The Companies Act, 2013, is a unique attempt which allows the private sector to complement government efforts to achieve the 'Millennium Development Goals' (MDGs) on hunger, health and sustainability, Union Minister Shashi Tharoor said today.
"In finally achieving the MDGs lies the answer to many of our country's problems. As the 2015 deadline approaches, we need to pool our efforts towards achieving those goals," the Minister of State for Human Resource Development told a UN corporate MDG conclave here.
Representatives of private sector companies from across the country had gathered at the conclave to discuss ways to leverage the CSR policy in the Companies Act with a view to aligning business action with the MDGs.
The Companies Act mandates that private sector enterprises spend at least 2 per cent of their average net profits generated over the last three years on CSR.
Reiterating the importance of private sector involvement, United Nations and UNDP Resident Representative, Lise Grande, said that analyses from around the world conclusively showed that progress on MDGs is accelerated when businesses join hands with development actors.
"When business joins the race, the end is reached much more quickly and often more efficiently," Grande stressed.
Early estimates suggest that mandating companies to spend at least 2 per cent of their profits on activities linked to corporate social responsibility could generate investment of between USD 2 to 2.5 billion for efforts to eradicate poverty and hunger and to promote education, gender equality and women's empowerment.
