CSR activities by companies often see grandeur and quite obviously huge expenditure. In 2014-15, a whopping 6388 crore rupees were spent by 460 companies, but did it really help changing something and contribute to the environment or the community? Let’s take a look. 
A total of 6388 crore rupees were spent on Corporate Social Responsibility (CSR) activities by 460 companies in 2014-15. The companies implemented a total of 1790 projects according to the data released by the government.
But, what is CSR?
Business Dictionary defines CSR as “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs and (3) by earning adequate returns on the employed resources.”
Also known as corporate citizenship, CSR basically ensure companies give something back to the society.
What does the law say?
According to Section 135 of the Companies Act 2013, organizations that have a turnover or net profit of a specified amount have a compulsion to spend 2% of the net profit on Corporate Social Responsibility (CSR) activities.
It is mandatory for companies meeting this eligibility criteria:
– with a net worth of Rs 500 crore or more
or
– turnover of Rs 1000 crore or more
or
– net profit of Rs 5 crore or more
Companies which fall under this bracket are supposed to spend at least 2% of their average net profits earned during three immediately preceding financial years on CSR activities.
The company also need to form a CSR committee and come up with a CSR policy. An annual board sets and the companies are required to report their annual expenditure on CSR activities.
How is CSR helping?
When companies indulge in CSR activities they work towards waste management, ensure a clean and green environment and develop community acceptance. It even helps the company as they develop a responsible and concerned brand image.
In 2014-15, 1463 crore rupees were spent on promoting education, vocational skills and livelihood enhancement. To deal with issues such as hunger, poverty and health care a total of 1422 crore rupees were spent. Rural development projects were not ignored and saw a spending of 724 crore rupees.
How much did the companies spend in 2014-15?
According to the data revealed by the Ministry of Corporate Affairs, 51 Public Sector Undertakings (PSUs) and 409 Private companies spent a total of 6338 crore rupees on CSR activities.
The data points out that 51 PSUs spent 2387 crores while 409 private companies spent 3951 crore rupees. Clearly, PSUs are much ahead of the private companies in terms of numbers.
Out of the top 20 spenders under CSR, 9 of them are PSUs and rest are private companies. Reliance Industries spent the most with 760.6 crore rupees followed by ONGC with 495.2 crores.
This article was taken from here.