Letter to BS: CSR committee wants non-compliance a civil offence

Replacing criminal responsibility with civil ones will ensure there is greater willingness from corporates to achieve a social objective

This refers to “CSR panel wants non-compliance a civil offence” (August 14). The purpose behind the introduction of corporate social responsibility (CSR) is to blend corporate functioning with social development. If corporations compel themselves to adhere to section 135 of the Companies Act to fulfill a compulsory legal requirement to avoid punitive measures arising out of non-compliance, they will only squander their finances. They might not consider the wider social implications of the expenditure. The in-built fear creates psychological hurdles in carrying forward social development measures leading to unplanned development activity. 

The emphasis under CSR is as much on social development