Tata companies invest 4-5 Percent of profits on the CSR says Ratan Tata

Ratan Tata chairman of Tata Companies
Ratan Tata chairman of Tata Companies


Mandatory corporate social responsibility (CSR) spending for companies are “like a tax” and the government should help identify the beneficiaries, Tata Sons’ chairman emeritus Ratan Tata said. On government making corporate social responsibility (CSR) spends mandatory for companies above certain threshold at 2 percent of profits, Tata said,

 “The mandated Spend 2 percent, the government has (enforced) becomes like tax”.  Ratan Tata said the spirit of helping others come by themselves. But to make it important and to make it target explains the different ways.

Tata said that the Tata group of companies spend 4 to 5 percent of their profits on CSR. The government will have to define those projects which need investment.


A provision in companies Act 2013 has been made that companies have to spend 2 percent of net profits on the CSR. Companies Act 2013 is implemented from April 2014. According to Act company has to make the CSR fund. At least 500 million net worth companies or companies with a turnover of Rs 1,000 crore come in its scope fall. companies come under the scope of the CSR at least 5 crore profit making.

Under CSR, companies have to work in such areas as, curb hunger, poverty, malnutrition, health, cleaning and potable water. Promoting the education, Development skills by vocational training is included in this.

In addition , Under CSR companies have to build female empowerment, women and orphans home and hostel building, the old building of the Hermitage.




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