One single achievement of the outgoing Government is the successful passing of a bill concerning Corporate Social Responsibility (CSR). For more than fifty years, the Company Law has been suitably amended which can be taken as a first major overhaul of company law in more than 50 years.
With this amendment, the legislation has
strengthened the accounting standards and shareholder rights and
makes it mandatory for companies with market capitalization of more
than Rs. 500 crore to spend 2 per cent of their annual net profits on
corporate social responsibility (CSR), such as social work or
charity. Schedules have been created and added to these amendments
suggesting as to how to go about CSR initiatives.
The Bill, aimed at improving corporate governance,
also contains provisions to strengthen regulations for corporate as
well as auditing firms.
Let's hope in future, the scope for CSR initiatives
keep getting widened on a continuing basis irrespective of the fact
whichever Government comes in power because in a country like India
having strong democratic set, elections are held every five years and
therefore chances are Governments can keep on changing over a period
of time. But with great efforts some amendments to existing laws are
made for the bettering the society and therefore such amended laws
should gain momentum in becoming stronger and stronger in the future.
CSR initiatives do bring in guaranteed and
measurable improvements to the society and therefore such initiatives
should be strengthened in the future.
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