CSR (Corporate Social Responsibility) Mandatory For Indian Companies

Kaustubh Katdare · 2012-11-17T02:23:32+00:00

Indian Government is proposing that the companies with large turnovers to take the corporate social responsibility (CSR) very seriously. The 'Revised Companies Bill 2011', if given a green signal in the parliament will make it mandatory for the companies with networth more than 500 crores or with turn-over more than 1000 crores to allot 2% of their annual profits to CSR related activities. There are several big corporations in India that do this voluntarily. Some of the companies have beed donating 1% of their annual profits to social causes and initiatives. The debate topic is whether the Government is right in mandating the donation of 2% of annual profits for large corporations? Justify your stand.

CSR (Corporate Social Responsibility) Mandatory For Indian Companies

Kaustubh Katdare

Administrator

Updated: Oct 24, 2024

Views: 1.2K

Indian Government is proposing that the companies with large turnovers to take the corporate social responsibility (CSR) very seriously. The 'Revised Companies Bill 2011', if given a green signal in the parliament will make it mandatory for the companies with networth more than 500 crores or with turn-over more than 1000 crores to allot 2% of their annual profits to CSR related activities.

There are several big corporations in India that do this voluntarily. Some of the companies have beed donating 1% of their annual profits to social causes and initiatives.

The debate topic is whether the Government is right in mandating the donation of 2% of annual profits for large corporations? Justify your stand.

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Ankita Katdare

Administrator • Nov 17, 2012

This debate related to CSR is really a matter of conscience versus action. I am looking forward to the Pros and Cons that CEans will discuss in this thread. Corporate India would definitely not be in favor of Government intervention for social activity.
I know a few people who say CSR should never be made compulsory. I think, it could be made mandatory for the first 3-5 years and thereafter the company's employees & management will keep the momentum going. It will be a self-sustaining process.

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Anoop Mathew

Member • Nov 18, 2012

Large corporates have always influenced society. From the older days, India has witnessed many new changes - which has affected its growth in both good and bad ways. If the Indian Government makes such a stand, then there should also be a stand to ensure rural development through these companies.

For eg: The metropolitan areas don't need more overcrowding of population. Rather, a new area can be found out to start off an urbanization project - such as a new township, housing colonies, etc; or even a new race track. By such new endeavors, the rural development can be funded, as well as maintained, leading to newer opportunities in terms of tourism and employment in that locality. However, the serenity of such locations should not be tampered with.

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Saandeep Sreerambatla

Member • Nov 18, 2012

CSR should not be made compulsory, it should be the sole decision of the person. If a person is interested he should, if he is not he should not.

Sadly, my company makes it mandatory and deducts Rs.100 from every employee per month for this initiative.

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