Social projects bypassed as firms spend CSR funds to curry favour with govt

A disaggregated look at the spending leads to the disturbing conclusion that CSR funds are becoming subject to political pressures

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Pushpa Sundar | The Wire
While the steady increase in companies’ corporate social responsibility (CSR) spends since 2014 under the Companies Act is to be welcomed, a disaggregated look at the spending leads to the disturbing conclusion that CSR funds are becoming subject to political pressures.

In 2017-18, the mandatory CSR expenditure under Section 135 of the Companies Act was Rs 100 billion, according to the PRIME Database Group’s analysis of 1,627 NSE-listed companies.

This shows a growth of 11% per annum over the previous year. In line with previous years, and as was to be expected, the maximum spending was on education (Rs 38.31 billion) followed

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First Published: Dec 23 2018 | 12:31 PM IST

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