Implement One Door Mechanism for CSR: Private Sector

April 9: Private sector has requested the government to formulate one door mechanism for funds to be spent under corporate social responsibility so that it could be spent on a particular needy sector. Highlighting that the amount spent under CRS by private and public organization is ineffective, they stressed to formulate a mechanism to spend the CSR fund collectively.

Representatives of the private sector participated a discussion program on Industrial Enterprises Act organized by Ministry of Industry on April 7. During the program, the representatives said that the fund which is spent under CSR is not reaching the real sector.

“For that matter, under the initiation of MoI, the CSR funds should be accumulated in a basket and spent on required sector,” they opined. “The private sector is ready to spend some portion of their earned profit under social corporate responsibility to social sectors. However, if a provision is introduced granting them the liberty to mention such expenses in the books, more such funds will be accumulated,” they said.

Under the Industrial Enterprises Act, 2016, all medium and large scale industries and small and cottage industries making business transaction above Rs 150 million annually are subjected to spend at least one percent of their annual profit in CSR activities.