The Punjab State and Chandigarh (UT) Human Rights Commission had recommended that the Punjab government establish a formal “State CSR Authority” to systematically channelise corporate social responsibility (CSR) funds towards welfare activities and disaster-relief needs.
The commission, under the leadership of chairperson justice Sant Parkash and member justice Gurbir Singh, made the recommendation while considering the matter relating to the utilisation of CSR funds for assisting victims of natural calamities, particularly in the backdrop of the devastating floods witnessed in Punjab last year. It observed that CSR should be approached as a means of facilitation, rather than compulsion.
It further recommended to the state government to create awareness among companies situated in Punjab regarding utilisation of CSR funds for activities covered under Schedule VII of the Companies Act, 2013, with particular emphasis on local welfare needs. It also suggested issuing a formal advisory to all registered companies in Punjab, urging them to allocate a portion of their CSR funds towards addressing natural calamities such as floods, earthquakes and other disasters, according to an official release.
The commission observed that disaster management, including relief, rehabilitation and reconstruction activities, is specifically included among the permissible CSR activities under Schedule VII of the Companies Act, 2013. At the same time, the law does not mandate companies to contribute their CSR funds to any particular State relief fund. The commission, therefore, stressed the need for an effective mechanism to facilitate and encourage CSR participation in local welfare and disaster-relief activities. The commission also took note of the fact that Gujarat and Assam have constituted dedicated mechanisms relating to CSR, and observed that a similar institutional mechanism could help Punjab systematically channelise CSR resources towards welfare and disaster-management needs within the state.
{{/usCountry}}The commission observed that disaster management, including relief, rehabilitation and reconstruction activities, is specifically included among the permissible CSR activities under Schedule VII of the Companies Act, 2013. At the same time, the law does not mandate companies to contribute their CSR funds to any particular State relief fund. The commission, therefore, stressed the need for an effective mechanism to facilitate and encourage CSR participation in local welfare and disaster-relief activities. The commission also took note of the fact that Gujarat and Assam have constituted dedicated mechanisms relating to CSR, and observed that a similar institutional mechanism could help Punjab systematically channelise CSR resources towards welfare and disaster-management needs within the state.
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