GN Bureau | September 28, 2015
Energy companies spent the highest on corporate social responsibility (CSR) initiatives. The energy sector was followed by financial services and IT when it came to firms that committed to CSR.
With oil and gas companies being among the largest corporations in India by revenue and profit, they emerged as the highest spenders. They spent Rs.1,945 crore in 2014-15, or 38%. The telecom sector spent only Rs.51 crore, while it was expected to spend Rs.194 crore.
However, the consumer goods companies were, however, the only companies that exceeded the mandatory spending limit of 2% of annual profits.
Reliance Industries Ltd spent Rs.761 crore, the most by an Indian company, followed by state-run Oil and Natural Gas Corp. Ltd at Rs.495.2 crore and power producer NTPC Ltd at Rs.205 crore.
These companies focus areas are hunger, poverty, preventive health care, sanitation and safe drinking water. These activities consumed Rs.913 crore. Of that RIL’s spending on healthcare accounted for Rs.608 crore. For the rest, much of it would went toward Swachh Bharat Abhiyaan as most state-run firms were directed to spend on toilets by the ministry of public enterprises.
The sector also linked its CSR spending to business, allocating Rs.412 crore for environmental sustainability initiatives. This includes initiatives such as building rain-water harvesting structures, improving quality of soil, tree plantation among others.
The energy sector, however, did not spend the entire 2% of their combined net profits. It met only up to 89% of what they were supposed to spend. The financial services sector, even though it was the sector that spent the second highest on CSR with Rs.736.9 crore, fulfilled only 54% of what it was supposed to spend.
Financial services companies have spent the most on rural development, where they are mostly carrying out financial inclusion. While government banks are mandated to achieve financial inclusion by opening bank accounts in under-banked areas under the Jan Dhan Yojana, private banks have been asked to participate but not mandated to so.
The technology sector fared better than energy and financial services industries when it came to meeting the 2% spend. They spent Rs.656 crore, which is 91% of what they had to.
The sector focused on education and skill building initiatives, as nearly half the money was spent in this area.
TCS’s employees developed software in nine Indian languages for adult literacy programmes giving them free of cost to organizations such as Lucknow District Jail, HELP NGO in Hiriyur Karnataka and Tata Power Delhi Distribution Ltd, reaching out to as many as 231,178 adults.
“Being the initial year, the company was in the process of evaluating the focus areas and locations of intervention for CSR activities to cater to the pressing needs of society and deliver optimal impact,” said Bharti Airtel in its annual report.
It is not a violation of the law when a firm does not meet 2% spending target, but it is a violation if it does not report its spending and does not disclose why it failed to meet the target.
Consultants and the finance minister have speculated that FY 15 would see about Rs.14,000 crore in CSR spends; now it seems unlikely that the first year will see such a large amount.
Just after the UP assembly election in 1996, I was among the scores of reporters waiting at Kalyan Singh’s residence, waiting to get the first inkling of the future course of the BJP. The party had secured the maximum seats – 174 out of 425 seats – but was short of the majority mark
“Company Secretaries, once known as secretaries to the board and management, have transformed themselves into key managerial and governance professionals. Today they are recognised for their importance on corporate landscape and have become gatekeepers of corporate governance,” said Ajay Tyagi,
Any good news which promises to bring about qualitative improvement in the lives of people, especially in rural India, is always welcome. It was heartening indeed to learn that every single village in the country now has access to electricity, as announced by the prime minister on April 29. This is most ce
The paved road, the few concrete houses and men on motorcycles – these are deceptive signs of development in Madralalpur village. Only a couple of weeks ago, Babu, a 47-year-old distressed farmer, had hanged himself from a babool tree. Villagers were gathered at his house as his wife, mother, sister-
Statistics has come a long way from the time when British prime minister Benjamin Disraeli observed: “There are three kinds of lies: lies, damned lies, and statistics.” Statistics is now an accredited branch of applied mathematics; statistical methods are routinely used to prove or disprove the
Of all offences, it’s the crime of rape that fires public sentiment the most, eliciting an outrage that exceeds the seemingly worst felony of all – murder too. It has probably more to do with the offence and associated gory details staying, even being replayed ruthlessly, in memory with continu