Since 2014, firms in India have been legally obliged to spend 2% of profits on corporate social responsibility (CSR).

The idea of compulsory charity has received mixed reception and has been likened by some business leaders to a tax on business. In reality, the law is more of a nudge than an edict.

Only businesses with domestic profits consistently over 50m rupees, or 5bn in net assets, or turnover over 10bn rupees are affected. Companies can also opt to give nothing, as long as they explain why.

In practice, most Indian firms comply, or at least they do in part. A study of listed firms by CRISIL, a credit-rating agency, found that over 1,100 firms had spent 83bn rupees on good causes in the 2015–16 financial year, up by 22% from the previous year.

Read the full article on compulsory charity in India at Medium