Corporate Social Responsibility (CSR)

The new Companies Bill mandates that companies with a net worth of Rs. 500 crore or more, or a turnover of Rs.1000 crore or more, or a net profit of Rs. 5 crore or more, shall spend  ‘at least 2 per cent of the average net  profits of the company made during the three immediately preceding financial years, in pursuance of its corporate social responsibility ( CSR ) policy.’ With this bill, India will be the first country in the world to force essentially CSR spending by companies.

Giving money for ‘ causes ‘ is not new. The term charity covered feeding, housing and taking care of the poor, the needy and the sick. Corporate SR is guided by established and stated values that the company stands for. The community’s need are assessed. The environment is scanned for the needs. These could be met through CSR.

Does India need forced CSR? Is not the giving not in our DNA?  There is so much giving to faith based institutions. These in turn run schools, colleges, hospitals and orphanages. In spite of so much giving, the issues of poverty, social justice and corruption do persist in India. Mere giving is not enough perhaps. The problems are complex. There should be collaborative working. Let us do fewer things (focus ) in a bigger way ( scala ) for longer periods of time (commitment ). The impact has to be measured. Some measurements such as ‘ meals served ‘ or ‘ patients treated ‘ are easier, but measurements pertaining to climate change and social justice are difficult.