CSR India

Strengthening CSR framework is profitable

Strengthening CSR framework

Strengthening CSR framework

The amount spent on corporate social responsibility in India has increased from 10,065 crores in 2014–15 to 24,865 crores in 2020–21 since the CSR regulation was established under Section 135 of the Companies Act 2013.

No information is available to confirm if the increase is proportionate to the growth in profits of Indian and foreign (with a registered arm in India) businesses.

Zero spending: In 2020–21, 2,926 businesses made no CSR investments.

Limit: The number of businesses spending less than the 2% mandated cap increased from 3,078 in 2015–16 to 3,290 in 2020–21.

Strengthening CSR framework

Participation: The quantity of businesses taking part in CSR also decreased.
Private businesses have established their own foundations or trusts, to which they transfer the required CSR funding.
It’s uncertain whether this is permitted by Companies Act/CSR regulations.

Other problems

The Center for Social Impact and Philanthropy at Ashoka University According to the report, Maharashtra, Tamil Nadu, Karnataka, and Gujarat are home to 54% of CSR businesses (receiving the largest CSR spending)
Little aid is given to the populous states of Uttar Pradesh and Madhya Pradesh

The environment received only 9% of the budget, while education received 37% and health and sanitation received 29%.
The Standing Committee on Finance noted that there is a lack of information and a barrier to accessing it about corporate social responsibility (CSR) spending.

For businesses to choose where their CSR funds will have the greatest impact across India, the MCA may create a national website where all States could submit their possible CSR-admissible initiatives.

The India Investment Grid (IIG) “Corporate Social Responsibility Projects Repository” is maintained by Invest India: It can operate as a roadmap for actions that have an impact.

Businesses should give environmental regeneration first priority by allocating at least 25% of their operating budgets in the area to it.

Participation of the community: Communities, district administration, and public representatives should all be actively involved in the selection and implementation of CSR projects.