THE OFFICE OF AIMA CENTRE FOR MANAGEMENT EDUCATION AT ANDHRA ASSOCIATION BUILDING, 24-25 INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI HAS RELOCATED TO AIMA’S NEW PREMISES AT 15, LINK ROAD, LAJPAT NAGAR, PART-III, NEW DELHI W.E.F 6TH NOVEMBER 2017                  The office of AIMA Centre for Management Services at Management House, 14 Institutional Area, Lodi Road, New Delhi - 110003 has relocated to AIMA’s new premises at 15, Link Road, Lajpat Nagar, Part-III, New Delhi w.e.f. 13th November 2017

Management News

CSR: Outcomes matter more than compliance

In April 2014, India became the only country to fix the quantum of corporate social responsibility by law. Many countries practise compulsory reporting of CSR but not compulsory CSR spends.
The stipulation of allocating 2% of corporate profits for CSR was predicated on the promise of inclusive and responsible growth. Yet, the rationale of compulsory charity was questioned, and some saw it as a tax by other means. The CSR law has been in force for three years, and the surrounding debate around its validity and effectiveness refuses to go away.
The numbers suggest that the law is working. There has been significant increase in CSR spending in the first couple of years of the law being passed.
According to a KPMG survey, in the second year of mandatory CSR (2015-16), the top 100 listed companies spent R6,518 crore on CSR, a 27% jump over the first year. Moreover, the gap between their CSR obligation and the actual spending decreased to 10% from 21%. A study by Prime Database showed a similar trend on a larger sample base of close to 900 companies.
However, it is not clear if the increase can be entirely credited to the law or whether companies are getting more organised about reporting their usual CSR expenditure. Still, the 2% mark has clearly raised the threshold for the larger companies with higher bottom lines. . . ... Page 8