Using CSR Funds for Political Gain
The Wire December 22, 2018 By:Pushpa Sundar With a nudge and push from the party in power, money that might be better spent on literacy, health and technology is funding pet projects at pet locations. While the steady increase in companies’ corporate social responsibility (CSR) spends since 2014 under the Companies Act is to be welcomed, a disaggregated look at the spending leads to the disturbing conclusion that CSR funds are becoming subject to political pressures. In 2017-18, the mandatory CSR expenditure under Section 135 of the Companies Act was Rs 10,000 crore, according to the PRIME Database Group’s analysis of 1,627 NSE-listed companies. This shows a growth of 11% per annum over the previous year. In line with previous years, and as was to be expected, the maximum spending was on education (Rs 38.31 billion) followed by health care, poverty and hunger (Rs 24.85 billion) and environment sustainability (Rs 11.82 billion). But disaggregation of spending...