Expenditure on Corporate Social Responsibility
The Government has not made it compulsory for every company to have a policy for Corporate Social Responsibility (CSR). However, the Department of Public Enterprises has issued comprehensive CSR guidelines for Central Public Sector Enterprises in April, 2010 wherein these enterprises, except those making a loss, have to create mandatorily, through a board resolution, a CSR budget as a specified percentage of net profit of the previous year.
The Ministry has recently released a comprehensive set of guidelines known as National Voluntary Guidelines on social, environmental and economic responsibilities of business. Ministry is undertaking projects, programmes and activities in collaboration with national and international organizations, chambers of business, professional institutions and others for generation of awareness on CSR related activities of Corporate Sector.
Ministry is also considering, subject to due approvals, making necessary provisions in the Companies Bill, 2009
The Minister of State for Corporate Affairs Shri R.P.N. Singh gave this information in reply to a question in the Rajya Sabha today.