Perspectives

Companies feel CSR cap counter-productive

First Impressions

Companies can spend up to 5% of their total CSR fund in building CSR capacities of their own personnel or those of implementing agencies.

Abhay Gupte, Senior Director, Deloitte in India sheds light on the CSR rules.

The 5% limit is restrictive, especially for companies that are just starting out on CSR programmes. For companies that have been undertaking CSR activities long before 2014, this clause may work because they already have in place the network, infrastructure and even personnel to implement CSR projects. But companies that are just starting CSR initiatives will need to hire the qualified personnel, conduct studies to design programmes to understand the need of communities that they are going to be working with. All this needs man hours and therefore money… It is unlikely the 5% will cover even half the cost.

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