INTRODUCTION

Corporate Social Responsibility (CSR) refers to the self-regulated practices by

companies to contribute to societal goals—be it through philanthropy, ethical labour
practices, environmental sustainability, or community development. In India, CSR has
transitioned from voluntary practices to a legally mandated activity under the
Companies Act, 2013, positioning the country as one of the first to formalize CSR
spending into law.

LEGAL AND REGULATORY FRAMEWORKS

➢ Section 135 of the Companies Act, 2013

Mandates CSR for companies meeting any of the following thresholds:

• Net worth ≥ ₹500 crore

• Turnover ≥ ₹1000 crore

• Net profit ≥ ₹5 crore

CSR Compliance Requirements:

• Minimum 2% of average net profits (last 3 years) to be spent on CSR.

• Companies must form a CSR Committee to:

o Recommend CSR policy.

o Monitor activities and spending.

• Unspent CSR amount (if not related to ongoing projects) must be transferred to
the Prime Minister’s National Relief Fund or specified funds within 6 months.

Companies Covered

The CSR provisions are applicable to all types of companies, such as public limited,
private limited, and foreign companies operating in India, subject to the financial
criteria. This includes holding companies and subsidiaries. Small enterprises, startups,
or companies that do not qualify are not obliged to undertake CSR, although they can
do so voluntarily.
AREAS OF CONTRIBUTION

Under Schedule VII of the Companies Act, a company may implement CSR initiatives
through the following sectors:

1. Eradication of hunger, poverty and malnutrition, improvement of healthcare including

preventive health care and sanitation, and providing safe drinking water.

2. Improving education including special education and providing employment-

enhancing vocational skills primarily among children, women, old, and physically
challenged persons.

3. Improvement in gender balance, empowering women, and establishment of homes

and hostels for women and orphans.

4. Providing for environmental sustainability, ecological equilibrium, protection of

plants and animals, natural resource conservation, and soil, air, and water quality
conservation.

5. Conservation of national heritage, art, and culture with the restoration of buildings
and historic sites of cultural significance.

6. Initiatives in the interest of armed forces veterans, war widows, and their
dependents.

7. Rural sports, countrywide recognized sports, and Olympic sports promotion through
training.

8. Contribution towards the Prime Minister's National Relief Fund, or other similar funds
established by the government towards socio-economic progress.

9. Rural area and slum area development schemes, and affordable housing and
infrastructure development schemes.

10. These categories indicate a broad spectrum of developmental objectives

commensurate with national priorities and international sustainable development goals
(SDGs).

MONITORING AND EVALUATION

• Companies must report CSR activities in their Annual Report.

• Impact assessments are mandatory for companies with average CSR obligation
≥ ₹10 crore (as per amended rules in 2021).

• Tools used: Logical Framework Analysis, Social Return on Investment (SROI),

third-party audits.
CSR and SDG Alignment

➢ Many companies now align their CSR programs with UN Sustainable Development
Goals (SDGs):

CSR Area Aligned SDGs

Education & Skill SDG 4 – Quality Education
Women Empowerment SDG 5 – Gender Equality
Healthcare SDG 3 – Good Health and Well-being
Clean Energy & Environment SDG 7, 13 – Clean Energy, Climate Action
Water & Sanitation SDG 6 – Clean Water and Sanitation
Livelihood & Inclusion SDG 8, 10 – Decent Work and Reduced Inequalities

CONCLUSION

Corporate Social Responsibility is now not a choice but a necessary part of corporate
behaviour in India. It is a sign of the move towards responsible capitalism and
stakeholder-oriented business models. With proper intent, governance, and strategy,
CSR can lead to transformative change and support inclusive growth and sustainable
development.

REFERENCES / ANNEXURES

➢ Companies Act, 2013

➢ CSR Rules, 2014 and Amendments
➢ Ministry of Corporate Affairs Guidelines
➢ Annual Reports of Indian Corporations
➢ UN Sustainable Development Goals SDGs
TATA MOTORS LTD.

Tata Motors views Corporate Social Responsibility (CSR) not merely as a regulatory
obligation but as a strategic commitment to nation-building and sustainable
development. As a flagship company of the Tata Group, it continues to uphold the
Group’s legacy of ethical governance and community stewardship. Tata Motors aligns
its CSR vision with both national development priorities and global frameworks such as
the United Nations Sustainable Development Goals (SDGs), aiming to create inclusive,
equitable, and measurable impact. Its CSR interventions are focused on four key
pillars—health, education, employability, and environmental sustainability—reflecting
a deep-rooted belief in empowering communities and nurturing ecosystems. In FY2023-
24, despite not having a statutory CSR obligation due to previous financial performance,
the company voluntarily invested ₹21.59 crore toward high-impact initiatives. These
initiatives were delivered through a collaborative approach involving government
bodies, implementation partners, and employee volunteers. Leveraging digital
platforms for real-time monitoring and adopting Social Return on Investment (SROI)
frameworks, Tata Motors ensures transparency, accountability, and data-driven
decision-making in its CSR programmes. The company’s sustained efforts are a
testament to its purpose-driven philosophy—serving not just shareholders, but society
at large.

