CSR in India has evolved through different phases, like community engagement, socially responsible production and socially responsible employee relations. Section 135 of the Companies Act, 2013 & The Companies (CSR Policy) Rules 2014 stipulates the provisions pertaining to Corporate Social Responsibility (CSR). Corporate Social Responsibility (CSR) has become an integral part of modern business practices, and its integration with project management can lead to sustainable and impactful outcomes.
As per Section 135 of the Companies Act, 2013, any company that meets any of the following criteria, during the immediate previous financial year
- Net worth exceeding ₹500 crore
- Annual turnover above ₹1000 crore
- Net profit over ₹5 crore
It is a mandatory requirement for Companies to spend at least 2% of the average net profit of the preceding three years towards ‘CSR Expenditure’ once it meets criteria specified in sub-section 1 of section 135 of Companies Act, 2013 and Rule 3 of Companies (CSR Policy) Rules, 2014.
Schedule VII of the Companies Act 2013 serves as an essential element of the Corporate Social Responsibility framework. The CSR activities which may be included by companies in their CSR policies are listed in Schedule VII of the Act. It provides clarity and serves as a guide for companies to decide on CSR activities or projects.
Read more on Schedule VII here
Role to be played by CSR team & CS team in CSR project management
Professional social workers / CSR team and CS team plays a crucial role in developing and executing CSR initiatives. They leverage their expertise to solve social issues and community development while designing and executing CSR programs that are both impactful and sustainable. They are responsible to implement the CSR project management cycle as below-
- Selecting the right NGO or implementing Agency for effective CSR project implementation
- Ensuring CSR fund given for the project or activity is in align with CSR policy and annual action plan of the Company
- Making sure Implementation of Project within decided timeline
- Monitor & evaluation of the project
- Conducting Impact Assessment by external agency
- Getting utilization certificate from the NGO
- Ensuring timely transfer of unspent amount of ongoing project and other than ongoing projects
- Report on CSR projects with details
Objectives of the CSR Project
Company requires to decide upon the objective to plan the CSR project or activity.
- To create Social Impact – education, healthcare, rural empowerment
- Environmental Sustainability – renewable energy, waste management
- For Employee Engagement – volunteering & skill-based initiatives
Enhancing Business Value – reputation, risk management, sustainability
Now, let’s understand the CSR Project Cycle
There are four stages- planning, implementation, monitoring & evaluation and reporting.
- Planning Phase – Needs assessment, feasibility, budgeting
- Identify social/environmental issues via surveys & consultations
- Define SMART Goals (Specific, Measurable, Achievable, Relevant, Time-bound)
- Stakeholder mapping – community, employees, regulators
- Allocate resources – funds, manpower, technology
- Implementation Phase – Execution with NGOs/government bodies
- Partner with NGOs, community groups, government
- Launch employee volunteering & skill-based programs
- Align CSR projects with company strengths (e.g., IT → digital literacy)
- Set timelines, deliverables, and milestones
- Monitoring & Evaluation – KPIs, performance measurement
- Define KPIs (beneficiaries, objectives, etc)
- Use tools – dashboards, impact assessment frameworks
- Collect beneficiary & stakeholder feedback
- Adapt project strategy based on evaluations
- Reporting – Communicating results to stakeholders
- Prepare annual CSR reports (Companies Act & ESG standards)
- Align with UN SDGs, GRI, and global frameworks
- Showcase outcomes through impact stories & data
- Promote transparency & build stakeholder trust
Some of the Best Practices for CSR Project Management
- Align CSR activity or project with core business values & strengths
- Establish long-term partnerships with NGOs & communities to make better impact with CSR project
- Practice of timely complying with provisions of section 135 & CSR rules
- Encourage employee participation at all levels
- Use technology & analytics for tracking CSR outcomes
