Nasscom Reports Rise In Industry CSR Spending

by CXOtoday News Desk    Dec 01, 2017

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Nasscom Foundation at its flagship event, The CSR Leadership Conference (CLC), announced that the Industry had widely accepted the 2 percent CSR rule with a trend of more companies coming out openly to declare 100 percent utilization of their CSR money for 2016-17.

The Foundation that called for a collective CSR focus towards ‘Human Centered Innovations’ said at The CSR Leadership Conference, over 60% of the surveyed companies reported 100% or more utilization of CSR funds. However, a greater focus is required in this area as only 5% of the surveyed companies reported a spend of less than 50% of their CSR budget. It added that ducation remains the top focus area of companies’ CSR activities

According to a newly released report in partnership with Goodera titled: ‘Catalyzing Change’ Nasscom beings out some key highlights:

Growing number of companies spending 100% and above of the CSR funds, among both MNCs and Non-MNCs: 61. 6% of the surveyed companies reported spends of 100% or above their prescribed CSR budget. This includes 63.3% of the MNCs and 68% of the Non-MNCs.

Smaller sized companies (turnover below INR 100 Crore) proactively pushing CSR initiatives with full utilization of prescribed budget:  While 57.57% of large companies, 53.3% of medium companies are spending 100% of CSR funds, an impressive 72.7% of small companies spending 100% of CSR funds.

Underspending is a rare condition: Only 5% of companies surveyed reported a spend of less than 50% of their CSR budget.

Education remains the top focus area of companies’ CSR activities especially in MNCs: 76% of MNCs reported highest CSR spend on Education. Other MNC focus areas, including 12% on Hunger & poverty and 18% on Gender equality.

MNCs increasing liaison with government to tackle developmental issues: While overall, 43.3% of participating companies confirmed working with the Central/State government in their socio-economic projects for 2016-17.

Shrikant Sinha, CEO, NASSCOM Foundation, said, “The IT BPM Industry has been at the forefront of social development initiatives and it is heartening to see the industry emerging as one of the most efficient and innovative adopters of corporate social responsibility. Technology continues to prove a force multiplier in social impact with more than half of the companies that spent 100% or more of their CSR funds, claiming efficient use of technology to deliver innovative CSR programs aligned to the Goverment agenda.”

The event saw over 400 CEOs, CXOs, CSR Heads, HR Heads of the top most companies from across various industries with the NGO Leads, Government officials, thought leaders, Tech4Good champions, social innovators come under one roof to discuss and create collaborative and innovative ways of fulfilling the most important Social Development Goals for India.

The CSR Leadership Conference also had on showcase, innovations from various social startups and NGOs like Sohum Innovation Lab, Neurosynaptic, EYE-D, Bleetech Innovations, Sankalptaru, Foundation for Ecological Securities, Headstreams, CFBT among others.

Through its unique NGO impact wall and Networking spaces, the CSR Leadership Conference also provided an opportunity to 100+ participating NGOs to showcase their work to the corporates and connect at a programmatic level.