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 CSR spend by the entire set of companies (total of 29190) on the regional distribution of CSR using the data made available by the Ministry of Corporate Affairs as of January 2019.
So, where is India’s CSR money going?
As per the the CSR law provision :
“the company needs to give preference to the local area and areas around where it operates, for spending the amount earmarked for Corporate Social Responsibility activities.”
How does it affect the CSR reach into areas that need the development capital the most?
(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 Region-wise CSR analysis here.
Part 1 of our blog, on CSR Compliance, in this series is available here.
To explore the nuances of CSR – compliance, analysis and more – talk to us today at email@example.com