Do Companies in India Follow the Standard Expected Expenditure (2%) CSR Norms of Companies Act 2013 - A Study

Abstract

Mr.Pravin D. Sawant

Corporate Social responsibility is an overall contribution of business to sustainable development. Many companies have taken Social responsibility seriously in the recent years because they realized the importance of the community in general and the society in particular. Companies were spending towards CSR Activities because they owe towards society. But now the Companies Act 2013 has made it obligatory to do some activities towards welfare of the society. Provided it fulfills some condition of Net Profit, Net Worth and Turnover. Companies tried to bridge the gap between the privileged and the underprivileged of society. This study attempted to assess the performance of Manufacturing Companies towards CSR and to know whether companies are spending towards CSR as per the Standard Requirements of the companies Act 2013. Industries such as cement, iron and steel and mining have been relatively close to 2.0% CSR expenditure after the year 2010-11 compared to the other industries. It is also evident that the industries such as Pharma, Auto, Oil and Gas, FMCG and Chemical have been far away from the 2.0% CSR expenditure throughout the study duration i.e. 2005-06 to 2014-15 compared to the other industries

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