Government to Make CSR Mandatory

July 13: The government is making corporate social responsibility (CSR) mandatory for all types of industries. The bill formulated to amend and combine the acts of industrial enterprises has proposed mandatory allocation of particular amount from the total transaction of any industrial enterprises.

In the bill, provision of at least 0.5 percent allocation of annual total transaction for CSR has been proposed to the enterprises that has more than Rs 150 million annual turnovers. The provision mentions that the amount should be spent in the selected sector by the industry formulating annual plans and programs. A detail report of the amount allocated and the program selected by the industry for CSR has to be submitted to the government within the three months from the end of FY.

However, industrialist and entrepreneurs has demanded allocation of fund for CSR from profit rather than transaction amount. They expressed their opinion in the bill discussion meeting jointly organised by Ministry of Industries and Federation of Nepalese Chamber of Commerce and Industries (FNCCI). “If any industry spent the allocated amount in environment conservation, it has to be deducted as CSR,” says FNCCI President Pashupati Murarka.

According to the industrialists, it is unpractical for industries to formulate programs by themselves for CSR. They have demanded a mechanism allowing them to grant the money to any particular department or organisations.