CSR Satyagraha seeks amendments in CSR Rules for making CSR work to its core objectives.
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CSR Satyagrah towards rolling out its action plan decides first to engage with MCA, Govt. of India as a stakeholder of CSR and therefore seeks MCA to take cognizance of some flaws and accordingly to make following amendments or changes in the Act and the rules u/s 135 therein.
1. Removal of “to explain” from the clause “either comply or explain” of the CSR Rules.
This is found to be grossly misused, rather abused by companies. It needs an immediate attention for the removal of “explain” part of the ‘clause’ in CSR Rules that gives leeway to companies to “either comply or explain”.
2. Define CSR
CSR, in the Act, has not been defined. Therefore, it is interpreted as activities relating to Schedule VII which is too broad. As a consequence, the spirit of CSR is compromised. By and large, CSR activities undertaken by most of the companies do not and will not benefit the underprivileged, the poor, the vulnerable and the weakest section of our society. Although activities may meet the eligibility criteria legally as they are in conformance with Schedule VII, they, however, fail to meet ‘the spirit’ of the Act.
3. The present reporting framework should be made more comprehensive.
The reporting framework given in the CSR rules is 'spend' centric. While CSR spend is one of the important indicators, it does not reflect on the quality and impact of CSR initiatives. Therefore, the scope of reporting is needed to be widened.
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