Focus on compliance than on effectiveness?

GN Bureau | September 28, 2015


#social responsibility   #CSR   #National Stock Exchange  

Are the rules vague and definition of sectors that need spending under corporate social responsibility (CSR) hampering or hurting the activities?

The CSR rules merely mandate that companies with a net worth of Rs.500 crore or revenue of Rs.1,000 crore or net profit of Rs.5 crore should spend 2% of their average profit in the last three years on social development-related activities.

In the first year of the rules taking effect, most companies reports show that they were focused on compliance rather than monitoring the impact of their initiatives.

Experts suggest that with companies must put in place monitoring mechanisms to help gauge their impact. For most top listed companies, CSR initiatives have been part of sustainability reports for over five years now but for companies undertaking CSR for the first time there is little or no impact to assess.

Those who have been conducting assessments are largely the top listed companies of the National Stock Exchange and till last year many of these companies were including social initiatives as part of their sustainability reports. However, these assessments are used for internal purposes and are not in the public domain.

In the absence of a framework, the assessments have been far and varied. Some feel a structure is needed, which would help streamline the measurement of these social initiatives.

Comments

 

Other News

Nitish Kumar quits as Bihar CM

Nitish Kumar resigned as chief minister of Bihar on Wednesday, just hours after RJD chief Lalu Prasad ruled out his son and deputy chief minister Tejashwi Yadav putting in his papers following a case being registered by the CBI. The JD(U) and RJD alliance had been under considerable strain o

Will the needy get homes under PMAY?

 The Pradhan Mantri Awas Yojana (PMAY), introduced in June 2015, aims at providing every family with “a pucca house with water connection, toilet facilities, 24x7 electricity supply” by the time the nation completes 75 years of its Independence in 2022.   The Yoj

No longer a walk in the park for bureaucrats

Continuing as a bureaucrat just got a lot tougher with the government weeding out the incompetent and taking action against 381 civil services officers, including 24 who were from the Indian Administrative Service.   The Narendra Modi government’s action against civil s

Kashmir’s ‘Nelson Mandela’ arrested for terror funding

 The National Investigating Agency (NIA) has arrested Shabbir Shah, who was once called the Nelson Mandela of Kashmir for his advocacy of peace, for his alleged involvement in money laundering to support terrorism in Kashmir. Shah, whose J&K democratic freedom party is a part of the pro-

Quantum urbanism: Step one, dismantle systems thinking once and for all

Feel your favourite city. The words that typically come to your mind are liberally fused with adjectives in a valiant effort to give shape to our deeply felt emotions. It is quite common to find descriptions that are a chaotic and joyful mix of traits and idiosyncrasies that one can mistake for a good frie

Should employment exchanges be scrapped?

Should employment exchanges be scrapped?





Video

Death toll rises to 17 in Mumbai building collapse

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter