Education favourite CSR activity among Indian companies

Education favourite CSR activity among Indian companies

In 2014-15, nearly Rs 8,029 crore was spent by Indian companies towards Corporate Social Responsibility (CSR) initiatives.

An amendment to the Companies Act in 2014, made it mandatory for companies to put aside 2% of their average net profit of the three preceding financial years, for social causes.

In the period, education emerged as the most preferred area for CSR activities among Indian companies. A total of Rs 2519.92 crore was spent by the private and public companies in this sector. This was followed by environment and animal welfare, and rural development.

The Clean Ganga initiative was the least favourite, with only Rs 17.16 crore spent out of the total outflow of over Rs 8,000 crore.

Following are the areas in which the companies made the highest expenditure.

In 2014-15, out of 4,257 registered PSU and private companies, 116 public firms (out of 169) and 1,790 private companies (out of 4,088) spent money on CSR initiatives, Minister of State in the Ministry of Corporate Affairs, Arjun Ram Meghwal said, responding to a question in the Lok Sabha.

This means, out of the total 4,257 registered companies, 2,351 did not make any CSR expenditure in the year under consideration. The 1,906 companies that did engage in CSR activities, spent Rs 8,029 crore.

[Source:- Zee Business]