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Unlisted Firms Close the Gap on CSR Spending: A New Trend in Corporate Philanthropy

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With unlisted companies significantly boosting their CSR contributions and increasingly aligning with Social topics of ESG standards, India is witnessing a transformative era in corporate social responsibility, reinforcing its essential role in sustainable business practices and community impact

It’s impressive to note that unlisted companies in India now contribute a remarkable 49.2% of the country’s total CSR expenditure, as reported by the Economic Times. In the fiscal year 2022-23, unlisted firms spent ₹14,742 crore on CSR initiatives, closely trailing the ₹15,245 crore spent by listed companies.

What is surprising is that only a small fraction of unlisted firms are legally obligated to spend on CSR—those with a net worth over ₹500 crore, turnover above ₹1,000 crore, or a net profit of more than ₹5 crore. Despite this, these companies are stepping up in a big way, showing that CSR is no longer just a checkbox but a vital part of their identity.

Maharashtra, unsurprisingly, leads the pack, with ₹5,375 crore spent on CSR activities in 2022-23. That’s a full 18% of the country’s total CSR expenditure. Other major contributors include Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh, which together account for almost 39% of the overall CSR spending. It’s clear that certain states are benefiting significantly from corporate philanthropy, which raises important questions about how this spending is being distributed and its broader impact.

In 2022-23, a total of 24,392 companies participated in CSR, funding a whopping 51,966 projects across 14 major development sectors. These sectors include everything from healthcare and education to environmental sustainability and rural development.

Overall, CSR spending jumped to ₹29,986 crore in 2022-23, up 12.8% from ₹26,580 crore the previous year. This increase reflects not only the growing profitability of corporate India but also its deepening commitment to social responsibility.

Source : https://m-economictimes-com.cdn.ampproject.org/c/s/m.economictimes.com/news/company/corporate-trends/unlisted-firms-climb-up-csr-spend-list/amp_articleshow/113104698.cms

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