Dear SRRF Dialogue members
As by now most of you would be aware that Companies Bill 2012 has been passed by both the Houses of Parliament and after getting President approval and after being notified would become law. As mentioned during the recent RoundTable as well as in the Study published by SRRF, one of the problem is that the Act permits CSR activities in a very restrictive way. It has identified only 8 categories where one CSR activities can be undertaken. These are:
- Eradication of extreme hunger and poverty
- Gender Equality and Women Empowerment
- Child Mortality and Maternal Health
- HIV/AIDS, Malaria and other diseases
- Environment Sustainability
- Employment enhancing vocational skills, and
- Social Business Projects
We believe that above activities do not cover a large number of activities (disabilities, water & sanitation, human rights, to name just a few which immediately come to mind). Infact the whole approach would have been better had the Act taken an approach of identifying activities which cannot be undertaken. Now we will always struggle and this would create avoidable lobbies for including activities in the CSR list. Now that the Bill has already been passed by the parliament very little can be done in terms of legislative change, however rules are yet to be framed, perhaps we need to identify how rules can be made in a manner that would cover a large number of activities. SRRF is taking the initiative in this regard and would invite suggestions from its SRRF Dialogue members on how best it considers the changes can be brought in the Rules to cover a wider range of activities.
Looking forward to your active participation.
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: email@example.com; website: http://www.srr-foundation.org