A parliamentary panel has stuck to its position to make it mandatory for companies to spend a portion of net profit on corporate social responsibility (CSR). The standing committee on finance also decided to take for scrutiny only the new clauses added to the Companies Bill, 2011, after the panel’s earlier inspection. “It should be made mandatory because the public sector companies are already giving five per cent CSR on the total profit, while it is not known to people what the private companies are doing,” a committee member said. “The committee, in its report in August 2010, had recommended two per cent CSR but the government diluted it.” The government had wanted the standing committee to take another look at the Bill, as the Bharatiya Janata Party-led Opposition expressed reservation at the changes made to the draft after its earlier version was vetted by the panel.
Source: Business Standard
No comments:
Post a Comment