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CSR full form is Corporate Social Responsibility. It is a type of business model where a business is accountable to stakeholders as well as the public for its impact on society and the environment. India was the first country in the world to make CSR spending legally mandatory for certain companies under the Companies Act, 2013.
In this blog post, we shall explain to our readers what is CSR, who first coined this term, the applicability of CSR and the top 10 CSR companies in India.
CSR full form is Corporate Social Responsibility. CSR is a popular concept under the Companies Act, 2013, and India was the first country in the world to legally adopt it. However, the term ‘Corporate Social Responsibility’ was originally coined in America. In 1953, the American economist Howard Bowen first used the term ‘Corporate Social Responsibility’ in his book called Social Responsibilities of the Businessman. Bowen is often referred to as the ‘father of CSR’.
CSR is nothing but a business concept in which a company takes social and environmental responsibilities into account while running its day to day operations and dealing with its stakeholders. It shows how serious the company is about acting ethically and giving back to society rather than purely focusing on profits or meeting minimum legal requirements.
In India, CSR is actually a mandatory requirement for companies that meet certain financial thresholds. Section 135 of the Companies Act 2013 lays down the exact criteria and rules they need to follow, including how much they must spend and what kind of CSR activities they should carry out.
The main categories of CSR activities are as follows. :-
Environmental Responsibility :- This type of CSR is quite similar to Environmental, Social and Governance (ESG). It focuses on initiatives that are aimed at reducing the company’s environmental impact as well as making positive contributions to nature like planting trees and hosting trash cleanup campaigns.
Ethical Responsibility :- In this CSR type, a company ensures that it is committed to running its business in an accountable and honest manner. It focuses on maintaining transparency with all the stakeholders, including the clients and investors. Some examples of this CSR type are equitable labour standards, diversity and inclusion work policy and transparent governance.
Philanthropic Responsibility :- This CSR category involves a company's commitment to give back to local communities/society through charitable donations, community programs and volunteering initiatives. Its objective is basically to improve the quality of life in the communities where the company functions.
Economic Responsibility :- This category of CSR ties a business’s financial decisions to social good. It balances responsible financial management and financial support for causes that positively benefit the society like investing in local communities and transparent reporting.
If a company meets any of the below-mentioned conditions in the preceding financial year, then the provisions of CSR, under Section 135 of the Companies Act 2013, will be applicable to it:-
Net worth exceeding Rs.500 crore threshold.
Turnover exceeding Rs.1000 crore threshold.
Net profit exceeding Rs.5 crore threshold.
If a company meets any of the above-mentioned conditions, then it must establish a Corporate Social Responsibility (CSR) committee. Such a company must also make sure that it spends at least 2% of its average net profits from the last three financial years as per CSR policy based on CSR activities listed in Schedule VII of the Companies Act 2013, such as promoting education, health and environmental sustainability.
If the company is new and hasn’t completed three financial years yet, then it must spend 2% of the average net profits made during the immediately preceding financial years, following its CSR policy.
The top 10 CSR companies in India, according to the author, are stated below. All these companies engage in extensive CSR activities. :-
1. HDFC Bank Ltd. :- HDFC Bank Ltd is one of the leading CSR companies in India. It is one of the major players in the Indian banking sector. Its CSR initiatives focus on environmental and social development in several areas like:- (i) Education, (ii) Healthcare, (iii) Sanitation and (iv) Sustainable Livelihood Programs to name a few.
2. Reliance Industries Ltd. :- Reliance is the largest Indian conglomerate. It is heavily engaged in CSR activities through Reliance Foundation. Some of the key CSR areas it focuses on are:- (i) Rural Transformation, (ii) Health, (iii) Education, (iv) Sports, (v) Disaster Response, (vi) Environment and (vii) Arts & Culture.
3. Tata Consultancy Services (TCS) :- TCS is a part of one of the Tata Group, which is renowned for its deep commitment to philanthropy. It engages in several CSR activities’ areas like women empowerment, education, health, environment and skill development.
4. ONGC Ltd. :- ONGC is India's largest government-owned oil and gas explorer and producer. Due to its CSR initiatives in areas like Health Care, Education, Skill Development, Swachh Bharat and Rural Development, it has brought a positive change to the society.
