03/08/2019 - Indian Economy

KEY POINTS

·        Companies have a social responsibility, but it is not to engage in philanthropy.

·        Philanthropy is a private matter—it is up to the individual to decide whether, how much and who to give to. The government can encourage this through tax deductions, public acclamation and moral suasion but has no business intervening in those decisions

·        The only good reason to encourage CSR is to allocate funds into activities that a government of a low-income democracy cannot.

·        Faced with immense developmental challenges, our governments cannot easily justify allocations for world-class art galleries, museums, theatres, sports facilities, research institutions and so on.

·        Corporate India’s CSR allocations, you’ll find the bulk of it going into education, health, rural areas, environment as per Ministry of Corporate affairs.

·        Corporate executives are often unable to decide on the best social use of CSR funds because they are not equipped to do so.

·        The mandatory CSR regulations never made sense to start off with. They have now become obligations that will add to the already stifling compliance burdens that companies face.

 Better use of CSR

CONSULTATIVE APPROACH

·        It may well be more useful for the government to consult with the corporate sector on some major issues, such as promoting industrial activity in backward districts, making industrial growth more employment-intensive and expanding training.

·        This will minimize leakages and benefit a large number of poor rural households. On issues such as CSR, a consultative approach needs to be adopted, as in the past, so that a right balance is achieved.

·        Companies in India need the support of society for its efficient functioning because of the population, diverse society, can act as huge market for companies regulating supply and demand mismatch.

please review it sir.

Kindly review sir Thank u

Review! Please ! Asap..