Mumbai: Listed public sector firms are lagging behind non-PSU firms while spending on corporate social responsibility (CSR) as mandated by the Companies Act 2013. While PSUs have been required to spend on CSR since 2010 as per the DPE guidelines, non-PSUs have had no such obligation.
According to a study undertaken by proxy advisory firm IiAS, of the Rs 3,000 crore spent in FY13, non-PSUs had spent one per cent of their average profit before tax of the preceding three years while PSUs spent only 0.6 per cent of their average profit before tax of the preceding three years.
This trend continued even in FY15. In FY15, CSR spends of the S&P BSE 100 companies aggregated Rs 5,240 crore or 1.5 per cent of their three-year average profits. Non-PSUs spent 1.6 per cent and 21 PSUs spent 1.3 per cent of their average profit in the preceding three years.
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