Impact of CSR on sports development
Corporate Social Responsibility (CSR) helps companies create and develop their social investment strategies and also empowers them to decide where they can implement programs and for what cause. The government also recommends particular areas of need, namely education, eradication of hunger and poverty, promotion of gender equality, and more.
Companies have the option to choose the areas where they invest their funds, yet local areas are the ones that are generally recommended as well as focused on. Also, if companies cannot conduct these activities on their own, they have the option of investing their respective amount towards the government’s welfare programs.
According to Schedule VII of the Companies Act 2013, any company having a net worth of ₹500 crore or more, a turnover of ₹1000 crore or more, or a net profit of ₹5 crore or more, should mandatorily spend at least two percent of its last three years' average net profit on CSR activities.
Corporate Social Responsibility (CSR) is divided into 4 types:
Environmental responsibility: This category, as the name suggests, refers to the organization’s commitment towards sustainability and focuses on environmentally friendly operations of the company.
Ethical/Human rights social responsibility: This type consists of looking at the ethical nature of the company and includes various facets, such as analyzing if the company treats its employees and stakeholders fairly, carries out fair trade practices, and has an equal pay structure.
Philanthropic corporate responsibility: This type looks after how the company contributes towards the betterment of society and whether their objectives are in sync with the development of society.
Economic social responsibility: This facet focuses on the company’s financial decisions and analyzes whether those decisions are made, keeping in mind the greater good of society.
CSR activities in sports
In 2016, the obligation under CSR for sports was expanded to include “construction, renovation, maintenance of stadiums, gymnasiums, and sports science support, including rehabilitation centres” as permissible CSR activities.
This kind of widespread sporting activity to be certified under CSR widened the scope for companies to invest their funds towards sporting activities. According to a KPMG report, the 100 largest listed Indian origin companies spent ₹123 crore on sports under CSR in 2018-19. The encouragement of carrying out sporting activities under corporate social responsibility continues to grow by the day, and big companies in India are setting examples of great investments in sports.
These activities have impacted sports development on a whole new level, with company leaders incorporating their passion for sports and not just seeing the profit part of it. Various infrastructural developments, nurturing the grassroots levels of sports, and development of sports as a whole are being achieved by companies through their investments. These activities have not just been restricted to achieving their targets but nurturing sportspeople in all ways possible to promote the country as a multi-sporting nation.
The @TheOfficialSBI made CSR contribution of Rs 5 crore to the National Sports Development Fund to support Olympic-bound athletes. Thank you SBI Chairman Sh Dinesh Khara Ji. I appeal to all Corporates & PSUs to contribute and be stakeholders in realising India's sporting dream🙏 https://t.co/j013fMX3QB
Importance of CSR activities in sports
With India being a one-sport dominated country, all the other sports are often brushed under the carpet, and that impacts the sportspeople negatively. The most important aspect of sports being introduced under CSR was the upliftment of all the other sports that lack recognition and resources.
Many of these companies have invested and are investing in the kinds of sports that lack infrastructure, proper recognition, and most importantly, attention. The government has provided a helping hand for corporates to develop undermined sports in the country. Funding for these sports was the biggest challenge of all, which now appears to be getting better, with multiple sports receiving attention through the building of new infrastructure, the creation of various tournaments, and more.
Coming to another important facet that has been nurtured since the involvement of CSR in sports is the grassroots development of sports. Talented athletes who need a helping hand to be able to achieve something for the country are getting recognition and support from companies throughout the nation. Nurturing the grassroots is already reaping dividends for the country, with immense amounts of potential and talent suddenly bursting on to the big stage. This has been one of the major positives and has substantially increased the importance of CSR in sports in everyone’s mind.
Companies contributing towards CSR activities in sports in India
With the goal of sports development in India and helping sports grow holistically, various big companies have started investing part of their CSR funds towards sports. Contributions have come through to create infrastructure, providing sponsorships, investing in sporting teams, and in many more ways that have enhanced sporting activities throughout the country.
Let's take a look at a few instances where companies promoted sports through CSR activities in India.
Reliance Industries Limited
Reliance Industries has contributed towards the betterment of sports for many years. The Reliance Foundation and Sports For All implemented a campaign to support the education of underprivileged children and joined forces with 14 various NGOs. These NGOs help children in developing sporting as well as life skills. A digital learning van was conceived under this program and has been developing children all across Mumbai and Thane.
Tata Steel Limited
Tata Steel, another big company, contributed to sports through its CSR programs. It engages its employees, families, and the community through sports academies, and this infrastructure can have various other purposes as well. Tata Football Academy and Tata Archery Academy are some of the most established academies. Moreover, Tata has contributed towards training their centers that run along with the Sports Authority of India (SAI) and cover a whopping 17 sports including volleyball, basketball, chess, and more.
Parimatch
Parimatch has its own foundation, which is an international charitable foundation established to "support sustainable long-term initiatives and projects in the territory of the Company, which is part of the implementation of the corporate social responsibility strategy of the business."
Sportskeeda got in touch with Mr. Dmitry Belianin, Chief Commercial Officer, Parimatch International. Speaking exclusively with Business of Sports, he commented on his company's CSR activities in sports by saying:
"The Parimatch Foundation continues to support society by engaging children in sports. Recently, we’ve launched a new program 'Help to Ukraine', aimed at supporting Ukrainians affected by Russian aggression on the territory of Ukraine.
Noting the objectives of the program, he said:
The main goal of this program is to ensure the safety, development, and rehabilitation of children and their parents in the country and those who have temporarily left their homeland. Also, the Parimatch Foundation provides a selection of other programs tailored to improve the health and well-being of society by giving children equal rights and access to sports."
Central Coalfields Limited
Central Coalfields has also taken the sports academies route in order to contribute towards sports. It has established academies in Kargali, Bhurkunda, and Hazaribagh that focus on the overall development of children from different coalfields and also provide them with accommodation, training, and education.
CCL wins two awards at CSR Conclave.
Congratulations to #TeamCCL on bagging awards in two categories "Best CSR initiatives in sports promotion and education" at the CSR Conclave-2022.
Shri Vinay Ranjan, Director (P&IR), CIL presented the awards. https://t.co/myrK4p4bKC
"Heroes of Tomorrow" and Sportskeeda
Through the "Heroes of Tomorrow" initiative, Sportskeeda is committed to the development of sports talent at the grassroots level. To promote this initiative, the company has joined forces with various prominent foundations to help nurture the athletes at the grassroots and provide them with a platform to express themselves and perform at their potential. Support continues to be provided and the aim remains to develop some of the best athletes in the country.
Corporate social responsibility activity expenditure in sports has been approximately ₹263 crore, with some of the biggest companies, like Reliance and Hindustan, having spent around ₹17-18 crore on CSR activities in sports, respectively. Thus, CSR activities have created a resounding impact on the world of sports and many of the corporates are willing to spend their CSR in developing sports.