The Punjab State Human Rights Commission (PSHRC) on Friday directed the Punjab chief secretary to ensure that all companies and corporate houses registered in Punjab contribute their mandatory share towards corporate social responsibility (CSR) for flood relief in the state.
In a directive, PSHRC chairman justice Sant Parkash (retired) and member justice Gurbir Singh (retired) directed him to ensure compliance with CSR obligations by all such companies. “Keeping in view the magnitude of the damage caused by the floods, the chief secretary, Punjab, is directed to immediately examine the matter, take necessary steps, coordinate with the competent authorities, and ensure compliance by all companies and corporate houses registered in Punjab,” they said.
With 43 deaths, large swathes of land submerged, and thousands of families displaced, the Punjab government has declared the state disaster-hit. A total of 1,902 villages have been affected, with those near riverbanks being the worst-hit. Corporate Social Responsibility (CSR), mandated by Section 135 of the Companies Act, 2013, requires eligible companies to allocate at least 2% of their average net profits from the preceding three years towards CSR activities.
In its order, the PSHRC observed that non-compliance with CSR obligations in this situation constitutes a serious human rights violation, as it deprives affected citizens of essential support during a natural disaster. It also stated that disaster management, including relief, rehabilitation, and reconstruction, is explicitly listed as a permissible CSR activity under Schedule VII of Section 135 of the Companies Act, 2013. “By failing to contribute their mandatory CSR shares towards disaster relief, companies not only violate the law but also undermine the human rights of disaster victims, who are entitled to timely aid and rehabilitation,” it added.
{{/usCountry}}In its order, the PSHRC observed that non-compliance with CSR obligations in this situation constitutes a serious human rights violation, as it deprives affected citizens of essential support during a natural disaster. It also stated that disaster management, including relief, rehabilitation, and reconstruction, is explicitly listed as a permissible CSR activity under Schedule VII of Section 135 of the Companies Act, 2013. “By failing to contribute their mandatory CSR shares towards disaster relief, companies not only violate the law but also undermine the human rights of disaster victims, who are entitled to timely aid and rehabilitation,” it added.
{{/usCountry}}The commission’s order came in response to a complaint received from a Chandigarh resident, who alleged that no registered company within the state of Punjab has taken steps to extend financial assistance to flood victims. The petitioner requested the commission to issue directions to companies and corporate houses to contribute at least 1% of their net income to the Punjab Chief Minister’s Flood Relief Fund, as part of their CSR obligations, to support relief and rehabilitation efforts.