Initiatives:

1. Health – Aarogya (For a Healthier India)

Under the Aarogya initiative, Tata Motors has made significant contributions to
improving health outcomes in underserved communities. The program primarily
focuses on child and maternal health, aiming to reduce malnutrition among children
aged 0–6 years. It promotes both preventive and curative healthcare through awareness
programs for mothers and caregivers, mobile medical units, health check-up camps,
and collaboration with government health infrastructure. In FY24 alone, over 5.7 lakh
individuals benefited from these health interventions, underscoring the initiative’s wide
reach and impact.
2. Education – Vidyadhanam (For an Educated India)

Tata Motors’ Vidyadhanam initiative focuses on improving the quality of education and
ensuring access for marginalized children. The company has been instrumental in
upgrading school infrastructure, providing need-based scholarships, and supporting
after-school coaching and digital education. This initiative also nurtures holistic
development through arts, sports, and co-curricular activities. In FY24, 1.5 lakh
students benefited from these efforts, many of whom were from economically and
socially disadvantaged backgrounds.

3. Employability – Kaushalya (For a Skilled India)

The Kaushalya initiative targets youth employability by imparting vocational skills that
are aligned with industry needs. Programs under this initiative provide trade-specific
training in sectors such as automotive, agriculture, electrical services, and retail.
Special attention is given to ITI graduates, 12th pass students, and underprivileged
youth, including women and people with disabilities. During FY24, over 31,500 youth
were trained, with 23% being female candidates, supporting the cause of gender
inclusion and economic empowerment.

4. Environment – Vasundhara (For a Greener India)

Through its Vasundhara initiative, Tata Motors actively promotes environmental

sustainability. The program includes large-scale afforestation drives, the creation of
microhabitats, awareness campaigns on biodiversity, and partnerships for ecological
restoration. In FY24, the company planted over 11.3 lakh trees and conducted
sensitization drives that reached 1.47 lakh individuals. These efforts reflect the
company’s ongoing commitment to environmental stewardship and climate resilience.

5. Water Security – Amrutdhara

The Amrutdhara initiative is focused on water conservation and access to clean drinking
water in water-scarce regions. The program includes the rejuvenation of traditional
water bodies, construction of check dams, and promotion of rainwater harvesting. In
FY24, 106 water bodies were rejuvenated, resulting in a 30% increase in groundwater
levels and a marked reduction in waterborne diseases. This initiative plays a vital role in
supporting both community health and agricultural livelihoods.
CSR Obligation:
 Financial Year Net Profit / (Loss) (₹ Crores) CSR Spend (₹ Crores)

FY15 13,986 22.72

FY16 11,678 26.75
FY17 7,454 25.69
FY18 9,091 26.9
FY19 -28,724 25.49
FY20 -11,975 25.65
FY21 -13,395 19.34
FY22 -11,441 24.72
FY23 2,414.29 20.81
FY24 31,806.75 21.59

An analysis of Tata Motors’ net profit and CSR spend over the last ten financial years
reveals a remarkable commitment to social responsibility, even during periods of
financial downturn. From FY2015 to FY2024, the company experienced significant
volatility in profitability, with six of the ten years reflecting net losses, including major
downturns in FY2019 (₹−28,724 crore) and FY2021 (₹−13,395 crore). Despite these
fluctuations, the CSR spend remained relatively stable, ranging between ₹19 crore
and ₹27 crore annually, with an average of ₹24.27 crore over the period. Interestingly,
even in years with negative profitability—where CSR expenditure was not legally
mandated—Tata Motors continued to invest in CSR, underscoring a values-driven rather
than compliance-driven approach.

The coefficient of variation (a measure of relative variability) for net profit is 223%,
indicating very high volatility, while for CSR spend it is only 11.9%, highlighting
consistent financial commitment to social impact. Notably, in FY2024, the company
posted a record net profit of ₹31,806.75 crore, but the CSR spend (₹21.59 crore)
remained close to its long-term average. This suggests that the company’s CSR
allocation does not scale proportionally with profits but is instead guided by strategic
planning and long-term commitments. The data reflects Tata Motors’ continued
dedication to sustainable development and inclusive growth, independent of short-
term financial performance.
VEDANTA LTD.

Vedanta Limited is committed to conducting its business in a socially responsible,

ethical, and environmentally friendly manner. The company continuously works to
improve the quality of life for communities in and around its operational areas. Its CSR
vision is: “Empowering communities, transforming lives and facilitating nation building
through sustainable and inclusive growth.” This is achieved by integrating CSR into
Vedanta’s core business strategy and focusing on inclusive growth through proactive
engagement and sustainable interventions. The company’s CSR thematic focus areas
include children's well-being and education, women’s empowerment, health care,
drinking water and sanitation, sustainable agriculture and animal welfare, skilling for
youth, environmental protection, sports and culture, and community infrastructure. It
also includes participation in national priority programs such as disaster response. In
FY 2023–24, the total CSR obligation was ₹107 crore, and the company spent ₹131
crore, creating an excess spend of ₹24 crore, which can be carried forward. No unspent
funds or capital assets created were reported.

