can you force people to indulge in charitable activities?
the answer is yes.
at least, this is what is envisaged by way of a provision in the companies bill - which mandates that 'companies to earmark 2% of the average profit of the preceding three years for corporate social responsibility activities'.
that's lot of money - especially for big corporates.
oh yes, there is a recent dilution - which says 'companies to disclose to the shareholders what their CSR policy has been and if they have not been able to fulfill the target - why have they not done so!
the whole concept does'nt make any sense. you pay all kind of taxes (can't list down as the type and kind is huge) and there is no accountability on how these tax collections are used.
plus, how are we going to define CSR activity. who is going to certify these CSR earmarking. are we looking at a scenario where book entries are made to satisfy these requirements?
let's wait n watch!
We are moving towards a democratic monarchy. Such provisions are not only retrograde for the society, but for the development of the nation as well. The State, instead of assuming its own responsibilities, it passing on the buck to the corporates. But then, who will raise its voice ? Do the corporates have the will ? Or is it that they will use this mechanism to pump more money into our parallel economy ????
ReplyDeleteWhat is needed is a strict Code of Conduct and Accountability Statement for the Government. Maybe a Balanced Score Card for them too ;)
Sandy