Government says not issued any guidelines on CSR spending yet

Moneylife Digital Team 18 March 2013

The ministry of corporate affairs has not yet issued any guidelines for reporting of corporate social responsibility spending by companies

The Union government on Monday said it has not issued any guidelines for reporting of spending by companies on social welfare activities. It said suitable norms for reporting of the corporate social responsibility (CSR) would be in place after the new Companies Bill comes into force.

In a written reply in the Rajya Sabha, corporate affairs minister Sachin Pilot said, “The ministry has not issued any guidelines for reporting of CSR spending by companies”.

“However, after the Companies Bill, passed by the Lok Sabha and under consideration of the Rajya Sabha, comes into force, suitable rules/guidelines will be issued to give effect to the provision of CSR contained in Clause 135 of the Bill,” he added.

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M G WARRIER

1 decade ago

Commonly, ‘Corporate Social Responsibility’ is understood as another name for charity. The government’s and Corporates’ hesitant approach to CSR can turn out to be harmful to the country and in the process to corporates also, in the long run. Spending for supporting social causes, by and large, has remained at the bottom end of the priorities for government and corporates so far. Those rich individuals from certain corporate empires who have started recognizing CSR as part of their way of life have done so either late in life or because of ‘certain compelling circumstances in life’ which they had not bargained for. Without struggling to put together a legal definition for CSR, or waiting for a diktat from government via legislation, those who are lucky to govern and manage resources which ultimately belong to the society should take on themselves the responsibility to eradicate hunger and poverty, provide shelter and potable water, promote literacy at least to the school level, ensure reasonably affordable healthcare for those in the ‘command area’ of their governance or business/industry. Fixing a percentage or routing money through PM’s Relief Fund are all niceties which may cover shame but will hardly ensure acceptable quick results.