MoC for spending 0.50 pc profit on CSR in place of 2.0 pc

The ministry of commerce (MoC) has suggested some changes in the proposed Corporate Social Responsibility guidelines including slashing of a company's three-year net profit to 0.50 per cent from two per cent for spending on CSR purposes.  
Besides, the ministry also suggested spending of money only for real beneficiaries which will not create any opportunity for making profits of the company.
The MoC's recommendations came following a request by the finance ministry (MoF) to give suggestions on the proposed draft guidelines on CSR.
The MoF in January last requested all ministries and departments to send their respective suggestions on the draft CSR guidelines.  
The Section V of the draft guidelines suggests expenditure of two per cent of net profits of last three years of the company for CSR purposes.
The MoC suggests it to be slashed to 0.50 per cent from the proposed two per cent.
The MoC sent its suggestions to the MoF recently on 11 sections of the draft CSR guidelines.
The Section 1 of the draft guidelines proposes to make  CSR 'compulsory'.
Regarding the section, the MoC suggested to consider different optional socio-economic development and social welfare activities by different organisations as 'CSR activities' apart from other legally binding ones.
The Section 5 of the draft guidelines proposes "Affordability-CSR". The MoC suggested exclusion of these words as it might give a chance to any company to avoid CSR activities citing its inability to spend money on this account.
The Section IX of the draft guidelines suggests submission of a report on CSR activities along with the annual report to the company's board meeting and also sending a copy of CSR report to the ministry concerned.
About the Section, the MoC agreed to the draft guidelines, and it proposed that all the reports related to CSR of a company should be uploaded on the company's webpage.
The Section XI of the guidelines suggests formation of a National Council comprising government, business bodies, civil society and professional bodies to review and recommend on CSR activities.
There will be at least two meetings of the Council in a year.
About the clause, the MoC suggested and appointment and inclusion of a 'National Contact Point' who will coordinate on global conventions, guidelines and best management practices and send the council's recommendations to the respective company.   
The MoC observed that the CSR Committee alone can oversee financial expenditure.
"We will finalise the guidelines after getting suggestions from some other ministries and departments," a high official of the MoF told the FE.
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