Private Provision of Public Goods Through Corporate Social Responsibility (CSR) in India

CSR spend by private companies can supplement resources for public service provision. In India, the share of CSR expenses is maximum in education followed by healthcare. These resources improve access to basic services but often without engagement with the community. Lack of community participation from the inception of the project does not build capability within the community. The projects may become unsustainable once the companies withdraw their funding. This article critically examines the CSR models of companies and their engagement with community leading to long term capacity building. In this regard, we have conducted case studies of CSR projects undertaken in different sectors: public health, education, environment and livelihood. The companies selected are all reputed public and private sector enterprises. Our study reveals that many of the projects attempt to deliver public service through very high investments. But they do not build the capability of the community. Due to lack of community engagement, they may not be able to achieve the major objective meaningfully. The existing arrangement may get stressed and conflict with project objectives. On the other hand, projects that engage community improve capability of the community with low cost systems. It may lead to innovation by community through development of local institutions. These projects educate communities to appreciate local resource for its appropriate use for livelihood generation. The recent approval of CSR contribution in PM CARES Funds may only supplement government resource to fight pandemic without entailing much desired innovation through community engagement.