NEW DELHI: As many as 2,351 companies have no existence in corporate social responsibility endeavors, according to numbers released by the Ministry of Corporate Affairs to the Rajya Sabha on Tuesday.
While a total of 776 firms have engaged NGOs for implementing corporate social responsibility (CSR) activities, nearly 2400 companies chose not to spend a single penny on such tasks, Corporate Affairs Minister, Arun Jaitley said in a written reply to Rajya Sabha.
Following a change in company law in April 2014, the new Companies Act mandates that every company with a annual revenue of more than Rs 100 crore must give away two per cent of their 3-year average annual net profit for CSR activities.An evaluation of the CSR expenditure of 4,257 companies indicates that these firms have spent about 72 per cent of the mandated amount on CSR activities, added Jaitley. Of which, 621 firms have spent more than prescribed amount, while 400 companies spent ‘exactly’ the same amount as prescribed under the rules.
Further, 261 firms have spent 66-99 per cent of the their mandated CSR fund, while 624 companies spent less than 66 per cent of the prescribed amount. Jailtey noted that organising private sports tournaments and one-off activities are not permissible under, adding that a total of 967 complaints are pending before the designated courts so far.
Source: http://www.newindianexpress.com/business/news/2351-firms-fail-to-respect-CSR-mandate/2016/07/20/article3537492.ece
While a total of 776 firms have engaged NGOs for implementing corporate social responsibility (CSR) activities, nearly 2400 companies chose not to spend a single penny on such tasks, Corporate Affairs Minister, Arun Jaitley said in a written reply to Rajya Sabha.
Following a change in company law in April 2014, the new Companies Act mandates that every company with a annual revenue of more than Rs 100 crore must give away two per cent of their 3-year average annual net profit for CSR activities.An evaluation of the CSR expenditure of 4,257 companies indicates that these firms have spent about 72 per cent of the mandated amount on CSR activities, added Jaitley. Of which, 621 firms have spent more than prescribed amount, while 400 companies spent ‘exactly’ the same amount as prescribed under the rules.
Further, 261 firms have spent 66-99 per cent of the their mandated CSR fund, while 624 companies spent less than 66 per cent of the prescribed amount. Jailtey noted that organising private sports tournaments and one-off activities are not permissible under, adding that a total of 967 complaints are pending before the designated courts so far.
Source: http://www.newindianexpress.com/business/news/2351-firms-fail-to-respect-CSR-mandate/2016/07/20/article3537492.ece
