This refers to Asish K Bhattacharyya’s article “Do companies take CSR seriously?” (October 15). Making corporate social responsibility (CSR) spending mandatory will completely change its purpose. In that case, CSR should be rechristened corporate social mandate (CSM) and companies should appoint an officer to overlook the spending on CSM initiatives. CSR is not merely about the money spent on social projects. It also involves a social commitment on part of the company in its business dealings.
The move to make CSR spending directly proportional to a company’s profit may affect the sustained implementation of long-term CSR projects. Moreover, if a company earns unexpectedly huge profit, it will have to find ways and means to spend that extra amount.
Although it has been specified that the amount will not be used for the benefit of internal stakeholders, it is quite likely that consultants and advisers will channel the amount to these stakeholders. As mentioned in the article, what is required is passion for CSR activities, which should run through the organisation from the very top to the bottom.
Stephen Mathews Trichur
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