CSR by tobacco industry invalid and prohibited in India

0
145

India CSR News Network

NEW DELHI:  The Ministry of Corporate Affairs (MCA) has given a clarification about Corporate Social Responsibility (CSR) for the tobacco industry.

The circular dated 16 May 2016 says that the New Companies Act 2013 must not contravene any other prevailing laws of the land including Cigarettes and Other Tobacco Products Act (COTPA) 2003.

no_tobaccoThis means that CSR activities by tobacco industry is invalid since Section 5 of Cigarette and Other Tobacco Products Act (COTPA) prohibits “sponsorship of any trade mark or brand name of cigarettes or any other tobacco products”.

 

According to a release, the members of TNPFTC has welcomed the move of MCA which protects the public from the marketing strategies of Tobacco Industries. With the clarification issued, the CSR activities of Tobacco Industry become invalid and prohibited.

WHO Framework Convention on Tobacco Control (FCTC) Article 5.3 states that corporate social responsibility schemes by tobacco industry are really just marketing by another name. When the New Companies Act, 2013 came into force, it contradicted WHO FCTC Article 5.3 and Section 5 of COTPA and moreover legalized CSR activities of Tobacco Industries.

Tamil Nadu People’s Forum for Tobacco Control (TNPFTC) had filed PIL in Chennai High Court asking the MCA to Exclude Tobacco Industry from Participating in CSR activities.

Download Circular

Comments

comments

SHARE
Previous articleMines Safety, Mechanisation and Quality assurance are most important: Balco CEO
Next articleWhy was CSR not made mandatory: finance panel
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in