CSR for Sports: A Winning Proposition for All

Shiva Keshavan, a six-time Olympian luger drew much attention from media when he wore his uniform adorned with names of 50, 000 donors who funded his stint at 2014 Sochi Winter Olympic Games. He went on to lead the Indian contingent at the 2018 Winter Olympics. But Shiva’s journey was marked with obstacles more so due to the lack of funds. He almost
withdrew from the World Championships until Mallcom India’s director stepped forward to sponsor him as a part of their CSR outreach program.
Numerous stories like his can be found and read every day. Talented athletes giving up just when they are inches away from their dream solely due to the dearth of facilities. India Inc. has always been enthusiastic about signing up sports stars as their brand ambassadors but when it comes to
support, only a few remain in the party.

Under the Schedule VII of new Companies Act of 2013, sports has become an acceptable part of CSR spends. The list includes training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports. The policy also includes construction, renovation and
maintenance of stadiums, gymnasiums and rehabilitation centers. According to the latest official data available on the National CSR Portal by the Ministry of Corporate Affairs, 538 companies spent their CSR funds on sports in India. Out of Rs. 25714.65 crore worth of CSR projects in
fiscal year 2020–21, sports as a corporate social priority accounted for just Rs. 242.49 crore.
With Reliance Industries taking the lead, the top five spenders include Kotak Mahindra Bank, Tata Steel Industries, IndusInd Bank and Bonai Industrial Co. It becomes a matter of concern when the ledgers of FY 2019–20 are compared to the latest one only to find out that it has rather
dipped by more than 50 crore.

Corporate spending on sports largely goes to cricket or sought-after leagues therefore reaching only a handful. They are yet to realise the opportunities that would come their way by investing in development of sports especially at the grassroots level. CSR committees usually prefer executing projects along the lines of women empowerment, health facilities or education where outcomes are immediate and measurable. It is agreeable that the charm of branding might be the only and real incentive for companies to put their 2% amount towards sports since it rarely makes enough difference to their sales targets or profits. Additionally, in a lot of cases, the
owners’ personal passion and individual interests fit the CSR realms therefore, the sentimentality towards sports.
For corporations, sports development is more than a trade or a one-time activity. For it to make real difference to the grassroots, these projects need to be long-term commitments. Investing in sports is a step towards empowering communities and youth. It is one of the simplest efforts to
contribute to skill development and nation building. Looking at the sunny side, several companies have invested and continue to do so in lesser recognized sports or by functioning in regions that lack infrastructure.

Starting from 1984, the Tata Group established Football Academy, Archery Academy and Athletics Academy which have produced a number of Olympic medalists like Deepika Kumari and Atanu Das. Tata Steel also entered commercial sports with Jamshedpur Football Club, the one that competes in Indian Super League, India’s premier football league. Apart from this, the multi-disciplinary JRD Tata Sports Complex trains 2500 children every year across 19 different disciplines. The Tata group has a reputation of working for the interests of communities they function in. Similar belief remains reflected in their CSR spends. For instance, they set up a well-equipped Naval Tata Hockey Academy in Jharkhand for training young tribal boys. Nurturing talent at the grassroots impacts multiple sports positively and creates a ripple effect for immensely talented individuals looking for a helping hand.

The Reliance Foundation started its much revered Young Champs Programme in 2015 to foster football talent in India in the age group of 12–16 years. The programme is a state-of-art platform for aspiring footballers to hone their skills and utilize the best-in-class training provided by the
Reliance Foundation School. It is a part of Indian Super League’s grassroots initiatives to nurture football across communities in the country. In the year 2022, the school hosted close to 90 students for training when they were also hosted by the Premier League in the UK to play and
train matches with PL Youth Teams.

Sports is a platform for women empowerment and Jindal Steel Works proved so by supporting Sakshi Malik who represented India in the 2016 Rio Olympics. The JSW Sports Excellence Programme gives athletes an opportunity to develop and compete globally. It constitutes sports
disciplines like boxing, athletics, swimming and judo. Their Rural Sports Programme organizes championships and provides nutrition for rural youth. JSW continues to make a difference to youngsters’ lives with its promise of high quality training and international exposure.

Hindustan Zinc uses football as a tool for social development for both boys and girls. The company set up 12 community football centres across Rajasthan for more than 350 kids to receive professional training from certified coaches. The massive programme works on the belief
that every child must have an opportunity to play. Hindustan Zinc additionally launched a residential academy with technology-hinged football training in Udaipur to emphasize on learning through innovative training programs for future football stars.

With sports becoming a national agenda, a thorough communication for awareness needs to be initiated for more companies to start investing in sports. It generates positive brand equity and builds an emotional relationship with consumers and communities. CSR for sports can provide a competitive advantage by differentiating the brand and creating tremendous good will. Such projects align the core business objectives of the firm with positive societal change. Socially driven organisations with a purpose have a promise to thrive in the future of a society that averts
companies with a profit-centric approach. Therefore, sports is a winning proposition for all.

Even though the first step is the hardest and smallest, it makes all the difference. From a simple sports centre to a professional match or even getting an athlete to engage with school students, the impact it makes on someone’s life is immeasurable.
It is not the amount of money we give even if its 2%, it’s also the way we do our business because that is far more important than the quantum of charity that is given. Responsibility is not about a one-time amount as a cheque-book charity. It is to engage with the community, engage with the best minds in our company and then use the best of the ideas to benefit the society in a sustainable way. The government, the bureaucracy and the business must collaborate in a way to ensure this is done.