Customized Market Research Services in Corporate Social Responsibility (CSR) & Social Welfare Vertical in India

Corporate Social Responsibility (CSR) refers to operations organized by businesses and corporations that contribute to social causes beyond their core profit-making activities. As per Companies Act 2013, CSR is mandatory for companies having a turnover of more than INR 10 billion. Companies must allocate a certain percentage of their profits (minimum 2%) towards these initiatives, which led to a shift from voluntary philanthropy to a more impactful approach. These practices enable organizations to invest in areas like education, healthcare, skill & community development, and sustainability.

The CSR industry in India has undergone robust growth in the last few years. CSR market surveys indicate that the CSR market size of India stood at USD 3.6 billion in 2023, growing at a CAGR of 12.1%. More than 24,000 companies enrolled in the initiative with 51,966 CSR project developments in 2023.

Reliance Industries, Hero MotoCorp, Dabur, Godrej, Mahindra & Mahindra, Tata Corporation, ITC Limited, HDFC Ltd., SBI Ltd., and Adani Group were the major companies contributing to the CSR landscape of the country. Social market research highlights that the spending by companies has been rising, with substantial investments in sectors like education, healthcare, environment, and rural development. The landscape is continuously evolving, with the education sector being a top priority, followed by the healthcare vertical.

The Importance and Practice of CSR in India:
Corporate Social Responsibility (CSR) has been a crucial aspect for large businesses and corporations. These initiatives hold a strong potential to create an impact on society and benefit businesses' reputation. The enhancement of brand image attracts socially conscious consumers and investors supporting ethical businesses. CSR enables companies to contribute to the betterment of local communities by addressing critical social issues. Social impact studies in India play a significant role in measuring the long-term effectiveness of these initiatives. Impactful CSR initiatives can also result in boosting employee engagement by creating a more productive workforce.

Companies can enroll in CSR activities through various ways as discussed below:

• Carbon footprint, which is the total greenhouse gases released by organizations into the atmosphere. So, reducing these footprints using sustainable practices is a critical aspect of CSR activities.

• Participation in charitable works, encouraging fair trade of products, and investing in environmentally conscious businesses.

• Organizations can cater to responsibilities like promoting diversity in workplaces, supporting education and healthcare programs, and improving labor policies. Social research services in India assist companies in identifying key societal needs and designing effective CSR programs.

• For instance, major Indian companies focus on improving education standards, introducing skill development initiatives to tackle unemployment, and investing in healthcare initiatives to cater to underprivileged communities.

• Tata Trusts have been supporting education and healthcare, whereas Reliance Industries is focused on rural transformation and disaster relief. Infosys Foundation, under Sudha Murthy, leads various initiatives focusing on areas like social rehabilitation, education, and healthcare.

Market Growth Drivers:
• Consumers heavily purchase goods and services based on brand reputation and social responsibility. The rising consumer awareness compels brands to participate in CSR activities and demonstrate their commitment to social development.

• Under the Companies Act 2013, businesses and organizations must spend 2% of their net income over the preceding three years on CSR. This legal compliance boosted Corporate Social Responsibility spending, making the landscape more structured. As a result, the CSR spending crossed USD 4 billion in 2024.

• The GOI introduced schemes like Skill India and Swachh Bharat Abhiyan, which provide platforms for businesses and corporations to participate in CSR initiatives. These policies streamline CSR activities for companies with a well-structured framework to contribute to large-scale social development projects. Social welfare market research companies in India play a crucial role in helping businesses identify key areas for impactful CSR initiatives.

• Corporate Social Responsibility has been widely used as a strategic tool to foster trust among stakeholders and investors. A strong CSR campaign can boost brand reputation and enhance corporate reputation, which creates a positive impact among employees and consumers.

• Collaboration of major brands with NGOs has been a significant driver of CSR in India. Expertise and on-ground experience offered by NGOs helps companies to implement effective CSR programs. Market research for nonprofits is essential to evaluate the effectiveness of these collaborations and ensure long-term impact.

CSR Activities by Indian Brands:

I. Hindalco: The brand invested USD 4.5 million in CSR activities in 2023 with a primary focus on community development. They hosted initiatives like water access, medical camps in rural areas, and scholarships in the education sector. The company also indulged in sustainable farming training programs for women.

II. Tata Group: TCS and Tata Chemicals combined spent USD 28 million on corporate social responsibility practices. CSR market surveys indicate that Tata Chemicals focused on skill development programs like farmer's training and organic farming supporting more than 5000 farmers in 2023. Whereas TCS made major investments in the PM CARES Fund for COVID-19 relief.

III. ITC Limited: ITCs CSR projects were organized across 27 states/union territories creating an impact on more than 300 districts. Their initiatives included social forestry, biodiversity conservation, and various programs for women's empowerment such as education, skill training, and sanitation.

IV. Reliance Industries: The company spent USD 105 million on CSR initiatives in 2022 under the Reliance Foundation. Their CSR expenditure portfolio included USD 51 million in education, USD 13.3 million in healthcare, and a significant portion in promoting sports.

V. HDFC Bank: The bank contributed a substantial amount of USD 72.9 million in CSR activities in 2022. The major portion of spending was attributed to financial education programs, which accounted for USD 26.8 million. The company also contributed a significant amount to rural development, education, and startups. Social market research suggests that such initiatives play a crucial role in promoting financial literacy and rural empowerment.

VI. Infosys Corporation: The company spent an amount of USD 37.4 million on CSR programs through the Infosys Foundation. Key focus areas include medical equipment, infrastructure development, and various welfare projects for the Indian Army and their families.

How The India Watch Can Help

The India Watch can assist corporates, non-profit organizations, international & indigenous social development organizations, governing agencies, etc. to plan and execute tailor made market research solutions. Our market research and advisory solutions can assist in better stakeholder understanding, evaluate the current gaps, and create complete solutions from concept to scale. This will not just help in understanding communities better and find the best solution to engage with, but also assist in optimizing fund flows. 

Our range of services in the social welfare domain includes but are not limited to the following 

• CSR market surveys and on-ground data collections
• Impact studies of development projects 
• Policy analysis & research 
• Tailor made market studies
• CSR strategy planning 
• Thought pieces and advocacy reports 

For any further assistance, feel free to drop us a mail at info@theindiawatch.com

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