Indian corporates are split down the middle when it comes to helping society at large, reports fe Bureau in Mumbai, citing a report by proxy advisory firm IiAS.
Indian corporates are split down the middle when it comes to helping society at large, reports fe Bureau in Mumbai, citing a report by proxy advisory firm IiAS. While 46 of the BSE 100 constituents met or even exceeded the mandatory spends on corporate social responsibility (CSR) in FY16 — 2% of the average three-year net profits — 45 of them spent less than the mandated amount. Of the remaining nine, while eight had reported losses and hence were not required to spend on CSR activity, one — Bank of India — didn’t reveal how much it had spent.
Interestingly, 17 of these 45 companies that missed their CSR targets attributed the same to ‘implementation delays’. FY16, however, was an improvement over the previous year when only 32 of the BSE 100 constituents had met their CSR obligations.
The combined CSR spends of the BSE 100 constituents in FY16 were only 20 basis points higher than those in the previous year with public-sector undertakings (PSUs) increasing their spends by 50 bps to 1.8%. Leading the list of top spenders was Reliance Industries. Although the amount spent was smaller by R100 crore, it spent spent R652 crore on CSR activity in FY16, nearly half of which was on healthcare.