The Ministry of Corporate Affairs’ notice last year directing companies to partner with NGOs for their CSR efforts requires companies to choose partners carefully, while NGOs must focus on monitoring and other requirements—so both sides are trying to address gaps and work with each other’s strengths
The lack of effective punishment for companies that fail to meet the 2% CSR requirement is the most notable lacuna in the Indian Companies Act of 2013. At the same time, mandatory CSR is not a replacement for state social spending, which is a key ingredient for the success of developing nations.
Courtesy: Wikimedia Commons
The definition of corporate social responsibility in India is rather unique and follows an approach that combines philanthropy and business strategy. How is the Indian concept of CSR different from what is followed in other countries?
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The allegations that certain foreign-funded NGOs are hurting national economic security are not new. However, the Intelligence Bureau’s claim that they have held back India’s GNP growth has been challenged. There is now a need for economic security to be defined holistically through open and democratic discourse
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The new Companies Act makes it mandatory for all listed Indian companies to contribute 2% of their annual net profits towards corporate social responsibility. Robust participation through CSR has the potential for socio-economic change, but innovative ideas are needed to ensure it is effective and widespread
Seema Malhotra, Member of Parliament, Labour Party, House of Commons, UK, talks about ways to enhance the India-UK trade relationship. In an interview to Gateway House, she also discusses CSR initiatives in the UK and mentoring of MPs in the UK Parliament
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Trusteeship is commonly, and mistakenly, equated with individual or corporate philanthropy. Instead, the true essence of trusteeship is about a better alignment of business and society, profits and the larger common good. Why is it imperative for businesses in a maturing democracy to embrace trusteeship?
