In News:

• According to Crisil Foundation, Cumulative spending on corporate social responsibility (CSR) has crossed the Rs. 50,000-Crores-mark four years after the legislative mandate was implemented.

Explained:

• A Crisil estimate shows spending by listed companies rose 12% year-on-year in fiscal 2018 to Rs. 10,000 Crores, for the first time. Assuming the same rate of growth, spending by unlisted companies is estimated to be Rs. 5,100 Crores for the year, taking the total for the year to Rs. 15,100 Crores.
• With this, cumulative spending over the four years stands at Rs. 34,100 Crores for listed companies and Rs. 18,900 Crores for unlisted ones, totalling Rs. 53,000 Crores.
• While education and skill development and healthcare and sanitation remained the top spending heads, two areas grew at a fast clip — spending on national heritage protection has tripled and that on sports promotion has more than doubled since FY 2015.

What is Corporate Social Responsibility (CSR)?

• Corporate Social Responsibility (also known as CSR, corporate conscience, and corporate citizenship) is the integration of socially beneficial programs and practices into a corporation’s business model and culture.
• CSR aims to increase long-term profits for online and offline businesses by enabling them to become more efficient and attract positive attention for their efforts.
• India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to The Company Act, 2013 in April 2014.
• The amendment notified in the Schedule VII of the Companies Act advocates that those companies with a net worth of US$73 million (Rs 4.96 billion) or more, or an annual turnover of US$146 million (Rs 9.92 billion) or more, or a net profit of US$732,654 (Rs 50 million) or more during a financial year, shall earmark 2 percent of average net profits of three years towards CSR.