The Madras High Court today issued notices to authorities on a PIL seeking a direction to keep the tobacco industry out of the CSR initiatives as it would help them to promote their brands and earn goodwill.
The First Bench, comprising acting chief justice Sathish K. Agnihotri and justice M M Sundresh issued notices to the authorities directing them to submit their reply within two weeks on the PIL filed by S Cyril Alexander, state convener of Tamil Nadu People's Forum for Tobacco Control (TNPFTC).
The petitioner said they should be asked to pay their Corporate Social Responsibility (CSR) contributions directly to state and central governments for welfare schemes.
The petitioner pointed out that as the CSR scheme which took effect from April 1, companies are mandated to spend 5 per cent of their profit after tax (PAT) on various welfare, development and relief activities.
In the bargain, they are allowed to use their brand names and company logo, which is an opportunity to promote their brand name and create a good will.
While welcoming the legal obligation companies had been put under the CSR regime, the PIL said: "Allowing the tobacco industry to take part in CSR scheme would result only in promotion of their brand names, and would totally run counter to the very purpose and object behind the introduction of CSR scheme. In turn, it would only push up the expenditure incurred by the public exchequer towards health, environment and social welfare."
Calling for excluding the tobacco industry from the CSR regime, the PIL said they should be directed to pay the amount to state and central governments which would spend the funds on meeting the medical expenses of people affected by tobacco products, and for furthering the National Tobacco Control Programme (NTCP) initiatives.
