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Govt to Have a Hands-off Approach on CSR

India CSR by India CSR
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As per the new regulations in the making, it will become mandatory for a company to spend 2% of net profit

KOLKATA: Union corporate affairs ministry has put the onus of performing corporate social responsibility (CSR) on industry, as the Companies Bill is set to be tabled before the Parliament.

“The government wants to have a hands-off approach as far as CSR is concerned. It is upon the companies to decide what they have to perform and can report that online also. If they fail to do so, they will have to show the reason,” said Sachin Pilot, Union Minister for Corporate Affairs, while speaking at a chamber meeting in Kolkata on Sunday.

As per the new regulations in the making, it will become mandatory for a company to spend 2% of net profit, if it has made an average net profit of more than Rs 5 crore or more over the previous three financial years. The laws will also be applicable to companies that have a turnover of more than Rs 500 crore or assets worth Rs 1,000 crore or more. If the company does not disburse the money, it may invite penalties too.

The Bill is set to make independent directors more accountable, while more powers will be given to the Serious Fraud Investigation Office (SFIO). Under the new regulations, SFIO is expected to get powers to file cases, take action against culprits and coordinate with other investigative agencies such as the Central Bureau of Investigation and the enforcement directorate in case of any corporate fraud.

(Business Standard)

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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