5. Tata Steel Limited :- It is one of the largest steel companies in India. The CSR initiatives of this company emphasize the spread of quality education, healthcare and sustainable livelihood opportunities among others.
6. Infosys Ltd. :- In the IT sector, Infosys is one of the major players. Its CSR activities focus heavily on education, healthcare, rural development, environmental sustainability, etc. It has a foundation known as Infosys Foundation to carry out CSR activities.
7. ITC Ltd. :- ITC is a key player in the Indian FMCG sector. It is involved in CSR activities in areas like poverty alleviation, education, healthcare, sanitation, environmental sustainability and rural development among others.
8. ICICI Bank Ltd. :- ICICI Bank is one of the leading banks in the banking sector of India. Its CSR activities include Education & Skill Development, Healthcare & Sanitation, Sustainable Environment and Financial Inclusion & Rural Development.
9. Power Grid Corporation of India Ltd. :- Power Grid Corporation of India is a leading player in the power transmission infrastructure. It engages in CSR activities that focus on areas like healthcare, education, rural development, drinking water & sanitation and skill development.
10. Hindustan Unilever Ltd. :- Hindustan Unilever is one of the top FMCG players in India. It is one of the top CSR companies in India, and focuses on health, hygiene, sustainability, women empowerment and rural development among others.
CSR stands for Corporate Social Responsibility. There are four main categories of CSR, namely, ethical responsibility, philanthropic responsibility, environmental responsibility and economic responsibility. Although CSR is voluntary in many countries, in India it is mandatory for certain companies that cross specific financial thresholds under the Companies Act 2013.
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Q1. What is CSR full form?
A. CSR full form is Corporate Social Responsibility. It refers to a business concept wherein a company is accountable for its impact on the environment as well as the society.
Q2. Who is known as the father of CSR?
A. American Economist Howard Bowen is known as the father of CSR. He is known for first coining the ‘Corporate Social Responsibility’ term in 1953 in his book ‘Social Responsibilities of the Businessman’. In this book, he identified corporations’ great power and recognized that their actions had a tangible impact on society.
Q3. Which country was the first country in the world to legally enforce CSR?
A. India was the first country in the world to legally enforce CSR through Companies Act 2013.
Q4. Does Tata Group engage in CSR activities?
A. Yes, the Tata Group engages in extensive CSR activities that focus on education, healthcare, livelihoods, environmental preservation and rural development. Its activities impact millions of lives.
Q5. Does the Adani Group engage in CSR activities?
A. Yes, the Adani Group does engage in CSR activities through its CSR arm known as the Adani Foundation. This foundation focuses on health, education, sustainable livelihood development and rural infrastructure among others.
Q6. What are the top 10 CSR companies in India?
A. According to the author, the top 10 CSR companies in India include: (1.) HDFC Bank Ltd., (2.) Reliance Industries Ltd., (3.) Tata Consultancy Services (TCS), (4.) ONGC Ltd., (5.) Tata Steel Limited, (6.) Infosys Ltd., (7.) ITC Ltd., (8.) ICICI Bank Ltd., (9.) Power Grid Corporation of India Ltd., (10.) Hindustan Unilever Ltd.
Q7. What are the main categories of CSR?
A. The main categories of CSR are environmental responsibility, ethical responsibility, philanthropic responsibility and economic responsibility. Each category has its own significance.
Q8. Which Schedule of the Companies Act 2013 lists the activities that companies can undertake for CSR?
A. Schedule VII of the Companies Act 2013 lists the activities and projects that companies can undertake for CSR. Some of them are hunger and poverty eradication, education and healthcare promotion and environmental protection.
Disclaimer :- This blog post is meant for educational purposes only. Please note that while the author has made every effort to ensure the accuracy of the information provided, its complete accuracy cannot be guaranteed.
Ms. Kashish Kumar is a content writer with a background in legal studies and over five years of experience. She’s written extensively on legal topics and supported non-profits like PETA, CRY, and WWF. A passionate reader, she enjoys books and blogs alike.
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