s CSR landscape is evolving from a compliance-driven activity to a strategic imperative as 80 per cent of organisations recognise CSR as a critical part in shaping their organisations’ corporate strategy.
About 80 per cent of organisations indicated that they measure the programmatic and financial performance and progress of CSR initiatives in-house. This suggests that there is a growing trend towards implementing standardised monitoring processes to ensure accountability.
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Sumeet Salwan, Partner, Deloitte India, said that CSR has evolved from a compliance function to a strategic driver of corporate strategy, now prominently featured on boardroom and investor agendas. “The growing trend in CSR expenditure is a testament to it becoming an indispensable component of India’s development narrative, catalysing societal progress. We see strong leadership buy-in for integrating CSR as a strategic lever, helping the boardroom to focus on themes that directly address beneficiary needs and have a meaningful impact on the ground,” Salwan added.
According to the survey, approximately 25 per cent of participating organisations reported spending Rs 100 crore or more on CSR; those with over 15 years of experience established dedicated foundations to drive their CSR initiatives.
Technology – a crucial factor of CSR
Furthermore, technology is a crucial factor in shaping CSR’s future as more than one-third of participating organisations expressed their willingness to invest in technology solutions for effective management of CSR initiatives. However, about half of the organisations see technology as one of the top three challenges in CSR implementation. “Embracing technology is crucial for the evolving CSR sector. Companies recognise the need to invest in solutions such as big data analytics, AI and ERP for the effective implementation, execution and monitoring of CSR initiatives. To boost tech adoption, organisations should prioritise knowledge sharing, collaboration and upskilling through training programmes and collaborations with tech providers,” Amit Tandon, Partner, Deloitte India, said.
In addition to this, 65 per cent of the organisations had started conducting mandatory impact assessments following the amendments made to the CSR rules and regulations on 22 January 2021. Notably, most of these organisations are inclined towards output-led decision-making, recognising its pivotal role in driving enhanced growth and ensuring superior project outcomes. Most organisations’ CSR programmes focus on healthcare, sustainability, and education to tackle key societal issues.
