Elsewhere online
April 05, 2016

India's Corporate-Giving Law Raises Money but Also Questions

Direct corporate philanthropy in India has spiked since the country enacted a law two years ago requiring large companies to donate at least 2 percent of their net profit to charity, but the rise has been accompanied by questions over skewed giving and alleged corruption, The Guardian writes. According to independent reports, Indian firms' donations rose from about $508 million in 2013 to nearly $3.8 billion after the country became the first in the world to legally mandate corporate giving.

Some observers say the measure has enshrined social responsibility in Indian corporate culture, but others contend the law reduces giving to a matter of accounting and compliance and concentrates it in wealthier provinces that are home to more big firms. A KPMG survey found that more than half of India's largest companies did not meet the requirement last year, and a media investigation raised allegations that some firms cheated by making gifts to foundations that returned most of the money.