Fulfilling Social responsibility: Corporates need NGO Help

Corporate social responsibility is set to engage attention of many Indian companies. Having received Lok Sabha’s approval and awaiting Rajya Sabha’s nod, the proposed Company Law bill is converting CSR into a legal requirement in all probability from April 2013.

Under Clause 135 of the new Law applies to companies meeting any one of these criteria:

  • Net worth Rs 500 crore or more,
  • Annual turnover Rs. 1000 crore or more or,
  • Net profit is Rs.5 crore or more.

It is mandatory for the companies to spend at least 2% of their net profit on fighting poverty, environmental sustainability, and similar CSR activities.

It is not as if social responsibility is a strange concept; for thousands of years, merchants have done their bit in building choultries, made endowments to educational institutions and so on. Only it has a compulsive element to it and there is bound to be the usual rush and crush in implementation.

Now, spending Rs. 10 lakh (the minimum for even the smallest business) looks like an easy task. But, there can be hurdles, obstacles, and hassles along the way.

For one thing, most companies may not have the right kind of people for the job; and certainly cannot afford to spare time from their core activities. Associating with a reputed NGO should be the ideal alternative under the circumstances.

An experienced and trusted not-for-profit organisation brings in ready expertise and mentors the CSR project smoothly. NGOs know how to liaise with the neighbourhood, and properly understand the community needs. Being familiar with the rules and regulations, they can obtain governmental clearances and approvals faster.

Most importantly, you can truly achieve some socially meaningful results on the ground. After all, you do want money to be spent well.


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