Mandatory provision of CSR should be extended to private companies too: SCOPE

NEW DELHI: Apex body of PSUs SCOPE today suggested that the mandatory provision of Corporate Social Responsibility ( CSR) should be extended to private sector also.

It said all corporates, be it public or private, have equal rights and duties towards citizens of the country for social upliftment.

"Public Sector has been fulfilling its responsibility towards society and is following the two per cent mandatory CSR provision in letter and spirit... (it should) extended to all corporates, be in private or public, as both have equal responsibility towards citizens of the country for their social upliftment," SCOPE (Standing Conference of Public Enterprises) said in a statement.

It said for RTI and CSR expenditures, only public sector enterprises have been covered as a part of mandatory provision whereas there should be level-playing field for both the sectors and all corporates be covered under the same.

"This is also required because of the responsibility towards people of the country," it said.

It said that the RTI Act is aimed at bringing transparency and curbing corruption for those who have been founded on public money.

"In a way, all corporates whether public or private including NGOs are having incorporated on public money which come from shareholders, banking and financial institutions. Therefore, all of them should be brought under RTI," it added.

Meanwhile, industry body Assocham welcomed the provisions of spending of at least 2 per cent of net profit on CSR activities in the Companies Bill.

In a communication to the Corporate Affairs Minister, Assocham President R N Dhoot said any corporate role in contributing towards inclusive growth needs to be planned properly in order to achieve sustainable outcomes.