Why in the News?
- CSR spending by listed companies rose by 23% in FY25, reaching about ₹22,212 crore, driven by strong profit growth.
What is CSR
- Corporate Social Responsibility refers to:
- Companies investing in social, environmental, and developmental activities
- Mandated under:
- Companies Act, 2013 (effective April 2014)
CSR Legal Framework
Mandatory Requirement
- Eligible companies must spend: At least 2% of average net profits (last 3 years)
Applicability Criteria
Applies to companies with:
- Net worth ≥ ₹500 crore
- Turnover ≥ ₹1,000 crore
- Net profit ≥ ₹5 crore
Key Trends (FY25)
- CSR spending: ₹22,212 crore (up 23%)
- Companies spending CSR: 98% compliance
- Increase due to: Higher corporate profits
Sector-wise Allocation
- Highest spending: Education
- Second: Healthcare
- Low spending:
- Slum development
- Disaster management
- Armed forces welfare
| [2024] With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct? [A] 1 only [B] 2 only [C] Both 1 and 2 [D] Neither 1 nor 2 |
