CSR - A Mandate Or An Act Of Altruism?

Recently, Mr. Arun Jaitley, our Finance Minister said, “I appeal to all the corporate house, industries and businessmen to spare 2 per cent of their profits for social work and help us in making India developed." His primary focus is on building toilets in schools and electrifying the villages by 2018. This being pressed by the Finance Minister was because CSR is being misinterpreted by business houses. Some Indian corporate companies believe that merely complying with laws & regulations fulfills their need for social responsibility and they fail to realize that these laws have only been mandated because there is lack of voluntary participation wherein a responsible corporate involves itself in activities which have wider impact on the society keeping in mind the interests of the stakeholders.

It seems that CSR today is still in the implementation phase and the true essence of this policy is lost but the endeavour to get everyone on the line by prescribing the 2 per cent-of-net-profit target is still being taken since SOMETHING IS ALWAYS BETTER THAN NOTHING. The mandate spend will at the least encourage the big Corporate houses to contribute to the society, which otherwise would not be an optimistic scenario if it was to be done voluntarily.