The government has initiated a process of bringing the CSR activities under a legal framework aiming to operate the same in more coordinated and effective manner, officials said.
For doing so, it has already taken steps to amend the country's Companies Act again, they added.
Following an inter-ministerial meeting, the finance ministry has recently sent a draft CSR guideline to the commerce ministry for taking necessary steps to this effect.
Earlier, the ministry had prepared the guideline as per the instructions of cabinet division.
The meeting observed that it is necessary to bring the issues of proposed CSR guideline under a legal framework. "But without amending the existing Companies Act, it cannot be done."
Presently, there is no coordination among the agencies concerned regarding spending of CSR funds in absence of comprehensive guideline as well as legal regime.
The finance ministry has asked the commerce ministry to formulate a combined CSR guideline in line with its drafted guideline and international best practice after discussing the issue with stakeholders, a meeting source said.
"The task to formulate the CSR guideline is under the jurisdiction of the commerce ministry," he added.
Currently, the country has no policy or legal frame on regulating CSR practice. Different corporate sectors are carrying out the CSR activities on their self-initiative.
Earlier, the planning ministry had prepared a draft of common CSR guideline. Later, the cabinet division instructed the finance ministry to prepare such guideline.
A senior finance division official explained that the CSR guideline should be formulated under the existing Companies Act-1994 if the country wants to prepare such guideline as per international best practices.
Currently, a process is underway to amend the country's "Companies Act-1994". It is high time to include the CSR issue in the act, a high official of the commerce ministry said.
The Jatiya Sangsad in November, 2020 passed the Companies (2nd Amendment) Bill 2020, keeping a provision of formation of one-man company aiming to attract more investments and do better in the global ease of doing business ranking.
In 2008, the Bangladesh Bank (BB) prepared a CSR guideline for the scheduled banks and financial institutions. But it has not been made mandatory for the banks and institutions to comply with it, according to finance division.
Besides, the Ministry of Posts, Telecommunications and Information Technology prepared a guideline on CSR for the country's telecom operators, he added.
Presently, the government has given income tax exemption facility against the CSR spending with an aim to encourage corporate companies to get involved more in CSR practices.
CSR policies have already been formulated in different countries in the Asia region.
The CSR activity in the country has remained limited to certain specific areas, an expert said stressing the need for preparing a combined CSR guideline immediately.
However, experts are sceptical about such a government move to bring the CSR activities under a legal system.
Talking to the FE, former Bangladesh Bank (BB) governor Dr. Salehuddin Ahmed said making a national CSR guideline would hardly bring any desired outcomes in governing the overall CSR activities in the country.
There are separate CSR guidelines for banks and financial institutions for operating their respective CSR programmes, he said suggesting that such guideline should be made more compliant.
He further said if necessary, the country's regulatory authorities can make separate guidelines for overseeing the CSR activities of their affiliate organisations.
"I think it is hardly possible for governing the overall CSR activities in the country through framing national guidelines or legal framework," he added.
Provisionally, a policy or guideline may be introduced to regulate the CSR activities if it is not possible to include the CSR issue in Companies Act, a meeting source said.
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