It has reported that India Inc’s corporate social responsibility (CSR) spends grew 3.62 per cent to Rs 22,000 crore in FY21. Most of the allocations were for pandemic-related causes, stated CRISIL in a report. While the first wave saw most companies spending in cash through the PM-CARES Fund, the second wave saw more direct support. Since CSR spends were made mandatory through changes in the Companies Act seven years ago, India Inc spent Rs 1 lakh crore.
The CRISIL report stated that companies contributed only Rs 85 crore to PM-CARES in the second wave between March-June 2021 and Rs 831 crore to what was classified as ‘others’. During the first wave from March-May 2020, corporations gave Rs 4,316 crore to PM-CARES and Rs 3,221 crore to others.
Support in the second wave largely came in the shape of assisting the healthcare infrastructure with equipment such as ventilators, oxygen concentrators, cylinders, testing kits, and donation of food/ ration where an exact monetary value could not be ascribed, the company said.
Assuming that spending was around the mandated 2 percent of average profit of preceding three fiscals, companies would have spent Rs 22,000 crore on CSR in FY21, as against Rs 21,231 crore in FY20.
The report stated that as many as 1,700 listed companies would have have given Rs 14,986 crore and unlisted companies would have spent Rs 7,072 crore. It said that the actual spending for the two fiscals can be corroborated only once annual reports for last fiscal are available and analysed, the company said.
More than 40 percent of spending happened in the last two fiscal years alone. With the impending third wave, more funds are likely to come for pandemic-related causes.
Maya Vengurlekar, Chief Operating Officer of Crisil Foundation said, “The successive waves of COVID-19 have been a litmus test of corporate altruism with companies having to balance employee well-being initiatives, business imperatives and their social contract. Given the expectations of a third wave, the probability of diverting more funds during this fiscal seems imminent.” (business today)
