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NEW DELHI: The government on Monday said at present it does not have data on money spent by companies voluntarily towards social welfare activities.
The new Companies Bill, which is awaiting Rajya Sabha approval, requires certain class of firms to spend two per cent of their average profit over the last three years for Corporate Social Responsibility (CSR) activities.
“At present there is no legal requirement for companies to undertake activities in pursuance of their CSR,” Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha.
Under the new Companies Bill, certain classes of companies are required to formulate a policy on CSR and to spend two per cent of their average net profit of the last three years on such activities.
The Minister said that at present there is “no data of such expenditure voluntarily undertaken by the companies is maintained”.
“The National Foundation of Corporate Governance has, however, undertaken a study to assess CSR activities undertaken by 10 companies selected from different regions and sector,” he said.