Globally, Corporate Social Responsibility (CSR) refers to “business self-regulation with the aim of being socially accountable.” From a broader perspective, this definition includes improving working conditions, reducing carbon footprints, participating in Fairtrade, and many other actions. At its most basic level, CSR is a manifestation of a business’s recognition of its duty to the world and its potential to be a force for good. — Casey Schoff, Ecolytics
Sri Lankan organisations have engaged in informal corporate social responsibility (CSR) activities for over 30 years, though public concern and formal CSR policies have only emerged since the early 2000s. However, SriLankan Cares, a specialised branding initiative for charity by SriLankan Airlines, was established in 2003, representing one of the first such initiatives in the country’s commercial sector.
Some Sri Lankan organisations were involved in informal CSR practices for more than 30 years, mainly as informal activities, while public awareness and concern about CSR initiatives grew in Sri Lanka starting around 2000. Later, in 2013, a revised Code of Corporate Governance by the Securities and Exchange Commission of Sri Lanka (SECSL) and the Institute of Chartered Accountants of Sri Lanka (ICASL) included principles on sustainability reporting, further embedding CSR concepts into the corporate framework.
Today, several leading private sector entities are engaged in CSR activities, with some contributing a regular percentage of their gross or net profits to these efforts. Some entities have set up foundations devoted entirely to CSR. While these activities are noble endeavours, this article proposes how CSR funding — or at least a portion of it — could be employed in a more structured and strategic way, supporting specific national projects such as the Rural Upliftment Project, the Praja Shakti Programme, the Clean Sri Lanka Project, educational reforms over the next few years (especially through teacher training and improving learning facilities), climate resilience projects focused on environmental protection, research initiatives targeting the long-term sustainability and profitability of primary export crops, disability awareness and creating opportunities for persons with disabilities, expanding care facilities for the disabled and elderly, and supporting long-term, sustainable food security efforts. These are just some projects in which the private sector is either already involved or may consider engaging in the future.
As the private sector is the engine of growth in the country’s economy, many of these projects could be viewed through the prism of self-preservation and growth for companies engaged in CSR activities, while recognising community and social responsibility as a duty of care — a view consistent with classical definitions of CSR. A happier, more content, and cared-for community, economically and socially uplifted, will always remember the services provided by private sector entities engaged in commercial activities that benefit them. The consequence could be increased loyalty to those entities that provide much-needed services to the community.
In general, it is felt that the relationship between the private sector and successive governments has often been viewed through narrow political lenses rather than a broader national perspective. Mutual benefits for both parties have often taken precedence over community service, and communities too have sometimes been drawn towards a particular political party, with projects launched on the condition of community support for that party. Such three-way symbiotic relationships have contributed to the evolution of a partisan political culture rather than a national one.
One way this situation — not applicable to all CSR projects — could be addressed is by initiating discussions at both central and regional levels, involving the government of the day and major opposition parties. The objective would be to work towards a consensus on national priority projects that would continue irrespective of changes in government, and subsequently explore how the private sector could be associated with relevant CSR activities.
Global Origins and Evolution of CSR
At this stage, it is interesting to trace the global evolution of CSR. While many reports and research works are available on this topic, the succinct article by Casey Schoff from Ecolytics titled The Evolution of Corporate Social Responsibility, dated 29 January 2024, provides valuable insights into the origins and evolution of this important concept [link].
Due to space considerations, only extracts from this paper are cited here, and readers are encouraged to read the full article via the above link.
What is Corporate Social Responsibility (CSR)?
Schoff states that at its core, CSR refers to “business self-regulation with the aim of being socially accountable.” From a broader perspective, this definition includes improving working conditions, reducing carbon footprints, participating in Fairtrade, and many other actions. At its most basic level, CSR is a manifestation of a business’s recognition of its duty to the world and its potential to be a force for good. He notes that while widespread adoption of CSR is relatively recent, the concept has been around for over a century. It has its roots in the late 1800s when the rise of philanthropy, combined with deteriorating working conditions, prompted some businesses to reconsider their production models. Business tycoons began donating to community causes, and some business owners — although somewhat reluctantly — reduced working hours and improved factory conditions, laying the foundation for responsible corporations.
The term “Corporate Social Responsibility,” however, was not coined until 1953, when American economist Howard Bowen published Social Responsibilities of the Businessman. In this book, Bowen identified the great power of corporations and recognised that their actions had a tangible impact on society. He argued that businessmen have an obligation to pursue policies beneficial to the common good. The concept of CSR has evolved over time to include many more social issues connected to a wider range of business decisions.
