Tuesday, 8 January 2013

Increasing Focus on Corporate Social Responsibility

Over time, increasing attention is being given to social development within the Indian landscape. With the new Companies Bill coming into the picture, Indian companies with certain financial standing will not only be pressured to spend 2% of their net profit on CSR initiatives, but also increase the transparency of what this money is going towards. The current proposal by the government suggests that companies with a profit of over Rs 5 crore, or turnover of Rs 1,000 crore, should make every effort to spend a percentage of their profits on social causes such as the eradication of poverty, education, health and vocational skilling. Not satisfied with just the above, former finance minister Yashwant Sinha has suggested this clause be made mandatory. However, even if not made mandatory, with companies having to justify why they haven’t spent money on CSR, one should soon see crores of rupees entering the development sector hence giving rise to huge opportunities within the social sector space.

1 comment:

  1. Thanks for sharing this useful info. Keep updating same way.
    Regards,Ashish Corporate Training