The average spending on corporate social responsibility (CSR) by companies in India went up 29 basis points to 1.64 per cent last year, edging closer to the government mandate of 2 per cent.
The overall expenditure among companies in India on CSR activity registered a significant increase of 22 per cent, latest analysis by ratings agency CRISIL has revealed. The bulk of the CSR money went into education, skills development, healthcare and sanitation initiatives.
India’s Companies Act 2013 encourages corporates to spend at least 2 per cent of their average net profit of the past three years on CSR activities. In the 2016 fiscal year, the second year of this CSR mandate, 1,505 companies, or 30 per cent of the 4,887 listed on the Bombay Stock Exchange, met the criteria for mandatory spending. Of these, 77 per cent, or 1,158 companies, reported on their CSR activity, compared with 1,024 companies, or 75 per cent of the 1,300 eligible in the previous fiscal year 2015 .
These 1,158 companies also spent a lot more money compared with 2015, which led to a 29 basis points improvement in average spending to 1.64 per cent compared with 1.35 per cent in 2015, moving closer to the 2 per cent mandate. Login/Sign up to read more...