In his article “The two per cent conundrum” (October 6), Rijit Sengupta makes a good case for broadening the scope of corporate social responsibility (CSR) beyond the usual practices of opening schools, providing medical facilities and so on. He advocates that the spectrum of activities should be linked to the National Voluntary Guidelines framed by the government. Of the nine principles of these National Voluntary Guidelines, those pertaining to responsiveness towards stakeholders, promotion of human rights and environment should have a special appeal. These will benefit socially-disadvantaged and differently-abled people; the development of areas if the company operates in an undeveloped region; the preservation and promotion of local culture and; the mitigation of environmental damage caused by business activities.
A cardinal principle of funding social benefits is that they should be seen as necessary by the intended beneficiaries. There is no point in building a temple to promote spiritual happiness in a village where the greater need is of tube wells and greenery. In fact, companies should think of the requirement of spending two per cent average profit for common good as an opportunity to be creative to repay its debt to society rather than as an inconvenient imposition.
Y G Chouksey Pune
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