Answer:

Introduction        

Corporate Social Responsibility (CSR) under Companies Act, 2013 mandates certain companies to dedicate 2% of their net-profit (average of current year and preceding 2 years) towards CSR activities. One way, CSR is a mean to promote inclusive growth, by addressing social and environmental challenges that affect the well-being of people and the planet. In reciprocity, inclusive growth can be a driver for CSR, by creating a conducive environment for businesses to thrive and innovate.

Body:

Efficacy of CSR initiatives in catalysing inclusive growth and addressing socio-economic disparities 

• Substantial Increase in CSR Investment: The 85% increase in CSR spending from 2014-15 to 2021-22 as per Ministry of Corporate Affairs demonstrates a substantial corporate commitment to addressing social and environmental concerns, indicative of a strategic focus on inclusive growth.
• Significant Corporate Contribution: The investment of Rs. 25,933 crore by over 18,000 companies in FY22 underscores the extensive reach and potential impact of CSR funds across various sectors, reducing socio-economic imbalances.
• Health and Education Sector Funding: The allocation of ₹9,987 crore and ₹8,382 crore of total CSR spending in FY22 went to health and education, respectively, shows a targeted approach to empower underprivileged communities through better healthcare key pillars of inclusive growth.
• Environmental Commitment: Doubling of expenditure in the environmental sector to ₹2,837 crore in FY22 reflects CSR’s role in promoting sustainable practices, which is essential for long-term, inclusive economic development that also considers environmental impacts.
• WASH (Water, Sanitation, and Hygiene) Initiatives: Increased spending on sanitation, clean drinking water, and development in slum areas through initiatives like the Clean Ganga fund represents CSR’s direct action on improving living standards and health outcomes, which directly contributes to societal upliftment.
• Technology and Innovation: Around 54 crores was spent on technology incubators under CSR during 2014-17, which would drive innovation, create jobs, and address socio-economic disparities through technological empowerment.

Conclusion

Overall CSR, if strategically executed with a focus on impact, sustainability, and community engagement, has the potential to bridge socio-economic gaps significantly, promising a brighter, more inclusive future that aligns corporate success with the wider societal good in India.

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