NGOBOX released their annual report on CSR for the year 2016-17. This annual publication from NGOBOX brings out the details of CSR spends of various companies and their impact several domains. As per the report even though 1/3rd of the companies could not meet the mandatory CSR, the other 1/3rd spent more than the prescribed CSR mandate. The research shows that a few few companies have taken CSR to the next level by spending almost twice or more of the prescribed CSR.
Another important fact shared in the report says that Indian companies’ prescribed CSR budget has increased by 28% in FY 2016-17 since FY 2014-15 while the actual CSR spend has gone up by 47% during the same time.The impact of CSR spends has increased significantly in funding education initiatives along with intensifying their support to Skill India mission and Swachh Bharat mission of Government of India.
Highlights of the Report
- 47% increase in actual CSR spend since CSR became a compliance, education projects receive almost 1/3rd of CSR fund
- Education projects received 32% of the CSR fund while Swachh Bharat related projects received 7.3% of Indian companies’ CSR fund. As per the ‘India CSR Outlook Report 2017’
- BSE-listed big 300 companies spent INR 6871 Cr. on CSR in FY 2016-17 while the same was INR 6342 Cr. in FY 2015-16.
- However the actual to prescribed CSR percentage has fallen from 92% in 2015-16 to 90% in 2016-17.
“We do not wait to be told or for laws compelling us to take up responsibility and good work. We continue to be driven by an over whelming desire to provide good facilities for those living around our manufacturing sites” says Sandra R. Shroff, Vice-Chairman of UPL Ltd, the company that spent almost 4 times more than the prescribed CSR in the last financial year.
Going by the state-wise distribution of CSR fund, Maharashtra received 16.5% of the Country’s CSR fund, followed by Gujarat with 6.9% . Odisha has seen substantial rise in CSR fund with jumping up to 3rd largest CSR fund receiver in FY 2016-17 while it was on 8th place in FY 2015-16. The seven North-east states together received just 2% of the CSR fund. Reliance Industries Ltd is the company with the highest CSR spent with INR 659 Cr.
Urban slum development and welfare for army veterans received little attention from businesses with meagre INR 34 Cr spent in both of these areas while technology incubation for start-up is gradually gaining the pitch with INR 20 cr. CSR spent where companies are readying up for supporting start-ups. Healthcare projects received 17% of the CSR fund.
“This year we have seen a lot of change in terms of quality and focus of CSR projects. Companies are spending CSR fund on enhancing teachers’ capacities as well as o learning outcomes for students rather than just on school infrastructure. Similarly, companies are looking at cluster-based development models to bring sustainable impacts in specific region” says Bhomik Shah, CEO of NGOBOX, who has been analysing CSR spend of these companies for past 3 years.
Under the Companies Act, 2013, any company having a net worth of Rs 500 crore or more or a turnover of Rs 1,000 crore or more or a net profit of rupees 5 crore or more has to spend at least 2 per cent of last 3 years average net profits on CSR activities that relates with the company’s responsibility with the society at large.