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Corporate Social Responsibility in India:
In 2013, Section 135 of the Indian Companies Act prescribed a mandatory CSR spend of 2% of the profits to NGOs or on social causes to benefit the underprivileged society in various areas such as Health, Education, Food Security and a few other areas. The areas of spend is below mentioned in detail.
The criteria of mandatory CSR spend is 2% of the profit in case of companies falling in the below criteria.
Ways in which the Corporate Social Responsibility programs have been implemented vary from companies’ CSR objectives. Largely there are three major models for the CSR spend.
Having understood the models of NGO Engagement with the companies, let us understand what impact it has made on the society and the scale of operations due to this policy move by the Government of India.
In the Year 2015-2016, about Rupees 8000 Crores were spent by a total of 1250 companies, which is about 25% more than spend of Rupees 6,400 Crores in Financial Year 2015. Though there is a concern and need for scrutiny as to on what CSR activities the amount is spent on and which locations it is spent at and not measurement of the impact. In 2017 the CSR donations reached Rupees seventy thousand crores.