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  • Category: Miscellaneous

    Social commitments of profit making companies.

    Corporate Social Responsibility (CSR) is a policy approved by the Government in 2014 by which it is mandatory for organisations to spend at least 2% of average net profit of the previous three years on specified socially beneficial projects. This norms apply to firms or organisations with at least Rs. 5crore net profit or Rs. 1,000 crore turnovers or Rs.500 crore net worth. Certain parameters have to be satisfied for the projects to be taken up under this scheme. How much amount is to be spent, on what ( list of possible activities that would qualify as CSR) and where ( preference to local areas).
    There are several companies which spent this money as per norms. But some are not making use of this. Socially committed individuals can, perhaps, take up this and do the needful to get benefits to the society.
  • #603796
    It is good that the central government has promulgated a law through which is mandatory for the profit making companies to invest part of their profits for the social welfare cause. I have seen many big companies adopting some villages or schools and investing money on them from the party. Even some companies are investing in ISCKON movement to provide free food to the patients in the hospitals and subsidized food to the poor for a pittance of rupees five. This kind social cause are well received and appreciated even by the government. Naandhi foundations, Akshaya Patra are the best in this field.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #603804
    Spending under CSR is a must for all Public and Private companies which are making profits. No body can escape this. When the audit of accounts are conducted if this expenditure is not shown the auditors will not approve the balance sheet. What are the activities they undertake and how much they have spent on each activity is to be properly accounted. There will be a subcommittee from Board of Directors who will monitor this activity and present a report in every board meeting. In the annual general body meeting generally the Chairman's address will mention about the activities they have taken up and what is the % of profit they spent on this will be mentioned. Generally Scholarships to school children near their operations, Medical camps for poor in the villages, drinking water supply, roads laying etc. will be taken up by the Organisations. A good initiative.
    drrao
    always confident


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