India to become international benchmark for CSR activities

Chandigarh.  With a new law making it obligatory for India Inc to conduct Corporate Social Responsibility(CSR) activities, this could soon become a benchmark for others to emulate, a top functionary says.

 

 

“This is the first legislation of its kind in the world. India is a pioneer in this field. What we do and achieve will be watched very closely by other countries. India will become a benchmark in this,” Bhaskar Chatterjee, director general and CEO of the Indian Institute of Corporate Affairs (IICA), told here.  “So far, CSR has many models like the European and American ones. Our CSR model is very Indian,” Chatterjee,  added.

 

 

Over 16,200 entities will be required to undertake CSR activities from this year under Section 135 of the Companies Act. The communication to these companies will be sent in the next few weeks. The IICA, which is under the corporate affairs ministry, will monitor the implementation of the new law. Beginning April 1, a new law under the Companies Act will require entities with a net profit of Rs.5 crore ($800,000) or net worth of Rs.500 crore or an annual turnover of Rs.1,000 crore or more to spend two percent of their profits on real-time CSR activities. Parliament passed the law last month.