India’s CSR Mandate: Spending Rises 22%
When India passed the Companies Act in 2013, a law that required large companies to spend at least two percent of their average net profit of the past three years on CSR activities, the jury was out on whether a CSR mandate could produce results. Now, the numbers for 2016 are in—and they’re encouraging. Spending rose by 22% over the previous year; total FY ‘16 spend was over $2 billion, a rise of $368 million. 1,505 companies—30% of the 4,887 firms listed on the Bombay Stock Exchange—met the standard for mandatory spending. Of these, 77%—1,158 companies— reported on their CSR activity, according to the Times of India. To judge by the bottom line, the experiment gets a positive verdict—so far.
John Howell, Editorial Director
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