CSR Contributions to Agriculture

Syllabus: GS 3/Economy, Agriculture

In News 

• According to the National Corporate Social Responsibility (CSR) Portal, from 2014 to 2023, ₹1.84 lakh crore of CSR funds were disbursed.

Corporate Social Responsibility (CSR) 

• It involves companies taking responsibility for their impact on environmental and social well-being, working to improve society and reduce negative impacts.
• India’s CSR Mandate: India became the first country to legally mandate Corporate Social Responsibility (CSR) under Section 135 of the Companies Act 2013.
  • It requires companies to undertake social welfare projects. 
  • It aims to advance sustainable development goals and foster public-private partnerships to drive India’s transformation.

Thrust Areas for CSR Initiatives

• Education: Investments in schools, scholarships, educational resources, and infrastructure improvements, especially in underserved communities.
• Health: Improving healthcare access through hospital construction, mobile clinics, and telemedicine for underserved areas.
• Employment: Creating job opportunities, skill training, and inclusive hiring to support marginalized groups.
• Skill Development: Programs for technical and vocational training, apprenticeships, and certifications.
• Sports: Supporting sports events, building facilities, and promoting participation among youth and marginalized groups.
• Livelihood: Enhancing livelihoods with support for income-generating activities, microfinance, and sustainable practices.
• Environmental Sustainability: Reducing ecological impact through conservation, eco-friendly practices, and resource management.

Need in Agriculture sector

• Agriculture employs nearly 47% of India’s workforce and contributes 16.73% to GDP.
  • However, challenges include natural resource degradation, stagnant farmer incomes, and climate threats.

CSR Contributions to Agriculture

• Many companies are focusing CSR efforts on climate action and sustainability in agriculture.
• An outlook report showed that 23% of surveyed companies prioritize “environment and sustainability” for CSR.
• CSR funds support agriculture through projects like grain banks, farmer schools, livelihood projects, water conservation, and energy-efficient irrigation.

Main Challenges

• There is no precise way to track CSR funds specifically targeted at agriculture due to a lack of categorization in reporting mechanisms.
• Agricultural sustainability-related CSR activities can fall under 11 sectors listed in Schedule VII of the Companies Act. These categories are broad, making it hard to track agriculture-specific CSR spending.

Future Recommendations

• Developing a sector-specific CSR reporting framework would help address agricultural sustainability needs effectively and support India’s sustainable growth and just transition goals.
•  To ensure effective funding and impact, agriculture should be specified as a distinct sector in CSR reporting.
•  This would enhance targeting, transparency, and assessment of CSR contributions to agriculture.

Source: TH