MUMBAI: The Companies Act, 2013 mandates corporates to spend 2% of their three-year average profits on social initiatives every year.
A study by advisory firm IiAS showed that in Financial Year 2017, the BSE 100 companies spent Rs 7,050 crore on CSR, an increase of 8% compared to the previous year.
This puts the CSR spend at 98 per cent of the prescribed amount. Based on the Act, the S&P BSE 100 companies were required to spend Rs 7,200 crore on CSR.
Of the 100, 59 companies met or exceeded their targets while 33 spent less than the mandated 2%. Four companies reported losses but still spent on CSR while Bank of Baroda was the lone entity in the top 100 that did not disclose or spend on CSR.
Over 30 per cent of the aggregate FY17 spend was made towards education projects while another 30 per cent was spent on rural development and healthcare projects.
With companies building their own social initiatives, contributions to the Prime Minister’s Relief Fund, and technology incubators have declined by 89%t this year.
Additionally, during the current year, 81 of the 100 companies disclosed they have undertaken an impact assessment, up from 59 companies in FY16.
(Inputs from Business Line)