THE IMPORTANCE OF CSR IN THE EXPANSION OF SPORTS

Sustainability includes how you run your business, and my bottom line includes how you treat your people. Sustainability starts with your staff.

- Tom Douglas

Although CSR stands for Corporate Social Responsibility, it can refer to a wide range of activities such as charitable giving, community service, moral business conduct, environmental sustainability, and social endeavours. Businesses must go above and beyond their traditional profit-making goals in order to actively engage in activities that benefit society, such as minimising their carbon footprint, supporting philanthropic causes, or creating ethical work practises. Despite the Indian government's support for CSR projects in the sports business, corporate investment in the sector has been historically low. This article will look at how corporate social responsibility (CSR) has evolved in India, how it has influenced the expansion of the sports industry, why more businesses should give, and how CSR might help India's Sports for Development (S4D) movement. 

India's CSR History 

Since the early twentieth century, the concept of Corporate Social Responsibility has existed in India. According to the Indian Corporations Act of 1948, businesses must report their profits as well as monies allocated to CSR projects. CSR, on the other hand, did not gain popularity in India till the 1990s.

Under the Companies Act, which was passed in 2013, the Indian government mandated that companies with a net worth of at least 500 crores, a turnover of at least 1000 crores, or a net profit of at least 5 crores spend at least 2% of their average net earnings over the previous three years on CSR activities. This was a watershed point in the growth of CSR in India since it compelled businesses to invest in it.

CSR has since developed as a critical component of the Indian business scene. CSR projects in sports, community development, poverty reduction, healthcare, education, and the environment are being funded by companies from all industries.

Overall, CSR has grown steadily in India, with a rising understanding of how corporations may have a good social and environmental impact. 

Sporting CSR 

According to the Indian firms Act 2013, firms can incorporate in their CSR activities "training to promote rural sports, nationally recognised sports, Paralympic sports, and Olympic sports." In 2016, CSR duties for sports were expanded to include "construction, renovation, and maintenance of stadiums, gymnasiums, and sports science support including rehabilitation centres" as permissible CSR activities.

For fiscal 2020-21, the total CSR spend on sports was 249.49 crore, with donations from 583 companies, with Karnataka being the largest giver. When compared to total CSR spending of 25714.65 Cr, the amount is substantially lower, accounting for less than 1%! 

What role can CSR play in the growth and promotion of sports in India?

CSR can play a significant role in the development and promotion of sports in India. Here are a few examples of how CSR can assist:

1. Infrastructure growth: By constructing new stadiums, sports facilities, and training centres, many corporations can contribute to the growth of sports infrastructure in India. These facilities can assist athletes improve their training and bring additional athletic events to the country.
2. Funding and sponsorship:Companies can also give sponsorship and financing for various sports events and teams, as well as individual athletes, which can assist promote sports by boosting training quality, quality equipment, and participation in tournaments. 
3. Skill Development: CSR projects can be conducted to enhance sports skill development. This could involve coach training programmes, sports science research, and the creation of training modules for athletes.
4. Grassroots Development:Companies can also emphasise grassroots development by promoting sports and encouraging participation in schools and universities. This can be done through financing local sports teams, providing sports equipment and teaching, and hosting sporting events and tournaments.
5. Promoting Diversity and Inclusion:By giving opportunities and support to underrepresented groups like women and persons with disabilities, businesses can use CSR initiatives to promote diversity and inclusion in sports.
6. Sports Science:CSR can assist teams and athletes prepare for competition by providing them with access to high-quality sports science.

Overall, CSR activities can play an important part in growing and promoting sports in India by providing players with cash, facilities, and support, as well as promoting sports as a healthy and satisfying activity for everybody.

Barriers to CSR in sports

One barrier to CSR in sports is the perception that sports is more of a spectacular presentation, with success and profit coming first and social and environmental responsibilities coming second.

Another barrier is a lack of understanding or research on how corporations might contribute to sports. Sports are not held in the same regard by corporate executives as other subjects. As previously said, just a few companies have demonstrated an interest in focusing their CSR activities on sports.

Additionally, finding appropriate CSR initiatives and working with partners may be challenging for sports organisations.There may also be different perspectives inside the organisation on the relevance of CSR, making it difficult to reach agreement on which activities to undertake.

Finally, some stakeholders may regard sports organisations' CSR endeavours as simple publicity gimmicks rather than serious efforts to make a beneficial difference. This might make it difficult for sports organisations to acquire stakeholder trust and support for their activities.

Written by

Akshay Singh Rawat

LinkedIn