Analysis of CSR—Corporate Social Responsibility—Initiatives by CPSEs—Central Public Sector Enterprises of India

Abstract

AbstractIn India, Central Public Sector Enterprises—CPSEs—are the government-owned corporations in which majority (51% or more) of the paid share capital is either held by central government or by any state government or partly by the central government and partly by one or more state governments. According to the Government of India, Public Enterprise Survey Report, 2018–19, there were total of 178 profit-making CPSEs making a net profit of ₹1,74,587 crore. The top ten ranking profit-making CPSEs among them made a net profit of ₹1,07,947 crore, contributing 61.83% to the total profit earned by the CPSEs during 2018–19. CSR—Corporate Social Responsibility—in India is mandatory in nature. According to Section 135 of Companies Act, 2013, all profit-making corporates, including Central Public Sector Enterprises (CPSEs), exceeding threshold limits prescribed in the Act regarding net worth of ₹500 crore (₹5000 million), or turnover of ₹1000 crore (₹10,000 million) or net profit of ₹5 crore (₹50 million), in pursuance of its CSR policy are mandated to spend at least 2% of the average net profit (profit before tax) of immediate three preceding year ₹ towards CSR activities as per items listed in Schedule VII of the Companies Act 2013. Such companies are required to constitute a CSR committee, formulate a CSR policy and undertake CSR initiatives in accordance with Schedule VII of the Act and are also required to mandatorily report it in their annual reports in the prescribed format. The mandatory CSR reporting facilitates the company to demonstrate their commitment towards the society and also act as a communication tool to engage with different stakeholders, including shareholders, regulators, communities, customers and society at large. Central Public Sector Enterprises (CPSEs) in India are regularly undertaking various social initiatives and fulfil their corporate social responsibility towards the society and the nation. This research paper analyses the corporate social initiatives undertaken by the top ten profit-making CPSEs of India as per their ranking in the Public Enterprise Survey report, 2018–19. The duration of this research work is for the period of 05 year starting from the financial year 2014–15 to 2017–19.KeywordsCorporate social responsibilityCentral public sector enterprisesIndian companies act 2013NITI AayogSocietyMCA-ministry of corporate affairsSustainable development & society