Companies spent 1.09 lakh crore in social activities in 7 years

Published on: 31 December 2021 07:25 AM
by KnowESG
Noting that the CSR architecture is disclosure-based, Singh said the philosophy is to engage corporates as partners in the socio-economic development of the country by leveraging their managerial efficiency, best practices, technology and innovation in the delivery of public good and services.

A Brief Summary

According to the corporate affairs ministry, companies have spent Rs 1.09 lakh crore towards social activities in health, education, and poverty eradication under companies law in the last seven financial years. since the enactment of the social responsibility provision in April 2014, companies are positively responding and have shown signs of adopting the culture of being responsible towards society.

Read Full Article Below

In the previous seven financial years, corporations have spent Rs 1.09 lakh crore on various CSR programmes including health, education, and poverty reduction, according to the corporate affairs ministry.

Under the Companies Act of 2013, Profitable businesses must spend at least 2% of their three-year annual average net profit on corporate social responsibility (CSR) initiatives each fiscal year.

Since the CSR provision was adopted in April 2014, Rao Inderjit Singh, Minister of State for Corporate Affairs, noted on Monday that firms had responded positively and showed promising signs in developing a culture of social responsibility.

Among the initiatives are health, education, poverty eradication, hunger, women empowerment, armed forces veterans' welfare, environment, sports, rural development, slum development, and the welfare of the weaker parts.

Companies spent a total of Rs 85,109.09 crore on CSR over the financial years 2016-17 to 2020-21, according to disclosures filed by firms in the MCA21 registry until September 30, 2021, Singh added.

The top 100 corporations spent Rs 46,654.52 crore of the total amount over the same period.

The purpose of the CSR architecture, according to Singh, is to include businesses as partners in the country's socio-economic growth by utilizing their managerial efficiency, best practices, technology, and innovation in the delivery of public goods and services.