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 sector-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.
Education is the most popular choice of sector for CSR projects receiving 25% of the total CSR -more than 10,000 Crore -between 2014-2017. In fact education alone received as much funding as the next 2 sectors –healthcare and rural development –combined!
The top 3 sectors comprising of education, healthcare and rural development together received 50% of the total CSR fund. Remaining 50% is spread over 25 different sectors.
(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 sector-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.
Part 3 of our blog, on Industry-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