Govt to rate NGOs to help cos discharge CSR effectively: Report

 

NEW DELHI: The government will rate non-profit organizations according to their past performances so that it helps companies effectively discharge their corporate social responsibility under the new Companies Act 2013. The government estimate suggests, around 8,000 companies would contribute Rs 12,000-15,000 crore for CSR activities under the Companies Act.

 

As per the Act, the companies have to spend 2% of their average profit of last three years on activities such as eradication of poverty, education, contribution to prime minister relief fund and women empowerment.

 

“The companies can’t do this directly. They will have to depend on NGOs, trusts and civil societies. To help them identify right agency, we will give accreditation to NGOs based on their performances of last three years,” said Bhaskar Chatterjee, director general and chief executive officer of Indian Institute of Corporate Affairs (IICA), a body under Ministry of Corporate Affairs. India CSR .in