RISE IN CORPORATE SOCIAL RESPONSIBILITY (CSR) SPENDING

UPSC Relevance

• GS-3: Economy (corporate governance, social responsibility)
• GS-2: Governance (Companies Act, 2013)

Key Points

• CSR spending by listed firms rose 16% to ₹17,967 crore in 2023-24 from ₹15,524 crore in 2022-23, driven by higher profits.
• HDFC Bank led with ₹945.31 crore, followed by Reliance Industries and TCS.

Detailed Insights

• CSR, mandated by Section 135 of the Companies Act, 2013, requires companies with a net worth of ₹500 crore, turnover of ₹1,000 crore, or net profit of ₹5 crore to allocate 2% of their average net profit over three years to activities like heritage protection.
• India is the first country to legislate mandatory CSR.
• Non-compliance incurs penalties, and companies must register with the Registrar of Companies for CSR activities.

Significance

• Reflects growing corporate commitment to social and environmental goals.
• Supports national development through private sector contributions.

Analysis & Way Forward

• Transparent monitoring of CSR fund utilization is essential.
• Expanding CSR to underserved sectors like education and healthcare will maximize impact.