Connecting CSR and social stock exchange

Allowing social stock exchanges to facilitate CSR funding of projects could catalyse change by improving outcomes

India is one of the few countries in the world where companies meeting specific criteria are statutorily required to spend a part of their profits on corporate social responsibility (CSR) activities. Section 135 of the Indian Companies Act, 2013, contains this legal provision, while Schedule VII to the Act lists out the activities that could be undertaken by a company under its CSR policy.

The CSR activities of Indian corporations have gained momentum over the years — both in terms of the absolute amount spent and the range of activities covered. According to Ministry of Corporate Affairs (MCA) data, the CSR