India Inc. is doing much more than just
lip service towards Corporate Social Responsibility (CSR) and it is evident
from the fact that 1,132 companies listed on the NSE witnessed an annual
increase of 17.5% in CSR spends at ₹11,961 crore in FY19. According to
nseinfobase.com -- a joint initiative of National Stock Exchange (NSE) and
PRIME Database, the average net profit of these companies was over ₹6 lakh
crore in FY19, up from ₹5.23 lakh crore in FY18. The CSR spend stood at about
1.99% of the total average net profit in FY19, while the average spend per
company was ₹10.57 crore.
Back in FY15, these companies spent
₹6,556 crore or 1.57% of their total net profit on CSR; it was nearly 30% lower
than FY19 at ₹7.45 crore on an average per company. “CSR expenditure by
companies listed at NSE has grown at a healthy compounded annual growth rate
(CAGR) of 17% over the last five years,” says Mukesh Agarwal, CEO, NSE Data
& Analytics. As per CSR requirements, the amount required to be spent for
FY19 was ₹12,018 crore, but the companies decided to spend a bit more at
₹12,461 crore, but ₹1,343 crore eventually remained unspent. While the CSR law
mandates spending across 12 prescribed schedules, few companies deployed CSR
spends towards community development, infrastructure, social welfare, child
welfare, and other activities.
“In line with the previous year,
education received the maximum spend (₹4,440 crore) followed by healthcare
(₹3,242 crore),” says Pranav Haldea, managing director, PRIME Database Group
which has developed and powers nseinfobase.com. “Areas such as armed force
veterans, technology incubators, slum development and disaster management saw
negligible spends,” Haldea adds. In terms of company-wise CSR spends, the
number of companies which spent on CSR went up to 1,055 (93% of the 1,132
companies) in FY19 compared to 1,024 (94%) in FY18. The balance 77 companies,
despite being mandated, did not spend anything, according to nseinfobase.com.
Overall, 653 companies, or 64%, increased
their spending as compared to FY18, while there were 488 companies (43%) which
exceeded their prescribed spending in FY19. There were also 37 companies, which
despite reporting a loss, spent on CSR. On the other hand, there were 332
companies which missed the mandatory spending of 2% of net profit in FY19,
compared to 353 in FY18. On the other hand, there were 332 companies which
missed the mandatory spending of 2% of net profit in FY19, compared to 353 in
FY18. The CSR spends from PSUs touched ₹3,198 crore from 57 PSUs in FY19, as
compared to ₹2,710 crore spent by 54 PSUs in FY18.
(Innovative Financial
Advisors Pvt. Ltd. (Fiinovation) is a
global consulting firm operating in multiple disciplines of the social
development sector with emphasis on Corporate Social Responsibility (CSR) and
Sustainability. Fiinovation offers end to end CSR consulting services and
simplified solutions that has helped various corporations channelize their
resources for the upliftment of community on societal, economic and
ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation
has grown phenomenally and has made a benchmark in the sector through its
service quality. It has been able to bridge the gap between businesses and
communities through value-based CSR programmes in association with credible
civil society organizations on pan India basis in the field of health,
environment, education, and livelihood
Fiinovation CEO
: Dr Soumitro Chakraborty, Chief Executive Officer of Innovative
Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with
‘CEO of the year’ award at the 8th World CSR Congress held
in Mumbai on February 18.
The World CSR Congress this year focused on the
integration of Sustainable Development Goals (SDGs) in corporate strategies,
innovation, and strategic alliances. The award recognizes fiinovation projects
exemplary work in the social development sector and noteworthy CSR and
sustainability programmes.
Fiinovation Delhi NGO
address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi,
Delhi 110020
No comments:
Post a Comment