A gradual uptick in corporate earnings has led to a 28 per cent surge in corporate social responsibility (CSR) spending by listed entities in 2015-16.
- According to data released by Prime Database, companies spent Rs. 8,345 crore on various CSR activities in 2015-16, against Rs. 6,526 crore the previous year.
- Education was the most preferred cause, attracting Rs. 2,042 crore or nearly a fourth of the total spending, followed by spending on preventing human diseases and viruses, of Rs. 1,637 crore.
- Contribution to the Prime Minister’s National Relief Fund saw a five-fold jump to Rs. 869 crore.
According to a law enacted in 2014, all companies with net worth of at least Rs 500 crore and annual revenue above Rs. 1,000 crore or net profit of Rs. 5 crore need to invest at least two per cent of their average net profit in the past three years on CSR projects.
Source: Business Standard