Govt rules out compulsory CSR policy for firms
The government on Monday said it has not been made compulsory for all companies to have a policy for corporate social responsibility, unlike state-run firms. Budgeting for CSRbusiness Updated: Sep 05, 2011 23:21 IST
The government on Monday said it has not been made compulsory for all companies to have a policy for corporate social responsibility (CSR), unlike state-run firms.
According to the guidelines, state-owned companies have to mandatorily create, through a board resolution, a corporate social responsibility budget by allocating a specified percentage of net profit of the previous year for the purpose.
Singh also said that the ministry recently released a comprehensive set of guidelines known as national voluntary guidelines on social, environmental and economic responsibilities of business.
"The ministry is undertaking projects, programmes and activities in collaboration with national and international organisations, chambers of business, professional institutions and other for generation of awareness on CSR related activities of Corporate sector," said Singh.
The ministry is also considering making some necessary provisions in the Companies Bill 2009 on these issues.
The Companies Bill 2009, introduced in Parliament in August 2009, is expected to be placed for consideration and passage in the winter session.