TCS spends Rs. 727 Cr on social development programs in 2022
BY Rusen Kumar
NEW DELHI (CSR India): Tata Group Company – Tata Consultancy Services (TCS), a global leader in technology and consulting, has demonstrated its commitment to the socio-economic development of society. According to its recent annual report, the company has invested Rs. 727 crores on various sustainability programs, against its mandated CSR expenditure of Rs. 716 million rupees. The company’s average net profit for the year was Rs. 35,806 Cr (Rs. 30,003 crores. – previous year). The amount of CSR spent on administrative overhead was Rs. 7 crores.
TCS’ CSR initiatives and activities are aligned with the requirements of Section 135 of the Companies Rules (Corporate Social Responsibility Policy), 2014.
In accordance with Section 135 of the Companies Act 2013, the amount to be spent by the Company during the financial years ended 31 March 2022 is Rs. 716 crores, calculated as 2% of its average net profit for the three financial years previous ones, on CSR.
The Company’s CSR initiatives are executed by qualified personnel who ensure impact-oriented implementation, monitoring and reporting.
Corporate Social Responsibility (CSR) in India has very recently undergone a metamorphosis to become legally binding under the “Companies Act 2013 and Associated Companies (CSR Policy) Rules 2014”.
The Companies Act 2013, read together with the Companies (Corporate Social Responsibility Policy) Rules 2014 (the CSR Rules), requires companies to meet certain threshold requirements for net worth, business or net profit form a CSR committee and spend 2% of a respective company’s average pre-tax profit for the previous three years on identified CSR areas. This requirement came into effect on April 1, 2014.
The Society believes that everyone is born with equal potential, but not equal opportunity. The vision of TCS is to empower people and communities, empowering people through purpose and technology while upholding the values of justice, equity and respect for human rights. The company remains true to its mission of connecting people to the opportunities of the digital economy while creating fair and inclusive journeys for all, especially women, youth and marginalized groups.
TCS has conducted internal impact assessments to monitor and evaluate its strategic CSR programs. The Company acknowledges sub-rule (3) of Rule 8 of the Corporate CSR Policy Rules 2014 and has taken steps to conduct an impact assessment of CSR projects through an independent agency. There are no projects initiated or completed after January 22, 2021, for which the impact assessment report is applicable to fiscal year 2021.
TCS, through various CSR initiatives and programs around the world, continues to invest to meet the most pressing needs of the community. The main focus areas are education, skills, employment and entrepreneurship, with a focus on reducing opportunities for people and communities. The company invests in basic health and wellness, water sanitation and hygiene, conservation, and disaster relief efforts to meet the basic needs of communities around the world.
By applying its resources to the communities that need them most, TCS ensures equitable access. The Company’s CSR strategy incorporates an inclusive approach in the design of each program. In India, this is aligned with its support for the Government of India’s Affirmative Action Policy and the Tata Group’s Affirmative Action Programme.
In an effort to build the capacity of grassroots organizations and the knowledge base on community issues, TCS also invests in strategic partnerships, research and insights and in the provision of free technology advice.
To achieve transformational impact, TCS leverages the best of the company’s capabilities – its intellectual, technological, human and financial capital. TCS aims to create innovative solutions to societal challenges by applying its contextual knowledge while harnessing the expertise of a diverse network of leaders; run and scale programs using its technology capabilities; engaging its broad base of employees to volunteer their time, skills and expertise as last-mile connectors and to make impact investments in large-scale, sustainable, multi-year programs that empower communities.
The projects undertaken fall within the general framework of Annex VII of the Law. TCS has conducted internal impact assessments to monitor and evaluate its strategic CSR programs. The Company is aware of Subrule (3) of Rule 8 of the Companies Rules (Corporate Social Responsibility Policy) 2014 and has initiated an impact assessment of a CSR project (Tata Translational Cancer Research Center ) through an independent agency.
The TCS Foundation, a Section 8 company incorporated in 2015 for the sole purpose of furthering the Company’s CSR activities, held three meetings in fiscal year 2022.
Composition of the CSR committee: N Chandrasekaran Chairman, non-independent, non-executive director, P Bhatt member, independent, non-executive director and N Ganapathy Subramaniam member, non-independent, executive director. The role of the CSR department is to formulate and recommend to the board of directors a CSR policy indicating the activities to be undertaken by the company as specified in annex VII of the law, to recommend the amount of expenditure to be incurred for the activities mentioned in the CSR policy and Monitor the CSR policy.
CSR spending trend
|2021-22||Rs. 727 Crores|
|2020-21||Rs. 664 Crores|
|2019-20||Rs. 600 Crores|
|2018-19||Rs. 542 Crores|
(TCS: Annual Reports)
About the Author
Rusen Kumar is the founder and editor of India CSR – India’s CSR Chronicle. He writes on CSR, sustainability and environmental affairs. He can be contacted at [email protected]
India CSR I June 20, 2022