Putting an end to the industry apprehensions over a mandatory Corporate Social Responsibility (CSR) spend, Ministry of Corporate Affairs today released a National Voluntary Guideline on Social, Environmental and Economic Responsibilities of Business.
While the guideline remains voluntary, all registered companies are expected to abide by it and disclose their CSR activities through mandatory filings, ministry officials said. It is an updated version of the ministry’s CSR guidelines issued two years ago and prescribed three different frameworks for “business responsibility reporting”.
Releasing the guidelines, Corporate Affairs Minister Murli Deora said it has mainstreamed the subject of business responsibilities and will strengthen and enable the Indian corporate sector to evolve into a global leader in responsible business.
Minister for State R P N Singh pointed out that the guidelines are applicable to all entities, and are intended to be adopted by them comprehensively, as they raise the bar in a manner that makes their value-creating operations sustainable.
“We are certain that the corporate world will do it voluntarily and we will not have to make it mandatory”, Singh said.
According to ministry officials, the guideline will undergo further refinement in the future where sector specific guidelines that will consider the specific nature of small and medium scale enterprises, sector requirements etc will be brought out. There will be different specifications for the manufacturing and service sectors.
The current guidelines are designed to be used by all businesses irrespective of size, sector or location and therefore touch on the fundamental aspects of an enterprise. Multinational corporations present in India will also have to follow the guidelines.
