Spending on CSR in India Increases to Meet Mandate
In 2013, India passed the first national law to require CSR spending. The Companies Act mandated that some 6,000 large corporations must spend at least two percent of their three-year average annual net profit on CSR activities. Despite a lack of clarity on government-approved CSR activities and tax-related regulations, 83 percent of these companies expect to increase their CSR spending for 2016-17, according to a recent survey by Ficci. Around 95 percent said their CSR projects are aligned with the government’s development initiatives, especially those impacting women and children. More significantly, CSR is becoming an integral part of corporate strategic planning. The results of this experiment to force business to support communities in a country not known for corporate philanthropy should be measured very soon.
John Howell, Editorial Director
Report Alert: Rockwell Automation publishes 2015 Corporate Responsibiity Report