Corporate social responsibility (CSR) may not be made mandatory in the new Companies Bill.
Mr Veerappa Moily, Minister for Corporate Affairs, on Monday reiterated that the Government was not in favour of imposing its views on the corporate sector.
“We will encourage a voluntary approach on CSR initiatives of private sector. We will act as facilitators for companies to adopt social, environmental and economic responsibilities,” Mr Moily said at an Assocham event.
Growth and development can be made sustainable over a long period of time only when businesses are supported by appropriate policy regimes that encourage a systematic movement towards responsible thinking, decision-making and sustainability, he said.
He said a new national policy on CSR, with participation of all stakeholders, should be put together.
Mr Arun Maira, Member, Planning Commission said in India, “there was a general lack of faith in institutions, governments and businesses.” Companies should measure and report the impact of businesses on environment and people's lives, he added.
“The whole paradigm has changed. We can no longer be oblivious to our environment or to the needs of our workers, communities and society at large,” said Mr Dilip Modi, President, Assocham.