{"id":209991,"date":"2022-10-10T17:14:21","date_gmt":"2022-10-10T11:44:21","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=209991"},"modified":"2022-10-10T18:55:08","modified_gmt":"2022-10-10T13:25:08","slug":"answered-the-present-csr-framework-required-to-be-strengthened-to-make-it-more-suitable-for-the-present-social-environmental-and-other-requirements-of-india-discuss","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-the-present-csr-framework-required-to-be-strengthened-to-make-it-more-suitable-for-the-present-social-environmental-and-other-requirements-of-india-discuss\/","title":{"rendered":"[Answered] The present CSR framework required to be strengthened to make it more suitable for the present Social, Environmental and other requirements of India. Discuss."},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<td width=\"616\"><strong>Introduction:\u00a0<\/strong>Contextual introduction.<br \/>\n<strong>Body:\u00a0<\/strong>Explain some issues with present CSR framework. Also write some measure to strengthen the CSR framework.<strong>Conclusion<\/strong>: Write a way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Companies Act, 2013<\/strong> mandates that corporates who are beyond a certain level of profits and turnover, should pay at least 2% of their net profits before tax to the development space. This law gives corporates the necessary drive to collaborate with non-state actors like Non-Governmental Organisations (NGOs) and Civil Society Organisations (CSOs). This strengthening of citizenry-private partnerships is a major component of development activities.<\/p>\n<p><strong>Issues with present CSR framework:<\/strong><\/p>\n<ul>\n<li>Since the requirement of 2% is only a <strong>minimum requirement<\/strong>, companies should be encouraged to spend more than this.<\/li>\n<li>Many private companies have <strong>registered their own foundations\/trusts<\/strong> to which they transfer the statutory CSR budgets for utilisation.<\/li>\n<li>According to the Act, the company should give preference to local areas around it where it operates. So, there occurs<strong> geographical bias<\/strong> as 54% of CSR companies are concentrated in Maharashtra, Tamil Nadu, Karnataka, and Gujarat while Uttar Pradesh and Madhya Pradesh receive little.<\/li>\n<li>Most CSR spending is on education (37%), health and sanitation (29%), and only 9% was spent on the environment.<\/li>\n<li>The <strong>information<\/strong> regarding CSR spending by companies is <strong>insufficient<\/strong> and difficult to access.<\/li>\n<li>The auditor is not mandated to qualify the accounts for non-compliance or inadequate CSR performance in the audit report.<\/li>\n<\/ul>\n<p><strong>Measure to strengthen the CSR framework:<\/strong><\/p>\n<ul>\n<li>There is a need to curate a <strong>national-level platform<\/strong> centralised by the MCA where all States could list their potential CSR-admissible projects and preferential treatment to areas where companies operate.<\/li>\n<li>Companies need to <strong>prioritise environment restoration<\/strong> in the area where they operate.<\/li>\n<li>All CSR projects should be selected and implemented with the active <strong>involvement of communities,<\/strong> district administration and public representatives.<\/li>\n<li>Bringing CSR within the purview of <strong>statutory<\/strong> <strong>financial audit<\/strong> with details of CSR expenditure and mandatory independent third-party impact assessment audits.<\/li>\n<li>CSR non-spend, underspend, and overspend should be qualified by the auditor in the audit report as a qualification to accounts.<\/li>\n<li>The MCA and the line departments need to exercise greater direct <strong>monitoring and supervision<\/strong> over CSR spend by companies.<\/li>\n<\/ul>\n<p>With nearly two-thirds of India still living in poverty by today\u2019s quality-of-life standards and the climate situation worsening day by day, the importance of Corporate Social Responsibility (CSR) can\u2019t be overestimated.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:\u00a0Contextual introduction. Body:\u00a0Explain some issues with present CSR framework. Also write some measure to strengthen the CSR framework.Conclusion: Write a way forward. Companies Act, 2013 mandates that corporates who are beyond a certain level of profits and turnover, should pay at least 2% of their net profits before tax to the development space. This law&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-the-present-csr-framework-required-to-be-strengthened-to-make-it-more-suitable-for-the-present-social-environmental-and-other-requirements-of-india-discuss\/\">Continue reading <span class=\"screen-reader-text\">[Answered] The present CSR framework required to be strengthened to make it more suitable for the present Social, Environmental and other requirements of India. Discuss.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-209991","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/209991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=209991"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/209991\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=209991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}