Corporate Social Responsibility not Mandatory by Government of India
Sept. 9 – It is not compulsory for every company to have a policy for Corporate Social Responsibility (CSR) according to the Government of India. Though, the Department of Public Enterprises has issued inclusive CSR guidelines for Central Public Sector Enterprises in April, 2010 wherein these enterprises, except those making a loss, have to mandatorily create a CSR budget through a board resolution as a specific proportion of net profits from the preceding year.
The ministry has newly released a comprehensive set of guidelines known as National Voluntary Guidelines on social, environmental and economic responsibilities of business.
The ministry is undertaking projects, programs and activities in alliance with national and international organizations, chambers of business, professional institutions and others for generation of awareness on CSR-related activities in the corporate sector. The ministry is also considering, subject to due approvals, making essential requirements in the Companies Bill, 2009.
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