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Thursday, December 20, 2007

Corporate Social Responsibility Voluntary or Compulsory

CSR has suddenly become Buzz thing in Corporate world.It seems Everyone is in rush to catch the bus.

Its good to have private sector participate in social sector to uplift the less fortunate and make the social awareness among the masses.Most of the NGO now depend on Corporate funds,as little is available from government.

But some where the companies have lost their way,more monitoring should also be there to see if the CSR funds have actually benefited the targeted group /people.You can read about this excellent article in my blog Corporate Social Responsibility : has industry lost its way ?

Also to be noted that some of the companies are taking this as SHORT CUT route to do Branding and marketing.Its less expensive and you earn goodwill and get Tax Exemption.This Trend should be avoided and monitored(at this time I don't know how to do this).

With regards to the query that : Should CSR be voluntary or compulsory?

1) I would suggest that every Corporate / Company/Pvt Ltd company with say some (decided) Turn Over have to do allocate minimum 5% or 10% of their Profit for CSR.This will not put burden on single company and NGO's would not have to run after same donor year after year.This will also infuse Huge Funds for Development Sector to grow.

But Iam scared if we make it compulsory then like our typical Indian habit,we will try to find out Loopholes to avoid it or to show false results.

2 ) Infact why not Encourage companies to come forward and do more CSR and then they are appreciated by giving them Certificate or Award in Each City.Let them compete and do more CSR.Then we can have State and the National Champions.

3) Also Government can introduce scheme for more Tax exemption or Subsidy for particular amount or percentage of fund allocated for CSR.

Ultimately any Funds coming for Social sector is going to people,society and nation,so lets the fund flow................

Forget yourself for others, and others will never forget you.

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