CSR spend by listed companies highest-ever in Financial Year 2019 at Rs 12K cr.

CSR spend by listed companies highest-ever in Financial Year 2019 at Rs 12K cr.

CSR (Corporate Social Responsibility) is a type of international private business self-regulation that aims to contribute to societal goals such as charity or by engage in or support volunteering or ethically oriented practises. The Companies Act required firms to spend at least two per cent of their average net profit over the preceding three years on CSR projects. The spending can be under heads ranging from education, health care, sports or for ensuring gender equality.

Companies are spending increasing amount on CSR route. The total expenditure in 2018-19 was Rs 11867.2 crore. This is the highest spending on CSR since it is become mandatory in 2015. In this year the spending is 17.2 per cent more than previous years spending.  The highest spend was for education and skills is Rs 4406 crore. Education and skills include special education and employment enhancing vocation skills, especially among children, women, elderly and the differently abled and livelihood enhancing projects. The next biggest spending of Rs 3207 crore is for Hunger, Poverty, Health care and Sanitation. It involves the initiative of eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation, including contribution to the Swachh Bharat Kosh. Swachh Bharat Kosh is a central government mission for the promotion of sanitation and making available safe drinking water. And it provide Rs 1319 crore for Rural Development and Rs 1012 crore for Environmental purpose. In this Financial Year Rs 39 crore is provided for Disaster Management and it is noted that it is not provided in previous financial years.

Maharashtra is the top position in terms of gross state domestic product at factor cost at current prices. And Maharashtra and Gujarat received the bulk of corporate largesse. Maharashtra receives Rs 931.4 crore from over 501 companies. States like Bihar which rank is lower in terms of development also ranked lower on corporate largesse. Bihar received contribution from 209 companies and spent was Rs 274.2 crore. According to experts larger allocations seem to have prompted closer attention as to how the money is being spent. Kerala get contribution from 315 companies and spends Rs 410.34 crore. And Kerala is in 12^th position in terms of spending.