Corporate Social Responsibility (CSR) is far from a one-size-fits-all concept. Across the world, its priorities are shaped by economic realities, cultural expectations, and regulatory frameworks.
In many developed economies such as the United States and across Europe, CSR is largely voluntary, driven by stakeholder expectations, ESG commitments, and business purpose. Organizations often leverage their expertise to address sustainability, education, innovation, and community development. In many Asian markets, CSR emphasizes long-term community relationships and inclusive growth.
The India Context
India presents a unique landscape. It is one of the few countries in the world to mandate Corporate Social Responsibility through legislation. Under Section 135 of the Companies Act, 2013, qualifying companies, including Global Capability Centres (GCCs) operating as Indian legal entities, must allocate 2% of their average net profits towards eligible CSR initiatives. This framework has made CSR a strategic business responsibility rather than a voluntary initiative.
For GCCs, this creates a unique intersection of global purpose and local priorities. Increasingly, organizations are moving beyond the statutory mandate by combining funding with employee expertise, strategic partnerships, and long-term commitment to address India’s priorities.
Designing CSR for Long-Term Impact
For many MNCs, their GCCs represent one of their largest employee bases globally despite having little or no customer-facing business in India. This makes CSR an important way to connect employees with the organization’s purpose while creating meaningful local impact.
In our conversation with P. Sreedhanya Shanmughan, VP – Corporate Communications, DEIB, and CSR, Sustainability, AXA Global Business Services, she explained:
Most Global Capability Centres establishing their presence in India do not have a business presence in the country. The business is largely catered to customers outside India. The emotional connect to a brand thereby becomes transactional. CSR can help bring this emotional connect back by connecting employee volunteerism and community initiatives to the organization’s larger purpose and vision through a well-structured corporate social responsibility strategy.
According to Sreedhanya, effective CSR starts by aligning the company’s global sustainability philosophy with India’s local priorities and building long-term thematic programs rather than treating CSR as a compliance exercise. At AXA GBS, communities and causes are identified in partnership with NGOs, with a focus on underserved groups and initiatives capable of creating lasting social and environmental impact.
She also believes CSR strengthens the employee value proposition by giving people opportunities to contribute their skills meaningfully. Rather than measuring volunteer hours alone, AXA GBS focuses on outcomes through initiatives such as cybersecurity awareness for students, health education for ASHA workers, and project support for NGO partners, ensuring employee expertise translates into measurable community impact.
Purpose-Led CSR in Action
The most impactful CSR programs build on an organization’s strengths.
Bayer’s approach illustrates this principle. Guided by its vision of “Health for All, Hunger for None,” the company has anchored its CSR strategy around three pillars: Improving Lives, Sustainable Development, and Partnerships. Over the past five years, its initiatives have impacted more than four million people across India.
Its programs focus on preventive healthcare, nutritional security, water conservation and management, and rural development, with particular emphasis on aspirational districts where access to healthcare, infrastructure, and economic opportunity remains limited.
As Rachana Panda, VP & Cluster Communications Head – Bayer ASEAN, ANZ & South Asia and Director, Bayer Foundation India, notes,
To achieve ‘Health for All, Hunger for None’, it’s crucial to prioritize improving the well-being of communities. We believe that corporates must go beyond their business objectives to address the complex and interconnected societal challenges stemming from rapid population growth. At Bayer, through our initiatives, we aim to tackle concerns related to food security and healthcare accessibility in underserved communities and contribute to making the world a more equitable and sustainable place.
Beyond Funding: Building Capability Through Partnerships
As CSR evolves, partnerships are becoming as important as financial investment.
Devadas Krishnan, Chief Development Officer at The/Nudge Institute, highlights that the greatest opportunities for corporate intervention lie where social challenges are solvable but lack patient capital and long-term capabilities.
The most fertile ground for corporate intervention is where a problem is solvable but starved of patient capital and capability—women’s economic inclusion, climate-resilient rural livelihoods, skilling, and the long tail of social entrepreneurs tackling India’s hardest problems. These aren’t charity cases but markets waiting to be built.
According to Devadas, companies create the greatest impact when they contribute more than funding. The/Nudge’s evidence-based ‘graduation approach’ has helped families move out of extreme poverty and unlocked nearly ₹2,000 crore in government funding for the poorest households by combining private expertise with public systems. He believes a company’s data scientists, supply-chain leaders, product managers, and employee mentors can create value that often outlasts financial grants, while technologies such as AI can significantly expand the reach of social programs.
Looking Ahead
As the ecosystem continues to mature, leading GCCs are demonstrating that lasting impact comes from aligning purpose with action, combining financial investment with employee expertise, and building partnerships rooted in measurable outcomes.
Ultimately, the success of GCC-led CSR will not be defined by the mandatory 2% contribution, but by the lives improved, communities strengthened, and opportunities created through long-term, purpose-driven engagement.
