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CSR law: A way to reduce trust deficit between NGOs and Companies

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By Jaideep Sarin

Manesar:  With companies that fall under the ambit of the new guidelines of Corporate Social Responsibility (CSR) likely to report about their activities from next month, the trust deficit between them and NGOs is likely to reduce, a senior functionary in this field said.

“Over the years, a fairly large trust deficit has developed between NGOs and corporates (over CSR activities). Corporations, for their part, find it difficult at times to place their faith in NGOs. Their hesitation relates largely to issues of ethics and implementation capabilities.

“The new legislation will lead to a synergistic partnership between corporations, NGOs and the government which would also allow for greater transparency in the operations of all three agencies,” Bhaskar Chatterjee, director general and chief executive officer of the Indian Institute of Corporate Affairs (IICA), told a media outlet in an interview.

“Government data can help guide CSR agendas into areas it is most needed, corporations have experience making sure the projects are streamlined and costa conservative, and NGOs have experience and knowledge of marginalized and underserved areas of society as well as experience in operational transparency. If a symbiotic relationship can develop between corporations, NGOs and the government, socially responsible programmes will have a measurable impact faster and more efficiently than if there is less transparency and no trust,” Chatterjee said.

The new CSR rules under Section 135 of the amended Companies Act, 2013 came into force from April 1 last year. Companies falling in the ambit of the new rules were mandated to spend two percent of their net profit (average of last three years) on CSR activities.

Rough estimates indicate that nearly Rs 25,000 crore (over $3.5 billion) could be spent by companies in CSR activities in the first year (2014-15) itself.

“Presently, it is estimated that nearly 14,000 to 16,000 companies are likely to come under the ambit of the CSR legislation. Actual expenditure will become clearer after companies do their CSR reporting and audited results are made available in the public domain from September onward,” Chatterjee said.

Except for large corporates and old companies, most of the companies falling under the ambit of the new rules are first-timers who do not have much expertise about CSR.

Corporate Social Responsibility
credits: willnevergrowup.com

Chatterjee pointed out that the spirit of the new CSR rules was not to have the government control the CSR funds of companies engaged in the activity.

“The role of the government is to create an enabling environment so that companies are motivated, encouraged and inspired to undertake meaningful, impactful, sustainable and result-oriented projects and programmes on the ground. The purpose and spirit of CSR law is not that the government is to use or control any funds either for management of CSR or for doing CSR management in any way,” Chatterjee pointed out.

The IICA, which is under the ministry of corporate affairs, was set up to provide a holistic think tank, capacity building and service delivery institution, operating through effective partnerships with corporates and professionals and institutions. It has set up a CSR Implementing Agency Hub to create an extensive database of the implementing agencies. It has also launched new courses to meet the burgeoning demand for trained CSR professionals from the corporate, public and NGO sectors.

With the new rules in force, the CSR sector activity is likely to be streamlined in the coming years.

“There was a time when development and corporate sector functioned in a mutually exclusive fashion. In fact, many a time, they found – and continue to find – each other as an adversary. The changing milieu, however, is encouraging them to come to the same table. The business regulations in India have already created a platform for NGOs to play a part by recommending the implementation of CSR projects through NGOs and development sector agencies,” Chatterjee said.

(IANS)

 

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Father’s stress linked to kids’ brain development

The researchers noted that by learning more about links between a father's exposure to stress and the risks of disease for his kid, we can better understand, detect, and prevent these disorders

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The researchers also noted that by learning more about links between a father's exposure to stress and the risks of disease for his kid.
The researchers also noted that by learning more about links between a father's exposure to stress and the risks of disease for his kid. Wikimedia Commons
  • According to the researchers, the stress changes the father’s sperm which can then alter the brain development of the child
  • Research found that the father’s sperm showed changes in a genetic material known as microRNA

Fathers, take note! Taking too much stress may affect the brain development of your kids, a new study has claimed.

According to the researchers, the stress changes the father’s sperm which can then alter the brain development of the child.

This new research provides a much better understanding of the key role that fathers play in the brain development of their kids, the researchers said.

Previously, the researchers including Tracy Bale at the University of Maryland School found that adult male mice, experiencing chronic periods of mild stress, have offspring with a reduced response to stress; changes in stress reactivity have been linked to some neuropsychiatric disorders, including depression and PTSD.

Also Read: Surgical Infections More Common in Low-Income Countries, Study Finds

They isolated the mechanism of the reduced response; they found that the father’s sperm showed changes in a genetic material known as microRNA.

MicroRNA are important because they play a key role in which genes become functional proteins.

According to the researchers, the stress changes the father's sperm which can then alter the brain development of the child.
According to the researchers, the stress changes the father’s sperm which can then alter the brain development of the child. Wikimedia Commons

Now, the researchers have unravelled new details about these microRNA changes.

In the male reproductive tract, the caput epididymis, the structure where sperm matures, releases tiny vesicles packed with microRNA that can fuse with sperm to change its cargo delivered to the egg, they said.

The caput epididymis responded to the father’s stress by altering the content of these vesicles, the researchers added.

Also Read: Girls may inherit ovarian cancer gene from fathers

The result of the study, presented at AAAS 2018 annual meeting in Austin, suggests that even mild environmental challenges can have a significant impact on the development and potentially the health of future offspring.

The researchers also noted that by learning more about links between a father’s exposure to stress and the risks of disease for his kid, we can better understand, detect, and prevent these disorders. (IANS)