Forced CSR: Local netas armtwist companies to take up their projects

MUMBAI: Corporate Social Responsibility (CSR) has taken an entirely different meaning for companies in Maharashtra with local gram panchayats, controlled by political parties, threatening these corporates in the name of CSR. Three companies, of which two are multinational companies, in Pune’s Chakan town have been sent ‘notices’ by a local gram panchayat over the past few days asking them to undertake CSR works in their village. The companies, one of which is a luxury auto major from Europe and the other an auto manufacturer from the same country, along with an Indian auto manufacturer, have been asked to undertake works under CSR.

If companies do not comply with the request, they are threatened with hunger strikes at their gates. After the recent caste clashes in Nashik and Pune due, nervous company officials contacted the government and police officials, who have promised help.

“We are already doing CSR, what these guys want is that under the guise of CSR they want us to build a local garden or some other beautification project and when we go to build it, that sub-contract has to be given to these people. It is basically a glorified extortion racket under the guise of CSR,” the industrialist said.


A senior government official admitted that locals, backed by political parties, have been forcing companies to take up CSR projects. “In most cases, it is not genuine because they just demand that they want companies to do CSR, without stating what they want the companies to do. It’s just that they want sub-contracts under CSR,” said the government official.