Low Ranking of Indian Corporate in Global Philanthropy Index

The Corporate Social Responsibility (CSR) provisions of the Companies Act 2013, and the rules made thereunder came into force from 01.04.2014. This is the first year of implementation of CSR by companies under the Act. Details of funds spent under CSR would be available only after the mandatory disclosures of CSR expenditure are made by companies, which would be due after September, 2015. It may be prudent to not speculate on the quantum of CSR expenditure at this stage.

“Swach Bharat Abhiyan” and “Clean Ganga Mission” have been included as CSR activities under Schedule VII of the Companies Act, 2013 from 24th October, 2014.

The Global Philanthropy Index, developed by the Centre for Global Prosperity, Hudson Institute, Washington D.C., measures the magnitude of development assistance, by way of government aid and private giving, from developed countries and emerging market economies to the developing world. The Index, as such, does not come under the purview of the Companies Act and its CSR provision, which prescribes CSR expenditure to be incurred on eligible activities within India.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in a written reply to a question in the Rajya Sabha today.