The government is mulling making Corporate Social Responsibility (CSR) voluntary rather than mandatory with the objective of invigorating spirit of “intent” over “legislation” in the new Companies Bill which is awaiting parliamentary approval.
The bill likely to be enacted during the current session of the parliament would propose for an optional two per cent spending of net profits of a company on philanthropic work, the Hindustan Times reported.
Reportedly the government said it did not want to impose a compulsory CSR levy in order to minimise chances of malpractices by companies which may not of their own accord prefer to make such contributions.
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