Corporate altruism can do better

Compliance is improving, but sustaining it will take a couple of tweaks

Four years since spending on corporate social responsibility (CSR) became obligatory, it’s heartening to see the altruistic spirit gaining traction.
 
The Companies Act, 2013, requires a company to spend on CSR during a year 2 per cent of its average net profit of the preceding three years if it meets any of the three stipulated criteria — a net worth of Rs 5 billion or more, a turnover/revenue of Rs 10 billion or more, or net profit of Rs 50 million or more in any of the three years preceding the year of reporting.
 
Crisil’s analysis shows spending