According to the recently published 2022 CSR India Outlook Report, the states of Maharashtra, Odisha, and Delhi account for around 25% of the corporate social responsibility (CSR) spending in India. However, the northeastern region of the country receives only 2.44% of this funding.
CSR is the practice of companies allocating a portion of their profits towards social and environmental initiatives in the communities in which they operate. It is a mandatory requirement for companies in India with a net worth of 500 crore rupees or more or those that have an annual turnover of 1,000 crore rupees or more.
The report shows that Maharashtra, Odisha, and Delhi received the largest share of CSR funds, with Maharashtra alone receiving 11.53% of the total. In contrast, the northeastern states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura received a mere 2.44% of the funds.This is a cause for concern, as the region is one of the most socio-economically and culturally diverse in the country and has a high incidence of poverty and underdevelopment.
There could be several reasons for the low CSR spending in the northeast region. One of the main reasons could be the lack of awareness about the importance of CSR among companies operating in the region. Another reason could be the lack of infrastructure and resources for implementing CSR projects in the region.It is imperative that companies take steps to increase their CSR spending in the region. This could be done through partnerships with local NGOs and community organizations and by identifying and addressing the specific needs of the region. It is also important for the government to facilitate the implementation of CSR projects in the region by providing the necessary infrastructure and resources.
Some of the other key highlights of the report are that Reliance Industries, HDFC Bank, Tata Consultancy Services, ONGC, and Tata Steel emerge as the top 5 companies based on actual CSR spending in India. These five companies account for more than 1/4th of total CSR spending. In addition to this, theme-wise, the majority of CSR spending in the country goes towards poverty, health, and WASH (35.67%), education (25.3%), with a smaller portion going towards rural development (8.89%) and environmental sustainability (6.96%). This is a positive trend, as these sectors are crucial for the overall development of the country.
In conclusion, while Maharashtra, Odisha, and Delhi are leading the way in terms of CSR spending, the northeast region is far behind. It is clear that more needs to be done to encourage companies to invest in the Northeast region and address the pressing issues facing its communities. The government and private sector must work together to ensure that the Northeast receives a fair share of CSR spending and is not left behind in the country’s development.