Supreme Court judge defends mandatory CSR provision
Ahmedabad: Endorsing the mandatory corporate social responsibility under the Companies Act-2013, Justice Madan Lokur of the Supreme Court today said that it was a step towards realization of directive principles of state policy enshrined in Constitution.
He was speaking on new provision (which mandates that corporate must spend 2 per cent of profit on CSR) at a seminar organised by United World School of Law here.
"Why should corporates have social responsibility? The reason is that corporates have immense resources and tremendous potential to impact their surrounding through the policies and their business conduct," Justice Lokur said.
Every decision of corporates from extraction of raw materials to employment of labour, from sale of a product to a policy decision of starting business in an area and that of winding up has the potential to tremendously impact lives of thousands of people directly or indirectly.
"Therefore there is a need to hold them accountable as their nature and scale causes innumerable risk to the society," the judge said.India TV
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