Corporate Social Responsibility (CSR)

Context:     

Indian firms’ spending on corporate social responsibility (CSR) remained flat in 2021-22, a new analysis by primeinfobase.com showed. 

About Corporate Social Responsibility (CSR):

• Corporate Social Responsibility is a management concept whereby  companies integrate social and environmental concerns in their business  operations and interactions with their stakeholders.

Sectors With Highest CSR Spends:

• Education-related sectors and healthcare segments continued to find favor with companies. These sectors received close to 60% of the CSR expenditure in 2021-22. 

State Split:

• Companies CSR payouts across states were uneven. 
• The biggest beneficiaries of CSR funds were large and industrialized states, while smaller ones received smaller amounts. 
  • Maharashtra, Gujarat, Delhi, Karnataka, Tamil Nadu, Uttar Pradesh, Rajasthan and Andhra Pradesh—some of the biggest state economies—together received nearly 50% of the funds. 

Preferred Routes  

• COMPANIES CARRY out CSR activities either on their own, or through eligible external agencies. 
• Around 29% of the companies spent directly on CSR-related activities, while 20% used an external implementing agency. The remaining 3% did not specify the route chosen by them.