MUMBAI: India is the only country in the world that seeks to make sure companies do good things, by mandating that 2% of their profit be spent on corporate social responsibility or CSR. But for local arms of multinationals and Indian companies with an overseas stakeholding of more than 50%, philanthropy isn’t proving easy because of an old rule that’s part of the Foreign Contribution Regulation Act (FCRA).
They’re finding it hard to set up CSR foundations through which to route such activity because donations from such companies are treated as funds from a “foreign source” and are lobbying for a change in stance. “We have been approached by a few companies facing this problem.
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