Initiatives:

1. Nand Ghar Initiative

Vedanta’s flagship CSR initiative, Nand Ghar, aims to modernize Anganwadi centres
under the Government of India’s Integrated Child Development Services (ICDS)
scheme. As of FY 2023–24, more than 6,044 Nand Ghars have been established across
14 states. These centres provide early childhood education through e-learning-enabled
classrooms, nutritious meals, solar-powered infrastructure, clean drinking water, and
sanitation facilities. Nand Ghar also empowers women through skill development and
entrepreneurship training. The initiative has benefited over 3.9 lakh women and
children during the year. Notably, Vedanta distributed more than 66 lakh nutri-bars and
served over 4.5 crore meals to combat malnutrition. The initiative is aligned with
national flagship missions such as Swachh Bharat Abhiyan and Beti Bachao, Beti
Padhao. As part of its long-term vision, Vedanta aims to scale this initiative to 29,000
centres by FY 2029–30, with over 13.3 million individuals already uplifted.

2. FACOR Saathi Project

The FACOR Saathi initiative, implemented in Odisha’s Kendujhar district, is designed to

foster sustainable development through healthcare, education, and infrastructure
interventions. Under the ‘Aarogya’ (Health) component, Mobile Health Units have been
deployed across six villages, 240 health camps were organized, and over 15,238 people
received medical care. The initiative also supports TB Mukt Gaon, benefiting 30 TB
patients with nutritional kits and follow-up services. The ‘Shiksha Amrit Paryojana’
(Education) component includes two schools, two remedial coaching centres, and
three science labs, benefiting 159 students with structured education and 125 with
remedial assistance. Project Ladli, a sub-initiative under education, promotes
menstrual hygiene among adolescent girls through 20 awareness clubs, reaching more
than 590 girls. Lastly, the ‘Gaon Kalyan’ (Community Development) pillar has resulted
in the construction of parks, roads, community sheds, and gram chaupals to strengthen
village infrastructure.

3. Swajal – Environment and Community Development

Swajal focuses on ensuring access to clean drinking water and improving

environmental sustainability. In FY24, the project benefited over 18,075 people,
aligning with Vedanta’s water stewardship goals. It includes construction of water
harvesting and filtration systems, community ponds, and initiatives for better
sanitation.

4. TACO – The Animal Care Organisation

Vedanta launched TACO (The Animal Care Organisation) as a first-of-its-kind animal

welfare initiative in India. Operating in the states of Haryana and Rajasthan, TACO is
dedicated to improving animal health and supporting biodiversity. The initiative includes
mobile veterinary services, training programs for animal caregivers, shelter facilities,
and rescue operations. It also extends support to national wildlife reserves such as
Ranthambore and Ramgarh Visdhari, aiding in conservation and cohabitation efforts.
TACO not only reflects Vedanta’s environmental and social responsibility but also
contributes to a more holistic ecosystem approach in CSR.
CSR Obligation:

Spend Breakdown:
 Financial Year Net Profit / (Loss) (₹ Crores) CSR Spend (₹ Crores)

FY2014–15 5,097 274

FY2015–16 2,910 300
FY2016–17 -10,931 320
FY2017–18 8,045 330
FY2018–19 5,215 309.24
FY2019–20 2,615 296
FY2020–21 10,602 331
FY2021–22 23,710 399
FY2022–23 10,574.00 454
FY2023–24 4,239.00 438

ANALYSIS:

An evaluation of Vedanta Limited’s financial and CSR performance from FY2015 to

FY2024 reveals a company committed to societal investment, even amidst
considerable earnings volatility. The net profit data indicates significant fluctuations,
with a notable loss of ₹10,931 crore in FY2017, contrasted by a peak profit of ₹23,710
crore in FY2022. Calculating the standard deviation of net profit, we get
approximately ₹9,932 crore, highlighting the high volatility in profitability.

In contrast, CSR spending has remained remarkably consistent, ranging between

₹274 crore and ₹454 crore, with a standard deviation of just ₹59 crore, and a
coefficient of variation of 13.8%, compared to 179% for net profit. This consistency in
CSR spend—despite unpredictable financial outcomes—demonstrates that Vedanta’s
CSR strategy is value-driven rather than profit-linked. The company maintained an
average CSR spend of ₹346.82 crore across the decade, even during years of lower
profits or operational challenges. Such disciplined allocation underscores a strong
alignment with sustainable development goals and reflects Vedanta’s prioritization of
long-term social impact over short-term financial fluctuations.