Social responsibility should be a part of corporate strategy: Gupta

NEW DELHI: Companies will have to be more forthcoming in discharging their social responsibility, which will not only create new markets for them but also help reduce the stiff opposition that they face while acquiring land for setting up units, minister for corporate affairs, Prem Chand Gupta, said on Thursday.

Those in the business of wealth creation have a larger role in welfare measures than the government. Besides, business houses get tax breaks for spending on charity, which is in addition to infrastructure facilities and permission to exploit natural resources.

“They should do more to ensure inclusive growth. Farmers would then trust them more. If social responsibility becomes a corporate buzzword, then there would be less opposition from the local population.

“CSR should be a part of corporate strategy, not merely a tax saving method,” he told ET. The success of many corporates like Tisco was because they ensured the welfare of people who were affected by their manufacturing units, he said. Mr Gupta ruled out any move to cap the salaries of corporate heads.

He said the ministry was taking all efforts to improve the business environment in the country. “The World Bank ranked India 134th in the business environment. Our goal is to raise India to the top 20,” he said.

The ministry wanted to further reduce the time needed to incorporate a new company to just 24 hours, Mr Gupta said. After the electronic filing system was implemented in 2006, the time needed for this has already come down from 15 days to less than five days. In some cases, companies were incorporated in less than an hour, he said.