Cos see higher CSR spending next fiscal: Ficci Survey

NEW DELHI: A majority of corporates expect to spend more on social welfare activities in the next financial year as CSR increasingly becomes part of strategic decision making process, says a survey.

indiacsr-by Rusen KumarHowever, the survey by industry body FICCI also revealed that companies find lack of clarity on laws and tax related regulations along with some other factors as obstacles in implementing Corporate Social Responsibility (CSR) projects.

Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least 2 per cent of their three-year average annual net profit towards CSR activities. The norm came into effect from April 2014.

Ficci said 83 per cent of the participating companies anticipate an increase in their CSR spending in 2016-17.

“While 6 per cent participants expected a decline, another 9 per cent cited no change. The remaining 2 per cent of the companies said they have made a CSR allocation in their budget for the first time,” it said.

The findings are based on a survey conducted between January and February covering 150 responses. The respondents include public sector undertakings, private firms and foreign multinational companies, which had a turnover ranging between Rs 1.7 crore and Rs 75,000 crore.

As much as 77 per cent companies surveyed reported an increase in their CSR budget in 2014-15 compared with 2013-14 period.

On the other hand, the survey found “inadequate clarity on laws and tax related regulations”, among others, was seen as an obstacle by firms in implementing CSR projects.

When it comes to motivation, majority of the respondents indicated ethical considerations as the primary factor behind adoption of CSR activities.

“Companies are increasingly looking at integrating their businesses with the community to create shared value. About 49 per cent of the respondents… stated creation of shared value as a motivation factor, followed by social good compliance,” Ficci said.

Around 95 per cent of the participants said their CSR projects are aligned with the government’s development initiatives, including Swachh Bharat Mission, Skill India and National Health Mission.

“It is encouraging to note that companies have continued to base their CSR programmes according to community needs aligning with the national development agenda, especially those impacting women and children,” said Rajashree Birla, Chairperson, Ficci-Aditya Birla CSR Centre for Excellence.


Photo Copy Right: Rusen Kumar

INDIA CSR 300X300(IndiaCSR is renowned and  No.1 news portal in the domain of CSR, which is live since 2009.  is for you and your organization. Kindly support and promote it. We welcome reactions to stories, comments on issues that interest you, feedback & comments from your side to make it more purposeful and resourceful, we will carry it in our portal. Please send us your valuable feedback, suggestions and news, press releases, articles and contributions at  find updates at Facebook IndiaCSR News Network )

India CSR Network

India CSR Network

India CSR Network is a leading media organisation on Sustainable Development, Corporate Social Responsibility (CSR), Sustainability and related subjects in India. The digital platform offers insights on Corporate Governance, Business Responsibility, Human Rights, Sustainability, Sustainable Development, Workplace Safety, Industry 4.0, CSR 2.0 and other Socio-Economic affairs. We invite proposals from organisations to partner with India CSR to get featured CSR and Sustainability updates. Proposal on placing blog posts can be sent to

Related Posts

Discussion about this post