CSR SPENDS
Economic benefits of investing in WASH for corporates
A noteworthy fact in the CSR spends of the past 5 years is the growing emphasis on healthcare, WASH and environment sustainability (JICA Report). This bodes well for achieving India’s net zero goals by 2070.
India Inc's CSR spends on sports likely to surge in next few years
The foundations of several companies, such as the Reliance, Tata Steel, JSW, Hindustan Zinc and SKF India, have been supporting sports as part of their corporate social responsibility (CSR) commitments. However, the data on whether there has been an increase in the CSR spend on sports and by which companies is not available. This is due to an MCA notification in September 2022 that no longer requires companies to disclose details of their CSR spends but only the total spends towards CSR.
Private philanthropy to expand at 10–15% annually in next five years: Neera Nundy, Partner, Dasra
Private philanthropy is expected to see a significant expansion with family philanthropy seeing a shift towards building a strong ecosystem.
CSR activity transcends compliance boundaries, companies embrace impact investing: Deloitte
Indian companies are expanding their corporate social responsibility (CSR) initiatives beyond compliance, with a focus on strategic impact investing such as social bonds and pay-for-success models, according to a Deloitte India survey. While interest in innovative models is high, navigating complexities remains a challenge. CSR is increasingly seen as a key driver of corporate strategy, with firms re-evaluating their strategies in response to changing regulations and ESG norms.
Indian companies show interest in impact investing but face challenges: Deloitte CSR survey
Deloitte India's CSR preparedness survey reveals that only 28% of Indian organizations feel very prepared for impact investing, despite high interest. The study shows a shift towards CSR as a strategic driver of corporate strategy, with increased investment in technology solutions and focus on accountability.
CSR spends by NSE-listed cos hit Rs 15,524 crore in FY23
Ten companies, including these three, accounted for 33% of the total spends on CSR in FY23, according to data shared exclusively with ET by primeinfobase.com, an initiative of Prime Database Group.
Centre may allow companies a bigger CSR canvas to paint on
Section 135 of Companies Act requires firms of a certain size to spend every year at least 2% of average net profits of previous three financial years on stipulated CSR activities. Failure to do so will make a company liable to pay a penalty twice the unspent amount, or ₹1 crore, whichever is less. Even every officer of a company who is in default is also liable to a maximum penalty of ₹2 lakh.
View: Small amounts can further great causes
India has come a long way since then. Many Indian businesses are now huge, and with great power (i.e. money) has come great(er) responsibility. They are foraying into the social sector, with corporate social responsibility imperatives creating thousands of schools for the underprivileged, universities, hospitals, sports academies, cultural institutions, etc. The NGO sector is no longer the preserve of the much-memed 'jholawalas'.
Bajaj Group commits Rs 5,000 cr for five years towards CSR initiatives
The Bajaj Group's humanitarian efforts are channelled through several institutions. The Jamnalal Bajaj Foundation, Jankidevi Bajaj Gram Vikas Sanstha, and the Kamalnayan Bajaj Hospital, among others, have worked unceasingly to uplift and empower communities, he said.
Bajaj Auto working on CNG bike, to hit road in June
Bajaj Auto is set to launch its first clean fuel CNG motorcycle in June, targeting mileage-conscious consumers. This bike will be part of a new brand and will offer both petrol and CNG fuel options. Additionally, the Bajaj Group has committed Rs 5,000 crore to CSR initiatives over the next 5 years, focusing on skill development. The group's philanthropic efforts include institutions like the Jamnalal Bajaj Foundation and Jankidevi Bajaj Gram Vikas Sanstha, working towards uplifting communities.
Private philanthropy grew 10% in FY23, CSR spending by 7%: Bain & Company and Dasra report
While there has been an increase in the number of companies complying with the CSR mandate in this period, spending by this segment grew moderately at 7%, less than half the 15% expansion seen in family philanthropy and 12% in retail giving.
Skills training set to be taken to doorstep of rural youth
In the initial phase, the skills development ministry plans to tie up with the private sector to impart training under corporate social responsibility (CSR) programmes and scale it up with government funding, Ved Mani Tiwari, chief executive of the National Skills Development Corporation (NSDC), told ET.
CSR spending goes greener; health gets highest dose as companies rejig focus
In FY22, India's corporate social responsibility (CSR) spending on the environment more than doubled to ₹2,837 crore, which made the sector the biggest recipient of such funds after health and education, according to the latest provisional data by the Ministry of Corporate Affairs. Spending on health in FY22 stood at ₹9,987 crore, beating education as the top sector for CSR expenditure.
Short on system backup, companies can't play CSR long game
The 2013 law states that CSR spending should be a minimum of 2% of average net profit of the three preceding years. When the budget is based on profitability, companies tend to be risk-averse, said Neera Nundy, co-founder of Dasra, a strategic philanthropy foundation. “As a result, agreements with non-profits working on the ground will be year-to-year at times. Sometimes, there are only verbal commitments.”
Impact of CSR funds ‘not widely felt’ despite jump in spending: Ministry of Corporate Affairs
The Ministry of Corporate Affairs (MCA) has highlighted the limited impact of corporate social responsibility (CSR) initiatives in India, despite a significant increase in spending. According to the MCA, CSR spending stood at Rs 26,210 crore in FY21, a growth of 80% since FY16. However, the impact of these funds is not widely felt, and there is a need to enhance their visibility and effectiveness.
Coal India spends 15% higher than statutory requirement on CSR
During a four-year span till the closure of financial year 2023, CIL as a whole spent a total of Rs. 2,238 crore under its CSR umbrella, the release said. This is 29% higher than Rs.1,735 crore mandated as per Company (CSR) rules 2014.
GST ITC restriction on CSR spend: Why businesses are worried about potential challenges
As part of FY 2023-24 Budget proposals, the Union Finance Minister has recommended restricting ITC on goods or services used for meeting the CSR obligation. Experts say this may have adverse impact on CSR benefits.
Marico didn't wait for CSR spending regulation to start making an impact: Harsh Mariwala
It's difficult for a founder to step down. But at some stage, I as a founder had to step down. I had built that biz for almost 40 years, says Harsh Mariwala.
CSR spend may cover skilling individuals
The enterprises will be incentivised to take up skills training of individuals as the government aims to scale up training of candidates to cater to the growing demand. The government is also exploring the possibility of creating a 'Skill Wallet' to enable easier transactions for such CSR activity, the person said.
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