Directions (51-60) : Read the following passage to
answer the given questions. Some words/ phrases have been printed in bold to
help you locate them while answering some of the questions.
At first glance, the government seems to have done a U-turn on imposing a
mandatory 2 percent expenditure from company profits on corporate social
responsibility. The Companies Bill reportedly won’t have this provision.
Look closer, and It’s a case of “mandating without mandating”
as an industry voice describes it. The reworked proposal, it’s said, asks
firms to have a formal CSR policy targeting a 2 percent spend, and to
furnish details of funds going to social causes, in annual reports. In other
words, while keeping .up a technical pretence of not legally arm twisting
India Inc, the Centre seeks to exert heavy moral pressure by stipulating
disclosures if not actual expenditure. To quote the corporate, affairs
minister, CSR spending won’t be “voluntary” or “mandatory” but “somewhere in
between” Why this grey area, unless the government wants leeway to play
guilt inducing big brother?
Social spending should be self-willed, not least because Indian firms have a
good record already. To boost private participation in social service
further, the government should offer incentives such as “CSR credits” or tax
benefits. At the same time, the legal system can rap lirms that violate,
say, green norms or cause other forms of public damage. As the finance
minister conceded onlyrecently, corporate social conscience can’t be
parachute-dropped by politicians or law courts.
Companies themselves know that CSR makes good sense, winning hearts and
building brands. But for CSR to not be merely decorative or purely
manipulative in the sense of deflecting attention from bad practices,
companies’ main focus must be on core operations. What counts first is
corporate performance driven by efficiency, ethics and good governance.
That’s how business keeps faithwith share holders, delivers quality products
and services to consumers, creates jobs and spurs economic growth. And
that’s also how it best benefits society.
