BACKGROUND – CORPORATE SOCIAL RESPONSIBILITY
In 2014, India became the first country in the world to mandate CSR spend through legislative action. The legal mandate on CSR applies to companies that have:
a.Net worth of INR 500 Crore or more, OR
b.Annual turnover of INR 1000 Crore or more, OR
c.Net profit of INR 5 Crore or more.
Companies thus coming under the CSR mandate, have to spend at least 2% of their average net profits of the preceding three years on social impact programmes in every financial year.
In the first 3 years of implementation of this law, over 29000 companies have come under the CSR ambit. Cumulatively they have spent over INR 41,396 Crore over a period of 3 years.
In this report, we have analysed the cumulative 3-year industry-wise CSR spend by the entire set of companies (total of 29190), using the data made available by the Ministry of Corporate Affairs as of January 2019.
So who are the big spenders and in which sectors and which regions?
Two industries – BFSI and IT/ITES – together contributed 30% (INR 12,658 Crore) to corporate India’s total CSR fund in 3 years (2014-17) and education is the most popular sector overall.
On the whole, companies spend the most on CSR projects that are pan-India in scope. The next big recipient of CSR money overall is the Western region.
All figures in the following charts are cumulative spend over 3 years, unless otherwise specified.
(Please note that the data for FY 2016-17 is not fully updated on MCA portal (as of Jan ‘19). An updated version of this report will be available on www.sattva.co.in and www.IndiaDataInsights.com in June 2019.)
You can find our data on the Industry-wise trends here.
Part 1 of our blog, on CSR Compliance, in this series is available here.
Part 2 of our blog, on Region-wise CSR analysis, in this series is available here.
To explore the nuances of CSR – compliance, analysis and more – talk to us today at firstname.lastname@example.org