The Centre has made it mandatory for corporate firms to spend 2% of their net profit on Corporate Social Responsibility, CSR. The sum has to be spent on services, like sanitation and building toilets in schools. Corporate Affairs minister Sachin Pilot on Tuesday met captains of industry in New Delhi to take the industry on board on CSR before moving amendments to the Companies Bill in Parliament.
Later talking to the media, Pilot said CSR spend will be mandatory, but through self-compliance. He said corporate houses have to report to the Ministry's website about the social services rendered by them.
The Companies Bill 2011 in the present form specifies that companies make every endeavor to ensure that the stipulated percentage of sum is spent on CSR.
The Corporate Affairs Minister said the government will be a mere enabler or facilitator for the corporate houses to carry forward CSR rather than being a watchdog or interventionist. He said that the government is keen to get the Companies Bill enacted in Parliament in the ongoing Winter Session.