As Schoff explains, this transformation began in the 1960s when scholars approached CSR as a response to emerging societal problems, and businesses began implementing these practices. Adoption of CSR continued steadily in the 1970s and 1980s, becoming even more important in the 1980s due to deregulation, which compelled corporations to self-regulate and take responsibility for the social impact of their operations. Increasing globalisation in the 1990s widened CSR’s scope and laid the foundation for how we understand it today. Several international developments in the 1990s — such as the adoption of Agenda 21, the United Nations Framework Convention on Climate Change, and the Kyoto Protocol — also played key roles in reshaping CSR.
Throughout the 1990s and early 2000s, CSR shifted from minimising local harm to addressing global issues. Companies began aligning their CSR programmes with the UN’s 17 Sustainable Development Goals, ranging from gender equality to protecting ocean life. CSR is also increasingly linked to diversity, equity, and inclusion initiatives, as socially responsible corporations are expected to foster welcoming workplaces and combat discrimination. While not every corporation follows CSR principles, and those that do are far from perfect, it is encouraging that businesses are beginning to recognise the myriad ways they impact society and can change it for the better.
CSR Today: The Way to Do Business
Schoff notes that today CSR is an integral part of doing business and increasingly influences consumer choices. Nearly 90% of consumers would purchase a product because a company supports an issue they care about, while 75% would refuse to buy a product if the company holds a different stance on an issue. CSR is also a significant factor in attracting talent, as people want to work for companies that uphold strong values. Furthermore, comprehensive CSR programmes bring benefits such as increased brand reputation and credibility, improved risk and supply chain management, cost savings from efficiency improvements, and increased revenue. Companies are discovering that CSR is not only beneficial for society but, in many cases, better for business as well.
What the Future Holds
CSR is here to stay. As technology advances, increasing corporate transparency and scrutiny, the incentive to be socially responsible will grow. Additionally, the worsening impacts of climate change and looming resource shortages will reward companies that are sustainable and maintain a small carbon footprint. Overall, CSR is likely to continue evolving and will become more important in our uncertain future.
Contemporary Sri Lankan Context
Sri Lanka’s GDP in 2025 is estimated at around USD 100 billion. While the specific percentage of the national GDP directly contributed by the private sector is unavailable, the country’s economy relies heavily on private consumption and investment as key drivers of growth. Private consumption accounted for 73.3% of Sri Lanka’s nominal GDP in September 2024. The private sector also plays a critical role in generating employment and facilitating the adoption of new technologies, although it has faced challenges in translating its potential into vibrant contributions to national growth. The funds available from the private sector for CSR projects are therefore substantial.
Enhancing Strategic and Sustainable Corporate Social Responsibility
Based on limited publicly available research data on CSR projects and their outcomes, it is unclear whether projects have delivered long-term sustainable results. It is possible they have, and an apology is offered to private sector entities that have funded such initiatives. However, it is suggested that at least some funds be channelled into national projects, ideally agreed upon by both the government and the opposition, with a strategic focus spanning at least five years and guaranteed state and private sector funding to ensure sustainability.
It is also suggested that CSR funding support research and development in primary export industries and interventions related to food security. For instance, CSR could explore how the private sector could play a more active role in reducing post-harvest losses. In a report by Nimal Gunathilake published in The Island newspaper, losses are stated as Rs 180 billion annually (link). According to a new study by the Department of Agriculture and its partners, this quantity is sufficient to feed the entire nation for two to four months. The research found that over 500,000 metric tonnes of produce are wasted annually during transportation alone — around 200,000 tonnes of vegetables and 300,000 tonnes of fruits. About 30–40% of the harvest is lost in transit, with the heaviest damage occurring between farms and retail markets. Household-level waste also contributes to the losses.
The study revealed that transportation-related waste — approximately 10% of the Rs 180 billion in annual losses — could be cut significantly, offering a 60% boost to both national and farming economies. If recommended practices are followed, waste could be reduced to as little as 5.7%. These losses not only increase food insecurity but also affect export income for produce. This is a prime area for government-private sector collaboration to explore solutions to reduce this colossal waste. There is no doubt that many other areas could benefit from CSR contributions.
Finally, to encourage more private sector engagement in CSR activities, it is suggested that tax benefits be offered as incentives for companies contributing to CSR initiatives. This would likely increase both the number of entities participating and the funds and expertise available to support strategic, community-benefitting projects sustainably.
The CSR theme could serve as a bridge linking government initiatives and private sector activities in a non-partisan way, with projects undertaken through discussion and mutual agreement, hopefully with a long-term perspective rather than for immediate gains. The objective of both sectors is, without doubt, the social, economic, environmental, health, and educational upliftment of the community so that the country prospers. When this happens, the private sector — as the largest contributor to the economy — also prospers and grows.
