INDIACSR News Network
NEW DELHI: The private companies may engage in promoting education, constructing toilets in schools, reducing child mortality and any other area contributing towards social welfare, corporate affairs minister Sachin Pilot told a news paper.
Corporate Social Responsibility fund of the Indian corporate can change the face society. The government is expecting a fund flow of more than Rs 10,000 crore a year from private companies for social welfare initiatives as part of their corporate social responsibility (CSR) after Parliament clears the Companies Bill.
Once the legislation is ratified by Parliament, India would become the first country to mandate CSR through a statutory provision. According to the proposal, it will be mandatory for private firms to earmark 2% of their average net profit for CSR initiatives.
The government wants corporate houses to spend the sum in social sectors such as education and health rather than involving themselves in individual philanthropy. He, however, maintained that the government is not going to mandate.
Source: Times of India