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New CSR Disclosure Framework Aids Data Analytical Work and Improves Transparency

New CSR Disclosure Framework

New CSR Disclosure Framework Improves Transparency

New CSR Disclosure Framework – According to a senior government official, the new disclosure structure for corporate social responsibility expenditures will help gather precise facts for analytical purposes while also increasing openness in expenditure. 
 
The Corporate Social Responsibility (CSR) regime, which applies to a select group of profitable businesses, went into effect in April 2014, and official statistics available up to September 30, 2021, showed that Rs 8,828.11 crore was spent on such projects in the previous fiscal year. 
 
According to the business affairs ministry’s National CSR data portal, the amount spent in the fiscal year 2020-21 is Rs 20,360 crore. However, the amount is expected to be higher because companies have until March to file their CSR forms. 
 
Companies spent roughly Rs 1.09 lakh billion on CSR initiatives between 2014-15 and 2020-21, including those relating to health, education, poverty reduction, women empowerment, and rural development.

CSR Expenditure

The CSR expenditure for the 2019-20 financial year was Rs 24,864 crore. The total CSR spending in the last two financial years has exceeded Rs 45,200 crore, according to data available on the web. 
 
The ministry released Form CSR-2 earlier this month (Report on Corporate Social Responsibility). 
 
The CSR expenditure for the 2019-20 financial year was Rs 24,864 crore. The total CSR spending in the last two financial years has exceeded Rs 45,200 crore, according to data available on the web. 
 
The ministry released Form CSR-2 earlier this month (Report on Corporate Social Responsibility). The form requires organizations to report information on the amount of CSR money spent on ongoing projects as well as non-ongoing projects. 
 
Other criteria include disclosing the amount spent on impact assessments and whether any capital assets were developed or bought as a result of CSR in a given fiscal year.

New CSR Disclosure Framework

The goal of the form, according to the official, is to gather precise facts regarding CSR spending that are needed for analytical purposes, as well as to let stakeholders understand what corporations are doing with their CSR duties. 
 
The data will be made available on the CSR portal and the form will be in a machine-readable manner. 
 
Concerns have been made in some sectors that the new disclosure rules will increase the burden of compliance for businesses. 
 
According to the Companies Act of 2013, certain successful firms must devote at least 2% of their three-year annual average net profit to CSR initiatives in a given financial year. 
 
Last December, the ministry informed Parliament that, since the April 2014 enactment of CSR provisions, businesses have responded positively and shown encouraging signs of adopting a culture of social responsibility. 
 
Non-compliance with CSR regulations became a civil wrong in 2021, according to the ministry. 
 
CSR framework is a process that is driven by a company’s board of directors, who are in charge of planning, deciding, executing, and monitoring CSR initiatives. 

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