NEW DELHI: It has reported that the public sector could have more stringent set of corporate social responsibility (CSR) norms. State-controlled enterprises would now have to take up specific projects directed towards CSR. The new Companies Bill, which is currently with the standing committee of Parliament, has outlined that all profitable companies-public and private must direct at least 2% of their net profit towards CSR.
“Going ahead there could be more stringent norms for PSUs for CSR spends,” an official source who did not wish to be identified told.
However, the government has no plans to penalise companies that fail to spend the required amount on CSR.
“We don’t want to take such steps but we are confident that all private sector companies would do the needful, even though it has not been made mandatory in the bill,” said M Veerappa Moily, corporate affairs minister.
The government is hoping to place the pending bill in Parliament for approval in the forthcoming budget session. The standing committee is set to submit its report within six weeks. Though the bill has already been refered to the standing committee once, the opposition parties, primarily the BJP demanded that the bill that was introduced in Parliament in December, 2011 be resent to the committee for its comments as it contained several new proposals.
(Sourced from Hindustan Times)