Press Information Bureau

Government of India

Ministry of Corporate Affairs

05-September-2011 18:18 IST

Expenditure on Corporate Social Responsibility

The Government has not made it compulsory for every company to have a policy for Corporate Social Responsibility (CSR). However, the Department of Public Enterprises has issued comprehensive CSR guidelines for Central Public Sector Enterprises in April, 2010 wherein these enterprises, except those making a loss, have to create mandatorily, through a board resolution, a CSR budget as a specified percentage of net profit of the previous year.

The Ministry has recently released a comprehensive set of guidelines known as National Voluntary Guidelines on social, environmental and economic responsibilities of business. Ministry is undertaking projects, programmes and activities in collaboration with national and international organizations, chambers of business, professional institutions and others for generation of awareness on CSR related activities of Corporate Sector.

Ministry is also considering, subject to due approvals, making necessary provisions in the Companies Bill, 2009

The Minister of State for Corporate Affairs Shri R.P.N. Singh gave this information in reply to a question in the Rajya Sabha today.

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Corporate Social Responsibility guidance: central public sector enterprises must adopt a CSR budget tied to prior-year net profit. The Government has not mandated a universal CSR policy for all companies; however, the Department of Public Enterprises' April 2010 guidelines require Central Public Sector Enterprises (except loss-making ones) to adopt, by board resolution, a CSR budget set as a specified percentage of the previous year's net profit. The Ministry has issued National Voluntary Guidelines to promote corporate social, environmental and economic responsibilities and is considering related provisions in the Companies Bill, 2009.