Corporate Social Responsibility (CSR) has become an integral part of corporate culture in India, with companies increasingly recognizing their role in societal development. In recent years, there has been a notable shift in the focus of CSR initiatives, with sports emerging as a significant area of investment. This trend is expected to surge in the coming years, driven by various factors, including government policies, the rising popularity of sports, and the recognition of sports as a tool for social change.
Government Policies and Incentives
In order to promote CSR spending on sports, the Indian government has been instrumental. Companies with a minimum turnover, net worth, or profit are required by the Companies Act, 2013 to devote 2% of their average net profits over the preceding three years to corporate social responsibility (CSR) initiatives. Businesses have been greatly encouraged to engage in this industry by the Act’s inclusion of sports marketing in Schedule VII.
Moreover, initiatives such as Khelo India, launched by the Ministry of Youth Affairs and Sports, aim to revive the sports culture at the grassroots level by building a strong framework for all sports played in India. Such programs not only create a conducive environment for sports development but also offer companies an opportunity to contribute to national objectives through their CSR initiatives.
Rising Popularity of Sports
Over the past ten years, there has been a change in India’s athletic scene. While cricket remains the most popular sport, other sports including football, badminton, and kabaddi have become increasingly popular. The popularity and visibility of these sports have grown as a result of the success of leagues like the Premier Badminton League, Pro Kabaddi League, and Indian Super League (football).
Sports as a Tool for Social Change
Sports have a unique ability to bring about social change. They promote physical health, discipline, teamwork, and inclusivity. Recognizing this potential, many companies are now channeling their CSR funds towards sports development programs that focus on underprivileged communities.
For instance, several corporations are supporting initiatives that provide sports training and infrastructure in rural areas. These programs not only identify and nurture talent but also offer children an avenue to improve their social and economic conditions through sports.
Success Stories and Future Prospects
There are several examples of successful businesses using their CSR efforts in sports to make a big difference. Notable examples are Jindal Steel and Power’s involvement in promoting hockey and the Tata Group’s longstanding support for athletics. Numerous national and international athletes who have brought honors to the nation have resulted from these programs.
Looking ahead, the trend of increased CSR spending on sports is expected to continue. Companies are likely to explore innovative ways to integrate sports into their CSR strategies, including partnerships with sports academies, funding for infrastructure development, and support for athletes’ training and development.
In India, it appears that CSR expenditure on sports will continue to grow. India Inc. is well-positioned to significantly impact the sports ecosystem thanks to encouraging government policies, the rising acceptance of the value of sports in societal development, and the growing popularity of a variety of sports. This increase in funding will not only improve India’s performance in sports but also spur social transformation, making sports a crucial part of CSR programs.
